Dear All,
am from manufacturing sector, located in chennai i required urgent help from experts/seniors that, my company is planing to remove 40 employees form company rolls due to low production, And the company sure that we can't retain those persons anymore, for all the levels operators,executives etc. Company is ready to give two months salary as notice period payments.
Please let me know what is processor, is this acceptable??,if not what are all the problems it may arise while terminating these people, and what is the right processor as per the labour law.
we have approved standing orders.
Please help me in this regards.
Thanking you.
HRD.
Chennai.
From India, Bangalore
am from manufacturing sector, located in chennai i required urgent help from experts/seniors that, my company is planing to remove 40 employees form company rolls due to low production, And the company sure that we can't retain those persons anymore, for all the levels operators,executives etc. Company is ready to give two months salary as notice period payments.
Please let me know what is processor, is this acceptable??,if not what are all the problems it may arise while terminating these people, and what is the right processor as per the labour law.
we have approved standing orders.
Please help me in this regards.
Thanking you.
HRD.
Chennai.
From India, Bangalore
Hi,
If your company doesn't have orders from your customer, and company is facing losses for it. and if your company cannot hold the liability of current workmen then you need to go for retrenchment.
If you have more than 100 workmen strength then you need to take prior permission of Appropriate authority before going for retrenchment.notice in the prescribed manner is to be served
you have to consider following points before going for retrenchment.
1.Before going for retrenchment for workmen who has been in continuous service for not less than one year employed in your industry you have to do following things.
(a)The workman has been given one month's notice in writing indicating the reasons for retrenchment and the period of notice has expired, or the workman has been paid in lieu of such notice, wages for the period of the notice;
(b) the workman has been paid, at the time of retrenchment, compensation which shall be
equivalent to fifteen days' average pay for every completed year of continuous service or any
part thereof in excess of six months; and
If you take care above things then your retrenchment can not become illegal. & workmen cannot challenge it in the court, even if they file a case you will be safe because you have followed all necessary procedures.
Arun J.
From India, Hyderabad
190If your company doesn't have orders from your customer, and company is facing losses for it. and if your company cannot hold the liability of current workmen then you need to go for retrenchment.
If you have more than 100 workmen strength then you need to take prior permission of Appropriate authority before going for retrenchment.notice in the prescribed manner is to be served
you have to consider following points before going for retrenchment.
1.Before going for retrenchment for workmen who has been in continuous service for not less than one year employed in your industry you have to do following things.
(a)The workman has been given one month's notice in writing indicating the reasons for retrenchment and the period of notice has expired, or the workman has been paid in lieu of such notice, wages for the period of the notice;
(b) the workman has been paid, at the time of retrenchment, compensation which shall be
equivalent to fifteen days' average pay for every completed year of continuous service or any
part thereof in excess of six months; and
If you take care above things then your retrenchment can not become illegal. & workmen cannot challenge it in the court, even if they file a case you will be safe because you have followed all necessary procedures.
Arun J.
From India, Hyderabad
Dear Arun sir,
Thank you very much for your quick response,
Yes we have more than 100 employees and they finished 1 year with us.
In your inputs mentioned that have to take prior permission form authorities, it means Labour officer or higher authority.
we will give notice to them in prescribed format by mentioning notice period and reason.
Is this enough, is there rule give proper documents to authorities, if rule is there means how to approach.
Compensation we will give to them two month gross salary.
To follow above how many days may required.
Regards
HRD.
From India, Bangalore
Thank you very much for your quick response,
Yes we have more than 100 employees and they finished 1 year with us.
In your inputs mentioned that have to take prior permission form authorities, it means Labour officer or higher authority.
we will give notice to them in prescribed format by mentioning notice period and reason.
Is this enough, is there rule give proper documents to authorities, if rule is there means how to approach.
Compensation we will give to them two month gross salary.
To follow above how many days may required.
Regards
HRD.
From India, Bangalore
Hi,
Your first question is.... to whom I should submit the application for permission of Retrenchment?
Answer -Every state has specified in their gazette that who can give permission of retrenchment.
You can file your application of granting permission for retrenchment to Assistant commissioner of Labor. He will verify the facts and figures and after satisfying with his remarks he will send your application to appropriate government for granting permission. if he has not specified as authorized to sanction in govt.gazette. but every state has specified Assistant commissioner of labor as specifying authority.
If he does not satisfy with the facts and figures then he may refuse your application of permission.
The copy of application made for permission to be served simultaneously to the workmen.
Your second question is how many days it will take for procedure?
Answer - Act says You need to give at least 1 months notice to workmen. But practically no company does so because it cause to unrest in the industry. So they opt second option giving notice pay.
When you file application for granting permission for retrenchment Normally you get the reply whether granted or refused your application within sixty days.
If you don't receive any communication till 60 days you can assume that you have granted permission and accordingly with proper procedure you can go for retrenchment.
This all process takes almost 2 to 3 months.
Arun J.
From India, Hyderabad
Your first question is.... to whom I should submit the application for permission of Retrenchment?
Answer -Every state has specified in their gazette that who can give permission of retrenchment.
You can file your application of granting permission for retrenchment to Assistant commissioner of Labor. He will verify the facts and figures and after satisfying with his remarks he will send your application to appropriate government for granting permission. if he has not specified as authorized to sanction in govt.gazette. but every state has specified Assistant commissioner of labor as specifying authority.
If he does not satisfy with the facts and figures then he may refuse your application of permission.
The copy of application made for permission to be served simultaneously to the workmen.
Your second question is how many days it will take for procedure?
Answer - Act says You need to give at least 1 months notice to workmen. But practically no company does so because it cause to unrest in the industry. So they opt second option giving notice pay.
When you file application for granting permission for retrenchment Normally you get the reply whether granted or refused your application within sixty days.
If you don't receive any communication till 60 days you can assume that you have granted permission and accordingly with proper procedure you can go for retrenchment.
This all process takes almost 2 to 3 months.
Arun J.
From India, Hyderabad
In maharashtra for pune region Deputy commissioner of labor is the appropriate authority for granting permission of retrenchment. Arun J.
From India, Hyderabad
From India, Hyderabad
Dear HRD, there are some practical process that needs to be followed before terminating 100 plus employees. Labour laws needs to be interpreted properly before taking any decision. It should be a win win situation for both the parties.
I will request you to visit www.vcgconsulting.net and have a word with Shetty Sir.
From India, Mumbai
I will request you to visit www.vcgconsulting.net and have a word with Shetty Sir.
From India, Mumbai
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