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Retrenchment criteria & procedure - do we need to take prior approval from state govt? - CiteHR

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Anonymous
Dear Seniors, My company management is supposed to
retrenched the some workers however our company is registered in up shop & commercial
establishment act. 1952. also our company employees strength is 96 inclusive workman and Non workman... however the reason for retrenchment is financial crises.
pls clarify... my following doubt...
1) do we need to take prior approval from state govt in order to retrenched the workers,
2) how many month notice shall be served to the workers whover is in continously service of more then 1 year weather 1 month or 3 month,
3) the workers whoever has not completed 1 year service in our company weather these workers may be retrenched or not if yes how many month notice will be serve to these workers,
4) for calculating retrenchment compensation weather basic plus DA or Gross salary will be taken,
Thanks In Advance....
Rachna

From India, Agra
Anonymous
Dear Seniors, still in hope to get revert by seniors member on my above query? Thanks In Advance Rachna
From India, Agra
Pravin.shetty83
5

Hi Rachana,
Though we know this is not a fair practice, we still need to stick back to management decision. According to my understanding this could be taken forward by initiating resignation from those employees to avoid any legal conflicts in future. The resignation policy should be demonstrated by HR in which notice period clause is to be mentioned and the notice period days could be framed post necessary buy-in with the management. Formalization of Notice period is solely discretion of management as it varies organization to organization. In your case I would suggest you to review the notice period clause of your organization and proceed accordingly. Although this is my opinion, still check with some superiors before you to take it forward.

From India, Pune
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