As per factory act , during retrenchment ,employee are be eligible for gratuity or not ,if Yes then how much?
Also please let me know in case not completed one year.
What should be the actual process of exit in case of retrenchment for plant employee.
From India, Bangalore
1Also please let me know in case not completed one year.
What should be the actual process of exit in case of retrenchment for plant employee.
From India, Bangalore
Retrenchment and procedures to be adopted for retrenchment are provided in the Industrial Disputes Act. According to the said Act if any person who has been in service for at least one year is retrenched he should be paid retrenchment wages at the rate of 15 days wages for every completed year of service. If an employee has worked for 240 days in a period of 12 months is considered to have worked for one year for this purpose.
In addition to retrenchment compensation above mentioned, every employee who has completed one year of service is required to be given one month advance notice before retrenching or pay one month salary in lieu of notice. If the establishment has been employing more than 100 employees, then the chapter VB of the ID Act will be applicable and in such cases, in stead of one month notice you have to give three months notice or three months pay in lieu of notice.
In case of retrenchment in companies employing less than 100 employees, intimation/ notice of retrenchment should be sent to the appropriate labour authorities whereas permission from the authorities shall be obtained for retrenchment in case the company falls under chapter VB of the Act.
Retrenchment should not be made according to the company's fancy but it should be the last employee who has joined in a particular category of job who should be retrenched first.
In addition to the above, all employees who have been in service for at least five years should also be paid gratuity as per Payment of Gratuity Act.
Regards,
Madhu.T.K
From India, Kannur
In addition to retrenchment compensation above mentioned, every employee who has completed one year of service is required to be given one month advance notice before retrenching or pay one month salary in lieu of notice. If the establishment has been employing more than 100 employees, then the chapter VB of the ID Act will be applicable and in such cases, in stead of one month notice you have to give three months notice or three months pay in lieu of notice.
In case of retrenchment in companies employing less than 100 employees, intimation/ notice of retrenchment should be sent to the appropriate labour authorities whereas permission from the authorities shall be obtained for retrenchment in case the company falls under chapter VB of the Act.
Retrenchment should not be made according to the company's fancy but it should be the last employee who has joined in a particular category of job who should be retrenched first.
In addition to the above, all employees who have been in service for at least five years should also be paid gratuity as per Payment of Gratuity Act.
Regards,
Madhu.T.K
From India, Kannur
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