Dear All, Please let us know what all benefits one can claim if a Private Business organisation is Downsizing/Closure of Branch Operations/. Thanks
From India, Guwahati
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2From India, Guwahati
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Dear Asha,
You are required to provide one month's notice or make a payment equivalent to one month's salary in lieu of notice. Additionally, you are entitled to retrenchment compensation at a rate of 15 days' average wages for each completed year of service, gratuity if eligible, and a cash equivalent for the number of days of earned leave credited.
Kind regards, [Your Name]
From India, Salem
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You are required to provide one month's notice or make a payment equivalent to one month's salary in lieu of notice. Additionally, you are entitled to retrenchment compensation at a rate of 15 days' average wages for each completed year of service, gratuity if eligible, and a cash equivalent for the number of days of earned leave credited.
Kind regards, [Your Name]
From India, Salem
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Dear Sir,
What are the conditions for employers, i.e., size of the organization, turnover, strength, or number of workmen employed? Has any application been made to the Labour Commissioner for closing down the establishment? What is the legal eligibility criteria for an employee, i.e., age, date of retirement, designation, number of years of service, service remaining, etc.? Are there any other acts besides the ID Act and its applicability? Please explain in detail; it would be a great learning opportunity for all. Also, could you please provide information on any act governing VRS for private employees?
Thank you,
Manish S. Joshi
From India, New Delhi
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What are the conditions for employers, i.e., size of the organization, turnover, strength, or number of workmen employed? Has any application been made to the Labour Commissioner for closing down the establishment? What is the legal eligibility criteria for an employee, i.e., age, date of retirement, designation, number of years of service, service remaining, etc.? Are there any other acts besides the ID Act and its applicability? Please explain in detail; it would be a great learning opportunity for all. Also, could you please provide information on any act governing VRS for private employees?
Thank you,
Manish S. Joshi
From India, New Delhi
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To add to Mr. Umakanthan's answer to Asha Kanta Sharma's query, if the employee has been employed for a temporary term directly by the employer prior to his permanent employment, then that temporary period will also be counted while the Closure/Retrenchment Compensation is paid to the outgoing employee. Similarly for Gratuity too, the temporary period will be counted in the tenure.
For calculating the Retrenchment or Closure compensation, the amount equivalent to the cost of any facilities accruing to the employee like Tea every month needs to be added to the monthly gross of the employee. RC/CC is calculated as Monthly Gross + Cost of Tea / 30 x 15 x tenure of the employee including the temporary period. For Gratuity = Basic / 26 x 15 x tenure of the employee including the temporary period.
If the employee was an outsourced employee, that tenure is not counted. As regards Mr. Manish Joshi's query, there are detailed provisions enumerated in the ID act. Please refer to the same. Please note that under the Payment of Gratuity Act, a 60-day notice of the intended closure needs to be given to authorities under the Act.
From India, Mumbai
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For calculating the Retrenchment or Closure compensation, the amount equivalent to the cost of any facilities accruing to the employee like Tea every month needs to be added to the monthly gross of the employee. RC/CC is calculated as Monthly Gross + Cost of Tea / 30 x 15 x tenure of the employee including the temporary period. For Gratuity = Basic / 26 x 15 x tenure of the employee including the temporary period.
If the employee was an outsourced employee, that tenure is not counted. As regards Mr. Manish Joshi's query, there are detailed provisions enumerated in the ID act. Please refer to the same. Please note that under the Payment of Gratuity Act, a 60-day notice of the intended closure needs to be given to authorities under the Act.
From India, Mumbai
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Hello Everyone,
My employer has informed us that Earned Leave Encashment will be paid for half the period (i.e., 10 days if 20 days of Earned Leaves are available) only for the current year's Leave Balance Available. No Earned Leave Encashment will be provided for the balance available from the previous year. Is it legal and as per the law to pay Earned Leave Encashment for half the period?
From India, Guwahati
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My employer has informed us that Earned Leave Encashment will be paid for half the period (i.e., 10 days if 20 days of Earned Leaves are available) only for the current year's Leave Balance Available. No Earned Leave Encashment will be provided for the balance available from the previous year. Is it legal and as per the law to pay Earned Leave Encashment for half the period?
From India, Guwahati
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Flexi Benefits Plan.doc