You have to pay 15 days salary for every year of completed service
We are in process of separating our rubber tapping labour who was tapping with us for 4 years. Please advise what is the final settlement we have to do. Usually people here follow 15 days salary *4years.But the labour says it is 1 month salary*4 years.He taps around 400 trees per day aprox 2acre per day. Please advice.
First answer received in 30 minutes.
Lawyers are available now to answer your questions.
Thanks, Please let me know under what act this is followed
There is no specific law which sets for payment as per the any such scheme.
It depends upon company to company own rules and guidelines.
Under section 25 F of the Industrial Disputes Act, retrenched workers are entitled to 15 days' wages for each completed year of service.
Try to mutually settle it any amount you feel. If they don't agree then you need to pay then what is legally outstanding to them.
Dear Client,
Above process amounts to retrenchment, comes under section 25F of the Industrial Dispute Act.
This provision provides for the employer to fulfill certain conditions before retrenching any employee. It states that no workman employed in any industry who has been in continuous service for not less than one year under an employer shall be retrenched by that employer until-
The workman has been given one month' s notice in writing indicating the reasons for retrenchment and the period of notice has expired, or the workman has been paid in lieu of such notice, wages for the period of the notice:
The workman has been paid, at the time of retrenchment, compensation which shall be equivalent to fifteen days' average pay for every completed year of continuous service or any part thereof in excess of six months; and
Notice in the prescribed manner is served on the appropriate Government or such authority as may be specified by the appropriate Government by notification in the Official Gazette.
There are provisions under Chapters V-A and V-B of Industrial Disputes Act relating to retrenchment under certain situations. Section 25F provides for conditions precedent to retrenchment of workers, Section 25F(b) provides for payment for retrenchment compensation which shall be equivalent to 15 day’s average pay for every completed year of continuous service or any part thereof in excess of 6 months.
Thanks, Please let me know under what act this is followed
The situation what you explained above may come under the Industrial Disputes Act, 1947, which
is considered a retrenchment. The provisions of section 25(F)(b) of the said act will be applicable to this situation.
Section 25F of the Industrial Disputes Act, 1947 relates to the retrenchment under certain situations.
`
Section 25F in The Industrial Disputes Act, 1947
25F. Conditions precedent to retrenchment of workmen.- No workman employed in any industry who has been in continuous service for not less than one year under an employer shall be retrenched by that employer until--
(a) the workman has been given one month' s notice in writing indicating the reasons for retrenchment and the period of notice has expired, or the workman has been paid in lieu of such notice, wages for the period of the notice:
1
(b) the workman has been paid, at the time of retrenchment, compensation which shall be equivalent to fifteen days' average pay 2 for every completed year of continuous service] or any part thereof in excess of six months; and
(c) notice in the prescribed manner is served on the appropriate Government 3 or such authority as may be specified by the appropriate Government by notification in the Official Gazette].
Compensation to workmen in case of transfer of undertakings.