Long-term Employees vs. New Hires: How to Handle Legal and Human Rights Concerns?

Long-term Employee Concerns

We have permanent and casual workers whose working period is more than 15 to 20 years. Now the issue is that they do not accept a new worker on company premises and try to misguide the new person. Management is asking to give them notice pay, gratuity, leave encashment, and ask them to leave.

But they are threatening us with the labor advocate regarding the extra benefits we should receive after working so many years.

Legal Entitlements and Human Rights

What are the extra benefits they are eligible for by law or any human rights?

They are saying that they have given their whole life. One employee has been working for 25 to 30 years and is above 60 years old. What legal compliance issues arise and how should we tackle them?

EPF and Fund Deductions

Some are not receiving EPF benefits because we are exempted from employment and have the required documents. Are we failing to follow any fund deductions such as EPF, etc.?

I request you to please answer each point one by one. Your comments will help us understand and follow things more efficiently.

As per the ID Act, 15 days' wages are granted for every completed year of service. In practice, some companies, aiming for a smooth and quick settlement of claims in an Industrial Relations (IR) situation, pay up to 45 days' wages. Gratuity amounts to 15 days' wages for each completed year of service. Leave salary and Notice Pay are combined.

Considering the viability and the funds available or allotted, you are in the best position to judge and negotiate the best package. Enter into a settlement under section 12(3) of the ID Act. Best of luck.