Notice Pay & Retrenchment Benefit At The Time Of Full & Final Settlement - CiteHR
Industrial Relations And Labour Laws
Practicing Advocate
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Dear Sir,
Please let us know about the notice pay and retrenchment benefil at the time of full and final settlement. when an employee is entitled for notice pay and retrenchment benefit and what are the slabs?

Dear Nitin,
First of all there is no provision of notice pay in case of employment on Retrenchment basis, bcoz that is purely object based employment.
Second thing when your/any individual who is employed on condition of retrenchment so he/she will get F & F as routine employee gets.
Plz feel free to ask if any clarification.

When an employee is retrenched he should be given retrenchment compensation at the rate of 15 days wages for every completed year of service. This is in addition to gratuity payable as per Payment of Gratuity Act. It is also mandatory that an employee to be retrenched should be given one month notice or, if the retrenchment is to be taken place with immediate effect, he should be paid one month salary in lieu of notice of retrenchment.

Sir, I just want to that
My salary is Basic- 4000, Allowance1- 2300, Allowance2- 2300= 8600
I am working in a company since 2 yrs...... Now thew wanted to retrench me immediate effect without notice period.
Now, please inform me that what amount I will get as per notice period only basic salary (4000) or net salary (8600)
And also inform me the retrenchment benifit to be calculated based on my Basic salary or gross salary.
Pls inform

Dear All,
in our company we are trying to let the some of the employee to be out from the company. reason they are over aged as to not as fast in working as the new employee are. however when we have ask them to leave the company but they all refused. pls guide me can we retrench them complying the provision under section 2(00) of ID Act.

First to be verified is whether these employees are workman under industrial diputes act section 2 s or not. In case they are not covered then they can be terminated on the terms and condition of appointment, however in case they are covered then, section 25 G and H has to be complied with i.e last come first go and re employment right.
However if you can prove that they are not physically or mentally fit to perform there duty then you can take a route of section 2(00) (c).
Anurag Lakhotia
Lex Labour

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