Amend Laws to provide reasonable Severance Compensation for Employees who are being fired

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The IT and ITES Industries and also other Multi National Corporations, BPO Companies operating out of India enjoy certain privileges when it comes to Labour Laws. More than a decade ago these sectors were considered as sunrise industries and were exempted from following certain strict regulations regarding Employee Engagement, especially concerning compensation and severance,mass lay offs.

These industries have been allowed to follow an easy 'Hire and Fire' policy. While it has been a very effective policy enabling the industries to operate with broader profit margins and ensure steady profit growth.It brings uncertainties to the lives and careers of lakhs of Employees poses enormous risks to the Government in dealing with unemployment. We often hear of reports of mass layoffs in many of these Multi National Corporations resulting in hundreds of employees loosing their jobs. Since most of these employees are from the Middle Income Background and have limited savings, they struggle to make ends meet until they get another Job. To add to their woes it becomes extremely difficult to find a job after a getting laid off, because the prospective employer is reluctant to offer a job for an employee who has been laid off. The root of the problem is irresponsible and ineffective HR Strategies followed by these Multi National Corporations. Proper Human Capital requirement analysis is not done, and while offering the employment HRs do not care whether an employee is scalable and retainable. This can only be controlled with Government Intervention.

Below are the demands of this Petition to the Government of India.

  1. Create an Ombudsman to deal with Employee Grievances of Multi National Corporations/IT ITES/BPO organizations.
  2. A Law which mandates the Organization to give Six Months full salary to an Employee(not just basic), if he is being terminated for non-performance or unavailability of Projects/Work with the Organization.
  3.  Additional severance compensation of 1 month salary for every year worked in the organization.
  4. The Organization has to inform the respective State Government and also Central Government if they are planning a Mass Lay off.