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dear all can we lay off workmen due to shortage of orders? whether it comes under the definition of "lay off " under industrial disputes act? Pls substantiate your view with any case law if u have?
From United States
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I was done my MBA from Omegan School of Business, is it AICTC aproved plz tell me that. With Regards, vineet
From India, Yavatmal
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Dear Vineet, It is always better to post query on similar or separate thread. This thread relates to 'Lay Off' under I D Act, 1947. Regards, R N KHOLA
From India, Delhi
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Dear all pls reply to the above question. Pls specify if there is an agreement to this effect in the so whether it is legally valid or not regards ravi
From United States
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Dear Member,
After going the definition of the definition of 'lay off' shortage of orders is not considered to be as one of the reasons for declaring lay off. Definition of 'lay off' may be read as under:
(kkk) “lay-off” (with its grammatical variations and cognate expressions) means the failure, refusal or inability of an employer on account of shortage of coal, power or raw materials or the accumulation of stocks or the breakdown of machinery or natural calamity or for any other connected reason] to give employment to a workman whose name is borne on the muster rolls of his industrial establishment and who has not been retrenched.
Submitted as requested.
Regards,
R.N.Khola





From India, Delhi
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That is my doubt. I have gone thru CSO of a company whrein theres is an agreement on lay off on shortage of orders. I am not undersatnding the same as lay off is not possible on account of the same.
From United States
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Dear member,

If you are allowed to do a layoff as per CSO, then go for a layoff keeping in view chapters VA & VB of the Industrial Disputes Act, 1947 on Layoff & Retrenchment.

Regards,

R.N. Khola


From India, Delhi
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Lay off on account of lack of orders is absolutely legal and within the legal provisions of the ID ACT. The inclusion of the phrase "the accumulation of stocks" indicates a lack of orders, and I do not know where you get the idea that a layoff is not possible due to a lack of orders.

T. Sivasankaran

From India, Chennai
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Dear Sirs,

Is it possible to give lay off to workers for 4 months in a year regularly? Since our company is a mining firm where we cannot have production during monsoon because of heavy rainfall. What is the procedure for seasonal businesses? Please help me out.

Thank you.

From India, Belgaum
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Dear Mr. T. Sivasankaran,

Layoff can only be made for the reasons specified in the definition of layoff in the Industrial Disputes Act. As pointed out by Mr. R. N. Khola, layoff cannot be made for a shortage of orders. "Shortage of orders" is not the same as "accumulation of stocks." The company may not have any orders, still without any accumulated stocks.

From India, Madras
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