Dear All,
I am new to this community and to my job also. Can any one suggest me in the matter of our ex. employee who filled a complaint against his retrenchment from the company. How much compensation we need to pay for retrenchment or how can we defend us in this regard. Is there any law to give him notice before retrenchment, what can be happen if don't do the same. There is no any agreement between us as such for his employment with us for more than a year. Your early response will be highly appreciated.
Thanks and regards
Sarvesh
From India, Delhi
1I am new to this community and to my job also. Can any one suggest me in the matter of our ex. employee who filled a complaint against his retrenchment from the company. How much compensation we need to pay for retrenchment or how can we defend us in this regard. Is there any law to give him notice before retrenchment, what can be happen if don't do the same. There is no any agreement between us as such for his employment with us for more than a year. Your early response will be highly appreciated.
Thanks and regards
Sarvesh
From India, Delhi
Dear Sarvesh
Please give the full details about the ex-employee. What is his date of joining and when he left the service? What was his terms of employment pronounces about the retrenchment clause? Has he resigned his job or the company has retrenched him from service? How is his work performance during his tenure of employment? Is there any disciplinary action initiated against the retrenched employee? If so please give those details too, so that our learned members can give you suitable reply to your query.
From India, Kumbakonam
Please give the full details about the ex-employee. What is his date of joining and when he left the service? What was his terms of employment pronounces about the retrenchment clause? Has he resigned his job or the company has retrenched him from service? How is his work performance during his tenure of employment? Is there any disciplinary action initiated against the retrenched employee? If so please give those details too, so that our learned members can give you suitable reply to your query.
From India, Kumbakonam
Dear Sarvesh
Employer deemed to pay Retrenchment compensation if An Employee works more than 240 days in a year under sec.25 F ID Act calculation as follows:
Last drawn salary/30*15* No.of .Years
Thanks
Naresh Gadde
Hyderabad
From India, Hyderabad
Employer deemed to pay Retrenchment compensation if An Employee works more than 240 days in a year under sec.25 F ID Act calculation as follows:
Last drawn salary/30*15* No.of .Years
Thanks
Naresh Gadde
Hyderabad
From India, Hyderabad
Dear Mr. Bhaskar,
Thank you for replying for my query.
Please find the details require to come for any conclusion.
1. Joining date was Jan, 2010 and he left the organisation in Feb, 2012.
2. He joined the organisation on temporary basis and continued til Feb 2012 as a temporary employee.
3. Company has retenched him from service.
4. Work performance was poor but we have given only verbal warning to him for his performance.
5 No any disciplinary action taken as such.
Please give your valuable suggestion.
Thanks and regards
Sarvesh
From India, Delhi
Thank you for replying for my query.
Please find the details require to come for any conclusion.
1. Joining date was Jan, 2010 and he left the organisation in Feb, 2012.
2. He joined the organisation on temporary basis and continued til Feb 2012 as a temporary employee.
3. Company has retenched him from service.
4. Work performance was poor but we have given only verbal warning to him for his performance.
5 No any disciplinary action taken as such.
Please give your valuable suggestion.
Thanks and regards
Sarvesh
From India, Delhi
Dear Mr.Sarvesh
In your posts you have stated that there was no obligation to continue the employee in your employment after one year. What do you mean precisely by this statement? What was the basis for the continuance of the employee beyond one year?
Regards
From India, Madras
In your posts you have stated that there was no obligation to continue the employee in your employment after one year. What do you mean precisely by this statement? What was the basis for the continuance of the employee beyond one year?
Regards
From India, Madras
Dear Mr. Bhaskar,
Thank you for replying to my query.
Please find the details require to come for any conclusion.
1. Joining date was Jan, 2010 and he left the organisation in Feb, 2012.
2. He joined the organisation on temporary basis and continued til Feb 2012 as a temporary employee.
3. Company has retenched him from service.
4. Work performance was poor but we have given only verbal warning to him for his performance.
5 No any disciplinary action taken as such.
Please give your valuable suggestion.
Thanks and regards
Sarvesh
************************************************** **
Dear Sarvesh
Please give the full details about the ex-employee. What is his date of joining and when he left the service? What was his terms of employment pronounces about the retrenchment clause? Has he resigned his job or the company has retrenched him from service? How is his work performance during his tenure of employment? Is there any disciplinary action initiated against the retrenched employee? If so please give those details too, so that our learned members can give you suitable reply to your query.[/QUOTE]
From India, Delhi
Thank you for replying to my query.
Please find the details require to come for any conclusion.
1. Joining date was Jan, 2010 and he left the organisation in Feb, 2012.
2. He joined the organisation on temporary basis and continued til Feb 2012 as a temporary employee.
3. Company has retenched him from service.
4. Work performance was poor but we have given only verbal warning to him for his performance.
5 No any disciplinary action taken as such.
Please give your valuable suggestion.
Thanks and regards
Sarvesh
************************************************** **
Dear Sarvesh
Please give the full details about the ex-employee. What is his date of joining and when he left the service? What was his terms of employment pronounces about the retrenchment clause? Has he resigned his job or the company has retrenched him from service? How is his work performance during his tenure of employment? Is there any disciplinary action initiated against the retrenched employee? If so please give those details too, so that our learned members can give you suitable reply to your query.[/QUOTE]
From India, Delhi
Dear Mr.Sarvesh
In your post you have specifically stated that you have retrenched the employee. Therefore before retrenching the employee you should have followed the procedure prescribed under Chapter V A of the Industrial Disputes Act. The details contained in your post makes me presume that your company has not followed the procedure prescribed under Chapter V A of the Industrial Disputes Act. If you had not followed the procedure prescribed under chapter V A of the Industrial Disputes Act, then the retrenchment becomes illegal and the employee can claim reinstatement. You have not given the reason for retrenchment. You have stated that his work performance was poor. If this is the reason for his retrenchment, then it amounts to punishing him for his work performance and therefore if you have not followed proper discriplinary procedure, then also the retrenchment becomes illegal. My views are based on the information furnished by you in your posts. In case chapter V B is applicable to your industrial establishment then you should also have obtained the prior permission in writing from the appropriate Government.
With regards
From India, Madras
In your post you have specifically stated that you have retrenched the employee. Therefore before retrenching the employee you should have followed the procedure prescribed under Chapter V A of the Industrial Disputes Act. The details contained in your post makes me presume that your company has not followed the procedure prescribed under Chapter V A of the Industrial Disputes Act. If you had not followed the procedure prescribed under chapter V A of the Industrial Disputes Act, then the retrenchment becomes illegal and the employee can claim reinstatement. You have not given the reason for retrenchment. You have stated that his work performance was poor. If this is the reason for his retrenchment, then it amounts to punishing him for his work performance and therefore if you have not followed proper discriplinary procedure, then also the retrenchment becomes illegal. My views are based on the information furnished by you in your posts. In case chapter V B is applicable to your industrial establishment then you should also have obtained the prior permission in writing from the appropriate Government.
With regards
From India, Madras
Dear Sarvesh
In addition to the advise given by Mr. V Harikrishnan, please follow the procedure as given below.
1. You must pay 1 month salary as his notice pay, as you have retrenched him from the services.
2. Eventhough he is on Temporary cadre, he must be paid with 30 days of Retrenchment Compensation (15 days pay to be given for every completed year of service).
3. You must pay the Leave pay whatever in his credit or 1 day for every completed 20 days worked.
4. Hope you might have served with a notice for retrenchment and in that notice you might have mentioned about his unsatisfactory work performance of the employee and about the verbal warning also.
5. If you do so, then you need not to worry about any action.
From India, Kumbakonam
In addition to the advise given by Mr. V Harikrishnan, please follow the procedure as given below.
1. You must pay 1 month salary as his notice pay, as you have retrenched him from the services.
2. Eventhough he is on Temporary cadre, he must be paid with 30 days of Retrenchment Compensation (15 days pay to be given for every completed year of service).
3. You must pay the Leave pay whatever in his credit or 1 day for every completed 20 days worked.
4. Hope you might have served with a notice for retrenchment and in that notice you might have mentioned about his unsatisfactory work performance of the employee and about the verbal warning also.
5. If you do so, then you need not to worry about any action.
From India, Kumbakonam
Respected V.Harikrishnan,
I would like to get clarity on the following:
Does BPO fall under retrenchment?
As per retrenchment act we have to pay one month salary and 15 days avg pay for every completed year.
What if employee has completed 1 yr 5 months? In such cases do we still have to pay one month and 15 days salary?
Awaiting your response
Reg,
Shweta
From India, Bangalore
I would like to get clarity on the following:
Does BPO fall under retrenchment?
As per retrenchment act we have to pay one month salary and 15 days avg pay for every completed year.
What if employee has completed 1 yr 5 months? In such cases do we still have to pay one month and 15 days salary?
Awaiting your response
Reg,
Shweta
From India, Bangalore
Dear Ms.Shweta
1. The need to pay retrenchment compensation to an employee is provided for in the Industrial Disputes Act 1947. Section 2(oo) of the Industrial Disputes Act defines the term "retrenchment" and also specifies what are not covered by the definition of the term "retrenchment". Please go through this section of the Industrial Disputes Act.
2.For the Industrial Disputes Act to be applicable firstly, the employee should be a "workman" as defined under section 2(s) of this Act. Secondly, the organisation which employs the "workman" should be an industry as defined under section 2(j) of the Act.Thirdly, the issue involved should be an industrial dispute as defined under section 2(k) of the Industrial Disputes Act. If any one of the above mentioned three conditions are not satisfied, then the Industrial Disputes Act is not applicable.
3.In the case of BPO the activity carried on in the BPOs are "industry" as defined in the Industrial Disputes Act. I cannot elaborate on the basis on which I am making this statement because of paucity of space and time and I want to be brief also.
4. If the individual who is retrenched, is a "workman" as defined under the Industrial Disputes Act, then the retrenched "workman" is entitled to the protection of the Industrial Disputes Act, in other words the BPO has to follow the provisions of the Industrial Disputes Act while retrenching the workman.
5.As "retrenchment" is an industrial dispute, the Industrial Disputes Act is applicable to the case referred to by you in your post.
6. In the case of the employee referred to in your post, if during the period of the last six months of his service he had worked for 120 days then he is deemed to have had put in a continuous service for six months and the total continuous service will be one and half years. He will be entitled to retrenchment compensation at the rate of 15 days average pay for every completed year of service and the period in excess of six months of continuous service has to be treated as one year of continuous service. In this case as the employee has put in only one and half years of continuous service he will be eligible for retrenchment compensation for one year of continuous service only. In addition he is entitled to one month's notice or one month's wages lieu of notice
With regards
From India, Madras
1. The need to pay retrenchment compensation to an employee is provided for in the Industrial Disputes Act 1947. Section 2(oo) of the Industrial Disputes Act defines the term "retrenchment" and also specifies what are not covered by the definition of the term "retrenchment". Please go through this section of the Industrial Disputes Act.
2.For the Industrial Disputes Act to be applicable firstly, the employee should be a "workman" as defined under section 2(s) of this Act. Secondly, the organisation which employs the "workman" should be an industry as defined under section 2(j) of the Act.Thirdly, the issue involved should be an industrial dispute as defined under section 2(k) of the Industrial Disputes Act. If any one of the above mentioned three conditions are not satisfied, then the Industrial Disputes Act is not applicable.
3.In the case of BPO the activity carried on in the BPOs are "industry" as defined in the Industrial Disputes Act. I cannot elaborate on the basis on which I am making this statement because of paucity of space and time and I want to be brief also.
4. If the individual who is retrenched, is a "workman" as defined under the Industrial Disputes Act, then the retrenched "workman" is entitled to the protection of the Industrial Disputes Act, in other words the BPO has to follow the provisions of the Industrial Disputes Act while retrenching the workman.
5.As "retrenchment" is an industrial dispute, the Industrial Disputes Act is applicable to the case referred to by you in your post.
6. In the case of the employee referred to in your post, if during the period of the last six months of his service he had worked for 120 days then he is deemed to have had put in a continuous service for six months and the total continuous service will be one and half years. He will be entitled to retrenchment compensation at the rate of 15 days average pay for every completed year of service and the period in excess of six months of continuous service has to be treated as one year of continuous service. In this case as the employee has put in only one and half years of continuous service he will be eligible for retrenchment compensation for one year of continuous service only. In addition he is entitled to one month's notice or one month's wages lieu of notice
With regards
From India, Madras
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