My Wife’s Company Got Acquired – Employees Being Asked to Resign Without Clarity. What Are Her Rights?

[User_62dcef5e]

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User_62dcef5e
PARTICIPANT
February 21, 2025 at 11:11 am

My wife has been working at her company for the past three years. Recently, the company got acquired by a larger organization. The founder initially reassured employees not to leave, stating that the acquisition would be beneficial for everyone.

However, today, she and all her colleagues received a sudden meeting invite. She later found out that in this meeting, the founder told them they could resign today and would be offered jobs in another company. This sounds very shady, and she’s unsure about her rights in this situation.

She has a call scheduled at 8:00 PM today regarding this. Given the circumstances, does she have any legal entitlement to severance pay? Is this a forced resignation, and if so, how should she approach it?

Would appreciate any guidance from those who have dealt with similar situations or understand labor laws.

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[Silentsuhani990]

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Silentsuhani990
PARTICIPANT
February 21, 2025 at 11:25 am

Shady. Get and accept new offer letter, then resign from previous

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[Aniketninja284]

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Aniketninja284
PARTICIPANT
February 21, 2025 at 12:10 pm

It’s a private business, no rights to a job.

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[Fierceanirudh9723]

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Fierceanirudh9723
PARTICIPANT
February 21, 2025 at 12:34 pm

Is the new company taking the employees on their rolls as fresh employees? If so, they may be asked to resign from previous org and accept the offer from new one. This is typically done when the company has not been acquired, rather only assets have been acquired. The acquirer does not want to inherit any liabilities of the old company and must have structured the deal accordingly.

If the new offer is good, then sure accept it. Of course the downside is that the 3 years of service will not count towards gratuity payments. If the founder can compensate for that (45 days of basic pay), that should be a fair deal.

If the offer is not all that good, then I guess you can be terminated by providing the notice period mentioned in your appointment letter or salary in lieu.

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[Megamaster2414]

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Megamaster2414
PARTICIPANT
February 21, 2025 at 1:25 pm

🔝 this. Most usual way to acquire companies under stress. Cuts off all unknown liabilities.

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[Luckywolf8516]

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Luckywolf8516
PARTICIPANT
February 21, 2025 at 1:10 pm

This is the way indian companies do lay offs. Your wife needs to negotiate the terms in written before signing. Like a 2-3 month severance, insurance etc

Secretly record the call for proof later.

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[Happybear2986]

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Happybear2986
PARTICIPANT
February 21, 2025 at 1:28 pm

Don’t resign without getting an offer in writing. Even that is not guaranteed she will get a job. Companies pay sick games in situations like these. Best course of action is ask them to fire you and get paid for notice period. Until then start preparing for interviews.

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[User_039996b6]

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User_039996b6
PARTICIPANT
February 22, 2025 at 3:02 am

Absolutely right that she should have an offer from said company before she puts down her papers.

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[Urbanknight9782]

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Urbanknight9782
PARTICIPANT
February 21, 2025 at 1:38 pm

Should get offer letter from the other company first.

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[Braveguru602]

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Braveguru602
PARTICIPANT
February 21, 2025 at 1:42 pm

She can’t do much.

If they are offering, the best possible scenario is to accept.

Don’t bring any law discussion during the call or else she has to face the heat…

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[User_3caaa2bf]

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User_3caaa2bf
PARTICIPANT
February 21, 2025 at 4:48 pm

Spoken like a wussy coward.

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[Braveguru602]

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Braveguru602
PARTICIPANT
February 21, 2025 at 5:07 pm

😎

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[Rajivtiger585]

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Rajivtiger585
PARTICIPANT
February 22, 2025 at 12:18 am

Possibly negotiate a severance package. This is unfortunately very common.

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