Is It Illegal to Terminate Without Retrenchment Compensation or Notice? Let's Discuss

Termination will be illegal when neither retrenchment compensation was paid nor notice was given. Termination of service of a workman who had worked for not less than 240 days in one year will be illegal if the employer has failed to pay retrenchment compensation and give notice or wages in lieu thereof at the time of termination of the workman's service.

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Deepak Miglani
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Dear Mr. Sardar,

Could you please let me know what licenses the company should obtain when opening a new outlet?

Retrenchment Compensation

The Retrenchment Compensation is mentioned in the Industrial Disputes Act of 1947. It is 15 days' wages for each completed year of service or part thereof. This compensation is payable at the time of retrenchment and is the amount called retrenchment compensation for the services rendered by the worker. Termination notice or payment in lieu of notice is given as per the service contract.

Retrenchment: Legal Considerations

Retrenchment will be illegal if:

- Retrenchment compensation of 15 days' wages for each completed year of service is not paid at the time of retrenchment.
- Notice or notice pay in lieu of notice is not given.
- The seniority list is not displayed and served to the specified authority.

If any one or all of these conditions are not followed at the time of retrenchment, then the retrenchment will be illegal. These are the essential conditions that must be followed at the time of retrenchment.

Regards,
SDP

[QUOTE=S D Patil;2014885]Retrenchment Compensation

The Retrenchment Compensation is mentioned in the Industrial Disputes Act of 1947. It is 15 days' wages for each completed year of service or part thereof.

When you mention "15 days' wages," does it refer to 15 days of basic salary or 15 days of a lump sum salary that includes Basic Salary, HRA, and all allowances? Please clarify for someone.

Thank you.

Subject: Re: Termination will be illegal when neither retrenchment compensation...

Wages for compensation include Basic + DA + HRA + other allowances, if any.

Regards,
SDP

We were laid off from an IT software company in Bangalore 20 months ago. We were forced to submit a resignation letter to make it appear as if it was a voluntary resignation. The company has about 3,000 employees and is a profit-making IT company.

Clarification Needed on Layoff Practices

Can you please clarify the following points:

1. Is it proper to lay off people like this?
2. Can we get back our jobs in the same company?