Dear Seniors,
Our company is facing the financial problems downsizing. Therefore our management want to reduce the surplus workers retrenchment.
Questions :- in course of retrenchment is it mandatorily to intimate the labour department,
Is it legally fair to reduce the surplus workers by way of retrenchment cited the downsizing financial cause,
If so in this regard whether labour department is empowered to varify the company financial statement & balance sheet etc.
In course of retrenchment whether we have to issue the notice of 1 month or 3 month to all the concerns workers,
Thanks
Amit
From India, Jaipur
5Our company is facing the financial problems downsizing. Therefore our management want to reduce the surplus workers retrenchment.
Questions :- in course of retrenchment is it mandatorily to intimate the labour department,
Is it legally fair to reduce the surplus workers by way of retrenchment cited the downsizing financial cause,
If so in this regard whether labour department is empowered to varify the company financial statement & balance sheet etc.
In course of retrenchment whether we have to issue the notice of 1 month or 3 month to all the concerns workers,
Thanks
Amit
From India, Jaipur
Dear Amit,
Whenever you raise a question to be answered, it is always important that you furnish all the relevant particulars. Otherwise the answer,if any itself will give room for further questions. Therefore, unless you furnish the following particulars, your question can not be answered appropriately:
(1) The type of your establishment i.e whether a factory or mine or a plantation
(2) The average no. of employees employed in your establishment in the cadre of workman [ as per sec.2(s) of the ID Act1947 ] during the preceding 12 months.
From India, Salem
Whenever you raise a question to be answered, it is always important that you furnish all the relevant particulars. Otherwise the answer,if any itself will give room for further questions. Therefore, unless you furnish the following particulars, your question can not be answered appropriately:
(1) The type of your establishment i.e whether a factory or mine or a plantation
(2) The average no. of employees employed in your establishment in the cadre of workman [ as per sec.2(s) of the ID Act1947 ] during the preceding 12 months.
From India, Salem
Dear sir,
Our company is registered under factory act. Uttar Pradesh. The workman strength is approximately 350 who is covered within the purview of sec 2(s) of ID act. 1947,
Based on the particulars pls clarify my doubt's stated above post
From India, Jaipur
Our company is registered under factory act. Uttar Pradesh. The workman strength is approximately 350 who is covered within the purview of sec 2(s) of ID act. 1947,
Based on the particulars pls clarify my doubt's stated above post
From India, Jaipur
Dear Friend,
I appreciate your immediate response with relevant details. Since the average no of workmen, as per your statement is around 350, your factory is covered by the provisions of Chapter V-B of the ID Act,1947 in respect of retrenchment and therefore it is mandatory to obtain prior permission from the Appropriate Govt. For the procedural formalities like notice etc.,in this regard, better you go through the provisions of the Act. Retrenchment, even if it is due to inevitable circumstances beyond the control of the employer, is a sudden deprivation of livelihood and the legal compensation in this regard would be viewed as mere pittance by the workmen likely to be affected.Therefore, it is natural on the part of workmen to fight tooth and nail through their trade unions before the concerned authority. Owing to the apprehension of popular apathy and political criticism, the Govt also would hesitate to grant permission for retrenchment howsoever justifiable the reasons are. Therefore, it is always preferable to negotiate with the workmen through their representative trade unions and forge out an acceptable scheme of voluntary separation by ensuring a package of higher compensation to the out-going workmen under the scheme.
From India, Salem
I appreciate your immediate response with relevant details. Since the average no of workmen, as per your statement is around 350, your factory is covered by the provisions of Chapter V-B of the ID Act,1947 in respect of retrenchment and therefore it is mandatory to obtain prior permission from the Appropriate Govt. For the procedural formalities like notice etc.,in this regard, better you go through the provisions of the Act. Retrenchment, even if it is due to inevitable circumstances beyond the control of the employer, is a sudden deprivation of livelihood and the legal compensation in this regard would be viewed as mere pittance by the workmen likely to be affected.Therefore, it is natural on the part of workmen to fight tooth and nail through their trade unions before the concerned authority. Owing to the apprehension of popular apathy and political criticism, the Govt also would hesitate to grant permission for retrenchment howsoever justifiable the reasons are. Therefore, it is always preferable to negotiate with the workmen through their representative trade unions and forge out an acceptable scheme of voluntary separation by ensuring a package of higher compensation to the out-going workmen under the scheme.
From India, Salem
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