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Naveen   28 February 2019

labour rights

Hi All,

my father is working as a salesman in a saree showroom from 27 years, but due to limited employees the owner has provided any ESI and PF benefits. now the shop is being closed due to loss, I want to know what all all claims or benefits can my father get from his owner for 27 years of service.

please help.


 3 Replies

G.L.N. Prasad (Retired employee.)     28 February 2019

Your father has remained silent during 2p7 years of service when the business as well and after 27 years, and after the closing of the shop now remembered his rights.  Meet Labour Inspector of that locality and also make inquiries with their Association/Union as they have such welfare schemes and can guide members, if your father obtained membership.

Rajiv Thakur   28 February 2019

Hi Naveen,

In addition to PF & ESI (that your father already have), other option is Gratuity; for employees those have completed 5 years of their services and where total number of employees in shop is 10 or above. The formula to calculate Gratuity is as follows:

(15 X last drawn salary X tenure of working) divided by 26 

 But if organisation is closed down permanently due to financial loss, it will be little tough to get it. Hope this would help.

Dr J C Vashista (Advocate)     02 March 2019

There is restriction in number of employees for regsitration with EPF & ESIC.

In the instant case the properietor shop is not covered under either EPF, ESIC or Gratuity.

Consult area Labour Inspector/ Labour Commissioner / union functioning in the locality.  

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