Company asking to resign with two months basic pay amidst COVID situation

Question

I am in weird situation. I work in Indian IT company which has around 3000 employees. I am not on any projects for couple of months now. And now I have started to work from home due to COVID-19. (When not having project assigned, I am supposed to learn new technologies and report the same.) In these months I got some project opportunities but got rejections from them. In one of the opportunities, interviewer was ok to induct me in the project. But, couple of weeks after interview, I came to know that this opportunity was also not materialized.

Couple of days back I got call from head of staffing team and was being told that due to rejections from projects, I better find opportunity outside the organization. She said that the company will provide two months of basic pay.

I want to know if it will be troublesome for me to have two months basic salary in payslip while getting new job. I feel new employer will ask for why my salary is so less. Q1. Am I correct with this?

I told the same thing to her, but she said that in that case company will provide one month full salary. To that I said, if we can come up with some financial adjustment, like I will pay them for in advance some money (similar to the way I paid my last organization by cheque to buy notice period). In response they will give me full salary for two months. But to that she said she will think of it. Q2. Is such financial adjustment possible?

Then I requested her that its a quite harsh decision and she asked to give some time. But I did not get any response from her for a day.

I feel I can get the job in two months. I have 14000+ reputation points on stackoverflow (stating just to let me know I am good at programming) through question and answers (not through edits). So I am quite good technically. But I know getting new job involves quite efforts. At the same time I am trying to request company to reconsider

their decision. Also, I feel I feel I have financial resources for at least 1.5-2 years. But I am worried due to overall situation in the context of COVID and corresponding job market due to recession and slow down.

Q3. How should I deal with this situation?

Q4. Should I request company formally on mail to reconsider its decision stating my contribution to the organization till now.

PS: This is my current salary breakup:

BASIC PAY 26,250.00
HRA 31,550.00
CONVEYANCE 1,600.00
FOOD COUPONS ALLOWANCE 2,200.00
LEAVE TRAVEL ALLOWANCE 3,750.00
MEDICAL 1,250.00
PF ALLOWANCE 3,150.00
RETENTION 5,250.00

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TOTAL EARNINGS 75,000.00

Answer 1

Take the one month full salary 75000 > (2*26250)

Don't take it personal and move on, find a new job. The company will probably being letting more employees go.

The smart decision you have made in life is being organised and prepared. Not everyone has 1.5 years worth of financial security. This gives you some breathing space and a lot of time. Looking for a job right now is going to be hard, but not impossible.

(I am still getting offered jobs weekly via email for contractor work and I only have 5000 points on super user)

Answer 2

Disclaimer: I'm not familiar with India's labour laws.

"In response they will give me full salary for two months."

This sounds generous.

Are they contractually obligated to give you more than two months notice? If not then I'd be inclined to thank them and move on.

"I feel I can get the job in two months."

"I have financial resources for at least 1.5-2 years."

You are correct to worry about your present situation. Being made redundant puts you into a vulnerable position.... but I don't think you can do a lot about it other than to get out there and put the effort into getting another job. You have to work with what you have and it doesn't sound like you have a future with your current company.

You have had several months of paid training, are being given two months additional pay, have savings, and feel confident about your skills. Those are some pretty huge advantages! Use them.