MadrasHC restrains SRM from sacking staff of proposed channel

BS Reporter  |  Chennai  

December 31, 2013 Last Updated at 20:39 IST

The company had plans to launch an Engli

sh news channel, which it scrapped

 The Madras High Court has restrained New Generation Media 
Corporation Private Limited, part of the SRM Group, 
from sacking employees or implementing pay-cuts
as part of its “alleged” closure of its proposed
 English channel launch.

The Chennai-based group, which has interest in education and media,
 was planning to launch a 24-hour News channel under New Generation 
Media Corporation, which already runs a 24- hour Tamil news channel
 Puthiya Thalamurai, Tamil GEC Pudhu Yugam, and a magazine 
Puthiya Thalaimurai.

While company officials were not available for comment, an employee
 said 29 staff, who were roped in for the proposed English News 
channel, had approached the court against the management decision
 to either cut 50 per cent salary or retrenchment with a severance pay
 of three  months salary.

This announcement was made by the management on December 
26 and employees were asked to select one of these options before 
December 30.

Confirming the order, R Vaigai, advocate who appeared for the
 employees, said the petition was admitted and the interim
 injunction was passed restraining the company from the 
pay restructuring or termination of employees.

Further, notices were issued to the company and the Tamil Nadu 
government considering that labour is a state subject.

According to rules, a company cannot terminate a large number of
 employees, like in this case, without prior permission of the state 
government, she added.