What we will get compensation if company is going to close?
From India, Vadodara
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From India, Vadodara
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Compensation for Retrenched Employees
Employees falling under the category of workmen and covered under the ID Act shall be entitled to payment of compensation as if they have been retrenched, at the rate of 15 days' salary for every year of completed service.
Closure of Industrial Establishments
Prior permission is required to close down any industrial establishment as per Section 25O (applicable where more than 300 employees are employed) and 25FFF. Only an intimation notice for closure is required if there are less than 300 employees.
If an employer is closing an establishment as per Section 25FFF, a prior notice of 60 days should be given to the appropriate government. If the establishment has less than 50 employees, no notice is required.
In cases where there are more than 300 employees, prior permission is mandatory. The employer needs to apply for permission to close down the establishment to the appropriate government at least 60 days before closure. If closed without permission, the closure shall be deemed illegal, and the employees shall continue to receive all benefits as if they were still employees of the establishment.
The process further depends on the nature of the business and the reason for the closure of the establishment.
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From India, Delhi
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93Employees falling under the category of workmen and covered under the ID Act shall be entitled to payment of compensation as if they have been retrenched, at the rate of 15 days' salary for every year of completed service.
Closure of Industrial Establishments
Prior permission is required to close down any industrial establishment as per Section 25O (applicable where more than 300 employees are employed) and 25FFF. Only an intimation notice for closure is required if there are less than 300 employees.
If an employer is closing an establishment as per Section 25FFF, a prior notice of 60 days should be given to the appropriate government. If the establishment has less than 50 employees, no notice is required.
In cases where there are more than 300 employees, prior permission is mandatory. The employer needs to apply for permission to close down the establishment to the appropriate government at least 60 days before closure. If closed without permission, the closure shall be deemed illegal, and the employees shall continue to receive all benefits as if they were still employees of the establishment.
The process further depends on the nature of the business and the reason for the closure of the establishment.
Regards
From India, Delhi
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Employee's Compensation Act-2009.pdf
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