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Sounder Rajan V (Advocate)     07 January 2011

Termination of temporary employee

On the aspect of Termination of Temporary Employee HR  & Legal  Professionals need to address the statutory provisions of Sec 25 F of the Industrial Disputes Act 1947

What is Sec 25 F of the Industrial Disputes Act 1947

It reads like this :

25F. CONDITIONS PRECEDENT TO RETRENCHMENT OF WORKMEN. - No workman employed in any industry who has been in continuous service for not less than one year under an employer shall be retrenched by that employer until - (a) the workman has been given one month's notice in writing indicating the reasons for retrenchment and the period of notice has expired, or the workman has been paid in lieu of such notice, wages for the period of the notice;
(b) the workman has been paid, at the time of retrenchment, compensation which shall be equivalent to fifteen days' average pay for every completed year of continuous service or any part thereof in excess of six months; and
(c) notice in the prescribed manner is served on the appropriate Government or such authority as may be specified by the appropriate Government by notification in the Official Gazette.

Since the word “retrenchment is used in Section 25 F the definition of retrenchment has to be seen in Section 2 (OO) :

(oo) "retrenchment" means the termination by the employer of the service of a workman for any reason whatsoever, otherwise than as a punishment inflicted by way of disciplinary action, but does not include –
(a) voluntary retirement of the workman; or
(b) retirement of the workman on reaching the age of superannuating if the contract of employment between the employer and the workman concerned contains a stipulation in that behalf; or
(bb) termination of the service of the workman as a result of the non-removal of the contract of employment between the employer and the workman concerned on its expiry or of such contract being terminated under a stipulation in that behalf contained therein; or
(c) termination of the service of a workman on the ground of continued ill-health;

For Compliance of Sec 25 F of the ID Act the following is to be done :

i. The employee must be given a one month's notice in writing, indicating the reasons for retrenchment. The retrenchment can take effect only after the notice period has expired, or if the employee has been paid wages in lieu of such notice.

ii. The employee must be paid, at the time of retrenchment, compensation, which is equivalent to fifteen days' average pay for every completed year of continuous service or any part thereof in excess of six months.

iii. A notice must be served in the prescribed manner, on the appropriate Government. (Section 25F of the ID Act)

With Regards

V.Sounder Rajan
VS Rajan Associates,
Advocates & Notaries & Legal Consultants
No.27, Ist Floor, Singapore Plaza,
No.164, Linghi Chetty Street,
Chennai - 600 001.
E-mail : rajanassociates@eth,net,
Off : 044-42620864, 044-65874684,
Mobile : 9840142164-9025792684.




Learning

 4 Replies


(Guest)

Thanks for the info.

vijender parmar (Advocate)     08 February 2011

Dear sir, how  r u.

My question is related to the termination of the casual labours. Last year my client company had acquired a comapny alongwith its casual labour and that comapny is presently working as our agent and now my client is planning to fire those casual labours. what should be the procedure to do it? and what are the legal implications in relation to the casual labours.

 

Thanks in advance.

Kirti Kar Tripathi (lawyer)     08 February 2011

you should make complaince of Section 25F, if attract, i.e. if employee have completed more than 240 days continious service in preceedings 12 calander months.

vijender parmar (Advocate)     21 February 2011

THANKS SIR !!!!!!


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