Service compensation
arunsharma
(Querist) 31 December 2014
This query is : Resolved
Respected Sir,
I want to know what is service compensation. Is this mandatory to pay ?
Waiting for answer.
Anirudh
(Expert) 31 December 2014
You have to give little more factual background and the context in which you are posing this query.
arunsharma
(Querist) 31 December 2014
Sir actually in my case my company is going to close its business. Further, Shop & establishment act is also applicable. Someone said me that payment of Service compensation is mandatory in my case. So kindly suggest me is service compensation is mandatory in my case or to whom service compensation is paid and how much amount is paid. Company is also paying gratuity.
Anirudh
(Expert) 31 December 2014
You are working in the company for how long? How many employees are in the company? What are you in the company? What is the business of the company? Why the company is closing?
arunsharma
(Querist) 31 December 2014
I am working from May 2011, There are total 12 employees more then 5 years and 20 employees less then 5 years. I am employee in the company. Company's business is trading of paints, hardware and Kitchen accessories. Actually company is not closing but there are 4 Directors there, one of the director has to settle his account with other directors informally.
Anirudh
(Expert) 31 December 2014
As you have not put in 5 years of service you are not entitled to service compensation.
Kumar Doab
(Expert) 31 December 2014
If company is not closing then there is no question of lay off/retrenchment compensation...
If company resorts to termination then it has to issue termination notice or notice pay in lieu of notice period, as per the appointment letter/service conditions.................(and in line with Shops and Commercial establishments Act of your state).......
Andhar Pradesh Shops and Commercial establishments Act has a clause on service compensation.......If you are in AP,you may try..
T. Kalaiselvan, Advocate
(Expert) 02 January 2015
Well advised by experts, see what best you can derive on being terminated by the company and actually if the company is not winding up.
arunsharma
(Querist) 02 January 2015
thanks & regards
