How Do I Write a Termination Letter and Address Staff Entitlements for Company Closure?

Request for Assistance: Sample Termination Letter

Please kindly help me write a sample termination letter to all staff due to the company closure.

Entitlements for Staff Upon Termination

What are the entitlements for all staff as a result of this termination? Your guidance is very helpful to me. Thanks anyway!

Regards,

If the company closed down, then the terminology 'termination' should not be used. It is Retrenchment. I feel it can be mentioned as Retrenchment due to redundancy. Please give your opinion on the above terminology.

With warm regards,

S. Bhaskar
[Phone Number Removed For Privacy Reasons]

For closing down a company with an employment strength of 50 or more employees, a 'simple' letter will not suffice. It must be prepared in accordance with the provisions of the Industrial Disputes Act. Since the closure of the company will render the employees jobless, they must be given notice in advance (at least one month) or paid notice pay in lieu of notice. They should also be paid retrenchment compensation at the rate of 15 days' pay for every completed year of service. This is in addition to gratuity payable under the Payment of Gratuity Act.

Attached, please find Form Q, which is to be sent to Labour Authorities to inform them of the company's closure. The same form is used to inform the employees as well. I hope this information proves useful to you.

Regards,
Madhu.T.K

One of my branches is closing down. I have only two employees in the branch—one officer and one peon. We are vacating the premises for which three months' notice has already been given. My officer will be transferred to another branch. We have verbally informed our peon about this, but he refuses to resign.

Notice Period and Legal Considerations

As per the terms of his contract, we have one month's time to give him a notice. Should we proceed with that? He will receive all his terminal dues, but nothing more due to the company's current financial situation. We have not received our salaries for over two months now.

By following this procedure, would we encounter any legal complications? Can he take legal action?

An early reply would be appreciated.

Thanks