What are the difference b/w severance cost and retrenchment compensation? In India Severance pay also called gratuity pay?
From India, Hyderabad
3From India, Hyderabad
In India Severance Pay means severance pay or retrenchment compensation only. Gratuity is different and it is not available to all employees but restricted to those who are leaving the organisation after rendering at least five years of service. Severance pay or retrenchment compensation in India is available only to workmen and no manager needs to be paid this compensation whereas gratuity is available to all employees irrespective of their roles and functions.
From India, Kannur
From India, Kannur
Generally, Retrenchment compensation is payable to those covered under applicable acts like ID act, a statutory payment. Apart from this there are certain terms & conditions of appointment providing such a compensation in case of 'retrenchment' under 'contractual obligations. Many a time resorted to when closure of operations of units.
'Severance cost' are those payable mostly to those persons in top management positions, e.g. Board members (Chairman, President/VP, Directors etc.) who may have share holding or otherwise, be paid some sort of % sharing from the profits of Cos, very Sr.level Executives below board level like Executive Directors, Chief GMs etc. Such payments are again part of a well defined terms & conditions executed in this regard. This measure may also deal with matters of settlement of share holdings at the time of separation. This helps the entities to amicably sever ties with those top management personnel who hitherto conducted the Co's policies and performances and are obviously will have thorough knowledge of the exiting cos.
In the past decades post 1991 liberalisation many of PSUs were closed down combining both 'Termination compensation' as well as 'Severance cost' through said to be 'golden hand shake-VRS & VSS (Voluntary Separation Scheme), STBP(Spl.Termination Benefit Package) etc. These scheme involved other benefits over & above Termination Compensation in order to encourage affected employees to avail these benefits.
From India, Bangalore
'Severance cost' are those payable mostly to those persons in top management positions, e.g. Board members (Chairman, President/VP, Directors etc.) who may have share holding or otherwise, be paid some sort of % sharing from the profits of Cos, very Sr.level Executives below board level like Executive Directors, Chief GMs etc. Such payments are again part of a well defined terms & conditions executed in this regard. This measure may also deal with matters of settlement of share holdings at the time of separation. This helps the entities to amicably sever ties with those top management personnel who hitherto conducted the Co's policies and performances and are obviously will have thorough knowledge of the exiting cos.
In the past decades post 1991 liberalisation many of PSUs were closed down combining both 'Termination compensation' as well as 'Severance cost' through said to be 'golden hand shake-VRS & VSS (Voluntary Separation Scheme), STBP(Spl.Termination Benefit Package) etc. These scheme involved other benefits over & above Termination Compensation in order to encourage affected employees to avail these benefits.
From India, Bangalore
Hi,
I work for a reputed organization. Due to some attendence issue they putted my record in data furging organisational list. On that basis only they given me option of either termination or forced resignation. I taken forced resignation. They are also providing me severance package of 2.5 months. But the point is attendence issue arise for me was all due to some circumstances. During the time I was in project , project reporting manager , director continuously putting pressure on me to complete some prerequisite exams required for onboarding into project. As before onborading into project the system allocated to me only useful for doing organizatioal related activities. Even I tried preparing for exam where bench employees used to seat but due to improper work environment there I used to return home in mid of working hour for preparing exams on my laptop . I was not at all aware that These things arises data furging issue for me. But as it's all circumstances based so pls let me know what severance pay I should request from organization or what the other alternatives I do have. It's all to be a covid19 period. What the possible compensation I could get at this point of time.
Pls provide me appropriate solution.
Regards
From India, Patna
I work for a reputed organization. Due to some attendence issue they putted my record in data furging organisational list. On that basis only they given me option of either termination or forced resignation. I taken forced resignation. They are also providing me severance package of 2.5 months. But the point is attendence issue arise for me was all due to some circumstances. During the time I was in project , project reporting manager , director continuously putting pressure on me to complete some prerequisite exams required for onboarding into project. As before onborading into project the system allocated to me only useful for doing organizatioal related activities. Even I tried preparing for exam where bench employees used to seat but due to improper work environment there I used to return home in mid of working hour for preparing exams on my laptop . I was not at all aware that These things arises data furging issue for me. But as it's all circumstances based so pls let me know what severance pay I should request from organization or what the other alternatives I do have. It's all to be a covid19 period. What the possible compensation I could get at this point of time.
Pls provide me appropriate solution.
Regards
From India, Patna
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