Termination of employment by the employer for restructuring

Dear Questioner,

Thanks for contcating me.

Please note that you have not specified the nature of your employment contract.

However, if the employer is terminating the employment for restructuring, the same is considered as arbitrary dismissal. You are entitled to receive, the compensation for arbitrary dismissal.

The maximum compensation that can be awarded to an employee pursuant to an arbitrary dismissal claim is three months’ remuneration, calculated based on the last pay received by the employee prior to dismissal.

For these purposes, “remuneration” is the employee’s full pay (basic salary plus any monthly allowances). This is in accordance with Article 123 of the Employment Law.

Apart from the above, any amounts such as pending salary, leave encashment...etc. have also to be released by the employer.

Thank you.

Regards,

Rajasree Ravivarma