No Tags Found!


Hello experts,

I want to know the employer's liability for paying service compensation in case of termination. For example, in a trading company, if the employer terminates an employee who has a service period of more than 5 years. So, we will pay Gratuity, bonus, EL encashment, and 01 month notice pay. Is the company liable for service compensation as well?

Please suggest; it is required on top priority. I hope for the earliest action.

Neetu

From India, Delhi
Acknowledge(0)
Amend(0)

Dear Neetu,

The company is also liable to pay retrenchment compensation according to section 25F or 25N, as the case may be, if the unit is covered under the Industrial Disputes Act, 1947, and the employee who is going to be affected/terminated is covered under the definition of the workman under section 2(s) of this Act. If this is not the position, then terminate the services according to the terms and conditions of employment.

Regards,
R.N. Khola
Skylark Associates, Gurgaon (Haryana)
(Labour Law and Legal Consultants)
09810405361

From India, Delhi
Acknowledge(1)
JP
Amend(0)

CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.





Contact Us Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2025 CiteHR ®

All Copyright And Trademarks in Posts Held By Respective Owners.