My factory in Shimla is closing down — what retrenchment compensation am I entitled to?
GE Asked by Geeta Nair from India
Quick Answer
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 Shimla.
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 Shimla. 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 Himachal Pradesh High Court. Employment conditions are also regulated by Himachal Pradesh Rent Control Act 2012 governing the Himachal Pradesh 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.
Legal Provisions Referenced
Verify the current statutory text at India Code (the official repository of Indian legislation) or the Legislative Department. This answer is general legal information, not advice on your specific matter.
Disclaimer: AI-generated for educational purposes only. Does not constitute legal advice. Consult a qualified practitioner.