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V K VIJAYARAGHAVAN (CFO)     28 May 2013

Settlement to workers

Sirs

I would like to know if our factory workers about 16 want full settlement what is the procedure and how to calculate it 



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 2 Replies

darshana sawant (associate consultant)     29 May 2013

dear mr vijayraghavan,

Are all the workers asking for full and final settlement?  Are they willing to resign or you plan to retrench them. If  you are planning to retrech them, then you have to follow the provisions of Industrial disputes act, section 25F wherein you have to pay retrenchment compensation @ 15 days salary per completed year of service {to be rounded of to ful one year in excess of 6 months} plus notice pay of 1 month.  You will have to encash balance leaves, also pay outstanding salary and bonus if any.  If the workmen have completed more than 5 years gratuity will also apply.  This is the procedure to be followed.

V K VIJAYARAGHAVAN (CFO)     31 May 2013

Thanks a lot sir .

Yes they want settlement  , 


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