What is the procedure for retrenchment under Industrial Dispute Act?

What is the procedure for retrenchment under Industrial Dispute Act?

Where any workman in an industrial establishment who is a citizen of India, is to be retrenched and he belongs to a particular category of workmen in that establishment, in the absence of any agreement between the employer and the workman in this behalf, the employer shall ordinarily retrench the workman who was the …

What is the law of retrenchment?

Retrenchment is a form of dismissal due to no fault of the employee, it is a process whereby the employer reviews its business needs in order to increase profits or limit losses, which leads to reducing its employees.

What is retrenchment process?

According to Section 2(oo) of the Industrial Disputes Act, 1947 (IDA), retrenchment is the termination of service of a worker “for any reason whatsoever”, but excludes termination by way of punishment inflicted pursuant to disciplinary action, voluntary retirement, retirement on reaching the age of superannuation if …

How is retrenchment pay calculated?

The calculation is really simple. It’s just years of service multiplied by the employee’s compensation. Multiplied by Years of service with a fraction of at least 6 months considered a year.

Can you contest a retrenchment?

If you are retrenched without a fair reason and/or a fair procedure, you can contest the retrenchment at the CCMA or the relevant Bargaining Counsel (if applicable). If the retrenchment is found to be unfair, you will be reinstated or receive compensation.

Can a company hire after retrenchment?

In summary, there is no duty on an employer to re-employ a retrenched employee, nor is there a duty to enter into an agreement that provides for preferential re-employment. The employer is, however, obliged to discuss the possibility of re-employment during the consultation process.

What is retrenchment in what circumstances can the retrenchment be made?

Section 2(oo) of the Act defines the term ‘retrenchment’. The term retrenchment can be referred to as the permanent termination of the employment of the employee or a worker by his or her employer for any reason or circumstance, but other than disciplinary action.

What is retrenchment pay?

In case of retrenchment to prevent losses and in cases of closures or cessation of operations of establishment or undertaking not due to serious business losses or financial reverses, the separation pay shall be equivalent to one (1) month pay or at least one-half (1/2) month pay for every year of service, whichever is …

Can you refuse retrenchment?

Of course, you can refuse retrenchment, which means the consultations have deadlocked. If you are the only person being retrenched, you can refer the dispute either to arbitration or to the Labour Court, irrespective of whether the retrenchment procedure complied with section 189.

What’s the difference between retrenched and redundant?

Redundancy – an employer declares an employee’s position redundant because the employer no longer requires the position to be performed by anyone. Retrenchment – an employer has dismissed an employee because their position is redundant (and that employee was unable to be redeployed).

Which of the following is not covered in retrenchment?

Retrenchment doesn’t cover the following: Voluntary retirement of the employee. Employee’s retirement at the age of superannuation. Termination due to non-renewal of the contract.

When did the law of retrenchment come into effect?

It was inserted by Amendment to the Act in 1953. Thus the Industrial Disputes A ct, 1947 provides for certain conditions in which the termination of employment would not be considered as retrenchment. It is intersting to note here that the provision (bb) to Section 2 (oo) was inserted later through the Amendment Act 49 of 1984.

What is section 25F of the Industrial Disputes Act 1947?

Central Government Act 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–

What is retrenchment and how does it work?

Section 2 (oo) of the Industrial Disputes Act, 1947 defines Retrenchment as: “the termination by the employer of the service of a workman for any reason whatever, otherwise than as a punishment inflicted by way of disciplinary action, but does not include-

What is the industrial disputes (Amendment) Ordinance 1953?

In order to overcome the situation the president of India promulgated The industrial Disputes (Amendment ) Ordinance, 1953 to take effect from 24th October, 1953. The Ordinance made provision for payment of compensation for lay-off and retrenchment.

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