1. one month written notice should be given to employee or else wages in lieu of the shortfall in notice period should be paid - this is handled in the system and paid as Retrenchment Notice Period
2. Retrenchment compensation should be paid - the terms of payment are similar to payment for gratuity - "15 days’ average pay for every completed year of continuous service or part exceeding 6 months" and eligible condition is that employee should have been in employment for one year which is modelled as 240 days of working. Retrenchment compensation upto INR 5 lakhs is taxfree in the hands of employee - this is handled in the system
3. Gratuity should be paid as per Payment of Gratuity Act - this is handled in the system
4. intimation of retrenchment should be sent to appropriate government authorities - this is not handled in the system
5. later joined employees should be retrenched first unless there is a justification for doing contrary - this is not handled in the system
6. a contribution of 15 days of wages should be done to the Worker Reskilling fund by the employer and Government will then disburse this amount to worker's account within 45 days of retrenchment - this is not handled in the system
7. retrenched employees should be given preference over others when hiring is done - this is not handled in the system

Processing Separation

1. Raise a Management Initiated Separation and select the Reason For Separation as Retrenchment
2. When the approver is approving the record he will see the Retrenchment Notice Period as shown below