Indian IT market
The economic slowdown has started to squeeze the technology sector. So far this has not led to wide-scale job cuts, but a slowing demand for computers and other electronics may already be weighing on some payrolls.
The global recessionary trends have affected the young employees of the Indian software industry. Various companies are cutting variable pays. TCS is the first company in doing so
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There is a fear that TCS-- which last resorted to such a step in the third quarter of 2007-08 -- may not pay employees upwards of trainees a portion of their variable pay for the second quarter of 2008-09 as part of an austerity measure forced by the global financial meltdown.
This scenario is not in the IT sector but it is affecting Banking , Financial and Aviation sector also. Today Jet Airways layoff 850 Flight Attendants which is the largest lay-off in the history of Indian aviation .
Pepsico planning to cut 3300 jobs world wide.
Nissan also planning to cut 1680 jobs and Daimler 3500.
The nightmare on Wall Street has for the first time many awakened many Indians to economic uncertainties.
Particularly those who have never seen a sustained bear phase in their career. Job insecurity has crept in, with many losing sleep over their future prospects.
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“Employees need to be aware of the fact that their employer cannot terminate their services without serving the necessary notice (as mentioned in the employment contract) or compensating for the salary in lieu of that period . Some MNCs also have the practice of offering a severance package to the employees being retrenched which, depending on their policies, could amount to 3-6 months’ salary.”
“In case of any conflict between the provisions of the applicable labour laws and those contained in the employment contract or employee handbook, the provisions that are more favourable to the employees will prevail ,”
In the event of winding up of a company, the Companies Act, 1956 ensures that employees’ dues (along with the company’s tax liabilities) are given the first charge over the assets of the company, prior to settlement of other creditors’ dues.

