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Termination will be illegal when neither retrenchment compensation was paid nor notice was given
Termination of service of workman who had worked for not less than 240 days in one year will be illegal, if the employer has failed to pay retrenchment compensation and giving of notice or wages in lieu thereof at the time of termination of the service of the workman.
Regards
Deepak Miglani
Legal Buddy
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From India, Coimbatore
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Dear Mr. Sardar,could u please let me know what all license should company obtain when opening a new outlet?
From India, Mumbai
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Retrenchment Compensation

The Retrenchment Compensation is mentioned in the Industrial Disputes Act of 1947. It is 15 days' wages for each completed year of service or part thereof. This compensation is payable at the time of retrenchment and is the amount called Retrenchment compensation for the services rendered by the worker. Termination notice or payment in lieu of notice is given as per the service contract.

From India, Kolhapur
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Dear Miglaniji,

Retrenchment will be illegal if:

a) Retrenchment compensation of 15 days' wages for each completed year of service is not paid at the time of retrenchment.

b) Notice or notice pay in lieu of notice is not given.

c) The seniority list is not displayed and served to the specified authority.

If any one or all of these conditions are not followed at the time of retrenchment, then the retrenchment will be illegal.

These are the essential conditions that must be followed at the time of retrenchment.

SDP

From India, Kolhapur
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When you say 15 days wages, does it mean 15 days of basic salary or 15 days of lumpsum salary which includes Basic Salary, HRA and all allowances? Please clarify some one.
From India, Thane
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Subject - Re: Termination will be illegal when neither retrenchment compensation ..... Wages for compensation includes Basic+DA+HRA+other allowances if any Regards SDP
From India, Kolhapur
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Anonymous
1

We were laid off from an IT software company in Bangalore 20 months ago. We were forced to submit a resignation letter to make it appear as if it was a voluntary resignation. The company has about 3000 employees and is a profit-making IT company.

Can you please clarify the following points:

1. Is it proper to lay off people like this?
2. Can we get back our jobs in the same company?

From India, Bangalore
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