Use factoHR and automate your HR processes
Mobile-first hire to retire HR and Payroll software that automates all HR operations and works as a catalysts for your organisational growth.
JayantBakshiHi, look forward to some help please, thanks.
From India, Gurgaon
Such a confusion of calculating "continuous service" so defined u/s 25-B of the IDA,1947 would be a consequence of the date with reference to which the notional calculation is to be made.
To understand this point, let's revert to Sec.25-B of the Act and dissect it as follows:
Sub-section (1) of Section 25-B generally defines what continuous service rendered by a workman is for the purpose of chapter V-A; it is the period of uninterrupted service rendered under the same employer which includes the interrupted service due to the exhaustive six reasons viz.,(1) sickness, (2) authorised leave, (3) accident, (4) strike which is not illegal (5) lock-out OR (6) cessation of work not due to any fault on the part of the workman.
Chapter V-A deals with the rights of the workmen laid-off for compensation and the conditions precedent to retrenchment which includes the payment of retrenchment compensation too based on the no of years of completed service rendered under the same employer.
Section 25-M(10) as well as 25-N (9) of chapter V-B also speaks respectively about the same.
Sub-section (2) of Sec.25-B deals with the situation in which a workman is not in continuous service within the meaning of sub-section (1) with reference to a particular duration of service namely one year or six months. Since a year comprises of 12 calendar months, this section introduces a fiction to compute the calculation of continuous service comprising of both uninterrupted and authorised interrupted services under ss(1). Thus the minimum no days of service is notionally fixed as 240 days for the preceding 12 months and 120 days for the preceding 6 months.
Now, the date with reference to the notional calculation is to be made is the actual date from which the workman is to be laid-off or to be retrenched respectively. Therefore, to arrive at the 240 days, you have to calculate backwards only and not forward i.e., from the date of appointment. While thus calculating backwards, if you arrive at the minimum required no of days at a particular point, then do not go beyond upto the entire period. In other words, it is NOT NECESSARY that the 240 days shall be scattered over the entire period of 12 months.
THEREFORE, within the 10 months period from October,2019 to July,2020, if 'A' had completed 240 days of continuous service thus explained above on the date of his retrenchment, he is entitled to retrenchment compensation and notice u/s 25-F.
As 25-A(2) pertains to the determination of the question of seasonal industry or the conduct of intermittent nature of work in an industrial establishment, I think that your second query is not relevant to the original issue you raised.
Hope you are convinced.
From India, Salem
JayantBakshiDear Umakanthan Sir,
Thanks so much for your answer and providing a clear explanation and clarification.
Please allow me to summarize our discussion in short, as below:
While Sec 25C [Right of workmen laid-off for compensation] mention that this section applies only to workmen who "has completed not less than one year of continuous service under an employer is laid-off" i.e. completed 1 or more year of continuous service before being laid-off, as per your clarification - even if a workman has worked for 10 continuous months (from Oct 2019 to July 2020 in our example), you mentioned that such a workman shall be entitled to a compensation.
So, as a rule, once a workman completes 240 days of continuous service, he becomes eligible for compensation.
Is this summary correct? Thanks so much again for your guidance.
From India, Gurgaon