Variable Pay - let go by the company
8 months ago
I was among the employees who were let go by the company on August 29th. This decision seemed to correlate with our discussions regarding the delay in receiving the variable pay for 2022, which we had been addressing within an internal Slack channel. Interestingly, the company chose to disburse the long-delayed variable pay on August 30th, merely one day after our terminations.
A.Dear Client,
From the contents of your query, it is not clear whether you were laid off or retrenched from the service, because both the cause of cessation of employment are dealt with differently under the relevant law. However, in case of layoff, the employees are entitled to a compensation of 50% of their basic wages and dearness allowance for the period of the layoff, subject to certain conditions under the Industrial Disputes Act, 1947. On the other hand, in case of retrenchment, the employees are entitled to compensation which shall be equivalent to 15 days' average pay for every completed year of continuous service/any part thereof in excess of six months. The compensation payable to an employee under the Act cannot exceed his average pay for fifteen months. A notice period of 30 to 90 days must be served before terminating an employee and in case of termination, one month's salary for every year of service, but may be more or less depending on the contract. For mass termination in protected sectors, three months of wages must be offered to employees.
From the contents of your query, it is not clear whether you were laid off or retrenched from the service, because both the cause of cessation of employment are dealt with differently under the relevant law. However, in case of layoff, the employees are entitled to a compensation of 50% of their basic wages and dearness allowance for the period of the layoff, subject to certain conditions under the Industrial Disputes Act, 1947. On the other hand, in case of retrenchment, the employees are entitled to compensation which shall be equivalent to 15 days' average pay for every completed year of continuous service/any part thereof in excess of six months. The compensation payable to an employee under the Act cannot exceed his average pay for fifteen months. A notice period of 30 to 90 days must be served before terminating an employee and in case of termination, one month's salary for every year of service, but may be more or less depending on the contract. For mass termination in protected sectors, three months of wages must be offered to employees.
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