Dear All, Does anyone one has any idea on how to remove excess nonsupervisory category staff without violating Labour laws. As they are covered by laws and court can immediately reinstate them if they go to court. We have a few excess support staff without any work as such and we do not see any work as such in near future for them.
As HR we know it's not correct but for the survival of the company, we have to go ahead. Even the company does not wish to pay any compensation as such except the statutory amount. If anyone has done such an exercise then please share your inputs.
From India, Pune
2As HR we know it's not correct but for the survival of the company, we have to go ahead. Even the company does not wish to pay any compensation as such except the statutory amount. If anyone has done such an exercise then please share your inputs.
From India, Pune
You move with rules of retrenchment of your state. Your prime reason of retrenchment is due to set back in business for loss suffered due to pandemic. The manpower assessment shows you have excess manpower in consideration to present requirement as per production, you do not see any development in near future as some new players emerged in the field. If you union is existing take them into confidence by saying "one stich can save whole cloth".
From India, Mumbai
From India, Mumbai
Dear Sunil,
Strictly speaking, unlike in the Western Countries such as the U.S.A, the concept of "employment at will" is not upheld by the Indian Judiciary. That's why industrial relations laws like the Industrial Disputes Act,1947 have certain restrictive provisions on the discharge of labor by the employers in tune with their business vicissitudes which are constantly decried by the protagonists of sweeping market-oriented labor reforms. Mr.Prabhat Ranjan has rightly indicated this process in the opening part of his reply.
Coming to your thread, it is heartening to note that your management is desirous of jettisoning the consequential surplus labor without violating the provisions of the existing labor laws. Such a smooth separation is possible at the most if the total no of workmen in your establishment falls below 100 on an average per day during the preceding 12 months period to the actual date of retrenchment proposed. Otherwise, you will have to apply for prior permission from the appropriate Government giving three months notice to the affected workmen. Though certain States like Rajasthan had already increased this threshold to 300, normally it is a difficult process as the Government may refer the matter to an industrial tribunal out of fear of public criticism. So what is advisable at this juncture is a negotiated settlement with the labor through their trade unions for which your management should be flexible in the matter of compensation package with a long term perspective.
From India, Salem
Strictly speaking, unlike in the Western Countries such as the U.S.A, the concept of "employment at will" is not upheld by the Indian Judiciary. That's why industrial relations laws like the Industrial Disputes Act,1947 have certain restrictive provisions on the discharge of labor by the employers in tune with their business vicissitudes which are constantly decried by the protagonists of sweeping market-oriented labor reforms. Mr.Prabhat Ranjan has rightly indicated this process in the opening part of his reply.
Coming to your thread, it is heartening to note that your management is desirous of jettisoning the consequential surplus labor without violating the provisions of the existing labor laws. Such a smooth separation is possible at the most if the total no of workmen in your establishment falls below 100 on an average per day during the preceding 12 months period to the actual date of retrenchment proposed. Otherwise, you will have to apply for prior permission from the appropriate Government giving three months notice to the affected workmen. Though certain States like Rajasthan had already increased this threshold to 300, normally it is a difficult process as the Government may refer the matter to an industrial tribunal out of fear of public criticism. So what is advisable at this juncture is a negotiated settlement with the labor through their trade unions for which your management should be flexible in the matter of compensation package with a long term perspective.
From India, Salem
Ya good it's a gentleman's quiery.
No one suggests anyone continue those workless employees in your company if your presentation is total true.
First display present all your company's profits and loss. On the noticeboard
Secondly conduct meeting with all your company employees union if any or representatives with true facts of the company.
Thirdly offer proposals of... Voluntary retirements... Covering all benefits under labour laws.
Clear all EPF ESI troubles of obtaining benefits with necessary signatures and documents.
Open a advisory cell counselling centre within your company with one senior employee guidance for obtaining retirement benefits from company as well as ESI EPF boards.
If the presentation of the facts of the company is went on true heart the employees never disagree.
Iniatially they would have some fears and doubts but when the HRs give moral support they follow your mind..
What is needed is yours frankness and prepared Measures to protect the.
company.
Excess employees will understand only when you are telling truth.
Don't fear about labour dept. There is no rule suffers you when you go by labour laws. Labour dept. Never force you to pay excess than you ought to pay as per binding laws of the land.
Pls go ahead as centralgovt. And all state govts new procedure started "INSPECTION FREE RAJ AND liberalisation policy.
So all factories got legal relief in these lines also.
Submit a detailed report on your company's financial position and need for compulsory retirement for some excess employees in your company well before advancing in retirement procedure.
So go ahead All the Best.
From India, Nellore
No one suggests anyone continue those workless employees in your company if your presentation is total true.
First display present all your company's profits and loss. On the noticeboard
Secondly conduct meeting with all your company employees union if any or representatives with true facts of the company.
Thirdly offer proposals of... Voluntary retirements... Covering all benefits under labour laws.
Clear all EPF ESI troubles of obtaining benefits with necessary signatures and documents.
Open a advisory cell counselling centre within your company with one senior employee guidance for obtaining retirement benefits from company as well as ESI EPF boards.
If the presentation of the facts of the company is went on true heart the employees never disagree.
Iniatially they would have some fears and doubts but when the HRs give moral support they follow your mind..
What is needed is yours frankness and prepared Measures to protect the.
company.
Excess employees will understand only when you are telling truth.
Don't fear about labour dept. There is no rule suffers you when you go by labour laws. Labour dept. Never force you to pay excess than you ought to pay as per binding laws of the land.
Pls go ahead as centralgovt. And all state govts new procedure started "INSPECTION FREE RAJ AND liberalisation policy.
So all factories got legal relief in these lines also.
Submit a detailed report on your company's financial position and need for compulsory retirement for some excess employees in your company well before advancing in retirement procedure.
So go ahead All the Best.
From India, Nellore
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