Ours is big manufacturing unit situated in West Bengal. A considerable number of contractors workmen are engaged in our Org. In case a contractor retrench any of its workmen the retrenchment compensation is given to them. Recently one job contract of welding ended on April 16 where the contractor has engaged 30 of his workmen but the contractor refused to give retrenchment compensation as it is end of job contract and not any retrenchment in the middle of any contract. going through the definition of retrenchment in ID act, sec 2 (oo) (bb) also states that "termination of the service of the workman as a result of the non- renewal of the contract of employment between the employer and the workman concerned on its expiry or of such contract being terminated under a stipulation in that behalf contained therein; or] (c) termination of the service of a workman on the ground of continued ill- health;'
Please suggest whether retrenchment compensation will be applicable in case of end of any job contract where workers tenure of job is over due to natural process of ending of any contract.
Regards
DG

From India, Delhi
If the contractor at the time of employing the welders had made a contract with the workers (welders) that the employment is for a particular project and will come to an end on the completion of the project, naturally no compensation is required to be paid to the workers if the reason for termination is completion of the project. On the other hand, if there exists no communication from the employer (contractor) at the time of appointment regarding termination of employment on completion of the job at Principal employer's plant, then he will be in trouble.
Madhu.T.K

From India, Kannur
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.





Contact Us Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2024 CiteHR ®

All Copyright And Trademarks in Posts Held By Respective Owners.