Due to COVID-19, we had to let go of an employee due to redundancy. The employee, who had worked for 10 years, signed a settlement agreement which served as termination, and we also provided severance pay. However, he is now requesting a relieving letter, while we are issuing a termination letter. What are your views?
From India, Ghaziabad
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From India, Ghaziabad
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Understanding Retrenchment Under the Industrial Disputes Act
If the employee is covered under the definition of "workman" under the Industrial Disputes Act, 1947, or U.P. Industrial Disputes Act, 1947, then his termination may amount to "retrenchment." If the settlement is not valid or not registered under the Act of 1947, then he can challenge it at a later stage. Therefore, you should examine all the aspects very carefully. If necessary, you can call me.
From India, Faridabad
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56If the employee is covered under the definition of "workman" under the Industrial Disputes Act, 1947, or U.P. Industrial Disputes Act, 1947, then his termination may amount to "retrenchment." If the settlement is not valid or not registered under the Act of 1947, then he can challenge it at a later stage. Therefore, you should examine all the aspects very carefully. If necessary, you can call me.
From India, Faridabad
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