Retrenchment Of Workmen In Construction Company - CiteHR
Hr Executive
Accountant, Hr & Ir Handling
Accounts Assistant
Korgaonkar K A
+1 Other

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Dear Sir/Seniors
I have a problem regarding continuous service of workmen. Suppose a labour worked 3 year service and out of his service period he was absent about 4 month then what will the Retrenchment compensation.
Jan-10 to Dec-10 totoal number of days worked = 260
Jan-11 To Dec-11 Total number of days worked = 250
Jan-12 To Dec-12 Total number of Days worked = 200 ( during this period he was worked only jan-12 to April-12 (100 days) & Sep-12 to Dec-12 (100 Days).
He was absent from May-12 to Aug-12.So, please suggest wether we will take 45 days retrenchemnt compensation or 30 dyas retrenchment compensation.
Matter most urgent.

Dear NPMB,
Retrenchment means the termination by the employer of the service of a workman for any reason whatsoever,
otherwise than as a punishment inflicted by way of disciplinary action.
In given case by you there is no termination of service. The employee remained absent on loss of pay. The employee was liable for disciplinary action if this absence was unauthorized. The employee is not liable to get retrenchment compensation.
If you are giving retrenchment compensation in case of unauthorized leave on loss of pay, I would like to join you, sir.

As per your query, there is no point about Retrenchment compensation. Management was not terminated the employee and employee was absent unauthorized. So you no need to pay any Retrenchment compensation to the employee.

Hi, You all are right as the employer not terminating his service there is no question of retrenchment benefit at all. Ramesh
If the period of his absence is due to .sickness or authorised leave or cessation of work not due to his fault ,then that period is also deemed as continuous service. If it is so he may be paid 45 days salary. Otherwise 30 days wages.In addition he shall be given one month's notice or pay in lieu there of.If he is on unauthorised absence take disciplinary action and terminate him.If he is so terminated or he resigns retrenchment compensation need not be given.
Varghese Mathew

Dear All Seniors,
please clarify the 15 days retrenchment compensation rule. As we are in construction company and retrenched the workmen with full benefit but our client reject our calculation Method
Suppose a workmen worked 300 days in 1year 3month then as per industrial dispute act we have to pay one month notice pay and 15 days retrenchment compensation. But our client says that we must pay retrenchment compensation 15 days plus 3.75 days which means( 300/240 =1.25)
Please also clarify the continuous service in giving retrenchment benifit.

Your calculation as stated above is right.Pl refer sec 25-F(b) of Id Act.Service in excess of six months only to be counted as one year.Service up to and less than six months to be ignored.If your client pays more let them do it .
Varghese Mathew 9961266966

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