As per I. D. Act-1947: Retrenchment Compensation:
25F. Conditions precedent to retrenchment of workmen—No workman employed in any industry who has been in continuous service for not less than one year under an employer shall be retrenched by that employer until—
(a) The workman has been given one month’s notice in writing indicating the reasons for retrenchment and the period of notice has expired, or the workman has been paid in lieu of such notice, wages for the period of the notice;
(b) The workman has been paid, at the time of retrenchment, compensation which shall be equivalent to 15 days' average pay 2[for every completed year of continuous service] or any part thereof in excess of six months; and
[For a period of six months, if the workman, during a period of six calendar months preceding the date with reference to which calculation is to be made, has actually worked under the employer for not less than]—
(i) 95 days, in the case of a workman employed below ground in a mine; and
(ii) 120 days, in any other case.
Our Problem is that:
If an employee after joining completes 240 days in 12 months, during full & final settlement he will gets Notice Pay of 26 Days & Retrenchment Compensation of 15 Days,
But above is does not meet it rather he complete the following….
If an Employee after joining does not complete 240 days in 12 months, but if he complete 120 days in the next 06 Months, will he get Retrenchment Compensation of 15 days? (As per I.D. Act-1947).
Please Suggest.
From India, undefined
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25F. Conditions precedent to retrenchment of workmen—No workman employed in any industry who has been in continuous service for not less than one year under an employer shall be retrenched by that employer until—
(a) The workman has been given one month’s notice in writing indicating the reasons for retrenchment and the period of notice has expired, or the workman has been paid in lieu of such notice, wages for the period of the notice;
(b) The workman has been paid, at the time of retrenchment, compensation which shall be equivalent to 15 days' average pay 2[for every completed year of continuous service] or any part thereof in excess of six months; and
[For a period of six months, if the workman, during a period of six calendar months preceding the date with reference to which calculation is to be made, has actually worked under the employer for not less than]—
(i) 95 days, in the case of a workman employed below ground in a mine; and
(ii) 120 days, in any other case.
Our Problem is that:
If an employee after joining completes 240 days in 12 months, during full & final settlement he will gets Notice Pay of 26 Days & Retrenchment Compensation of 15 Days,
But above is does not meet it rather he complete the following….
If an Employee after joining does not complete 240 days in 12 months, but if he complete 120 days in the next 06 Months, will he get Retrenchment Compensation of 15 days? (As per I.D. Act-1947).
Please Suggest.
From India, undefined
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Dear Mr. Santosh,
I would like to explain as follows:
Suppose the employee joined on 01 January 2018. You are suggesting that by 31 December 2018, he had not completed 240 days. However, in the next 6 months, by 30 June 2019, he completed 120 days.
In this scenario, you will need to calculate his 240 days of work within a 13-month period backward from 30 June 2019, specifically from 30 June 2018 to 30 June 2019. If he has worked for 240 days during this timeframe, he will be eligible for retrenchment compensation for one year only.
The requirement of 240 days of work can be met in any 12-month period; for example, it could be from May 2018 to June 2019 or from April 2018 to April 2019.
For any clarification or further advice, please feel free to contact me at:
Shobhit Kumar Mittal
Labour Law Advisor
8077779793, 9319956443
skmittal.labourlaw@gmail.com
Thank you.
From India, Faridabad
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56I would like to explain as follows:
Suppose the employee joined on 01 January 2018. You are suggesting that by 31 December 2018, he had not completed 240 days. However, in the next 6 months, by 30 June 2019, he completed 120 days.
In this scenario, you will need to calculate his 240 days of work within a 13-month period backward from 30 June 2019, specifically from 30 June 2018 to 30 June 2019. If he has worked for 240 days during this timeframe, he will be eligible for retrenchment compensation for one year only.
The requirement of 240 days of work can be met in any 12-month period; for example, it could be from May 2018 to June 2019 or from April 2018 to April 2019.
For any clarification or further advice, please feel free to contact me at:
Shobhit Kumar Mittal
Labour Law Advisor
8077779793, 9319956443
skmittal.labourlaw@gmail.com
Thank you.
From India, Faridabad
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Please correct the typing mistake and read "13" as "12"
From India, Faridabad
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From India, Faridabad
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Employee's Compensation Act-2009.pdf
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