Retrenchment in India: Is It Applicable After Project Completion or Closure?

Dear All, is retrenchment of employees applicable upon completion of a project or closure of an establishment in India? Members, please post your comments and advice.

We have to give Full & Final settlement to the worker at the time of terminating his employment. This is mandatory as per the Industrial Dispute Act. Please find the attached file for the full & final settlement of the worker.
Regards

It seems like you didn't receive my previous post. I was inquiring about the applicability of retrenchment.

Thank you.
Regards

If the project had taken more than 240 days at the time of completion, then please ensure the provision of Section 25F of the ID Act is followed.

[QUOTE=abedeen7;1721649]Dear All, whether retrenchment of employees is applicable upon completion of a project or closure of an establishment in India? Members, please post your comments and advice.

Terms of Employment and Retrenchment

It depends upon the terms of the offer cum appointment letter. Yes, if recruited only for a particular project, but not if recruited for the company without mention of a termination clause upon completion of a project.

Closure of Establishment in India

On closure of the establishment in India, timely intimation sufficiently in advance to the employees is a must about its intention to close the establishment and to ask them to make their alternative arrangements. Abrupt closure and retrenchment can cause a lot of problems for the company in the shape of several court cases.

Ethical Considerations and Employee Support

Ethically, when intending to close the establishment, the company must make its best efforts to get their absorption appropriately as per their qualifications and experience in other organizations by using their good offices and liaison with other companies so that over-age employees may not be left in a lurch.

Compliance with Legal Provisions

However, if it is an industrial establishment, it must comply with the provisions of section 25F of the ID Act. Regards.

Thanks for your views. We hire employees for projects, and their employment lasts until the completion of the project. However, we are asked to pay retrenchment benefits to our employees and our contractor's employees. Is this justified? I want to know for my information, and we have no issue with paying compensation as they have worked for us.
Regards.