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UI work for a multinational company, and my managers are not from India. I have been told to lay off an employee who reports to me, for reasons related to cost optimisation. This is following a merger of functions within the organisation where they are now trying to reduce staff whenever possible.
The person who I am expected to release has been classified as “outstanding” in his appraisals during the last 2 years. I am a project manager and he and me are the only 2 employees who run the project in for the company.
So far, I have not conveyed any information to this employee and want to fight this out against my company. My immediate manager is supportive and has already taken up the fight too. I have been reading online and see that that law in India doesn’t allow for an employee to be laid off, and should be given some notice. It doesn’t however specify the notice, and further more, is laying off someone where there no justification other than cost acceptable in India?
Any advise can help. Am willing to provide any further information to help this cause.
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AEmployees can be laid off in India by providing requisite notice and/or severance. It happens all the time. An employee can’t be fired at will without providing a valid cause. However, most MNCs and even Indian companies usually choose to avoid firing for cause and risk litigation and use layoffs instead. If the company determines there is only enough work for one of you, there is no restriction on laying off the other person by providing adequate notice/compensation.
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MWhile you may have to cost optimise, look to place your employee in another role. If that is not viable, letting the employee go maybe the way forward.
Consult with your HR team to advice on the severance process and what you can extend as severance benefits.
Firing someone is extremely unpleasant for all involved.
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