Legal Question in Employment Law in India

Note 1 - Appointment letter is silent on the age of super annuation .

Note 2 - Appointment letter is silent on the notice period to be served .

Note 3 - Organization has approximately 4000 employees .

Note 4 - Employee has been super annuated at the age of 58 years , 11 months and 15 days .

Note 5 - Organization is based out of India

All above notes are true

Q1 : What legal options the employee has if he is super annuated without any notice period ?

Q2 : If the organization decides to superannuate an employee then is it mandatory for the organization to clear all dues before or on the last date of service ?

Q3 : Can the employee seek compensation for not being allowed to serve notice period and dues were not cleared before he was super annuated , however the dues were partially cleared post court intervention after a year ?

Q4 : Can the organization super annuate an employee at will if the appointment letter is silent on the age ?

Q5 : Is the employee due any consideration apart from the Provident fund ?

Q6 : Under which law(s) is the organisation under fault for not providing the adequate notice period towards super annuation, not clearing the dues on time , not mentioning the super annuation date in the appointment letter , not mentioning the notice period in the appointment letter .


Asked on 8/22/13, 1:19 am

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

22.08.2013

Dear Sir / Madam,

Here are my answers :

A1. None. Since the appointment letter does not specify any notice period.

A2. Yes. If not on the last date, then at least within 7-10 days of the last working date.

A3. Yes, a year to settle dues is too long a period and the employee remains eligible to claim interest loss @ 21% per annum on the final settlement amount for the total period of delay in settlement of dues in a compensation suit lodged against the HR Department of the Company.

A4. No, superannuation cannot be done before 58 years of age. An employee's services can be terminated earlier.

A5. The employee is eligible for Gratuity, Leave Encashment, Performance Incentive (Bonus) and all other benefits as specified in the Appointment letter.

A6. The Labour Welfare Act, 1881.

Regards,

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Answered on 8/22/13, 2:09 am


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