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Anuranjk
Dear sir, Am working in an Automobile two-wheeler service centre. Currently, the company has decided to close the firm because of financial issues. I already completed 5 years so am eligible for gratuity. Along with gratuity am I eligible for retrenchment compensation
Can I claim both gratuity & retrenchment compensation both?

From India, Ernakulam
umakanthan53
6018

Dear friend,
YES.
Most probably, the automobile service center you are employed would be having less then 50 no of workmen on its roll. In that case, the workmen who are likely to lose their employment on account of the proposed closure of the establishment are entitled to compensation as follows:
1) Retrenchment Compensation:
Every workman who has completed not less than one year of service on the date of retrenchment shall be paid retrenchment compensation @ 15 days average pay ( Gross Wages ) for every year of completed service in the establishment.
Prior to that such workman shall be given one month's notice or one month's pay in lieu of such notice. [ Sec.25-F/IDA'47]
2) Gratuity:
If the service center's total employees' strength is 10 or more on the date of closure or any time in the past, every employee who has completed not less than 5 years of continuous service in the establishment shall be paid gratuity @ 15 days wages ( pay+D.A only) for every year of completed service.

From India, Salem
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