Retrenchment Compensation Inquiry
You are requested to kindly shed some light on Retrenchment Compensation. I would like to know, for example, if an employee has completed 1 year and 7 months, for how many days will their Retrenchment Compensation be calculated? And what if an employee has completed 1 year and 5 months?
Another query I have is whether Retrenchment Compensation is calculated based on Basic Salary or Gross Salary?
Please provide your guidance.
Regards
From India, Delhi
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163You are requested to kindly shed some light on Retrenchment Compensation. I would like to know, for example, if an employee has completed 1 year and 7 months, for how many days will their Retrenchment Compensation be calculated? And what if an employee has completed 1 year and 5 months?
Another query I have is whether Retrenchment Compensation is calculated based on Basic Salary or Gross Salary?
Please provide your guidance.
Regards
From India, Delhi
Acknowledge(1)Amend(0)
The retrenchment compensation will be as per the Industrial Disputes (ID) Act, 1974. 1.6 years or more will be considered as 2 years, and any period below 1.6 years will be counted as one year. The compensation will be based on the basic salary plus the dearness allowance (DA) of the gross salary.
Regards
From India, Hyderabad
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Regards
From India, Hyderabad
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