Laid Off Overnight? Know Your Legal Rights in India

India Today

As layoffs sweep through Big Tech and Indian companies alike, thousands of employees are left scrambling for answers

Transcript

00:00Everybody knows that this is layoff week.

00:01Ten minutes, I come back, my coworker calls me.

00:03He could see the fear in my eyes.

00:05They are laying off 30,000 people.

00:08That was an Indian software engineer working for Amazon at the Big Apple,

00:12addressing the elephant in the room for techies all over the world,

00:17which is big tech layoffs making headlines as AI takes over more roles.

00:23A few weeks ago, another Indian employee logged in for work from home

00:27only to be told minutes later, they were let go due to internal restructuring.

00:31In India, we've seen this before.

00:33Remember Sahara or Go Air, Baiju's, even TCS?

00:37Thousands of employees left stranded as companies went under or restructured.

00:43So what can you legally do if you suddenly lose your job?

00:51First of all, understand the difference between retrenchment and dismissal.

00:55Retrenchment means your job is lost because of company-level changes,

01:00cost-cutting, restructuring, mergers or tech advancements.

01:03Dismissal, on the other hand, is because of your misconduct or your poor performance.

01:08If it is retrenchment, there are legal protections,

01:11especially under the Industrial Disputes Act or the ID Act.

01:15Workmen under this Act are entitled to 15 days' salary per year of service

01:20plus one month's notice.

01:21They can even challenge the retrenchment in the Labour Corps,

01:24which can order reinstatement or consider higher compensation.

01:27But here's the catch.

01:29Very few employees today actually qualify as workmen.

01:33If your salary is above 10,000 rupees per month

01:35or you hold a managerial or administrative role,

01:39you are not covered as a workman.

01:41For you then, everything depends on your employment contract.

01:44While companies must give severance pay depending on the terms of the contract,

01:49the terms of the contract will set what the severance pay will be,

01:53whether it is salary in lieu of notice,

01:55whether it is another amount specified in the contract.

01:58The company must also issue a termination letter.

02:02And you have the option to file a civil suit for breach of contract or for unpaid dues.

02:07You can invoke arbitration if your contract allows for it.

02:11Or if your dues exceed 1 crore, which is for senior positions,

02:15you can even initiate proceedings under the Insolvency and Bankruptcy Code against the company.

02:21And if the company itself has gone bankrupt, don't lose hope.

02:25Under Section 53.1 of the IBC, that is the Insolvency Code,

02:29employee dues get top priority during insolvency settlements.

02:33Yes, the reality is that the system often favours employers.

02:37But knowing your rights and acting fast can make all the difference.

02:42You must keep all documentation from the company,

02:45your employment contract and termination letters,

02:47and ask for all communication in writing.

02:51File your civil case for unpaid dues as soon as possible.

02:54Because losing your job does not mean losing your voice.

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