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Calculate statutory severance and compensation for retrenchment and involuntary job loss.
Total Compensation Due
Gratuity (15 days per year)
Retrenchment Compensation
Unused Leave Encashment
Retrenchment occurs when an employer involuntarily terminates employees due to business reasons—company closure, downsizing, restructuring, or technology redundancy. This is distinct from termination for cause (misconduct) or resignation (voluntary). Indian labor law mandates statutory compensation for retrenched employees: gratuity (15 days per year of service), retrenchment compensation (45 days per year of service), and unused leave encashment (tax-free up to ₹3.25 lakhs). These are legal entitlements, not voluntary benefits. Understanding your retrenchment rights is crucial for job security planning and financial protection. The total compensation can represent substantial financial security—a ₹1 lakh monthly salary with 10 years service could yield ₹30+ lakhs in gratuity alone.
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This calculator is provided for informational and educational purposes only. While we strive for accuracy, results should be verified with official sources or by consulting qualified professionals. Tax laws, rates, and regulations are subject to change. GotRedFlags is not responsible for financial decisions made based on these tools.