As per I. D. Act-1947: Retrenchment Compensation:
25F. Conditions precedent to retrenchment of workmen—No workman employed in any industry who has been in continuous service for not less than one year under an employer shall be retrenched by that employer until—
(a) The workman has been given one month’s notice in writing indicating the reasons for retrenchment and the period of notice has expired, or the workman has been paid in lieu of such notice, wages for the period of the notice;
(b) The workman has been paid, at the time of retrenchment, compensation which shall be equivalent to 15 days' average pay 2[for every completed year of continuous service] or any part thereof in excess of six months; and
[For a period of six months, if the workman, during a period of six calendar months preceding the date with reference to which calculation is to be made, has actually worked under the employer for not less than]—
(i) 95 days, in the case of a workman employed below ground in a mine; and
(ii) 120 days, in any other case.
Our Problem is that:
If an employee after joining completes 240 days in 12 months, during full & final settlement he will gets Notice Pay of 26 Days & Retrenchment Compensation of 15 Days,
But above is does not meet it rather he complete the following….
If an Employee after joining does not complete 240 days in 12 months, but if he complete 120 days in the next 06 Months, will he get Retrenchment Compensation of 15 days? (As per I.D. Act-1947).
Please Suggest.
25F. Conditions precedent to retrenchment of workmen—No workman employed in any industry who has been in continuous service for not less than one year under an employer shall be retrenched by that employer until—
(a) The workman has been given one month’s notice in writing indicating the reasons for retrenchment and the period of notice has expired, or the workman has been paid in lieu of such notice, wages for the period of the notice;
(b) The workman has been paid, at the time of retrenchment, compensation which shall be equivalent to 15 days' average pay 2[for every completed year of continuous service] or any part thereof in excess of six months; and
[For a period of six months, if the workman, during a period of six calendar months preceding the date with reference to which calculation is to be made, has actually worked under the employer for not less than]—
(i) 95 days, in the case of a workman employed below ground in a mine; and
(ii) 120 days, in any other case.
Our Problem is that:
If an employee after joining completes 240 days in 12 months, during full & final settlement he will gets Notice Pay of 26 Days & Retrenchment Compensation of 15 Days,
But above is does not meet it rather he complete the following….
If an Employee after joining does not complete 240 days in 12 months, but if he complete 120 days in the next 06 Months, will he get Retrenchment Compensation of 15 days? (As per I.D. Act-1947).
Please Suggest.