Hello experts,
I want to know the employer liability for paying service compensation in case of termination. for example in a trading company if employer terminate an employee who has a service period of more than 5 yrs. So we will pay Gratuity, bonus, EL encashment, 01 month notice pay. Co. is liable for service compensation also???
pls suggest, it is required on top priority.
hope for the earliest action.
Neetu
From India, Delhi
I want to know the employer liability for paying service compensation in case of termination. for example in a trading company if employer terminate an employee who has a service period of more than 5 yrs. So we will pay Gratuity, bonus, EL encashment, 01 month notice pay. Co. is liable for service compensation also???
pls suggest, it is required on top priority.
hope for the earliest action.
Neetu
From India, Delhi
Dear Neetu,
The company is also liable to pay retrenchment compensation according to section 25 F or 25 N as the case may be if the unit is covered under the Industrial Disputes Act,1947 & the employee which is going to be effected/ terminated is covered under the definition of the workman under section 2(s) of this Act. If this is not the position then terminate the services according to the terms & condition of employment.
Regards,
R.N.Khola
Skylark Associates, Gurgaon(Haryana)
(Labour Law & Legal Consultants)
09810405361
From India, Delhi
363The company is also liable to pay retrenchment compensation according to section 25 F or 25 N as the case may be if the unit is covered under the Industrial Disputes Act,1947 & the employee which is going to be effected/ terminated is covered under the definition of the workman under section 2(s) of this Act. If this is not the position then terminate the services according to the terms & condition of employment.
Regards,
R.N.Khola
Skylark Associates, Gurgaon(Haryana)
(Labour Law & Legal Consultants)
09810405361
From India, Delhi
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AP.shops...Act extract of Service Compensation.do c
Published_draft _rules_on Employees_ compensation 3.6.2020.pdf