Gratuity is a part of salary that is received by an employee from his/her employer in gratitude for the services offered by the employee in the company. Gratuity is a defined benefit plan and is one of the many retirement benefits offered by the employer to the employee upon leaving his job. Lebenco consulting help in providing such gratuity money in case of any dispute



Retrenchment is defined as an activity to legally terminate any employment contract with the employee by offering a compensation. Section 2 of the Act states that retrenchment means the termination by the employer of the service of a workman for any reason whatsoever, otherwise than as a punishment inflicted by way of disciplinary action, but does not include –

  • voluntary retirement of the workman or
  • retirement of the workmen on reaching the age of superannuation if the contract of employment between the employer and the workman concerned contains a stipulation in that behalf; or
  • termination of the service of the workman as a result of the non- renewal of the contract of employment between the employer and the workman concerned on its expiry or of such contract being terminated under a stipulation in that behalf contained therein
  • termination of the service of a workman on the ground of continued ill-health.”


As per the requirements of section 25F of the ID Act no workman 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-

  • the workman has been given one month’ s notice in writing indicating the reasons for retrenchment and the period of notice has expired, or the workman has been paid in lieu of such notice, wages for the period of the notice
  • the workman has been paid, at the time of retrenchment, compensation which shall be equivalent to fifteen days’ average pay for every completed year of continuous service or any part thereof in excess of six months; and
  • notice in the prescribed manner is served on the appropriate Government or such authority as may be specified by the appropriate Government by notification in the Official Gazette.



There are various act governing rights of employee such as Bonus, Provident fund Act, Gratuity Act, Minimum Wages Act, Employee State Insurance etc. Lebenco Consulting provide compliance services regarding all this above labour laws.



Workmen Compensation Act 1923 is a social security legislation which aims in providing financial protection to workmen and their dependent in case of accident/ misshaping occurs to employee in workplace.

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