Dear Superiors,
If the company retrenches the staff, do we need to pay notice pay, retrenchment benefits, or both as part of the full and final settlement? Your answer would be highly appreciated.
From India, undefined
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If the company retrenches the staff, do we need to pay notice pay, retrenchment benefits, or both as part of the full and final settlement? Your answer would be highly appreciated.
From India, undefined
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The poster should go through Sec. 25-F of the ID Act, 1947. One month's notice is the first step in the process of retrenchment. When the employer is unable to do so due to whatever reasons, he has to pay notice pay in lieu of notice and the retrenchment compensation simultaneously at the time of retrenchment itself. It is entirely a concurrent process, and any failure would render the retrenchment illegal.
From India, Salem
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6185From India, Salem
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Uma sir, What is process to calculate retrenchment compensation ? Please explain formula. Second how many minimum days required to be a "CONFIRMED Employees"? Thanks
From India, Delhi
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From India, Delhi
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Dear Lokesh,
Retrenchment compensation should be paid at the time of retrenchment. It should be calculated on the basis of the last drawn average wages, i.e., at 15 days average gross wages for every completed year of service.
Confirmation of a newly appointed employee is always based on his successful completion of the period of probation as fixed in his appointment orders. In case of non-satisfactory performance or inevitable leave taken due to unforeseen circumstances like an accident or sudden serious illness during the probation period, the period of probation of such an employee can be extended by another equal spell. The length of the period of probation normally varies depending on the nature of the post as well as the organization. Therefore, how much time would be taken for confirmation cannot be precisely stated.
From India, Salem
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Retrenchment compensation should be paid at the time of retrenchment. It should be calculated on the basis of the last drawn average wages, i.e., at 15 days average gross wages for every completed year of service.
Confirmation of a newly appointed employee is always based on his successful completion of the period of probation as fixed in his appointment orders. In case of non-satisfactory performance or inevitable leave taken due to unforeseen circumstances like an accident or sudden serious illness during the probation period, the period of probation of such an employee can be extended by another equal spell. The length of the period of probation normally varies depending on the nature of the post as well as the organization. Therefore, how much time would be taken for confirmation cannot be precisely stated.
From India, Salem
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