Retrenchment Calculation - labour commissioner.. CiteHR

gvparab Started The Discussion:


i ahve completed 4 years 8 months and 18 days in my office, now for the purpose of cost cutting that want resign ion from from me. company is ready to pay 1 month salary. My question is can i resgn or ask company to terminate me? from which mode i can get the maximum benefit and good for me in future.
Please Answer ASAP

Rakesh_1974 -  Member Since: Sep 2011
Dear Mr. GV Parab,

If company give you one month notice with gratuity for the 05 years than you can relive over their otherwise you ask company to terminate to you with mentioned proper reason of your termination in your reliving letter, If company give the reason/explanation for reliving your service in that case you can also approach to labour commissioner but peaceful reliving is good for your future assignment & waste your time further litigation.

Rakesh Gandhi

kanika kapoor -  Member Since: Nov 2007
What are the conditions precedent to retrenchment of workmen?
No workmen employed in any industry who has been in continuous service for not less than one year under an employer can be retrenched by that employer until :

(a) the workman has to be given one month’s notice in writing indicating the reasons for retrenchment or the workman has to be paid in lieu of such notice, wages for the period of the notice.
(b) The workman has to be paid, at the time of retrenchment, compensation which is equivalent to fifteen days’ average pay (for every completed year of continuous service) or any part thereof in excess of six months; and
(c) Notice in the prescribed manner is to be served on the appropriate Government (or such authority as may be specified by the appropriate Government by notification in the Official Gazette).


RVP -  Member Since: Oct 2009
Termination is not a good terminology with regard to your future career perspective.

You are eligible for Gratuity and do not leave that amount for any reason. Please get one month notice with gratuity. Ensure that you get the Gratuity amount before giving the resignation letter. You can also ask for three month's notice even though it is mentioned as one month in the clause.


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