This document is a formal template for notifying an employee of retrenchment under Section 25-F of the Industrial Disputes Act, 1947, detailing the effective date, notice period, retrenchment compensation, and final settlement process.

[Company/Organization Name]

[Company/Organization Address]

Date: [Insert Date]

To,
[Employee’s Name]
[Employee’s Designation]
[Employee’s Address]

Dear [Employee’s Name],

This letter serves as a formal notice of retrenchment from your position as [Employee’s Designation] with effect from [Retrenchment Date]. This decision has been made following [mention the reason for retrenchment, e.g., economic downturn, organizational restructuring, etc.]

Details of the Retrenchment:

1. Notice Period:

•  You are provided with [one month's notice/payment in lieu of notice] as per the requirements of Section 25-F of the Industrial Disputes Act, 1947.

2. Retrenchment Compensation:

•  You will be entitled to a retrenchment compensation of [amount], which is calculated based on 15 days' average pay for every completed year of service.

3. Final Settlement:

•  The final settlement of dues, including the retrenchment compensation, will be made on or before [date].

Please contact [HR/Finance Department] for any clarifications or assistance regarding your final settlement or any other related matters.

We appreciate your contribution to [Company/Organization Name] and wish you the best in your future endeavours.

Sincerely,

[Authorized Person’s Name]
[Designation]
[Company/Organization Name]