Sunday , January 21 2018

Final settlement for termination

I joined my present company on March 8, 2016 on a project visa. My residency valid for 3 years till March 8, 2019. I received the termination letter on Nov 19, and end date is Nov 30. I have accepted the same; please let me know what the final settlement company should give as per labor law. My contract LOA agreement with company has mentioned only one month notice. Please advise if I am able to get 3 months pay as per Labour Law or one month as per the agreement.

Name withheld

Answer: As per the agreement you signed with the company, one month notice of termination of appointment was captured. The 3-month pay in lieu of notice as enshrined in the Labour Law does not apply here since you opted to go with the company’s one-month notice. In this perspective you can only be paid one month salary in lieu of one month salary. Since the company terminated your service you will also be entitled to an additional 3.6 weeks of your monthly salary.

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