• Retrenchment package


I am working as Manager in BPO and been working in this company for last nine year and my company is in verge of winding off, I want to know if i am applicable to get Retrenchment package as per the law.

Asked 4 years ago in Labour from Mumbai, Maharashtra
In layman’s idea, the term retrenchment shows the incapacity of the employers to carry on their work due to some economic grounds resulting in permanent termination of the workers which is in character of downsizing to regain stability. In retrenchment proceedings, the last to be employed will be retrenched first, and if the employer decides to recruit at a later stage, the retrenched employees have to be given preference.

Retrenchment refers to discharge of surplus labour by the employer. It may be due to inevitable reasons including rationalisation or installation of new labour-saving machinery. Retrenchment may also be said as the right of an employer. An employer has a right to organise his business in any lawful manner he considers best and courts cannot question its proprietary. If re organisation results in surplus employees, no employer is expected to carry their burden. There is a consensus of judicial opinion in deciding retrenchment on the facts and circumstances of each case. Courts have decided that termination of services is due to loss.

Depending upon the internal policies you may receive some benefits especially since the BPO is in a vendor position and the client overseas may be able to get a compensation worked out depending on the exact organisation you are employed in.the parent company abroad.
As the company is winding off your case will not fall strictly under retrenchment
S J Mathew
Advocate, Mumbai
2263 Answers
110 Consultations

5.0 on 5.0

1. It will not be retrenchment of people,

2. It is loss of job for winding up of the Company,

3. For winding up of the Company, there will be few months  salary towards compensation which will first considered as debt of the Company by the receier who will be appointed by the Court while passing the windup order.
Krishna Kishore Ganguly
Advocate, Kolkata
18749 Answers
452 Consultations

5.0 on 5.0

Under the labour laws (industrial dispute act) you are not eligible for retrenchment compensation as you are employed in managerial capacity. You shall be entitled to benefits under employment contract such as notice pay etc.
H. S. Thukral
Advocate, New Delhi
569 Answers
170 Consultations

5.0 on 5.0

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