Working with a Pvt Ltd Company since last twenty three years, now due to some funding problems they are going to closed the Company. What are compensations & benefits should the employees get, if they voluntary closed the company.
From India, Delhi
From India, Delhi
The compensation available under the Industrial Disputes Act will be equal to 15 days wages for every completed year of service. This is available only to employees who have been in service for at least one year. Fraction of year amounting to more than six months will be rounded as one year. In addition to this (retrenchment compensation) a notice for two months or pay in lieu of notice (in case you are not given advance notice that the company is getting closed) is also to be paid to all employees who have completed one year of service.
One year of service means 240 pay days. pay days means the days on which the employee has received wages and that will include wages paid for weekly off day and paid leave days.
In case your company had more than 100 workers, the compensation will include three months pay.
In addition to the above, in the case of establishments to which the Payment of Gratuity Act is applicable, the employees who have five years' continuous service are entitled to gratuity at the rate of 15 days pay for every completed year of service or fraction of a year in excess of more than 6 months.
An establishment which had at least 10 employees on any day will be liable to be pay this.
Regards,
Madhu.T.K
From India, Kannur
4193One year of service means 240 pay days. pay days means the days on which the employee has received wages and that will include wages paid for weekly off day and paid leave days.
In case your company had more than 100 workers, the compensation will include three months pay.
In addition to the above, in the case of establishments to which the Payment of Gratuity Act is applicable, the employees who have five years' continuous service are entitled to gratuity at the rate of 15 days pay for every completed year of service or fraction of a year in excess of more than 6 months.
An establishment which had at least 10 employees on any day will be liable to be pay this.
Regards,
Madhu.T.K
From India, Kannur
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Flexi Benefits Plan.doc