Hi Seniors/Experts,
Request your help to know to what extent an employer can use sabbaticals as a tool instead of layoffs. To announce leave without pay for a long time for all employees in this financial crisis time.
From India, Madurai
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8Request your help to know to what extent an employer can use sabbaticals as a tool instead of layoffs. To announce leave without pay for a long time for all employees in this financial crisis time.
From India, Madurai
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Dear J Thirumeni Selvam,
A sabbatical is not just a long leave but a study leave too. When an employee wishes to pursue higher study, companies allow such employees to proceed on long leave keeping their employment intact. Generally, a sabbatical is a paid one, but it could be unpaid too. Availment of a sabbatical is based on trust. Companies have complete trust in the employee. They feel that when an employee returns with his/her enlarged knowledge, it would be beneficial to the company. Therefore, it is a win-win situation. Allotment of sabbaticals is few and far between. It cannot be on a mass scale.
However, in your case, what you prefer doing is camouflaging a layoff with a sabbatical. Will it escape legal scrutiny? That remains to be seen. Rather than adopting a method that misrepresents a situation, is it not worthwhile to approach the labor office and obtain permission that is legally valid? COVID-19 is an unprecedented situation, and I don't think that the labor officers will avoid giving permission.
Lastly, how come your company is so sure that its financial situation will not improve for a long time? Once the situation becomes normal, who knows India may start getting the export orders in a big way which, in turn, could give a fillip to the economic activity at the national level.
Thanks,
Dinesh Divekar
From India, Bangalore
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A sabbatical is not just a long leave but a study leave too. When an employee wishes to pursue higher study, companies allow such employees to proceed on long leave keeping their employment intact. Generally, a sabbatical is a paid one, but it could be unpaid too. Availment of a sabbatical is based on trust. Companies have complete trust in the employee. They feel that when an employee returns with his/her enlarged knowledge, it would be beneficial to the company. Therefore, it is a win-win situation. Allotment of sabbaticals is few and far between. It cannot be on a mass scale.
However, in your case, what you prefer doing is camouflaging a layoff with a sabbatical. Will it escape legal scrutiny? That remains to be seen. Rather than adopting a method that misrepresents a situation, is it not worthwhile to approach the labor office and obtain permission that is legally valid? COVID-19 is an unprecedented situation, and I don't think that the labor officers will avoid giving permission.
Lastly, how come your company is so sure that its financial situation will not improve for a long time? Once the situation becomes normal, who knows India may start getting the export orders in a big way which, in turn, could give a fillip to the economic activity at the national level.
Thanks,
Dinesh Divekar
From India, Bangalore
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Sabbatical is employee-initiated leave for reasons explained above. No pay, no benefits, no service continuity could be the conditions applied as defined in company policy.
Furlough leave could be an option that the organization can initiate in such situations. Part pay or no pay could be discretionary, but medical insurance benefits, term life benefits, and service accrual for gratuity, etc., would be applicable during furlough. Can someone validate the furlough leave point?
Thanks
From India, undefined
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Furlough leave could be an option that the organization can initiate in such situations. Part pay or no pay could be discretionary, but medical insurance benefits, term life benefits, and service accrual for gratuity, etc., would be applicable during furlough. Can someone validate the furlough leave point?
Thanks
From India, undefined
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Dear Mr. Dinesh Divekar and Miss. VijayaGB, Thank you very much for your views and suggestions.
From India, Madurai
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From India, Madurai
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Dear Thirumeni Selvam,
Is it an alternative proposal gaining the active consideration of your management, or just a curious question to find out an alternative for mass layoff in a situation like nationwide lockdown due to COVID-19?
Our learned friend, Mr. Dinesh, has given an elaborate answer distinguishing sabbatical leave and layoff and the legal approach to layoff, and I do hope that your "thank you note" indicates your satisfactory acceptance of the answers given so far.
Just for the sake of academic as well as practical knowledge of the concept of "layoff" as defined under Section 2(kkk) of the Industrial Disputes Act, 1947, I request you to kindly go through sections 25-C of Chapter V-A and 25-M of Chapter V-B of the same. Since the outbreak of COVID-19 is recognized as a national disaster under the provisions of the Disaster Management Act, 2005, any industrial establishment falling under Chapter V-B need not seek prior permission from the appropriate Government as per the exception clause of Section 25-M(1) but can straight away resort to layoff subject to the payment of compensation as provided for under Section 25-C.
From India, Salem
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Is it an alternative proposal gaining the active consideration of your management, or just a curious question to find out an alternative for mass layoff in a situation like nationwide lockdown due to COVID-19?
Our learned friend, Mr. Dinesh, has given an elaborate answer distinguishing sabbatical leave and layoff and the legal approach to layoff, and I do hope that your "thank you note" indicates your satisfactory acceptance of the answers given so far.
Just for the sake of academic as well as practical knowledge of the concept of "layoff" as defined under Section 2(kkk) of the Industrial Disputes Act, 1947, I request you to kindly go through sections 25-C of Chapter V-A and 25-M of Chapter V-B of the same. Since the outbreak of COVID-19 is recognized as a national disaster under the provisions of the Disaster Management Act, 2005, any industrial establishment falling under Chapter V-B need not seek prior permission from the appropriate Government as per the exception clause of Section 25-M(1) but can straight away resort to layoff subject to the payment of compensation as provided for under Section 25-C.
From India, Salem
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Dear Mr. Umakanthan M,
Sir, you have recommended laying off the staff without permission from the Labour Officer. You say that there is a legal provision to do so. However, I still recommend keeping the labour authorities in the loop.
The problem of COVID-19 is not going to remain forever. Who knows after a few months, a labour officer may come and without assessing properly the merits of the case may issue a notice to the owner of the establishment. Therefore, it is advisable to seek proper permission. If not, the last thing that can be done is to send a letter to the labour authorities informing them of the layoff.
Regards,
Dinesh Divekar
From India, Bangalore
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Sir, you have recommended laying off the staff without permission from the Labour Officer. You say that there is a legal provision to do so. However, I still recommend keeping the labour authorities in the loop.
The problem of COVID-19 is not going to remain forever. Who knows after a few months, a labour officer may come and without assessing properly the merits of the case may issue a notice to the owner of the establishment. Therefore, it is advisable to seek proper permission. If not, the last thing that can be done is to send a letter to the labour authorities informing them of the layoff.
Regards,
Dinesh Divekar
From India, Bangalore
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