My factory in Mysore 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 Mysore. 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 Karnataka High Court. Employment conditions are also regulated by Karnataka Rent Control Act 1999 governing the Karnataka 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.