Monday, May 11, 2009

Acceptance of Resignation and Terms of Disengagement

Now the letter in discussion goes like this,

Microsoft
May 6 2009

Mr. Innocent,
Address from headtrax

Subject : Acceptance of Resignation and Terms of Disengagement

Dear blah blah ripped off creature,

1. We acknowledge receipt of your letter dated May 6 2009 whereby you have resigned from the services of Microsoft India. (company ). The Company hereby accepts your resignation. Please note that you shall cease to be the employee of the company with effect from June'26(termination date). You will however not be required to attend office until the termination date.

2. We are in the process of calculating your dues under the company policy and in terms of your employment contract and the same will be paid to you on or before the termination date. This will include M% of your target commitment based incentive for period ending June 09, your target being x% amounting to Rs.X/-

In addition, the company at its sole discretion will make an ex gratia payment of Rs.Y to you [which represents {2 months+ 1 month/for every year of tenure @ MS} months of only base salary and is inclusive of your base salary for the month of May 09]. You will continue to receive all applicable benefits till the termination date. However, it is agreed between the company and you that in the event prior to the termination you take up employment with any Microsoft entity, anywhere in the world, you shall not be eligible for the said ex-gratia payment from the company.

3. The company may provide you an out placement assistance [www.right.com]for which you may contact x person at y number for help in finding a suitable position for yourself during the notice period. However, by offering this assistance, the company shall not be, in any manner whatsoever, responsible or liable for finding employment for you.

4. On or before termination date you are also called upon to immediately handover the company's property such as laptop, smart card reader, and mobile phones ("company property") which were given to you by virtue of your employment with the company.


5. NDA crap

6. The contents of this letter shall constitute confidential information for the purpose of NDA and you undertake to keep the same strictly confidential and not to disclose the same to any persons within or outside the company. You are strictly prohibited to contact any vendors, customers, consultants, service providers or past or current employees of the company to discuss or disclose the terms of this Letter Agreement or any matters related or incidental thereto. You shall not speak to any member of the press, whether print, radio, television, internet or howsoever based, or any public or private forum, in respect of the terms of disengagement or your employment with the company. You are being provided certain company property till the termination date and you are required to handle the same judiciously and in a manner set out above and which does not harm or disparage the company in any manner.

7. On the termination date, the company will make payments of your contractual and legal dues and if applicable, of the ex-gratia payment referred in paragraph 2(collectively the “Amount”).

The Amount shall be payable by the company subject to
i. handing over possession of the premises, the company property and Microsoft confidential information to the company
ii. deduction on account of any loss or damages suffered or incurred by the company either in respect of the premises or the car or any company property if such loss or damage is attributable to you
iii. your conduct in complying with the terms and conditions of this letter agreement and
iv. deduction of applicable taxes.
The Amount paid shall constitute full and final payment of all your legal dues by the company to you.

8. In the event you are able to find employment during the notice period with an entity other than a Microsoft entity, upon your request the company may relieve you prior to the termination Date and waive the balance notice period and shall also make payments of the Amount in accordance with this letter prior t the Termination Date, subject to you fulfilling your obligations in respect of return of Company property, premises, car and confidential information, as the case may be.

9. The Terms of this letter agreement shall be biding upon both you and the company.

Kindly sign a duplicate copy of this letter to signify your acceptance of the terms contained herein and return to the undersigned

Yours cheatfully,
For Microsoft India
---- ---
Authorized shooting agent working for Microsoft



Agreed and Accepted

---- -----
Victim Name
May 6 2009

7 comments:

  1. From your post, The severance package looks pretty good to me unless i am grossly misunderstanding it. Someone who has been with MS for 5 years would get about 7 months of salary and placement assistance - You don't think this is nice? For instance, i would get close to 10 Lakhs pre tax + FY09 bonus if cut. I wouldn't be too sad to take this package.

    BTW, base salary means your full package minus bonus. Given that benefits still continue for 2 months, i think this is pretty generous...

    ReplyDelete
  2. Base salary seems to be 50% without the 50% variable component.
    So a 5 year guy will get 5 half months (50% base) salary+ 2 months’ severance.

    Infact May salary and June salary for which you're allowed to do internal search will be deducted from this, so when employees were relieved that day on June'26, it'll be their June salary+ 2.5 months’ salary

    Read para 7, clause iv.
    You'll be deducted 30% tax. so it'll be come 1.5 months finally, God save the employees.

    In Philippines due to stringent labour laws, government regulations and good leaders, we've given 3 months’ salary for every year the employee has spent with the company.

    ReplyDelete
  3. "Base salary seems to be 50% without the 50% variable component.
    So a 5 year guy will get 5 half months (50% base) salary+ 2 months’ severance"

    are you sure you are not mixing up 'Fixed' component versus 'Base salary'? I for one don't have any variable component. So my monthly take home is base salary/mo minus tax. sure there are some benefits that are not part of the base. Excluding the car lease (if applicable) these will not total more than 8K per month.

    Tax thing is a given. we can't do anything about it.

    Look, i am not supporting the layoffs. But the severance package does look very generous. I didn't think MSFT would even do this given that they can get away legally in India doing much less.

    The way I see it is like this, from the date of notification, you will be paid for at least 2 months and possibly more depending on your length of service. This should provide a nice cushion in terms of the time taken to get a new job.

    ReplyDelete
  4. Leave all this severance bull sh#t and trying to save cost by only giving base pay for the tenure,etc, but think about the future of the company image with those people impacted.

    I am damn sure that they are not going to ever be our alumni spreading the culture and postive impact of the company in their personal and professional lives.

    We are not creating a very smooth experience for them despite all this spending.

    God save the company and it's culture...
    Come back BILLG

    ReplyDelete
  5. Earning money online never been this easy and transparent. You would find great tips on how to make that dream amount every month. So go ahead and click here for more details and open floodgates to your online income. All the best.

    ReplyDelete
  6. Intersting and beautiful blog lovely presentation thanks for sharing your views...microsoft software support

    ReplyDelete
  7. Hii.. Thanks for you posting this blog. Am runing a GYM in Delhi at Saraswati Vihar.You can find us by searching these keywords below.
    Best Zumba classes in Delhi
    Fitness Club in Delhi
    Weight Loss Center in Delhi

    ReplyDelete