Retrenchment Notice

[company_name] [company_address] Date: [notice_date] To, [employee_name] [designation] [employee_address] Subject: Notice of retrenchment Dear [employee_name], 1. You joined the services of [company_name] ("the Company") on [joining_date] and have completed approximately [years_of_service] years of continuous service in the position of [designation]. 2. REASON FOR RETRENCHMENT [reason_for_retrenchment] 3. In the above circumstances, the Company is constrained to retrench your services. This letter constitutes notice of retrenchment under Section 25F of the Industrial Disputes Act, 1947. 4. NOTICE PERIOD You are hereby given [notice_days] days' notice, and your last working day with the Company shall be [last_working_day]. Where the Company elects to pay wages in lieu of notice, such payment shall be made along with your final settlement. 5. RETRENCHMENT COMPENSATION In accordance with Section 25F(b) of the Industrial Disputes Act, 1947, you shall be paid retrenchment compensation equivalent to fifteen days' average pay for every completed year of continuous service, and for any part thereof in excess of six months, calculated on your last drawn wages of Rs. [last_drawn_wages] per month. 6. OTHER DUES You shall additionally be paid all other amounts lawfully due to you, including: (a) salary up to the last working day; (b) encashment of accrued and unused leave, as per the Company's policy; (c) gratuity, where you have completed the qualifying period of continuous service under the Payment of Gratuity Act, 1972; (d) the balance in your provident fund account, which you may withdraw or transfer through the Employees' Provident Fund Organisation; (e) any bonus payable under the Payment of Bonus Act, 1965. 7. DOCUMENTS You will be issued a relieving letter, an experience certificate, and Form 16 in due course. Please ensure that all Company property, documents, data and access credentials in your possession are returned on or before your last working day. 8. RE-EMPLOYMENT Should the Company propose to take persons into employment in the same category in future, you shall be given an opportunity to offer yourself for re-employment in accordance with Section 25H of the Industrial Disputes Act, 1947. 9. The Company records its appreciation of your service and wishes you well in your future endeavours. Please acknowledge receipt of this notice. For [company_name] Authorised Signatory Name: Designation: ACKNOWLEDGMENT Received a copy of the above notice on ______________. Employee's signature: ______________________ IMPORTANT NOTE FOR THE EMPLOYER Section 25F of the Industrial Disputes Act, 1947 applies to a workman who has been in continuous service for not less than one year. Compliance with its conditions is MANDATORY, and retrenchment carried out without them is liable to be held invalid: (a) one month's written notice stating the reasons, or wages in lieu of notice; (b) payment of retrenchment compensation AT THE TIME of retrenchment, not later; and (c) service of notice on the appropriate Government in the prescribed manner. In addition, industrial establishments falling within Chapter V-B of the Act require the PRIOR PERMISSION of the appropriate Government before retrenchment. Verify whether the establishment falls within that Chapter before proceeding. Retrenchment must also ordinarily follow the "last in, first out" rule within a category under Section 25G, unless recorded reasons justify a departure.