Dear Experts,
We, the management of a private limited company, are engaged in the manufacturing process. We currently have a total of 80 employees. Due to insufficient orders for our products for several months (approximately 7 months continuously each year), we are considering laying off some employees on a rotation basis. We kindly request guidance on how to navigate this situation, including all procedures and formalities in detail to ensure compliance.
Thanks in advance.
From India, Chennai
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We, the management of a private limited company, are engaged in the manufacturing process. We currently have a total of 80 employees. Due to insufficient orders for our products for several months (approximately 7 months continuously each year), we are considering laying off some employees on a rotation basis. We kindly request guidance on how to navigate this situation, including all procedures and formalities in detail to ensure compliance.
Thanks in advance.
From India, Chennai
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Dear Kavithayini, Which state does your firm operate out of ? The process guidelines would adhere to it Looking forward to hear from you
From India, Mumbai
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1893From India, Mumbai
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Dear Ms. Kavithayini,
Your query is related to laying off workers on a rotation basis as your company does not have adequate orders continuously for seven months in a year. My opinion for your guidance is as follows:
The provision of Lay Off is covered in the Industrial Disputes Act, 1947. Section 25C and Section 25M of the ID Act stipulate the procedure for laying off workers. The following conditions and procedures are prescribed:
1. Workers, except casual/badli workers, who have completed one year of service can be laid off after giving notice to the Labour Department of the State Government with a copy to the worker. After obtaining permission from the Labour Dept., the workers can be laid off, but they will have to be paid compensation at the rate of 50% of their basic wages plus DA (Dearness Allowance) for all days of Lay Off. If no order is passed by the Govt. within 60 days, then it would be deemed that permission has been granted.
2. The above rule does not apply to Casual and Badli workers or workers who have not completed one year of service.
3. However, the Employer can make an agreement with the Union of workers or Workers that no compensation will be payable beyond 45 days if the lay off continues beyond a period of 45 days in one year either continuously or intermittently.
4. The ID Act also provides for the retrenchment of workers in accordance with Section 25F if the Lay Off continues for more than 45 days or the Employer can also offer alternative employment as per Section 25C.
From the above provisions of the ID Act, it is clear that an Employer can put workers on muster roll, having a minimum of one year of service, on Lay Off either for a continuous period or for an intermittent period after obtaining permission from the Labour Dept. Lay off on a rotation basis is permissible. Compensation is to be paid for all days of Lay Off. However, if there is an agreement with the Union/Worker, then compensation will not be payable beyond 45 days.
I hope this satisfies your inquiry. For any further guidance, you may email me at srivastavacmlal@gmail.com or call me at 09818680671.
Regards,
Srivastava Chandramani Lal
From India, New Delhi
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Your query is related to laying off workers on a rotation basis as your company does not have adequate orders continuously for seven months in a year. My opinion for your guidance is as follows:
The provision of Lay Off is covered in the Industrial Disputes Act, 1947. Section 25C and Section 25M of the ID Act stipulate the procedure for laying off workers. The following conditions and procedures are prescribed:
1. Workers, except casual/badli workers, who have completed one year of service can be laid off after giving notice to the Labour Department of the State Government with a copy to the worker. After obtaining permission from the Labour Dept., the workers can be laid off, but they will have to be paid compensation at the rate of 50% of their basic wages plus DA (Dearness Allowance) for all days of Lay Off. If no order is passed by the Govt. within 60 days, then it would be deemed that permission has been granted.
2. The above rule does not apply to Casual and Badli workers or workers who have not completed one year of service.
3. However, the Employer can make an agreement with the Union of workers or Workers that no compensation will be payable beyond 45 days if the lay off continues beyond a period of 45 days in one year either continuously or intermittently.
4. The ID Act also provides for the retrenchment of workers in accordance with Section 25F if the Lay Off continues for more than 45 days or the Employer can also offer alternative employment as per Section 25C.
From the above provisions of the ID Act, it is clear that an Employer can put workers on muster roll, having a minimum of one year of service, on Lay Off either for a continuous period or for an intermittent period after obtaining permission from the Labour Dept. Lay off on a rotation basis is permissible. Compensation is to be paid for all days of Lay Off. However, if there is an agreement with the Union/Worker, then compensation will not be payable beyond 45 days.
I hope this satisfies your inquiry. For any further guidance, you may email me at srivastavacmlal@gmail.com or call me at 09818680671.
Regards,
Srivastava Chandramani Lal
From India, New Delhi
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