Notice pay and retrenchment benefit
2 months ago
We are working with a PSU organisation with a work order, but the work order is going to expire. As per their CLC both notice pay and retrenchment benefit to be given to the existing workers. But we have been assigned with new work order and we want to retain the same workers for the same. Is it necessary to give notice pay and retrenchment benefit to the same workers in order to close the previous work order ?
A.Dear Client,
Upon the issuance of an order or directive by the competent authority for the payment of retrenchment compensation to the retrenched workers, it is imperative to adhere to the said order. However, consideration should be given to Section 25H of the Industrial Dispute Act, 1947, addressing the re-employment of retrenched workers. This section mandates that when an employer intends to hire individuals, an opportunity must be provided, as prescribed, for retrenched workers who are Indian citizens to offer themselves for re-employment, with a preference granted to such retrenched workers.
Additionally, the Explanation to Section 25M of the Act, pertaining to the prohibition of layoff, specifies that an employer does not lay off a worker if alternative employment is offered within the same establishment or another establishment of the same employer in the same town, village, or a reasonable distance away.
Considering these legal provisions, an application for a review of the order can be made to the competent authority. The application may highlight the alternative provisions of the law that safeguard the benefits and interests of the workers. If the competent authority finds merit in the appeal, it may conduct a hearing, involving notices to both the workers and the employer. During the hearing, if the workers accept the alternative employment offer, the authority may reconsider its initial order.
Upon the issuance of an order or directive by the competent authority for the payment of retrenchment compensation to the retrenched workers, it is imperative to adhere to the said order. However, consideration should be given to Section 25H of the Industrial Dispute Act, 1947, addressing the re-employment of retrenched workers. This section mandates that when an employer intends to hire individuals, an opportunity must be provided, as prescribed, for retrenched workers who are Indian citizens to offer themselves for re-employment, with a preference granted to such retrenched workers.
Additionally, the Explanation to Section 25M of the Act, pertaining to the prohibition of layoff, specifies that an employer does not lay off a worker if alternative employment is offered within the same establishment or another establishment of the same employer in the same town, village, or a reasonable distance away.
Considering these legal provisions, an application for a review of the order can be made to the competent authority. The application may highlight the alternative provisions of the law that safeguard the benefits and interests of the workers. If the competent authority finds merit in the appeal, it may conduct a hearing, involving notices to both the workers and the employer. During the hearing, if the workers accept the alternative employment offer, the authority may reconsider its initial order.
Helpful
Helpful
Share
A.Dear Client,
Once an order or direction is passed for payment of retrenchment compensation to the retrenched workmen by the competent authority (CLC/Dy. CLC) ) you have to comply with the said order. However, in this context, reference may be made to Sec.25H of the Industrial Dispute Act, 1947 which deals with the Re-employment of retrenched workmen and says "Where any workmen are retrenched, and the employer proposes to take into his employ any persons, he shall, in such manner as may be prescribed, give an opportunity to the retrenched workmen who are citizens of India to offer themselves for re-employment and such retrenched workman who offers themselves for re-employment shall have preference over other persons. Further, an Explanation to Sec.25M of the Act which deals with the prohibition of layoff of the workmen says "For the purposes of this section, a workman shall not be deemed to be laid-off by an employer if such employer offers any alternative employment (which in the opinion of the employer does not call for any special skill or previous experience and can be done by the workman) in the same establishment from which he has been laid-off or in any other establishment belonging to the same employer, situate in the same town or village, or situate within such distance from the establishment to which he belongs that the transfer will not involve undue hardship to the workman having regard to the facts and circumstances of his case, provided that the wages which would normally have been paid to the workman are offered for the alternative appointment also." So, in view of the above provision of the relevant law, you can make an application before the competent authority for review of its order referring above alternative provisions of law that also protect the benefit and interest of the workmen. If the competent authority allows your appeal considering its fairness, it may call for a hearing in the matter serving the notice to the workmen and you. In the hearing, if the workmen agree with your offer, then the authority may review its order.
Once an order or direction is passed for payment of retrenchment compensation to the retrenched workmen by the competent authority (CLC/Dy. CLC) ) you have to comply with the said order. However, in this context, reference may be made to Sec.25H of the Industrial Dispute Act, 1947 which deals with the Re-employment of retrenched workmen and says "Where any workmen are retrenched, and the employer proposes to take into his employ any persons, he shall, in such manner as may be prescribed, give an opportunity to the retrenched workmen who are citizens of India to offer themselves for re-employment and such retrenched workman who offers themselves for re-employment shall have preference over other persons. Further, an Explanation to Sec.25M of the Act which deals with the prohibition of layoff of the workmen says "For the purposes of this section, a workman shall not be deemed to be laid-off by an employer if such employer offers any alternative employment (which in the opinion of the employer does not call for any special skill or previous experience and can be done by the workman) in the same establishment from which he has been laid-off or in any other establishment belonging to the same employer, situate in the same town or village, or situate within such distance from the establishment to which he belongs that the transfer will not involve undue hardship to the workman having regard to the facts and circumstances of his case, provided that the wages which would normally have been paid to the workman are offered for the alternative appointment also." So, in view of the above provision of the relevant law, you can make an application before the competent authority for review of its order referring above alternative provisions of law that also protect the benefit and interest of the workmen. If the competent authority allows your appeal considering its fairness, it may call for a hearing in the matter serving the notice to the workmen and you. In the hearing, if the workmen agree with your offer, then the authority may review its order.
Helpful
Helpful
Share
Read Related Answers
Forcefull overtime on weekends with Half day salary
Dear Sir
Please approach the following authority or similar authority in a state
The Office Commissioner of Labour
Karmika Bhavan, Dairy Circle,
Bannerghatta Road, Bangalore-29.
080-29753078
labou...
Obc ncl
Dear Sir,
You are not eligible for OBC NCL since your father’s income is more than Rs.8,00,000/- per annum.
Pf overlaping issue
Dear Sir,
PF PROVIDENT FUND
How to solve the two UAN problem?
Note that each person should have only one UAN number (like PAN), hence if you have multiple UAN, it’s not allowed and creates problem...
Pf exit date noy done by employer
Dear Client,
Firstly you have breached the contract of employer and employee hence once the due process of resignation is followed only then you would be eligible for the PF. Please get back with you...
Employer replied to my BGV as "Absconded candidate"
Dear Sir
Please approach the following authority or similar authority in a state
The Office Commissioner of Labour
Karmika Bhavan, Dairy Circle,
Bannerghatta Road, Bangalore-29.
080-29753078
labou...
Read Blogs on Employment and Labour
Employment and Labour Lawyers
Find Lawyers by Location
