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For calculating retrenchment benefit for a contract of 1 year 11 Month, if a worker comes for 240 days in first year & 230 days in next 11 month, how much should i pay for its retrenchment benefit
From India, Hyderabad

If the contract of employment is for one year and 11 months, what is the need of calculating retrenchment compensation? This is a fixed term employment, right? Then termination of employment on the expiry of the term shall not be retrenchment, and no compensation becomes payable.

If the case is otherwise, and it is termination of employment before the term fixed, then also compensation has nothing related to number of days worked. Compensation will be equal to 15 days' wages for every completed year of service. If the completed year of service has a fraction of more than 6 months the same would be rounded off to one year. Again, it is a settled law that each year 12 months should have 240 days. Obviously, if the calculation is made for 11 months, it should be taken as 220 days. Therefore, if the employee had worked for 240 days in the first year and in the second year he has worked for 230 days, he will be entitled to get compensation equal to two years. The amount of compensation, as I said, would be 15 days average wages for each year, or 30 days wages for two years.

From India, Kannur

It's fair if the retrenchment compensation is made as if for 2 yrs. i.e. 15 days salary for two years = 1 month's salary. In addition, if there is a provision for Notice pay (1 month) & leave encashment then they shall also be paid. New 'Code on Industrial Relations' will apply.
Please examine this -
By amalgamating 3 Labour Laws into the Industrial Relations Code the Central Government
has taken steps for safeguarding the interests of Trade Unions as well as the workers. In this Code, all possible steps have been taken for industrial units and workers so that disputes do not arise in future Industrial Relations (IR) Code, 2020
• In case of job loss, a worker will get benefit under the Atal Bimit Vyakti Kalyan Yojna.
• Under the Atal Bimit Vyakti Kalyan Yojna, a worker of organized sector who loses his job
gets financial aid from the Government. This is a type of unemployment allowance, the
benefit of which is admissible to the workers covered under the ESI Scheme.
• At the time of retrenchment a worker would be provided 15 days’ wages for re-skilling. The
wages would be credited directly into the bank account of the worker so as to enable him to
learn new skills.

From India, Bangalore

Atal Bimit Vyakti Kalyan Yojna is a scheme in force though in the past it was known just as unemployment allowance, and it is available only to those who are under ESI and who have contributed to the ESI for certain periods. It is to be observed that the administration of this scheme is still a matter of dispute. Therefore, I believe that this scheme is not a contribution of the new labour code. But I shall be glad if Prof Kumar can give more inputs about the same as available in the IR Code (Proposed) in a real manner, not in the manner in which politicians say about their welfare measures for workers. It is appreciable if Prof Kumar can give inputs on his statement "In this Code, all possible steps have been taken for industrial units and workers so that disputes do not arise in future Industrial Relations (IR) Code, 2020" in relation to the present Industrial Disputes Act, Industrial Establishments (Standing Orders) Act and Trade Union Act so that we can understand what additional 'steps have been taken for industrial units and workers so that disputes do not arise in future'.
From India, Kannur
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