Employer's Liability for Service Compensation: What Are the Rules After Termination?

Hello experts,

I want to know the employer's liability for paying service compensation in case of termination. For example, in a trading company, if the employer terminates an employee who has a service period of more than 5 years. So, we will pay Gratuity, bonus, EL encashment, and 01 month notice pay. Is the company liable for service compensation as well?

Please suggest; it is required on top priority. I hope for the earliest action.

Neetu

Dear Neetu,

The company is also liable to pay retrenchment compensation according to section 25F or 25N, as the case may be, if the unit is covered under the Industrial Disputes Act, 1947, and the employee who is going to be affected/terminated is covered under the definition of the workman under section 2(s) of this Act. If this is not the position, then terminate the services according to the terms and conditions of employment.

Regards,
R.N. Khola
Skylark Associates, Gurgaon (Haryana)
(Labour Law and Legal Consultants)
09810405361