Thread Started by #rehana-bee-ansari

Can anyone help me regarding severance pay rule in India. Is it mandatory for an employer to pay severance pay to employee when they are closing their business and ask their employees to leave from their end.
Is there any law for that.
My query is for a company which comes under shop & establishment ( Maharashtra state ) .
11th April 2019 From India, Lucknow
Severance Pay refers to the compensation payable to the employee by the employer in the event of discharge from employment at the instance of the employer. Under the Industrial Disputes Act,1947 it is called as retrenchment compensation. It is computed on the basis of the length of service rendered and last drawn wages/salary. It is 15 days average wages for every year of completed service under the same employer.
It is mandatory that the employee likely to be retrenched must be served with one month's notice or one month's pay in lieu thereof and paid retrenchment compensation thus calculated above.
12th April 2019 From India, Salem
Dear sir, You have not disclosed what is strength of your employees and specially workman category and nature of business etc. to respond you correctly on this point. Closure of any Industrial establishment is not permitted and hence not possible to terminate with notice pay. Under Uttar Pradesh Indl.Disputes Act, there are specific provisions for 'Closure' and "Retrenchment" which is strictly applicable to workmen category . You may adopt some strategy to remove only Staff Management with compliance of appointment letter for those who do not fall in workman category.If you terminate any workman without obtaining permission for Closure, your action will be illegal and punishable also.

RDS Yadav
Future Instt. of Management and Technology
Labour Law Adviser

15th May 2019 From India, New Delhi
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