Severance Pay related Issue

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 and denial of which amounts to unfair trade practices. 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 and other state-specific social security laws. So, when a person served a company even for a year, he deserves severance pay following the provisions of the relevant laws applicable to the establishment regardless of his nature and terms of employment considering his contribution to the growth of the company and severance pay is calculated @ 15 days' wages(Basic + DA) for each completed year of service. Regardless of reasons, on cessation of employment either by resignation or termination other than a disciplinary action for a proven misconduct, an employee is entitled to an experience certificate, relieving letter and F & F settlement including severance pay dues from the employer within 30 days of the last working days (LWD) post-completion of the notice period following the terms of employment and denial of which by the employer amounts to unfair labour practices. In the query, it is noted that you took maternity leave for two months during the period whereas under the Maternity Benefit Act, 1961 a woman employee can apply for maternity leave regardless of her nature or category of employment, if she has worked with the employer for 80 days in the last 12 months immediately preceding the date of her expected delivery. The duration of maternity leave for both first and second-time mothers is 6 months or 26 weeks. This leave can be availed either before or within 6 months from the date of delivery of the child. An employer cannot discriminate against a woman employee based on her pregnancy status during her pregnancy or post-pregnancy, affecting her maternity rights. Section 12 of the Act explicitly prohibits employers from dismissing or terminating a woman’s employment on account of her pregnancy or absence due to maternity leave. Section 27 of the Act ensures that maternity rights are protected during this period, preventing misuse of contract expiry as a reason to deny maternity benefits. Employers who unlawfully terminate or deny maternity benefits to women employees may face severe penalties under Sections 21 and 22 of the Act, including fines up to Rs 5000 and imprisonment up to 5 years or both, once an aggrieved employee bring the matter to the notice of the competent authority i.e, the concerned office of the Labour Commissioner/ Inspector, Shops & Establishment, State Health & Family Welfare Deptt concerned by filing a complaint against the employer for arbitrary and illegal action affecting your maternity rights that amounted to unfair labour practice. So, in the given scenario, serving a legal notice to the employer, you can escalate your all grievances before the concerned authorities as stated above to navigate the matter effectively. You can simultaneously file an application under Section 33C(2) of the ID Act before the Labour Court concerned claiming your dues(F & F Dues including severance pay) from the employer/Company along with interest provided your are a workman as defined under Section 2(s) of the ID Act. But, if you are holding the position of Manager or Administrator in the Company, you have to file a civil suit against the Company before the Civil Court seeking appropriate relief in the matters. Hence, it is advisable to consult with an Advocate specialising in service/employment and social security laws to navigate the matter correctly and legally.