Questions & Answers
Termination of services due to cost-cutting
My company terminated my services without any reason except for what they told me that they are cost-cutting.
What are the complete benefits that they have to pay to me beside the gratuity?
I worked there for 3 years.
Dear questioner,
We can definitely help you in this case.
You can claim salary up to 3 months as compensation in lieu of arbitrary dismissal along with other dues.
Kindly contact us on the phone for a detailed discussion or write to us at our email for further assistance.
Dear Sir/ Madam,
Thank you for reaching out to me on this.
I understand that your query pertains to what your labour entitlements are upon contract termination by the employer on the grounds of cost-cutting.
Please note that under the labour law and numerous judicial pronouncements, the court has reiterated that cost-cutting or restructuring is not a legal ground for termination.
The court may look upon your termination as wrongful for which the labour law provides you with compensation of up to three months gross salary.
You will also be eligible to claim all your labour entitlements at 9-12% of legal interest if a case is filed in court.
If you need further assistance, then you may contact me on email or phone.
Regards,
Hari Wadhwana
Dear Sir,
In our response to your question, termination of employment due to cost-cutting is considered as arbitrary termination.
You need to file a labour complaint. The court will look upon the matter carefully.
You are eligible to claim your rights and labour entitlements and also claim for compensation.
Kindly feel free to contact us on the phone or email to discuss further in details.
Regards.
