Eligibility for Retrenchment Compensation and Notice Pay in India
In India, the legal provisions regarding retrenchment compensation and notice pay are governed by the Industrial Disputes Act, 1947. When a workman is employed through an agency and the services are discontinued upon completion of construction works, certain entitlements come into play based on the duration of service.
Here's a breakdown of the scenario and the relevant provisions:
1.
Retrenchment Compensation:
- According to the Industrial Disputes Act, if a workman has been employed for more than 240 days in a year, he is eligible for retrenchment compensation upon termination of services.
- In this case, where the workman has worked for 270 days in an 11-month period, he would be entitled to retrenchment compensation.
2.
Notice Pay:
- The Act also mandates that in cases of retrenchment, the employer needs to provide a notice period or pay in lieu of notice.
- The notice period is typically based on the duration of service and can vary from 15 days to 45 days, depending on the circumstances.
- Since the agency is discontinuing the services upon completion of construction works, the workman should be entitled to notice pay for the period specified under the Act.
3.
Practical Steps:
- The workman should first communicate with the agency regarding the termination of services and inquire about the retrenchment compensation and notice pay.
- If there are any discrepancies or issues in receiving the entitled benefits, the workman can seek assistance from labor authorities or legal counsel to ensure fair compensation.
In conclusion, based on the provided information and Indian labor laws, the workman should be eligible for retrenchment compensation and notice pay upon the discontinuation of his services by the agency after completing the construction works.
References:
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https://www.indiacode.nic.in/bitstre...1/a1947-14.pdf (Industrial Disputes Act, 1947)
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