what compensation executive and above cadre will get when profit running Factory is closed as per the management decision

Dear Pandipati,

The ID Act, 1947 is applicable only in respect of those employees who fall within the definition of the term "workman" as defined under Section 2(s) of the Act. Therefore, other employees cannot seek any relief through the ID Act for their employment grievances. All their conditions of employment would be strictly according to the terms mentioned in their contract of employment, appointment orders, or service regulations only.

When employees above the cadre of "workman" are unilaterally sent out by the employer for any reason other than by way of punishment, they have to be given sufficient notice or salary in lieu of notice as already mentioned in the contract of employment only. Any failure on the part of the employer in this regard would be a breach of the contract, against which a Civil Suit is the only available remedy for the aggrieved employees.

However, you are entitled to gratuity under the PG Act, 1972 since you have more than 5 years of service in the same organization.

Dear Sir,

I am working as an Assistant Manager at MAS Akshaya Sportswear (Special Economic Zone Unit), a Sri Lankan-based company. My total experience in this company is 6 years. Currently, the company is planning to close due to internal issues. They have informed the operators that they will receive 3 months' salaries as per the law, but this does not apply to executives and those in higher positions. They claim that this exclusion is due to the Industrial Act of 1947 not covering individuals at the executive level and above.

The company is registered under the Industrial Act of 1947. While 500 operators and team leaders are being provided with the 3-month notice period salary, it is unclear why the 20 executives and individuals in higher positions are not receiving the same treatment.

I seek your advice on how to proceed legally in this situation. Your suggestions on the matter would be greatly appreciated.

Thank you.

Dear Sir,

In my appointment letter, I didn't see any compensation details regarding the closing of the factory. Points 8 and 9 are mentioned in the appointment letter, as outlined below:

8th Point: Termination
Upon confirmation, you are required to give three months' notice if you decide to terminate your employment. The company reserves the right to terminate your employment without any notice in the event that, after a disciplinary inquiry, you are found guilty of gross misconduct, dishonesty, neglect of duty, breach of any company rules and regulations, stipulations herein contained, or any other act of misconduct not specified herein.

9th Point: Retirement
Your retirement age shall be 58 years, and upon completing your 58th birthday, you shall retire and cease to be employed by the company.

Apart from these points, there is nothing else mentioned in my appointment letter. I would like to know how to proceed in this situation. If the company pays compensation to the employees (Operators), can they proceed with the closure of the factory? Shouldn't the factory management seek acceptance from the executives and above team before taking this step?

My factory management intends to pay the operators' salaries, notify the ERB (working commute member) team, and close the factory. However, they do not seem to be considering any feedback.

Kindly advise on the next steps.

Thank you.

Because my factory management wants to pay the operators' salaries and serve notice to the ERB (working committee members, in this committee only operators will be there) team and close the factory. They don't require any concern about the executives and above staff. With the above two points, can you help talk to the management on the compensation side? Please advise.