Retrenchment

Yes. Notice pay of 3 months' is required to pay.  As per Industrial Disputes Act, 1947 only one month notice is required.  But beneficial to the workmen, a provision has been included in the appointment letter is there, the latter will prevail. For each and every completed year of service, 15 days wages (in fact it comes out to 17 days wages) has to be paid as retrenchment compensation.  Thirdly, 15 days (again in fact 17 days) wages as gratuity amount to the employees, who completed 5 years of service.

Lastly, the retrenchment shall follow the principle of "last come...first go".

Prabhakar

 i am totally agree with Mr Prabhaker and apart from that it is required to give notice to the showing the reasons of the retrenchment and information to the conciliation of the area concern to this effect in order to justify the retrenchment of the employee apart from the payment of retrenchment compenstion and other dues .