Retrenchment/ lay off compensation may be calculated on daily average arrived at by dividing monthly salary by 26. Salary/ wage for this purpose means basic salary plus dearness allowance. Any function which involves maintaining employee employer relationship right from recruitment till retrenchment shall be HR function. Therefore, identifying man power requirement, recruitment, selection, placing, training & development, performance appraisal, promotion, grievance handling, redressal of disputes, wage and compensation management, trade union negotiation, implementing welfare measures, management of absenteeism, preventing sexual harassment at workplace, implementing statutory requirements, taking disciplinary action, conducting domestic enquiry etc etc come under the HR. Regards, Madhu.T.K