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Narayana Swamy R
4

Dear Sir,
Under section 25 F to retrenchment of workmen under ID Act . the workman has to pay retrenchment compensation equivalent to fifteen days 'average pay [for every completed year of continuous service] or any part thereof in excess of six months;
Now my question is what is mean by " in excess of six months"
rns

From India, Mumbai
boss2966
1166

Dear Narayana Swamy
A person is eligible to get Retrenchment Compensation during his retrenchment from the company
If a person completed 1 year service at the time of retrenchment, then he is eligible to get 15 days Retrenchment Compensation.
If a person served for 1 year 6 months and 1 day then he will become eligible to get the Retrenchment Compensation for 2 years, i.e., 30 days (to calculate the amount, his monthly Payment/26 multiplied by 15)

From India, Kumbakonam
NPMB
16

Dear Sir Please help me in solving the retrenchment benefit calculation as per the data attached . Only suggest the retrenchment benefit whether it will be 15 days or 30 days
From India, Jamshedpur
Attached Files (Download Requires Membership)
File Type: pdf F&F.pdf (181.9 KB, 198 views)

v.harikrishnan
169

Dear Mr.Narayanaswamy and

Section 25F applies to all establishments which come within the ambit of the definition of the term "industry" as defined under section 2(j) of the Industrial Disputes Act and as interpreted by the Honourable Supreme Court in various decisions. The most important of these decisions and which is often cited is the decision of the Honourable Supreme Court in Bangalore Water Supply and Sewerage Board vs Rajappa. It would be advisable to read this judgment which is available in the web site of the Supreme Court of India. The term "retrenchment" has been defined in section 2(oo) of the Industrial Disputes Act. Please read this definition. This definition has again been interpreted by the Honourable Supreme Court to mean as the termination of the services of a workman for any reason whatsoever other than for the exceptions to the definition of "retrenchment" in section 2(oo). Section 25 F of the Industrial Disputes Act lays down the procedure for retrenchment. In other words it lays down what actions should be performed by the employer before retrenching a workman. If a worker had worked for one year and seven months and if the employer proposes to retrench him then the worker is entitiled to get one month's notice pay and retrenchment compensation equivalent to 30 days wages. Here for the first year the retrenchment compensation is 15 days. The balance of 7 months as it is in excess of six months the 7 months is regarded as one year and the worker is entitled to another 15 days wage as retrenchment compensation.

From India, Madras
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