- This topic has 55 replies, 37 voices, and was last updated 1 year, 2 months ago by
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DHello fellow Redditors.
I have been laid off from my company this Monday. I have been working in the company for 1 year and 4 months.
This monday I received q call from my HR that my position is no longer required so they have to let me go and she also mentioned that this layoff is not related to performance or conduct is just a business decision.
They are letting me serve my 2 months notice period and I will be getting paid for those two months. But when I ask them to send me an email about the same they asked me to put the resignation instead.
I couldn’t think clearly and I did send them the email of resignation but I mentioned that this has been demanded by the company stating that my position is no longer required and I will be serving my period.
When I looked it up I found out that I am also eligible for getting severance pay because I was laid off on not on the account of any misbehaviour or lack of performance. when I shared this with the HR, they said me that they don’t pay severance and the labour law does not apply to software industry.
I don’t know what to do next. Please share some advice.
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CJust name the effing company, why play wordle here? Are you so scared? OP will deny or accept, it’s his choice, at least name the company.
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DI want to do that but all I think about is how they can ruin my career with the background check, references and everything 🙁
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PSeverance pay is when they fire you and they give you 2 months of pay.
But it looks like they don’t want to do that.
So they want you to resign so you can work for 2 months and the company still pays you two months salary.
Did you ask them why they didn’t fire you and instead wanted you to resign
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DI did ask them and they said they wanna support me with these 2 months notice period. But honestly, money is the main issue here, given the tough job market
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WFirst of all, Severance pay is different from notice period pay. Notice period pay is based on the your contractual notice period. Employer has the option to either serve you notice and pay salary for it or relieve you immediately and pay you salary for the period. In this case, the employer is going with the first option which is to serve notice and pay salary for the period.
Statutory Severance Pay is payable at 15 days basic salary for each full year spent in the company. It is only applicable for workers in non supervisory roles. Additionally, if you are a IT worker in IT Hubs like Bangalore or Hyderabad, the service pay requirement is exempted. Any other severance pay is purely at discretion of employer.
Voluntary Resignation is a option that IT employers provide except in the worst of disciplinary cases. It is because voluntary resignation is beneficial for both sides. The employer saves some book keeping overheads and possibility of frivolous litigation. For the employee, they won’t lose opportunities because they have a termination on their records.
If OP refuses to resign, they will still go ahead and terminate. Its just a bit more inconvenient for the employer. But for the employee, a termination would shut the door for jobs in many IT companies. My company at least would never hire somebody with a termination on their record. So, it is up to OP to decide whether they are willing to go for resignation or let the employer terminate them.
Also, in many companies that provide additional severance pay during layoffs, they will only give it if you are going for voluntary resignation. If they have to terminate you, they will pay you for the notice period only as legally required. In this case, OP is getting the notice period pay in either case, so the only difference is in their future employability.
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PTermination is laid off right? Why wouldn’t someone get a job later on?
Folks who were laid off from my company were paid 2 months minimum severance and found jobs outside as well.
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WEmployees who are laid off are always given the option of signing voluntarily resignation along with notice period pay and optionally severance pay at the employers discretion. When they resign, they get a relieving letter and the employer records also reflect the “Reason for leaving” as “Resignation”. There would be no problem hiring those people since their exit was clean. In fact, even for performance or less serious disciplinary issues, employers usually provide the option of voluntary resignation.
In case of termination, you get a termination letter instead of relieving letter. The employer records also reflect “Reason for leaving” as “Termination”. If the termination is for a non disciplinary reason, they would still have to pay for the notice period.
When a future employer does Background verification, they will get to know that you were terminated, but might not always get to know the reason for it. From the their perspective, it could be because of redundancy or it could be because of poor attitude, absenteeism or more serious disciplinary issues like policy violations or even sexual harassment. When an employer see a termination on your background verification, it is pretty much treated as a red flag. If nothing else, they would see it as a case of an employee who is a hassle.
Most employers would not take chances on such candidates. Hiring the wrong people can be quite damaging. The basic philosophy at my company for instance is that if you have a shadow of a doubt about a candidate, you don’t hire them.
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CYou are getting two months’ salary. So what’s the issue?
Why do you need additional money?
If you take severance pay then the company will issue a termination letter. You will find it difficult to explain that you were laid off for business reasons and not for performance.
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DGiven the tough job market, it’s really hard to find a job in just 2 months. I am a Product designer and the jobs are hard to crack in the design regime currently.
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COf course, you have to work to get a salary. You know any company which pays money without working?
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AFirst off, I’m sorry to hear about your layoff. In situations like this, it’s important to know your rights. Even though the company claims that labor laws don’t apply to the software industry, that’s not entirely correct. In India, the Industrial Disputes Act covers situations of retrenchment, which includes layoffs. Severance pay is typically due when someone is laid off, as long as it’s not due to misconduct.
Since they’re offering you a paid notice period, that’s a good sign, but you should definitely ask for confirmation in writing about the terms—specifically if the layoff is considered “retrenchment.” If it is, they should be paying you severance, which is typically 15 days of wages for every completed year of service.
You might want to consult a **labour lawyer** to get a clearer understanding of whether they are legally required to pay severance in your case.
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KServing a 2-month notice period seems fair to me. I know it’s tough — I’ve been there myself.
Use this time to focus on your job search 🔍 instead of draining your energy over a legal battle that likely won’t lead anywhere.Pick your battles wisely.
P.S. I once had a full-blown ego clash with the CTO at my company and was shown the door the very next day. They did give me a one-month severance, though.
I stayed calm, started interviewing right away, and landed a better offer within three weeks. Looking back, it turned out to be one of the best things that happened to me. -
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MPeople might come on me but I will stay with what I say .
Please don’t enter into a legal loggerhead…
It’s really not worth it..
You might end up regretting your decision..
EOD peace of mind is the most important.
Just try to have a talk with HR about how the Market is very bad and you might not get a job in 2 months..
Request them for an additional month of salary.
But be polite..
Leave the company on a good note..
Nowadays background checks are taken very seriously and big companies fire instantly if you have negative one..
Choose your battle wisely..
Start your job hunt in double speed..
You will soon land up in a better job..
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LI’m sorry you’re going through this. It’s unfair that you were asked to resign when it was a layoff. You’re right to question it. Many companies try to avoid the term “layoff” to dodge severance obligations or legal scrutiny. Don’t hesitate to speak to a labor lawyer or someone well-versed in employment law.
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LIdeally you shouldn’t have sent thag resignation mail. Given, you work in IT – maybe take this as a lesson. When a company wants you to leave – leave the ball in their court – you should never resign – let them chart you your exit plan, and then you can even negotiate more than say 2 months of pay. Now that you’ve already resigned best to let it be. You can however tell them that you’re aware that IT personnel are considered as workmen and you can go the labour commission – but all threats are useless if you don’t know what you want – if they do want to negotiate then at least know what is it you’re asking for – like you want the pay but be be put in garden leave, or more than two months, or whatever you really want.
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A2 months you have.. no need to work even ask them you’ll be on garden leave and you can look for another job meanwhile
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PI was fired by my company. They told me to put resignation and they will pay me 3 months of notice period pay monthly like a salary, and i need to put resignation before it. I sent them my resignation email and my salary was deposited monthly after that and i didn’t even go for work.
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SSeverance pay in India is discretionary. Just like you can resign, serve notice and leave, the Organization can do the same. The Organization legally only owes you your notice pay/period. Having said that you shouldn’t resign if anyone asks. They should be sharing a release letter / mutual separation contract instead of.
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AHr is lying, labor laws apply to software industry. DO not sign anything yet and ask politely for severance. Keep record of all communication and call recordings. Say u are short of money and as per contract u are eligible for severance. And yes she can approve it is HRs target to give u as low severance as possible.
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RYou can ask for notice period pay upfront and serve your last day immediately. Meanwhile, start grinding and preparing for and giving interviews.
I was asked to leave one company after an unsuccessful PIP. I was paid full notice period pay (90 days). I grabbed a new offer with 100% hike within 60 days. -
HYou can ask retrenchment compensation. If they are not agreeing, do file case in Labour court.
Retrenchment compensation, as per the Industrial Disputes Act, 1947, is a monetary benefit paid to employees who are retrenched (laid off) from their job. This compensation is equivalent to 15 days’ average pay for every completed year of continuous service, or any part thereof in excess of six months.
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