Retrenchment compensation not paid after 1 year


Dear Sir / Madam, I was Retrenched by our company before 1 year in July 2014, just now company is closed & we are not get any compensation by our company till now, what we do? Can we withdraw our PF amount becausewe are not getting our retrenchment compensation,if we withdraw our PF amount is there in impact on our retrenchment compensation. Please suggest, what to do ?

Answers (1)


315 votes

Workmen who are retrenched without compensation have a difficult time getting what is rightfully due to them and I sympathise with your plight. Chapter V-A of the Industrial Dispute Act, 1947 (IDA) entitles you to 15 days’ pay for every year of continuous work.

Further, Section 25F of the IDA provides mandatory conditions for retrenchment of workers. Any employee working in a firm for 240 days or more in the previous 12 months can in principle claim retrenchment compensation. If you fulfil these conditions then you are eligible for retrenchment compensation.
Therefore, you first need to establish whether the retrenchment itself was lawful and whether you are eligible for retrenchment compensation, and if yes to what amount. You should engage an Advocate to first issue a legal notice.

Thereafter you may approach the Labour Courts. There is no such co-relation between your PF and retrenchment compensation. However it would be advisable to have an advocate whet any contracts that you may have entered into with the erstwhile company.


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