Do I need to pay severance package to a freelancer
3 weeks ago
A person worked as a porter at our shop, he was paid according to the number of deliveries he made.
He also used to work for other shopkeepers also.
He was not paid any monthly salary.
He was given Rs.3000 extra per year as a bonus.
He has been working for our shop for almost 20 years.
Now that we have closed oir shop he is demading a severance package from us.
In addition he is asking Rs.5000 for every year he worked for us
(so in total he wants 20 x 5000 = Rs.100000)
Is he entitled to receive any severance package?
A.Dear Client,
Severance pay is compensation provided to employees who are laid off, have their positions eliminated, or otherwise leave a company. Freelance workers are also entitled to severance pay, as there are no laws prohibiting individuals from holding multiple jobs. The calculation of severance pay must adhere to various laws applicable to the establishment, such as the Industrial Disputes Act, Shops and Establishments Act, Payment of Gratuity Act, Payment of Wages Act, Minimum Wages Act, and state-specific social security laws. Regardless of the nature or terms of employment, employees who have served a company for an extended period, such as twenty years, deserve severance pay in accordance with relevant laws, acknowledging their contribution to the company's growth.
Severance pay is compensation provided to employees who are laid off, have their positions eliminated, or otherwise leave a company. Freelance workers are also entitled to severance pay, as there are no laws prohibiting individuals from holding multiple jobs. The calculation of severance pay must adhere to various laws applicable to the establishment, such as the Industrial Disputes Act, Shops and Establishments Act, Payment of Gratuity Act, Payment of Wages Act, Minimum Wages Act, and state-specific social security laws. Regardless of the nature or terms of employment, employees who have served a company for an extended period, such as twenty years, deserve severance pay in accordance with relevant laws, acknowledging their contribution to the company's growth.
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A.Dear Sir,
If the strength of your employees was more than 10 then the Labor Law provisions will applies otherwise you need not bother. You just ignore his notices and demands.
If the strength of your employees was more than 10 then the Labor Law provisions will applies otherwise you need not bother. You just ignore his notices and demands.
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A.Dear Client,
Severance pay is compensation given to an employee who is laid off, whose job has been eliminated, or who has otherwise parted ways with a company. A freelance employee is also entitled to severance pay at par with others as there is no overarching law that prohibits a person from doing multiple jobs. A severance pay is required to be computed following the provisions of different laws if applicable to the establishment including the I D Act, Shops and Establishments Act, P G Act. P W Act, MW Act and other state-specific social security laws. So, when a person served a company for long twenty years, he deserves severance pay following the provisions of relevant law applicable to the establishment regardless of his nature and terms of employment considering his contribution to the growth of the company.
Severance pay is compensation given to an employee who is laid off, whose job has been eliminated, or who has otherwise parted ways with a company. A freelance employee is also entitled to severance pay at par with others as there is no overarching law that prohibits a person from doing multiple jobs. A severance pay is required to be computed following the provisions of different laws if applicable to the establishment including the I D Act, Shops and Establishments Act, P G Act. P W Act, MW Act and other state-specific social security laws. So, when a person served a company for long twenty years, he deserves severance pay following the provisions of relevant law applicable to the establishment regardless of his nature and terms of employment considering his contribution to the growth of the company.
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