BPO Layoffs: What Are the Legal Compensation Requirements and Notice Obligations?

pinkym
Can someone please advise what is the minimum compensation to be given by a BPO (as per law) in case of a permanent layoff?

Also, if the company decides to permanently lay off an employee, is the company supposed to issue a layoff notice to the employee.
v.harikrishnan
Dear Pinky,

In industrial/labour law, there is nothing called as "permanent lay off". Probably, you mean to say that your company wants to send some people away permanently or otherwise dispense with their services permanently. This would amount to "retrenchment" as defined under the Industrial Disputes Act. The company will have to pay retrenchment compensation at 15 days' wages for every completed year of service and also one month's notice or one month's wages in lieu of notice. This amount has to be tendered at the time when the separation takes place. If these conditions are not fulfilled, the termination of the services becomes illegal.
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute