Retrenchment Compensation Dilemma: How to Handle Long-term Employee Benefits in Closure?

First of all, thanks to the Cite HR team for accepting my request. I need help regarding retrenchment compensation for a worker who has been with our organization for more than the last 10 years. Instead of bonus and gratuity, what will be the retrenchment compensation in case of closure due to unavoidable circumstances?

I think what you mean by "instead of bonus and gratuity" is contextually and actually "in addition to bonus and gratuity". As per Sec. 25F(b) of the Industrial Disputes Act, 1947, the workman likely to be retrenched should be paid compensation at the time of retrenchment at 15 days' average wages for every year of completed service apart from one month's notice or notice pay in lieu thereof.