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.

Googling your legal issue online?

The internet is not a lawyer and neither are you.
Talk to a real lawyer about your legal issue.

Popular Labour & Service Lawyers

Advocate Sunil Kumar Bakshi
Sector-16, Faridabad
33 years Experience
Advocate Wg Cdr Ajit Kakkar (Retd)
Dwarka, Delhi
20 years Experience
Advocate J. P. Rinwa
Swej Farm, Sodala, Jaipur
19 years Experience
Advocate Bala Janaki
330 Thambuchetty Street, Chennai
35 years Experience

Disclaimer: The above query and its response is NOT a legal opinion in any way whatsoever as this is based on the information shared by the person posting the query at and has been responded by one of the Labour & Service Lawyers at to address the specific facts and details. You may post your specific query based on your facts and details to get a response from one of the Lawyers at or contact a Lawyer of your choice to address your query in detail.

Related Questions

" has handpicked some of the best Legal Experts in the country to help you get practical Legal Advice & help."

Related Articles