Understanding Section 25F of the Industrial Disputes Act
Under section 25F of the Industrial Disputes Act, pertaining to the retrenchment of workmen, the workman is required to pay retrenchment compensation equivalent to fifteen days' average pay for every completed year of continuous service or any part thereof in excess of six months.
Now, my question is, what does "in excess of six months" mean?
Thank you
Regards
From India, Mumbai
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5Under section 25F of the Industrial Disputes Act, pertaining to the retrenchment of workmen, the workman is required to pay retrenchment compensation equivalent to fifteen days' average pay for every completed year of continuous service or any part thereof in excess of six months.
Now, my question is, what does "in excess of six months" mean?
Thank you
Regards
From India, Mumbai
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A person is eligible to receive Retrenchment Compensation during their retrenchment from the company. If a person has completed 1 year of service at the time of retrenchment, then they are eligible to receive 15 days of Retrenchment Compensation.
If a person has served for 1 year, 6 months, and 1 day, then they will become eligible to receive Retrenchment Compensation for 2 years, which is 30 days. To calculate the amount, their monthly payment divided by 26 should be multiplied by 15.
Thank you.
Regards
From India, Kumbakonam
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If a person has served for 1 year, 6 months, and 1 day, then they will become eligible to receive Retrenchment Compensation for 2 years, which is 30 days. To calculate the amount, their monthly payment divided by 26 should be multiplied by 15.
Thank you.
Regards
From India, Kumbakonam
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Dear Sir Please help me in solving the retrenchment benefit calculation as per the data attached . Only suggest the retrenchment benefit whether it will be 15 days or 30 days
From India, Jamshedpur
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From India, Jamshedpur
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Dear Mr. Narayanaswamy and [Email Removed For Privacy Reasons],
Section 25F applies to all establishments that come within the ambit of the definition of the term "industry" as defined under section 2(j) of the Industrial Disputes Act and as interpreted by the Honourable Supreme Court in various decisions. The most important of these decisions, which is often cited, is the decision of the Honourable Supreme Court in Bangalore Water Supply and Sewerage Board vs Rajappa. It would be advisable to read this judgment, which is available on the website of the Supreme Court of India.
The term "retrenchment" has been defined in section 2(oo) of the Industrial Disputes Act. Please read this definition. This definition has again been interpreted by the Honourable Supreme Court to mean the termination of the services of a workman for any reason whatsoever other than for the exceptions to the definition of "retrenchment" in section 2(oo).
Section 25F of the Industrial Disputes Act lays down the procedure for retrenchment. In other words, it lays down what actions should be performed by the employer before retrenching a workman. If a worker had worked for one year and seven months and if the employer proposes to retrench him, then the worker is entitled to get one month's notice pay and retrenchment compensation equivalent to 30 days' wages. For the first year, the retrenchment compensation is 15 days. The balance of 7 months, as it is in excess of six months, is regarded as one year, and the worker is entitled to another 15 days' wage as retrenchment compensation.
Regards
From India, Madras
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Section 25F applies to all establishments that come within the ambit of the definition of the term "industry" as defined under section 2(j) of the Industrial Disputes Act and as interpreted by the Honourable Supreme Court in various decisions. The most important of these decisions, which is often cited, is the decision of the Honourable Supreme Court in Bangalore Water Supply and Sewerage Board vs Rajappa. It would be advisable to read this judgment, which is available on the website of the Supreme Court of India.
The term "retrenchment" has been defined in section 2(oo) of the Industrial Disputes Act. Please read this definition. This definition has again been interpreted by the Honourable Supreme Court to mean the termination of the services of a workman for any reason whatsoever other than for the exceptions to the definition of "retrenchment" in section 2(oo).
Section 25F of the Industrial Disputes Act lays down the procedure for retrenchment. In other words, it lays down what actions should be performed by the employer before retrenching a workman. If a worker had worked for one year and seven months and if the employer proposes to retrench him, then the worker is entitled to get one month's notice pay and retrenchment compensation equivalent to 30 days' wages. For the first year, the retrenchment compensation is 15 days. The balance of 7 months, as it is in excess of six months, is regarded as one year, and the worker is entitled to another 15 days' wage as retrenchment compensation.
Regards
From India, Madras
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Industrial Disputes Amendment Act 2010.doc
INDUSTRIAL DISPUTES ACT.pdf