The Industrial Relations Code, 2020
Section 70. Conditions precedent to retrenchment of workers
In simple words
- A worker with not less than one year of continuous service may be retrenched only after one month’s written notice with reasons, or wages for the notice period s. 70.
- At retrenchment the worker is paid compensation of fifteen days’ average pay for every completed year of continuous service, counting a part year of more than six months, unless a different number of days is notified s. 70(b).
- Notice must also be served on the appropriate Government or the authority it specifies s. 70(c). See the leaving a job guide.
An explanation, not the law. The official text below prevails.
Official text
No worker 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 worker has been given one month's notice in writing indicating the reasons for retrenchment and the period of notice has expired, or the worker has been paid in lieu of such notice, wages for the period of the notice;
(b) the worker has been paid, at the time of retrenchment, compensation which shall be equivalent to fifteen days' average pay, or average pay of such days as may be notified by the appropriate Government, for every completed year of continuous service or any part thereof in excess of six months; and
(c) notice in such manner as may be prescribed is served on the appropriate Government or such authority as may be specified by the appropriate Government by notification.