I am working at an effluent treatment plant with 3 years and 7 months of continuous service. Due to the introduction of the RO system, a contractor company that completed the work in our plant is going to take over the plant for operation and maintenance as per the contract agreement. Since I am the most junior employee of the company, I am going to be retrenched. What is the retrenchment compensation that I am eligible for?
Note: Company employees on the role - 80, contractor employees - 50, factory license is for 150 employees.
My Salary Details:
Basic - 6000 / DA - 2400 / HRA - 1800 / Conveyance - 800 / Special Allowance - 1000
1. How many months of notice pay will I get, 3 or 1 month?
2. Compensation for how many years?
3. Will I get gratuity?
Kindly provide me an answer.
Thanks,
Victor (On behalf of an employee)
From India, Madras
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Note: Company employees on the role - 80, contractor employees - 50, factory license is for 150 employees.
My Salary Details:
Basic - 6000 / DA - 2400 / HRA - 1800 / Conveyance - 800 / Special Allowance - 1000
1. How many months of notice pay will I get, 3 or 1 month?
2. Compensation for how many years?
3. Will I get gratuity?
Kindly provide me an answer.
Thanks,
Victor (On behalf of an employee)
From India, Madras
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The individual is entitled to receive one month's notice pay and retrenchment compensation at 15 days' pay for every completed year of service. However, he is not entitled to gratuity as he has not completed five years of continuous service.
With regards,
From India, Madras
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181With regards,
From India, Madras
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Analysis of Employee Classification and Legal Provisions
Please read the post of Mr. Victor. He stated that the workmen employed by the company are as follows: Company employees on roll - 80, contractor employees - 50. The factory license is for 150 employees. Mr. Victor mentioned that the company is an effluent treatment plant, thus it must be classified as a factory under the Factories Act. However, the number of company employees is only 80, as indicated by Mr. Victor. Therefore, the provisions of Chapter V B of the Industrial Disputes Act 1947 will not apply to this case, as the number of workmen employed by the company is less than 100 (based on the information provided by Mr. Victor). Consequently, the provisions of Chapter V A will apply. Since Chapter V A is applicable, prior notice to or permission from the government is not necessary in this case. I reiterate that my view is based on the facts provided by Mr. Victor.
For the purpose of Chapter V B, the contractor employees need not be taken into consideration, and only the workmen employed by the company should be considered. This is because the retrenchment is carried out by the company, not by the contractor.
With regards,
From India, Madras
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Please read the post of Mr. Victor. He stated that the workmen employed by the company are as follows: Company employees on roll - 80, contractor employees - 50. The factory license is for 150 employees. Mr. Victor mentioned that the company is an effluent treatment plant, thus it must be classified as a factory under the Factories Act. However, the number of company employees is only 80, as indicated by Mr. Victor. Therefore, the provisions of Chapter V B of the Industrial Disputes Act 1947 will not apply to this case, as the number of workmen employed by the company is less than 100 (based on the information provided by Mr. Victor). Consequently, the provisions of Chapter V A will apply. Since Chapter V A is applicable, prior notice to or permission from the government is not necessary in this case. I reiterate that my view is based on the facts provided by Mr. Victor.
For the purpose of Chapter V B, the contractor employees need not be taken into consideration, and only the workmen employed by the company should be considered. This is because the retrenchment is carried out by the company, not by the contractor.
With regards,
From India, Madras
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Gratuity is a legal entitlement different from retrenchment compensation. If a person who is qualified to get gratuity is retrenched from service, they will receive both gratuity and retrenchment compensation. The rates for both are almost the same. In the case referred to by Mr. Victor, the employee is not entitled to receive gratuity because they have not worked for five years. Therefore, they are entitled to receive retrenchment compensation only.
Regards
From India, Madras
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From India, Madras
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Dear Mr. Pon, Whatever Mr. Hariharan said is correct. The gratuity will be paid to those who have served 5 years of continuous service. Retrenchment compensation will be paid to those who have served a minimum of 1 year and are eligible if retrenched. In cases of resignation, the gratuity will be paid, but retrenchment compensation and notice pay will not be paid.
From India, Kumbakonam
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From India, Kumbakonam
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Mr. Victor has not completed his 5 years and hence he is not eligible for gratuity. My question is where his gratuity amount will be accumulated, which is accountable for his 3 years of service.
From India, Madras
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From India, Madras
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Dear Mr. Ponraj,
Even though the CTC is calculated with all the benefits, some allowances and Superannuation Funds will be released only as per the rules. For getting the Gratuity, one must serve at least for 5 years. If one leaves before fulfilling the terms of engagement, then obviously one will lose the benefits. Once you are not eligible to receive the Gratuity, you cannot get it.
From India, Kumbakonam
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Even though the CTC is calculated with all the benefits, some allowances and Superannuation Funds will be released only as per the rules. For getting the Gratuity, one must serve at least for 5 years. If one leaves before fulfilling the terms of engagement, then obviously one will lose the benefits. Once you are not eligible to receive the Gratuity, you cannot get it.
From India, Kumbakonam
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Bhaskar, My question is different. I am not asking for eligibility. I just asked what my employer told me is right or not? Read my post once again. Pon
From India, Lucknow
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From India, Lucknow
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I recently got retrenched and received a severance package of 3 months (3 years of service completed). The problem is the company has deducted tax on it, and they haven't given Form-16 yet. How can I claim the tax benefit under Section 25F(b) (15 days for every year)? Does the Form 16 need to state the words 'Retrenchment Benefit'? Do companies that are laying off employees need to obtain special permission from somewhere (maybe the labor department or elsewhere) before they can include the word 'retrenchment' in Form 16?
Regarding the tax benefit, does 15 days' salary mean the monthly salary or only Basic + DA? Kindly help.
Regards
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Regarding the tax benefit, does 15 days' salary mean the monthly salary or only Basic + DA? Kindly help.
Regards
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