Sudden Company Closure: What Compensation Do Employees Get Under Tamil Nadu Laws?

Dear Team,

One of the leading corporate companies suddenly completed their projects and has shut down their site office. What is the compensation to be given to the employees as per the Tamil Nadu Factory and Labour Acts?

Regards,

Lakshmi Narayanan HR - Executive

I believe that elaborating on your post with essential information is necessary to address your main question regarding compensation for employees who may be facing job loss as a consequence.

Nature of the Company's Activities

a) What is the nature of the company's activities as a whole - manufacturing, mining, or services?

Employee Details

b) How many employees are there in the company in the category of workmen as defined under the Industrial Disputes Act, 1947?
c) How many workmen are at the site that is to be closed?
d) Were the workmen at the site recruited and employed solely for the project at the site?
e) If yes, is it a Fixed Term Contract of employment that ends with the project and is periodically renewed for valid reasons?
f) Regardless, what is the average length of service provided by these employees so far?
g) What are the possibilities of the company offering alternative employment to them elsewhere?

I hope this information helps in addressing your concerns effectively.

Best regards,
[Your Name]

Dear Lakshmi Narayanan, it is difficult to say on the face of your query. To comment upon the matter needs a lot more information, as Mr. Umakanthan asked for. You have mentioned that the company has shut down its project office. The word "project" is limited by time and has a definite end period; either it can be completed early or extended further. In essence, the workman is not liable for compensation as the project meets its end upon completion of the job. However, things have to be seen from other angles which require complete information about the project. You are advised to consult a lawyer who deals with labor matters in the Tribunal or High Court, as they can guide you well in this matter.

Please let me know if you need any further assistance.

Best regards,
[Your Name]