We need to retrenchment a DGM level employee who has been working with us for the last 6 years at monthly salary of 26K.
Whether there is any retrenchment payment the company need to pay?
From my understanding the Industrial Disputes Act 1947 does not apply and no retrenchment payment is required to pay.
We only have to give proper notice according the employment contract or payment in lieu to notice to the employee right?
Hence we are obliged to pay the gratuity payment and payment in lieu of notice.
Whether my opinion is correct?
Thanks
From Taiwan,
Whether there is any retrenchment payment the company need to pay?
From my understanding the Industrial Disputes Act 1947 does not apply and no retrenchment payment is required to pay.
We only have to give proper notice according the employment contract or payment in lieu to notice to the employee right?
Hence we are obliged to pay the gratuity payment and payment in lieu of notice.
Whether my opinion is correct?
Thanks
From Taiwan,
Hi,
Its basically termination, not retrenchment, retrenchment means mass termination where you are supposed to pay a retrenchment amount to them but in this case you have to give him proper notice , its upto him whether he wants to continue working for that notice period or not, you have to pay him a full salary anyhow, yes his PF, gratuity is to be taken care by you.Follow whtever contract you have with him.
Rgds,
Poonam
From India, Delhi
2Its basically termination, not retrenchment, retrenchment means mass termination where you are supposed to pay a retrenchment amount to them but in this case you have to give him proper notice , its upto him whether he wants to continue working for that notice period or not, you have to pay him a full salary anyhow, yes his PF, gratuity is to be taken care by you.Follow whtever contract you have with him.
Rgds,
Poonam
From India, Delhi
Services of a permanent employee cannot be so abruptly terminated.First of all ,you are to hold a Departmental Inquiry against him by issuing a proper show-cause notice to be followed by a Charge -Sheet.Thereafter , based on the Inquiry Report, if foung guilty of any gross mis-conduct in the discharge of his duties,then and then only you can terminate him and not before that.However, you shall have to settle all his outstanding retirement dues comprising Gratuity,P.F.,Notice-Pay etc.after termination of the contract.
Subject to above, you can only terminate him and not retrench him.Retrenchment can be made only under the specific circumstances laid-down in the Industrial Disputes Act and not othertwise.
Generally,Courts are sympathetic towards the employees,unless they are found guilty of any gross-misconduct in the discharge of their duties. So,please take all precautions before taking final decision in the matter.In case the termination is not done legally, then Court may direct reinstatement with full back-wages.You may also go through relevant case laws on the subject.
From India, Delhi
Subject to above, you can only terminate him and not retrench him.Retrenchment can be made only under the specific circumstances laid-down in the Industrial Disputes Act and not othertwise.
Generally,Courts are sympathetic towards the employees,unless they are found guilty of any gross-misconduct in the discharge of their duties. So,please take all precautions before taking final decision in the matter.In case the termination is not done legally, then Court may direct reinstatement with full back-wages.You may also go through relevant case laws on the subject.
From India, Delhi
If he is a permanent employee and Company Rules provide for superannuation on reaching a particular age you cannot terminate him except for mis-conduct after holding an enquiry. If he is appointed on a Contract then you can terminate him as per the term in the Contract.He needs to get allhis terminal benefits like Notice pay,gratuity,leave encashment,bonus
rajanassociates
From India, Bangalore
rajanassociates
From India, Bangalore
Dear,
in your employment agreement you have mention the situation in which you may terminate the service of any employee, so for any type of termination you have to documentation related to departmental inqiry, show cause notice , hearing on the basis of natural justice , charge sheet and after this full process if that person is found misconduct then you wiil be liable to terminate his service.
this full information is mention in your standing orders or code of conduct of the factory so plz read out your standing orders & code of conduct then take appropriate action as per law.
Rajbir
HR Sr.Executive ( Welfare Officer)
From India, Coimbatore
in your employment agreement you have mention the situation in which you may terminate the service of any employee, so for any type of termination you have to documentation related to departmental inqiry, show cause notice , hearing on the basis of natural justice , charge sheet and after this full process if that person is found misconduct then you wiil be liable to terminate his service.
this full information is mention in your standing orders or code of conduct of the factory so plz read out your standing orders & code of conduct then take appropriate action as per law.
Rajbir
HR Sr.Executive ( Welfare Officer)
From India, Coimbatore
Dear Member
The option you have chosen is correct. ID Act is not applicable therefore no question of Retrenchment (Although this will not be retrenchment but it will be termination ), enquiry etc.
However as a goodwill gesture, untill and unless the termination is being made for very extreme reasons, it is suggested that some additional amount be paid to the person and a golden farewell is given to the person.
Regards
Preetam Deshpande
From India, Mumbai
The option you have chosen is correct. ID Act is not applicable therefore no question of Retrenchment (Although this will not be retrenchment but it will be termination ), enquiry etc.
However as a goodwill gesture, untill and unless the termination is being made for very extreme reasons, it is suggested that some additional amount be paid to the person and a golden farewell is given to the person.
Regards
Preetam Deshpande
From India, Mumbai
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