HR Gen
1 year ago
If an employee, who has worked for more than a year in an organization, is laid off or retrenched, is the company legally obligated to pay them a severance pay?
The employment contract says in case the company terminates the contract for a just cause, the employee will be offered a 30-days notice. However, if the employee declines the offer, will the company still be obligated to pay a 1-month severance pay? The Industrial Disputes Act outlines that an employer is required to give at least one month's advance notice or payment in lieu thereof to an employee who has completed at least one year of continuous service before termination.
A.Hi client,
Yes you are enough eligible for the same.
The retrenchment compensation will be 15 days of last drawn salary multiplied with number of years of service completed in the company. The Honorable Supreme Court of India held that retrenchment compensation is intended to give relief for sudden and unexpected elimination of employment.
Thanks and Regards
Simi Paul
Yes you are enough eligible for the same.
The retrenchment compensation will be 15 days of last drawn salary multiplied with number of years of service completed in the company. The Honorable Supreme Court of India held that retrenchment compensation is intended to give relief for sudden and unexpected elimination of employment.
Thanks and Regards
Simi Paul
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A.Dear Client
Yes, you can claim severance pay for 15 days ad you are elegible for it and if they do not pay then you can serve legal notice.
Hope it helps
Yes, you can claim severance pay for 15 days ad you are elegible for it and if they do not pay then you can serve legal notice.
Hope it helps
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