Termination planning

Termination cost in India

Review notice, severance, final-payroll and termination-related cost rules using the structured country dataset.

ININRCanonical dataset

Cost components

Termination is scenario-dependent

Notice, severance, accrued benefits, unused leave and final payroll can depend on contract type, tenure, termination reason and employee category. Ivvora displays the structured rules available instead of forcing one universal termination number.

Notice rules

IN RESIGNATION NOTICE

Party

employee

Termination type

resignation

Calculation type

Contractual or state

One national notice period

Pay in lieu

Often possible where allowed

Waiver

Possible by agreement

Calculator ready

Required inputs

state

Employee category

Contract notice

tenure

Establishment type

Current status

current

Geographic scope

national

Employee categories

No structured items in the current dataset.

Employer categories

No structured items in the current dataset.

Contract types

No structured items in the current dataset.

Sectors

No structured items in the current dataset.

Company size conditions

No structured items in the current dataset.

Conditions

No structured items in the current dataset.

Exceptions

No structured items in the current dataset.

Last verified

2026 09 20

Confidence

high

IN RETRENCHMENT NOTICE

Party

employer

Termination type

Qualifying worker retrenchment

Minimum notice months

Pay in lieu allowed

Yes

Calculation type

Fixed period

Calculator ready

Yes

Current status

current

Geographic scope

national

Employee categories

Qualifying worker with at least one year continuous service

Employer categories

No structured items in the current dataset.

Contract types

No structured items in the current dataset.

Sectors

No structured items in the current dataset.

Company size conditions

No structured items in the current dataset.

Conditions

No structured items in the current dataset.

Exceptions

No structured items in the current dataset.

Last verified

2026 09 20

Confidence

high

IN LARGE ESTABLISHMENT RETRENCHMENT NOTICE

Party

employer

Termination type

Qualifying retrenchment large covered establishment

Minimum notice months

Pay in lieu allowed

Yes

Prior government permission

Yes

Calculator ready

Yes

Current status

current

Geographic scope

national

Employee categories

worker

Employer categories

No structured items in the current dataset.

Contract types

No structured items in the current dataset.

Sectors

No structured items in the current dataset.

Company size conditions

covered factory/mine/plantation average >=300 workers in preceding 12 months

Conditions

No structured items in the current dataset.

Exceptions

No structured items in the current dataset.

Last verified

2026 09 20

Confidence

high

Severance rules

IN RETRENCHMENT COMP

Name

Worker retrenchment compensation

Termination type

retrenchment

Calculation

Calculation type

Days of salary

Basis

Average pay

Brackets

No structured items in the current dataset.

Formula key

In retrenchment 15 days per year

Period

termination

Currency

INR

Calculator ready

Yes

Calculator confidence

high

Include in employer cost

Include in net pay

Include in termination cost

Yes

Notes

15 days average pay per completed year plus qualifying part-year >6 months.

Current status

current

Geographic scope

national

Employee categories

Qualifying worker with at least one year continuous service

Employer categories

No structured items in the current dataset.

Contract types

No structured items in the current dataset.

Sectors

No structured items in the current dataset.

Company size conditions

No structured items in the current dataset.

Conditions

No structured items in the current dataset.

Exceptions

No structured items in the current dataset.

Last verified

2026 09 20

Confidence

high

IN RESKILLING FUND

Name

Worker reskilling fund contribution

Termination type

retrenchment

Calculation

Calculation type

Days of salary

Basis

Last drawn wages

Brackets

No structured items in the current dataset.

Formula key

In reskilling 15 days wages

Period

termination

Currency

INR

Calculator ready

Yes

Calculator confidence

high

Include in employer cost

Yes

Include in net pay

Include in termination cost

Yes

Credit timeline days

Current status

current

Geographic scope

national

Employee categories

Retrenched worker

Employer categories

No structured items in the current dataset.

Contract types

No structured items in the current dataset.

Sectors

No structured items in the current dataset.

Company size conditions

No structured items in the current dataset.

Conditions

No structured items in the current dataset.

Exceptions

No structured items in the current dataset.

Last verified

2026 09 20

Confidence

high

IN LAYOFF COMP

Name

Worker layoff compensation

Termination type

layoff

Calculation

Calculation type

percentage

Rate

Basis

Basic wages plus DA

Brackets

No structured items in the current dataset.

Period

layoff

Currency

INR

Calculator ready

Calculator confidence

medium

Include in employer cost

Include in net pay

Include in termination cost

Yes

Notes

Permission and detailed applicability depend on industry, worker status, establishment size, cause and government.

Current status

current

Geographic scope

national

Employee categories

No structured items in the current dataset.

Employer categories

No structured items in the current dataset.

Contract types

No structured items in the current dataset.

Sectors

No structured items in the current dataset.

Company size conditions

No structured items in the current dataset.

Conditions

No structured items in the current dataset.

Exceptions

No structured items in the current dataset.

Last verified

2026 09 20

Confidence

high

Termination without cause

Component

Final salary

Required

conditional

Component

Notice or notice pay

Required

conditional

Component

Retrenchment compensation

Required

conditional

Component

Reskilling fund

Required

conditional

Component

gratuity

Required

conditional

Component

Unused leave encashment

Required

conditional

Component

Statutory bonus

Required

conditional

Component

Commission or incentive

Required

If earned

Component

Expense reimbursement

Required

If approved

Component

PF exit processing

Required

If member

Component

ESI status update

Required

If covered

Component

Insurance termination

Required

If applicable

Component

Service documents

Required

Applicable law dependent

Termination for cause

Misconduct

Grounds

applicable standing orders/policies/law

Process

Show cause

Charge allegations

Opportunity to respond

Domestic enquiry where required

Impartial findings

Proportionate decision

Suspension pending inquiry possible

Yes

Ordinary notice may not apply for proven serious misconduct

Yes

Gratuity forfeiture only within statutory conditions

Yes

Unused leave and final wages not automatically forfeited

Yes

Calculator ready

Poor performance

Same as misconduct

PIP universally required

Recommended process

expectations

Documented deficiencies

Reasonable opportunity

Warnings where appropriate

review

notice

Worker may still trigger retrenchment analysis

Yes

Calculator ready

Final payroll

Final wage deadline working days

Events

removal

dismissal

retrenchment

resignation

Other qualifying termination

Gratuity deadline days

Worker leave encashment deadline

Generally 2 working days for discharge/dismissal/quit under OSH leave framework

Components

salary

bonus

gratuity

leave

expenses

Notice pay

Retrenchment or severance

incentives

Lawful deductions

Asset recovery deductions

Must comply with wage-deduction rules

Relieving letter

Common market document not universal statutory right

Service certificate

Applicable law dependent

PF exit reporting

Yes

Calculator ready

conditional

Current status

current

Geographic scope

national

Employee categories

No structured items in the current dataset.

Employer categories

No structured items in the current dataset.

Contract types

No structured items in the current dataset.

Sectors

No structured items in the current dataset.

Company size conditions

No structured items in the current dataset.

Conditions

No structured items in the current dataset.

Exceptions

No structured items in the current dataset.

Last verified

2026 09 20

Confidence

high

Termination

Status

Conditional ready

Required inputs

Monthly salary

Annual salary

Basic salary

Statutory wages

Gross salary

Employee type

Worker status

state

Establishment type

Company employee count

Tenure years

Tenure months

Termination reason

Unused leave days

Notice served days

Fixed term or indefinite

Gratuity eligible

Bonus eligible

PF member

ESI member

Contract notice period

Decision rules

When

worker + qualifying retrenchment

Components

notice

15-day-per-year compensation

reskilling contribution

gratuity if eligible

leave

wages

statutory bonus if payable

When

Non worker

Components

state S&E

contract

gratuity

leave

earned variable compensation

When

misconduct

Components

do not automatically calculate retrenchment

evaluate process and gratuity forfeiture conditions

When

fixed-term natural expiry

Components

fixed-term rules

gratuity if qualifying

When

resignation

Components

contract/state notice

wages

leave

gratuity if eligible

Notice period

category/state/contract dependent

Termination

Scenario dependent

Data quality

What backs this page

Sources attached to the canonical country dataset

Known gaps still tracked rather than silently inferred

Planning information, not a legal conclusion

Ivvora preserves scenario-dependence, unresolved inputs and known research gaps. Results are for planning and comparison and do not replace legal, tax, accounting or employment advice.