Termination & Superannuation Advisory
Termination and Superannuation Advisory Services
Introduction to Termination and Superannuation Advisory
It is easy to hire someone but difficult to terminate someone, more so when there are hundreds of legal compliances attached to it. Termination and Superannuation advisory refer to the process of providing assistance to individuals and organisations when it comes to termination of office or giving retirement benefits to the terminated individual.
Ahlawat & Associates is your one-stop solution for all Termination and Superannuation advisory services in India. We have a team that is specifically curated to suit your needs and wishes. With efficiency at its core, Ahlawat & Associates is your perfect companion to all your employment termination problems in India. We provide the best employment termination advice in India.
Overview of Superannuation Laws and Regulations
India being a social welfare state, puts the welfare of employees at the top. Hence, it is of utmost importance to a company to secure the future of their employee even after retirement. Superannuation laws are needed to ensure the establishment, regulation, and protection of retirement savings for employees.
Ahlawat & Associates provides termination and superannuation advisory services and is one of the best firms that deal with the niche aspect of employment termination in India. We build a team that provides a fast-track solution to every problem you might come across while dealing with termination and superannuation for yourself or your employees.
Our team of extremely capable in-house lawyers drafts a plan that focuses on retirement planning and how to manage your retirement savings. We provide advisory services that are on par with international firms and are applicable across borders. We help you understand the possible methods of investing your funds, the contribution limits, taxation options, and how to access these funds in case of any difficulty.
We will make sure your retirement savings are optimized, your risks are minimized and your post-retirement life is smooth sailing. We will provide beneficial assistance throughout the whole termination and retirement planning process. We help our clients make educated decisions, adhere to legal obligations, and maximise the value of their retirement funds by utilising our knowledge of pertinent laws, regulations, and best practices. The ultimate goal is to reduce risks, generate effective outcomes, and support organisations and people as they confidently navigate these complex domains.
Our Approach to Termination and Superannuation Advisory Services
- Retirement Income Security: We, at Ahlawat and Associates, make sure that our client’s retirement income is secured and that there is a steady stream of income even in your later years. These laws assist people to amass assets over the course of their working lives, ensuring they will have financial support when they stop working, by requiring companies to pay a portion of their employees’ income towards retirement savings.
- Social Welfare: Abiding by the essence of the Indian Constitution, we look after the welfare of your employees and individual clients. We assist people in creating a nest egg that will enable you to maintain your standard of living when they quit working and their financial stability. Allowing people to rely on their savings rather than only on handouts from the government, lessens the load on social welfare programs and public pensions.
- Long-Term Financial Planning- We not only help in securing your retirement benefits but also plan your long-term finances so that you never find yourself stuck in any unfavourable situations.
- Litigation disputes- Ahlawat & Associates are there to guide you through lengthy litigations and make sure you come out as the victor.
- Employer Contributions- We make sure our client receives the employer contributions promised to them by their employers as well as help potential employers navigate the rugged waters of superannuation and termination compliances.
- Tax advantages- We make sure our client receives the tax benefits which they are entitled to by statutory laws. We also guide them through the process of investing tax-free investment earnings within the superannuation fund and concessional tax benefits on withdrawal during retirement.
- Litigation arising due to termination- we guide our clients through the complex process of termination as well as ensure that there is no wrongful termination on either side.
1. What is termination pay and superannuation guarantee?When an employee’s job is terminated, they are given what is known as termination pay. It is the sum of money paid by the employer to the employee in the event of termination, and depending on the specifics and any relevant labour legislation, it may comprise different aspects. A required retirement savings program called the “Superannuation Guarantee” is in place in a number of countries. Employers are required to put a portion of their employee’s wages into a superannuation fund that will provide them with retirement benefits.
2. Are termination payments subject to a superannuation guarantee?In India, termination payments are generally not subject to the Superannuation Guarantee (SG) contributions. Under the Employees’ Provident Funds and Miscellaneous Provisions Act, of 1952, both the employer and the employee are mandated to make contributions to the EPF from their own salary. These accumulate over a long period of time and are given to the employee at the time of retirement.
3. What are some of the laws that govern termination and superannuation in India?Some of the compliances that need to be kept in mind while framing a provision for superannuation are-
- Industrial Disputes Act, 1947: It provides rules on termination, layoffs, and retrenchment and provides guidelines on notice periods and other types of compensations.
- Employees’ Provident Funds and Miscellaneous Provisions Act, 1952: This act establishes the Employees’ Provident Fund (EPF): It is a mandatory retirement scheme that provides a lump sum from the EPF account of an employee during retirement.
- Employees’ State Insurance Act, 1948: It has brought the Employees’ State Insurance Scheme in place which provides for medical security in case of sudden terminal illness or disability.
- Contract Labour (Regulation and Abolition) Act, 1970: it regulates the employment of contract labourers and lays down the guidelines for their termination. It outlines the responsibilities of the contractor and the major employer in relation to topics of pay, working conditions, and termination.
Labour laws are state and sector-specific and there is no exhaustive list of guidelines which can be laid down primarily for all sectors. However, these are the major ones that every company needs to comply with.