• Retrenchment compensation

I am working in a software company and has been laid off. The HR asked me to put down my papers and promised me three months of salary. I have been working in this organisation for almost 20 years now. How much compensation I am entitled and what is the process of getting the compensation? Did I made a mistake by voluntarily putting down my papers?
Asked 7 years ago in Labour

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14 Answers

The procedure of retrenchment has been given under Section 25G of the Industrial Disputes Act. Section 25F of the Act provides mandatory conditions for retrenchment of workers. Any workman working in a firm for 240 days or more in the previous 12 months can in principle claim retrenchment compensation.

So Firstly you need to check whether you fall within the definition of 'workman' as given in Section 2(s) of the Industrial Disputes Act. If you fall within the same then you are entitled to claim retrenchment compensation.

You should send them a legal notice claiming retrenchment compensation within 30 days and if the same is not paid then, you can file a written complaint to the Labour Commissioner under whose jurisdiction your company falls claiming the non-payment of retrenchment compensation as the same shall fall within the definition of "Industrial Dispute".

Mohammed Mujeeb
Advocate, Hyderabad
19325 Answers
32 Consultations

hello

the co. wants you to resign but has not given you a cause. you can either resign or they can dismiss you but then they would have to clarify the reasons for doing the same. you don't have to put down your papers just because the HR says so as they want the process to be hassle free irrespective of the fact whether the employee suffers. in case you have already resigned, you can still demand compensation of the basis of the contract signed between you and the employer and the promise made by the HR. was it a verbal promise or a written one?

regards

Rahul Mishra
Advocate, Lucknow
14114 Answers
65 Consultations

What is your designation in the company ?

2) what was salary drawn by you .?

3) in present case you have voluntarily submitted your resignation

4) you may not be entitled to retrenchment compensation

Ajay Sethi
Advocate, Mumbai
99776 Answers
8145 Consultations

You do not fall within definition of workmen’s you have been working as manager administration

2) don’t take back your resignation . Take compensation package offered by company . You are also entitled to gratuity as you have worked for 20 years in the organisation

3) if you take back your resignation your services would be terminated and you would find it difficult to get new job

Ajay Sethi
Advocate, Mumbai
99776 Answers
8145 Consultations

1. Unless there is any specific policy or regulation as regards the compensation or terminal benefit of an old employee.

2. If there is none then you will receive only the arrears salary and other pending benefits like incentives, gratuity, PF, Leave Enchasment etc.

3. Resignation once submitted can not be taken back unless it is refused by the employer in the meantime.

4. Since it is a forced resignation withdrawal of your resignation may lead to termination of your job.

5. Verbal agreement though is legally valid in the eye of law but very difficult to establish in the court of law.

Devajyoti Barman
Advocate, Kolkata
23653 Answers
537 Consultations

They'll pay you salary for the notice period, which could be 3 or 2 month, as specified in your whole agreement.

In addition to the above, only such other compensation shall be paid as detailed in your employment agreement m

Vibhanshu Srivastava
Advocate, Lucknow
9763 Answers
323 Consultations

The resignation if not accepted Fter a certain period is said to have been accepted. But in your case revoke your earlier letter by writing a fresh letter and citing grievances which have not been addressed. The is no remedy for a verbal agreement.

Regards

Rahul Mishra
Advocate, Lucknow
14114 Answers
65 Consultations

Sir, you have made your case very typical. Company laid off you, then you should at-least put papers after receiving the Salary for three months, this was your HR's shrewdness which they do to win the confidence of the employee. Now you have resigned and wants to take back the same, Yes, you can if till date no confirmation is available so make hurry and drop a mail for the same citing non compliance of verbal promises made in all. In court this will be very beneficial.To get the compensation file an application before the Labour Department u/s 33C2 of ID Act where all the questions either it will be of lay off or compensation has to be decided but before filing the case raise a demand before the management for the same.They will say that you do not comes under the category of workman then you say how they can laid off you.

Koshal Kumar Vatsa
Advocate, Gurgaon
2282 Answers
3 Consultations

This is my response to you:

1. Firstly send them a formal notice that you are entitled to compensation, bonus, PF's, FnF etc.;

2. If they do not listen then send them a legal notice;

3. Make sure your negotiate the best leaving bonus that they can offer and you can receive;

4. Do not go to labour court unless there is a need to;

5. So consult a local lawyer and then only take legal steps.

Gowaal Padavi
Advocate, Mumbai
1919 Answers
5 Consultations

Hello,

Following is the law with regards to lay off:

An employee is entitled to compensation for lay-off provided he was in “continuous service” for 240 days within a period of 12 months from the day of lay-off. While calculating continuous service, breaks due to sickness, sanctioned leave, accident, legal strike, lockout and termination of work not due to the employee’s fault are taken into account. Effectively, this implies a workman should be considered in continuous service not only on the days when he actually worked but also on the days on which he could not work due to his own inability to perform (due to illness or for being absent from work) or days on which he had been prevented from working by the employer (due to lockout or stoppage of work).

Anilesh Tewari
Advocate, New Delhi
18103 Answers
377 Consultations

Lay-off compensation is a statutory right and failure to pay entitles the workman to take legal recourse to recover such amounts. You can not get back your resignation now.

Regards

Anilesh Tewari
Advocate, New Delhi
18103 Answers
377 Consultations

You are authorized for various benefits such as gratuity, PPF, pension etc.as per the company and govt laws.

Ganesh Singh
Advocate, New Delhi
7169 Answers
16 Consultations

In layman’s idea, the term retrenchment shows the incapacity of the employers to carry on their work due to some economic grounds resulting in permanent termination of the workers which is in character of downsizing to regain stability. In retrenchment proceedings, the last to be employed will be retrenched first, and if the employer decides to recruit at a later stage, the retrenched employees have to be given preference.

There are provisions under Chapters V-A and V-B of Industrial Disputes Act relating to retrenchment under certain situations. Section 25F provides for conditions precedent to retrenchment of workers, Section 25F(b) provides for payment for retrenchment compensation which shall be equivalent to 15 day’s average pay for every completed year of continuous service or any part thereof in excess of 6 months.

T Kalaiselvan
Advocate, Vellore
89978 Answers
2492 Consultations

My designation is Manager Administration. I have submitted the resignation on email but they haven't yet given a written acceptance. Can I take back my resignation citing compensation reasons. I have been the top performer and got the highest rating. Three months compensation payment was verbal. My in hand salary per month is 68, 000

You have not stated that whether you were forced to resign or it was a retrenchment or why did you tender your resignation in haste?

Well if it is retrenchment then you will be entitled for more allowances and compensation, hence you may withdraw your resignation and allow them to terminate your service.

You will be able to claim full and deserving compensation as per law after that.

T Kalaiselvan
Advocate, Vellore
89978 Answers
2492 Consultations

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