Salary Compensation
9 months ago
Jan 23 I was laid of from company due to down sizing. The company has paid me adequate severance allowance and also said would pay 3 months "SALARY." However they paid only 3 months "BASIC SALARY" only and not what i used to get as 1 month's salary. In there letter it was mentioned "salary," and even in my joining letter 3 month's "SALARY" will be paid if company asks me to leave. No where "BASIC SALARY" is mentioned. So can I request company to pay the additional amount which was a part of my monthly salary? This is because, had I served 3 month's notice period I would have got "Basic Salary" + the other "components" of my monthly salary.
Chapter V-B of the Industrial Disputes Act, 1947 defines the special provisions regarding lay-off and Section 25M deals with the prohibition of lay-off by the employer. An employer must mandatorily comply with the provisions of Section 25M of the Act and must take prior permission from the appropriate government or any special authority before laying off any employee or workman (other than badli or casual workers) whose name is listed on the muster roll. It is to be noted that this applies to industrial establishments that are not seasonal and consist of more than 100 workmen/employees. Compensation is provided to laid-off employees/workers for all days during which they are laid off, save for weekly holidays, according to Section 67 of the Industrial Relations Code. The amount of compensation will be equal to half or 50% of the total (basic salary + dearness allowance). So, in view of the above provision of laid-off compensation, if it appears to you that 3 months' basic salary falls short applying the above mode of computation of laid-off compensation then you can ask for the same to your employer otherwise you are not entitled for the same.
Anonymous
Replied 9 months ago
Thanks for the reply. We do not have dearness allowance. Basic + various other allowances in the monthly salary. But looking at your reply (50% of BS + DA), they paid me the full 100% of basic for all 3 months. Hence I cannot claim the remaining.
No you cannot claim additional amount. During a lay-off, the employer is not liable to pay wages to the employees. However, the employees are entitled to a compensation of 50% of their basic wages and dearness allowance for the period of the lay-off, subject to certain conditions under the Industrial Disputes Act, 1947.
Anonymous
Replied 9 months ago
Thanks. Understood your point. Since we didnt had Dearness aloowance, they paid me 100% basic salary for all 3 months which is more than you mentioned.
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