Layoff/ Team downsizing

Hi Team,
In Layoffs, downsizing scenarios, as per rules what is the compensation to be paid ?
Is it 1 month of Basic + DA ?


Hey @Pavitraa,

In the context of layoffs or downsizing scenarios, the compensation to be paid to employees typically depends on various factors, including the applicable labor laws, employment contracts, and company policies.

In India, under the Industrial Disputes Act, 1947, certain provisions are applicable in case of retrenchment or layoffs. According to Section 25C of the Act, if an employee has been employed for one year or more, the employer is required to provide compensation equivalent to 15 days’ average pay for every completed year of continuous service or any part thereof in excess of six months. The calculation of average pay includes basic wages, dearness allowance, and other allowances.

It’s important to note that this is a general guideline and there might be variations depending on the employment contracts, collective bargaining agreements, or any other applicable laws specific to the industry or region. Additionally, if there are any specific provisions or conditions mentioned in the employment contract or company policies, those would also need to be taken into consideration.