Retrenchment Dilemma: Does It Apply to Top Executives and What Are the Extra Payouts?

Hi,

I need an understanding as to whether retrenchment is applicable only to workmen or a person employed at the President level. Further, what extra amounts, other than the ones (salary, gratuity, leave encashment, etc.) mentioned in the appointment letter, are required to be paid?

Thanks,
Moushumi

Dear Moushumi,

Generally, retrenchment of employees is the consequence of the redundancy of their employment. In that sense, it will apply to all employees, including workmen. Apart from statutory dues arising out of employment like gratuity and notice pay, encashment of unavailed leave, compensation for unilateral foreclosure of the contract of employment, etc., have to be paid if so mentioned in the contract of employment.

Thank you, sir, for your reply and for shedding light on this subject matter.

In our case, nothing as such (Compensation for Unilateral foreclosure) is mentioned in the appointment letter, which does not make us liable to pay him anything other than salary, gratuity, unavailed leave claim, and other emoluments mentioned in the appointment letter.

Regards, Moushumi