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of <h1>Govt Sets Rs. 5 Lakh Cap on Retrenchment Compensation for Workers Under Industrial Disputes Act from Jan 1, 1997.</h1> The Central Government, under the powers granted by the Income-tax Act, 1961, specifies that the maximum compensation a workman can receive upon retrenchment is five lakh rupees. This applies to compensation received under the Industrial Disputes Act, 1947, or any related Acts, rules, orders, notifications, standing orders, awards, or contracts of service. This limit is applicable for retrenchments occurring on or after January 1, 1997.
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