Hi,
This is Somnath Prasad. Please suggest, is there any law if we want to give a short break to employees due to low market conditions in the manufacturing industry? If yes, what will be the procedure to adjust their salary and how should we proceed if their leave is exhausted?
Thank you.
From India, Delhi
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3This is Somnath Prasad. Please suggest, is there any law if we want to give a short break to employees due to low market conditions in the manufacturing industry? If yes, what will be the procedure to adjust their salary and how should we proceed if their leave is exhausted?
Thank you.
From India, Delhi
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The proposed short break in a manufacturing industry amounts to a layoff as per the Industrial Disputes Act 1947. The term is defined as follows:
"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.
Explanation: Every workman whose name is borne on the muster rolls of the industrial establishment and who presents himself for work at the establishment at the time appointed for the purpose during normal working hours on any day and is not given employment by the employer within two hours of his presenting himself shall be deemed to have been laid off for that day within the meaning of this clause:
PROVIDED that if the workman, instead of being given employment at the commencement of any shift for any day, is asked to present himself for the purpose during the second half of the shift for the day and is given employment then, he shall be deemed to have been laid off only for one-half of that day:
PROVIDED FURTHER that if he is not given any such employment even after presenting himself, he shall not be deemed to have been laid off for the second half of the shift for the day and shall be entitled to full basic wages and dearness allowance for that part of the day.
Therefore, the definition section of layoff renders it applicable to the industry. Chapters V-A and V-B of the Industrial Disputes Act prescribe the procedure to be followed in the case of a layoff. Either Chapter V-A or Chapter V-B is applicable depending on the number of workmen employed. If you go through section 25A(1), you will see that Chapter V-A is applicable to industrial establishments employing 50 or more workmen but less than 100; similarly, Chapter V-B is applicable to industrial establishments employing 100 or more persons. Therefore, Chapter V-A and Chapter V-B of the Industrial Disputes Act apply to factories depending on employing the prescribed number of workmen as the case may be.
The Industrial Disputes Act prescribes the procedure to be followed in case of a layoff. Provisions of Section 25 (C) will be applicable in the case of the applicability of Chapter VA, and otherwise, it is Section 25 (M).
In certain cases, the power to lay off can be found in the certified standing orders or model standing orders as well. Please ascertain the applicable provision from the aforesaid sources and review the details. If you have any further queries, you may revert to the forum.
From India, Mumbai
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"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.
Explanation: Every workman whose name is borne on the muster rolls of the industrial establishment and who presents himself for work at the establishment at the time appointed for the purpose during normal working hours on any day and is not given employment by the employer within two hours of his presenting himself shall be deemed to have been laid off for that day within the meaning of this clause:
PROVIDED that if the workman, instead of being given employment at the commencement of any shift for any day, is asked to present himself for the purpose during the second half of the shift for the day and is given employment then, he shall be deemed to have been laid off only for one-half of that day:
PROVIDED FURTHER that if he is not given any such employment even after presenting himself, he shall not be deemed to have been laid off for the second half of the shift for the day and shall be entitled to full basic wages and dearness allowance for that part of the day.
Therefore, the definition section of layoff renders it applicable to the industry. Chapters V-A and V-B of the Industrial Disputes Act prescribe the procedure to be followed in the case of a layoff. Either Chapter V-A or Chapter V-B is applicable depending on the number of workmen employed. If you go through section 25A(1), you will see that Chapter V-A is applicable to industrial establishments employing 50 or more workmen but less than 100; similarly, Chapter V-B is applicable to industrial establishments employing 100 or more persons. Therefore, Chapter V-A and Chapter V-B of the Industrial Disputes Act apply to factories depending on employing the prescribed number of workmen as the case may be.
The Industrial Disputes Act prescribes the procedure to be followed in case of a layoff. Provisions of Section 25 (C) will be applicable in the case of the applicability of Chapter VA, and otherwise, it is Section 25 (M).
In certain cases, the power to lay off can be found in the certified standing orders or model standing orders as well. Please ascertain the applicable provision from the aforesaid sources and review the details. If you have any further queries, you may revert to the forum.
From India, Mumbai
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KKHR explained the provision under the ID Act that is applicable to your action. However, what do you mean by the low market condition due to which you want to give the break?
B. Saikumar HR & Labour Relations Adviser Navi Mumbai
From India, Mumbai
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B. Saikumar HR & Labour Relations Adviser Navi Mumbai
From India, Mumbai
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Dear Member,
KKHR explained well the provisions of lay-off under the ID Act. Any breaks without complying with the provisions of lay-off will be considered illegal, which attracts penal action under the said Act.
Chapter VA applies where less than 100 employees were or are employed in the Industrial Establishment. Chapter VB applies where more than 100 employees were or are employed in the Industrial Establishment.
From India, Madras
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KKHR explained well the provisions of lay-off under the ID Act. Any breaks without complying with the provisions of lay-off will be considered illegal, which attracts penal action under the said Act.
Chapter VA applies where less than 100 employees were or are employed in the Industrial Establishment. Chapter VB applies where more than 100 employees were or are employed in the Industrial Establishment.
From India, Madras
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