Understanding Retrenchment Benefits: What Are Your Rights After Two Years Under the Factory Act?

Hi,

Can you please provide me with a breakdown of retrenchment benefits applicable to a person who has completed a couple of years of service under the Factory Act?

Dear Kamal,

Please go through chapters VA & VB on Retrenchment under the Industrial Disputes Act, 1947 for your query.

With Regards, R.N.Khola

Hi Khola,

As per my knowledge, I think these are the only benefits. Please correct me if I am wrong.

1. One month notice period salary @ Basic-HRA
2. 15 days basic wages multiplied by the number of completed years of service
3. Any traveling allowance

Thank you.

Can anyone please suggest under which section an employee will get retrenchment benefits?

What is meant by VA & VB?

Regards,
Charvaka Reddy

Dear Charvaka,

These are chapters 5A and 5B of the Industrial Disputes Act, 1947, on Lay Off and Retrenchment.

With Regards,
R.N.Khola

Hi, this is what I have on the subject. My suggestion? Don't start reading the whole PPT. Just go to the retrenchment part and read it. Then you will be less confused.

To all, I may have taken this presentation from CiteHR itself. So please do not think that I am taking credit for it. Just trying to help.

Regards, Kavitha

Dear All,

According to my opinion, Cite HR members who are desirous of utilizing this presentation on Retrenchment and who are covered under Chapter V B of the Industrial Disputes Act, 1947 should read sixty days wherever it is written as three months. This opinion relates to Haryana State only.

With Regards,
R.N. Khola