Asso.prof.(commerce & Management) Pg
Labour Law Advocate
+1 Other

Thread Started by #nkjha1991

Hi, I was forced to resign by company in retrenchment process with 1 month advance salary. And after giving the same I was on leave and did not serve the half of notice period 15 days. Will it affect my compensation? is it necessary to work in notice period.
P K Jha
30th April 2017 From India, Khurja
Retrenchment compensation is applicable to you if you are a workman under the Industrial Disputes Act. In case of retrenchment, the company is to retrench the last person to be appointed first. Generally retrenchment compensation contains 15 days of salary for every completed year of service and from other benefits including gratuity if applicable in your case.

There is no legal provisions for "forced to resign". If you were forced to resign, it means your service was illegally terminated. Such action on behalf of the management is illegal and has nothing to do with retrenchment.

When the process of cessation of employment either in way of illegal termination or so called retrenchment is in question, the issue related to serving of notice period has no legal validity.

May be you should come with clear facts of the case as mentioned here under for further suggestion

1. Date of joining

2. Your nature of duty

3. Nature of company with strength

4. Last date of work.

5. How exactly your service came to an end?
30th April 2017 From India, Kolkata
In addition to the above, there are a few things to be clear.
1) Is't that in connection with Retrenchment you have been offered one month compensation in addition to Notice period (which you are supposed to serve) or Is't that one month salary was given in lieu of Notice period of one month (in which case you have no obligation to serve) ?
2) What the terms & conditions of your appointment says about your 'Termination" , is't there or silent about.
3) Do you wish to contest the termination per se or you wish to hasten the process and treat it as a closed chapter? And what is/are the reasons for this termination ?
4) Are you alone, terminated like this or there are others also.
5) Do you come under Industrial Disputes act or Shops & Commercial Estt Act or what ?
6) Are they willing to issue a 'Service Certificate' and Relieving Letter ?
30th April 2017 From India, Bangalore
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