Company could fire me and not give compensation

[User_aab1ee5f]

U

User_aab1ee5f
PARTICIPANT
February 21, 2025 at 1:59 pm

Hi Redditers,

I’m 34M working with a US company in Hyderabad for 12.5 years now. I’ve always been a reliable employee and was promoted 3 times over my tenure. However during the FY24-25 due to changes in my personal life and where my org’s vision is heading, my performance has been less than mediocre. Due to cost cutting and other reasons, this year my org is planning to shed 50% of their capacity by putting more people on a performance plan, tightening the rules and not giving any pay hikes.

Sadly, I’m one of those who is on a performance plan right now. While my manager is supportive and is willing to bring me out of it, I see no future with this org and I decided to not fight it, take the lumpsum and leave. According to the current HR and Legal guidelines, if I leave under a performance plan, I’m eligible for (1) Gratuity bonus for my tenure (2) Leaves encashment (3) Salary compensation for me to sustain before I find another job.

While the company cannot touch or modify 1 & 2, I’m hearing rumours that 3 will be completely eliminated due to cost cutting in my org. Based on the current policies in my company I see that the compensation is a calculation based on my tenurity and previous performances, but it’s not clear how much or how it’s calculated. I’ve talked to people with similar tenure who left on a performance plan in the previous years and they say that I’m eligible for 7-8 month pay as compensation.

If my org decides to give me the stick and not give me #3 at all, I’d like to know if I can proceed legally to get some pay. I have screenshots I captured yesterday of the policy which states I’m eligible for a compensation based on my tenurity and previous performances (with the date on when I took the screenshot).

If proceeding legally will not bare any fruits, I’d rather resign, get 1 & 2 and keep my re-hire status as “yes” because if they fire me my re-hire status would be “no” for the next 5 years.

I’d appreciate any help in this matter. Thanks for reading.

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[Puneetknight613]

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Puneetknight613
PARTICIPANT
February 21, 2025 at 4:56 pm

If they are terminating during PIP or after it citing performance issues, they mostly won’t pay you severance, they are not required to pay legally too..

However if you resign they have to pay you during notice period, and they will have to pay leave encashment and gratuity.

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