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For calculating retrenchment benefit for a contract of 1 year 11 Month, if a worker comes for 240 days in first year & 230 days in next 11 month, how much should i pay for its retrenchment benefit
From India, Hyderabad

If the contract of employment is for one year and 11 months, what is the need of calculating retrenchment compensation? This is a fixed term employment, right? Then termination of employment on the expiry of the term shall not be retrenchment, and no compensation becomes payable.

If the case is otherwise, and it is termination of employment before the term fixed, then also compensation has nothing related to number of days worked. Compensation will be equal to 15 days' wages for every completed year of service. If the completed year of service has a fraction of more than 6 months the same would be rounded off to one year. Again, it is a settled law that each year 12 months should have 240 days. Obviously, if the calculation is made for 11 months, it should be taken as 220 days. Therefore, if the employee had worked for 240 days in the first year and in the second year he has worked for 230 days, he will be entitled to get compensation equal to two years. The amount of compensation, as I said, would be 15 days average wages for each year, or 30 days wages for two years.

From India, Kannur
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