Company Closure: What Are the Employee Liabilities and Benefits?

When a company is closed, what are the liabilities of the company for its employees?

For example, an employee has been working for the last 4 years, and now the company has given notice that it will be closed on a particular date. What kind of benefits and remuneration will the company provide to the employee?

The company is liable to pay all dues to its employees when it is closed will be the most probable answer, and the same may seem to be so vague as your very question is. It is better to provide important details like the total number of employees in the status of workmen, the age of the company, the reasons for its closure, the length of service of the workmen, etc.

Dear Mitva39,

Please note that you did not mention the nature of work/activities carried out by the company. According to the Industrial Disputes Act of 1947, the rules clearly define the procedures in Chapter VA and VB for taking steps on the closure of the company and the liabilities on the part of the employer to fulfill the obligations as per the rules. Please go through the same.

Thanks & Regards,

V R RAO PULIPAKA.