Workman failed to complete 240 days prior to being retrenched - can Employer avoid the procedure under section 25 of IDA?

Dear Mr.Kalsi
what is retrenchment ??
could u explain briefly

Hi
Definition of Retrenchment as given in ID Act is given hereunder:
" retrenchment means the termination by the employer of the service of a workman for any reason whatsoever, otherwise than as a punishment inflicted by way of disciplinary action, but does not include--
(a) voluntary retirement of the workman; or
(b) retirement of the workman on reaching the age of superannuation if the contract of employment between the employer and the workman concerned contains a stipulation in that behalf; or
(bb) 2[ termination of the service of the workman as a result of the non- renewal of the contract of employment between the employer and the workman concerned on its expiry or of such contract being terminated under a stipulation in that behalf contained therein; or] (c) termination of the service of a workman on the ground of continued ill- health;]

Dear Parthi,

I think instead of asking basic questions,you should have patience to go through the relevant Act & rules,which will give you the fair idea of what the Acts deals with.Then you will have many queries coming to your mind to which our seniors are there to assist you.This is simple advise, which will helpful in future if you are building a HR career.

Now coming to the term 'retrenchment'. Retrenchment means termination of the contract of service of the employees in a redundancy situation which arise from several factors such as closure of business, restructuring, reduction in production, mergers, technological changes, take-over, economic downturn and others. Section 2 (oo) of the Industrial Disputes Act,1947 defines Retrenchment as -” the termination by the employer of the service of a workman for any reason whatsoever, otherwise than as a punishment inflicted by way of disciplinary action, but does not include voluntary retirement of the workman, superannuation on reaching the age of retirement,on completion of contract period or on the ground of continued ill-health of a workman".The retrenchment carries with host of benefits viz notice period or pay in lieu thereof, retrenchment compensation and re-employment opportunities.The employer has to comply with the statutory provisions contained in the I.D Act & Rules.

BS Kalsi,

Member since Aug 2011

Dear Gentlemen,
If a workmen has worked for 3 years in company and in the first year he has worked for 190 days, in the second year he has worked for 210 days and in the third year he has worked for 245 days. Will he be able to get retrenchment benefit for all these three years on proportionate basis or else will get the retrenchment benefit for the third year in which he has worked for 245 days instead.
Kindly give your suggestions.
Regards
Gati