HC restrains SRM from sacking staff of proposed channel

The company had plans to launch an English 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.