Contract labour - notice pay & retrenchment compensation

SUDHAKARAN V T (Querist) 06 October 2015 This query is : Resolved
Kindly clarify the following;

Workmen are engaged at a construction project under contract labour act.

1. Whether Notice pay & Retrenchment compensation is applicable in case of termination during the ongoing contract period.

2. Whether Notice pay & retrenchment compensation is applicable in case of termination on completion of the project/contract period or project put on hold.

3. Whether Retrenchment compensation is applicable in case of resignation of the worker.

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P. Venu (Expert) 07 October 2015
Please state the real problem, if any.

M V Gupta (Expert) 08 October 2015
1. Yes if the workman was engaged for period exceeding 240 days in 12 months preceding the date of his termination or retrenchment.
2. Notice pay and retrenchment compensation will not apply if the termination of employment is due expiry of the contract period. However if the project is on hold, you may have to lay off the workers in which case u may have to pay the lay off compensation under the ID Act.
3. NO.

SUDHAKARAN V T (Querist) 12 October 2015
Thanks. Please also clarify the retrenchment compensation / lay off compensation payable (ie. no of days etc)

K.S.Srinivas (Expert) 12 October 2015
Shall be paid by the employer for all days during which he is so laid-off, except for such weekly holidays as may intervene, compensation which shall be equal to fifty percent, of the total of the basic wages and dearness allowance that would have been payable to him had he not been so laid-off. (not less than one year continuous service)