Voluntary compensation by company for closure of business - if not paid? - CiteHR
Bharat Gera
Principal Hr Consultant
Dmc123
Legal Consultancy
Rahulrashi
Hr Executive
+1 Other

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My company was a German MNC with 35 employees in all, company decided to close its business in India and declared 3 months salary to be paid to each employees as compensation. company relived me from service on 30th of July 2017 but did not pay my compensation amount yet. Please advice me how can I get my compensation from company?
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Retrenchment compensation is to be be paid @ 15 days gross wages for every completed year of service of employee. One month notice has to be given before closing of business. If it is not given then one month gross salary has to be given in lieu of notice.
company agreed to pay three months salary as compensation but, period of more than 60 days have been passed but not paid yet.
Dear Friend,
What was your role and designation? Were you in a supervisory role or any other role? You have to share that information first to advice you properly.
Warm Regards
Bharat Gera
HR Consultant
9322404765
How Can I get the money recovered from company?
Dear Friend,
Since you were working in HR, you must be aware of Labour Laws. Please contact some good advocate who deals in employment related matters may be able to help you. In my opinion you can approach labour department also a workmen and raise an industrial dispute for recovery of dues.
Warm Regards
Bharat Gera
HR Consultant
9322404765
Dear Rahul,
As per the provisions of Industrial Disputes Act, closure compensation is to be paid for closure of the establishment @ 15 days salary per completed year of service, plus one months notice pay if no notice is given, in addition gratuity if applicable, earlned salary, leave salary, prorata bonus is required to be paid. If this is not done the closure will be illegal and the workers can approach Industrial Court for their dues and ask for full salary till the dues are settled.
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