I am working at an automobile two-wheeler service center. Currently, the company has decided to close due to financial issues. I have already completed 5 years, so I am eligible for gratuity. Along with gratuity, am I eligible for retrenchment compensation? Can I claim both gratuity and retrenchment compensation together?
Thank you.
From India, Ernakulam
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Thank you.
From India, Ernakulam
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Dear friend,
Yes.
Most probably, the automobile service center you are employed at would have fewer than 50 workmen on its payroll. In that case, the workmen who are likely to lose their employment due to the proposed closure of the establishment are entitled to compensation as follows:
Retrenchment Compensation:
Every workman who has completed not less than one year of service on the date of retrenchment shall be paid retrenchment compensation at 15 days' average pay (Gross Wages) for every year of completed service in the establishment. Prior to that, such workman shall be given one month's notice or one month's pay in lieu of such notice. [Sec. 25-F/IDA '47]
Gratuity:
If the service center's total employees' strength is 10 or more on the date of closure or at any time in the past, every employee who has completed not less than 5 years of continuous service in the establishment shall be paid gratuity at 15 days' wages (pay + D.A only) for every year of completed service.
From India, Salem
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6108Yes.
Most probably, the automobile service center you are employed at would have fewer than 50 workmen on its payroll. In that case, the workmen who are likely to lose their employment due to the proposed closure of the establishment are entitled to compensation as follows:
Retrenchment Compensation:
Every workman who has completed not less than one year of service on the date of retrenchment shall be paid retrenchment compensation at 15 days' average pay (Gross Wages) for every year of completed service in the establishment. Prior to that, such workman shall be given one month's notice or one month's pay in lieu of such notice. [Sec. 25-F/IDA '47]
Gratuity:
If the service center's total employees' strength is 10 or more on the date of closure or at any time in the past, every employee who has completed not less than 5 years of continuous service in the establishment shall be paid gratuity at 15 days' wages (pay + D.A only) for every year of completed service.
From India, Salem
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Gratuity on Retrenchment in closure of unit-SC judgment.docx
Published_draft _rules_on Employees_ compensation 3.6.2020.pdf