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Dear Sir,
I have been working with a NGO since 6 years as Administrative Officer.
The NGO was promoted a Dairy (where milk and milk products prepare) in the year 2006.
Due to unavoidable circumstances (Loss) the management was decided to close the dairy since the first day of this month (June 2015). On 25.05.2015 this decision was intimated to all the staff & labour of dairy orally.
So please suggest me the legalized compensation which can be applicable to the dairy staff & labour.
Note:
1) We do not offered any written appointment letters with terms & conditions to them (staff & labor) while appointing.
2) 80% of the labor are working since the inception of the dairy.
3) They are asking for the compansation RS 1 lakh each.
So please suggest me the proper legal provisions to overcome the issue.
Thanks in advance.
V Kishore
kishorevodapally@gmail.com

Dear Mr. Kishore,
What is the total strength of the workmen because if the strength is more than 100, govt permission for closure is to be sought.
If not, then you have to display a general notice about the closure and comply the provisions of Industrial Disputes act wherein closure compensation @ 15 days salary per completed year of service is to be paid plus one months notice pay, in addition to gratuity. However, if the closure is for reasons beyond the control of employer (not being financial difficulties) then the maximum compensation payable is 3 months salary.
In this manner, closure has to be done.

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