If the company is closed, what are the benefits for employees and how should the process be carried out?
Employee Termination Process
For example, if 50 employees are terminated, what dues must the company pay to the employees who are terminated?
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From India, Ahmedabad
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4Employee Termination Process
For example, if 50 employees are terminated, what dues must the company pay to the employees who are terminated?
Thank you.
From India, Ahmedabad
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If the company is closed and retrenches all the employees, the company has to give all the final benefits to all the employees. The benefits will vary as per the terms and conditions mentioned in the employees' Offer of Employment letter issued to them at the time of joining and length of service.
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From India, Kumbakonam
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From India, Kumbakonam
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If the establishment is closed, then follow the procedures laid down in the Industrial Disputes Act. I presume most of the people are workmen under the ID Act.
1. 15 days' wages for every completed year of service as closure compensation; 6 months and above to be treated as one year.
2. One month's notice pay or one month's notice.
3. Other dues will include gratuity, leave encashment, salary due, and bonus for the year.
This is a broad guideline, and please refer to the ID Act for the exact procedure.
Regards,
Sivassankaran T
From India, Chennai
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1. 15 days' wages for every completed year of service as closure compensation; 6 months and above to be treated as one year.
2. One month's notice pay or one month's notice.
3. Other dues will include gratuity, leave encashment, salary due, and bonus for the year.
This is a broad guideline, and please refer to the ID Act for the exact procedure.
Regards,
Sivassankaran T
From India, Chennai
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Employee Benefits.doc