What are the retrenchment compensation that i am eligible for?

I am working at an effluent treatment plant with 3 years and 7 months of continuous service. Due to the introduction of the RO system, a contractor company that completed the work in our plant is going to take over the plant for operation and maintenance as per the contract agreement. Since I am the most junior employee of the company, I am going to be retrenched. What is the retrenchment compensation that I am eligible for?

Note: Company employees on the role - 80, contractor employees - 50, factory license is for 150 employees.

My salary details:

Basic - 6000 / DA - 2400 / HRA - 1800 / Conveyance - 800 / Special Allowance - 1000

1. How many months of notice pay will I get, 3 or 1 month?

2. Compensation for how many years?

3. Will I get gratuity?

Kindly provide me an answer.

Thanks,

Victor (On behalf of an employee)

Dear Mr. Victor,

What is the nature of work done by the employee likely to be retrenched?

With regards

Dear Harikrishnan,

The employee who is likely to be retrenched is a mechanic, but he is not qualified for the position. He has been appointed to perform mechanical work in the company based solely on his experience.

Regards,
Victor

Dear Mr. Victor,

The individual is entitled to receive one month's notice pay and retrenchment compensation at 15 days' pay for every completed year of service. However, he is not entitled to gratuity as he has not completed five years of continuous service.

With regards,

Dear Mr. Soumik,

Please read the post of Mr. Victor. He stated that the workmen employed by the company are as follows: Company employees on role - 80, contractor employees - 50. The factory license is for 150 employees. Mr. Victor mentioned that the company is an effluent treatment plant, thus it must be classified as a factory under the Factories Act. However, the number of company employees is only 80, as indicated by Mr. Victor. Therefore, the provisions of Chapter V B of the Industrial Disputes Act 1947 will not apply to this case, as the number of workmen employed by the company is less than 100 (based on the information provided by Mr. Victor). Consequently, the provisions of Chapter V A will apply. Since Chapter V A is applicable, prior notice to or permission from the government is not necessary in this case. I reiterate that my view is based on the facts provided by Mr. Victor.

For the purpose of Chapter V B, the contractor employees need not be taken into consideration, and only the workmen employed by the company should be considered. This is because the retrenchment is carried out by the company, not by the contractor.

With regards,

Dear Mr. Pon,

Gratuity is a legal entitlement different from retrenchment compensation. If a person who is qualified to get gratuity is retrenched from service, he will receive both gratuity and retrenchment compensation. The rates for both are almost the same. In the case referred to by Mr. Victor, the employee is not entitled to receive gratuity because he had not worked for five years. Therefore, he is entitled to receive retrenchment compensation only.

With regards

Dear Mr. Pon,

Whatever Mr. Hariharan said is correct. The gratuity will be paid for those who served 5 years of continuous service, and the retrenchment compensation will be paid for those who served a minimum of 1 year of service and are eligible if retrenched. For resignation cases, the gratuity will be paid, but retrenchment compensation and notice pay will not be paid.

Hi, this is Sumit. I am working with a broking house, and they asked me to resign without any notice. I have been working with this company for the last 3 years and 6 months. Please help me out. What could I do in this case?

Dear Mr. Harikrishnan,

Mr. Victor has not completed his 5 years and hence he is not eligible for gratuity. My question is where his gratuity amount will be accumulated, which is accountable for his 3 years of service.

Dear Mr. Shankar,

The gratuity amount of any worker does not get accumulated anywhere physically. His employer might have shown the gratuity liability for every year in the "liabilities" column of his books of account. This liability might have been deducted from the "gross profit," and the net profit or net loss would have been arrived at. What happens to this accounting transaction after the retrenchment of the worker who is the subject matter of this discussion, I do not know. I request any expert in Accounting principles to say whether my views are correct.

With regards,