My factory in Gandhinagar is closing down — what retrenchment compensation am I entitled to?

Detailed Legal Analysis

Retrenchment compensation is payable under Section 25F and 25-B of the Industrial Disputes Act, 1947 at 15 days' wages for every completed year of service in Gandhinagar. The employer must give one month's notice or pay in lieu, and retrenchment compensation at the time of termination.

Disputes are adjudicated by the labour court with appeals to the Gujarat High Court. Employment conditions are also regulated by Gujarat Rent Control Act 1999 governing the Gujarat Shops and Establishments Act for non-factory employees.

Workers with at least one year of continuous service are eligible. Prior permission of the government is needed for retrenchment of 100 or more workers.