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How to claim for compensation in legal way from private firm shutting


29-Aug-2023 (In Labour & Service Law)
I am working in a private ltd. firm for the last 19 years , now due to some dispute in the owners of the firm they are closing the firm and want all their employees to leave.Although it is a private ltd. firm on its sign board but they dont maintain any particular record of their employees ( No PF No ESI etc. ) . Now please tell me how can we ask them for a compensation in a legal way and what are the evidence required for the same.
Answers (4)

Answer #1
901 votes
It is not that you can claim compensation. Rather you will have the rights to claim your due and the monthly salary in against the notice period which you are supposed to serve for leaving the organization.
For example if the employment contract states that you need to serve a notice period of 60 days before leaving the organization and the company is asking you to leave immediately as they are shutting down their unit then you can claim the salary for these 60 days notice period.
Similarly in terms of dues you will be able to receive your current month salary, salary in against your pending leaves, and any other special benefits which you were supposed to get while working at the company.
You need to raise these issue initially on an internal basis then by way of legal notice and then by way of Court procedure if your issues has not been resolved up in earlier two steps.
Answer #2
699 votes
Immediately approach Labour Commissioner and file a complaint. Process is simple. After that let labour commissioner take action. Also get your colleagues to do so. Remember: unity is strength. After that your private employer will pay you whatever is legally allowed. For paperwork: all documents establishing that you were working with the company as an employee would be required. Say you hiring letter, confirmation letter, salary slip, bank account details where salary is credited etc. Good luck! Simultaneously please also start looking for new job.
Answer #3
539 votes
What is your status in company, are you a worker or supervisor.
If the company is retrenching it's employees, you may file an application giving details of matter to the Labour Commissioner concerned. The LC will initiate mediation proceeding, if they fail the matter will be sent before Labor Court.
Answer #4
531 votes
Hi

will glad to help you. If your firm had more than 20 employees working for it, you have a right to get PF and ESI. You can ask for compensation. Let me know what all help you need. Employers can not get rid of their employees like this.

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