What are the conditions precedent to retrenchment of workmen?
No workmen employed in any industry who has been in continuous service for not less than one year under an employer can be retrenched by that employer until : (a) the workman has to be given one months notice in writing indicating the reasons for retrenchment or the workman has to be paid in lieu of such notice, wages for the period of the notice. (b) The workman has to be paid, at the time of retrenchment, compensation which is equivalent to fifteen days average pay (for every completed year of continuous service) or any part thereof in excess of six months; and (c) Notice in the prescribed manner is to be served on the appropriate Government (or such authority as may be specified by the appropriate Government by notification in the Official Gazette).
