Hello,
Can anyone suggest what the exact policy is for layoffs for confirmed employees and probationary employees? Also, please advise if layoff letters have already been issued to probationary employees stating they will receive one month's severance pay, but now the employer is unable to pay the additional month's salary. Can the employer inform the employees that they cannot make any further payments for the extra month's salary?
Kindly advise.
Regards,
Ruchi Thakkar
From India, Mumbai
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12Can anyone suggest what the exact policy is for layoffs for confirmed employees and probationary employees? Also, please advise if layoff letters have already been issued to probationary employees stating they will receive one month's severance pay, but now the employer is unable to pay the additional month's salary. Can the employer inform the employees that they cannot make any further payments for the extra month's salary?
Kindly advise.
Regards,
Ruchi Thakkar
From India, Mumbai
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Hi, It seems non compliance case. so, in the case of layoff employees should be given their 50 % of monthly wages or salary. :-P
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Dear Friend,
In this case, the management needs to be clear whether they are in the process of getting the hurdles clear and restarting the operation. If yes, then here it applies a layoff, which, as per the Act, is for 45 days or mutually agreed with the workmen. It is mandatory to inform and get permission from the appropriate government before giving a layoff.
If the management is not in a position to restart and due to unavoidable reasons has to close down, they need to inform the appropriate government. After receiving the order, they can retrench workmen by paying them compensation, i.e., 15 days of wage for each completed year of service (if worked for more than 6 months, a complete year has to be considered).
From India, Mumbai
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In this case, the management needs to be clear whether they are in the process of getting the hurdles clear and restarting the operation. If yes, then here it applies a layoff, which, as per the Act, is for 45 days or mutually agreed with the workmen. It is mandatory to inform and get permission from the appropriate government before giving a layoff.
If the management is not in a position to restart and due to unavoidable reasons has to close down, they need to inform the appropriate government. After receiving the order, they can retrench workmen by paying them compensation, i.e., 15 days of wage for each completed year of service (if worked for more than 6 months, a complete year has to be considered).
From India, Mumbai
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Section 2 (kkk) ID Act 1947 "lay-off" (with its grammatical variations and cognate expressions) means the failure, refusal, or inability of an employer on account of a 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. Refusal, failure, or inability on account of reasons as mentioned above. Lay off on account of reasons other than those given in the act would be illegal. In such a situation, it is a denial of employment that warrants full wages. For compensation, please refer to Chapter VA or Vb as applicable.
From India, Jamshedpur
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From India, Jamshedpur
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Debapriya is right. Lay off in an "industry" as defined under the Industrial Disputes Act could be only for the reasons specified in section 2(kkk) of the Industrial Disputes Act. It cannot be for any other reasons. If the employer is not able to give work because of non-compliance with statutory provisions, then it would not amount to lay off, and the workmen would be entitled to get full wages for the period.
From India, Madras
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From India, Madras
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Industrial Disputes Amendment Act 2010.doc
Industrial Disputes Act 1947.pdf