Industrial Relations And Labour Laws
Labour Laws & Ir
Ash Mathew
Recruitments, Training`
Hr Manager, Mytec Software
+1 Other

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Good Evening Seniors,
My name is Lalitha and working as Manager HR from 2.5 yrs. Our company is 100 employed and we are into Software development and implementation. Recently i.e. last friday 28th Feb, 2009 we laid off 20 of our employees without any notice. But we assured them that in lieu of notice period, we will pay them one month salary.
I have a small doubt as I didn;t work on such these type of issues earlier, like my management is planning to keep all the 20 employees in our payroll till March 31st and pay them their salary but their last working day would beFeb 28th. I have a suggestion for them is as anyhow they are going to be in our payroll by 31st march and how about relieving them on the same date without working for the month. Is there will be any legal issue by doing this.
Please clarify my doubt as I need rap up this thing by tomorrow itself.
Thanks & Regards,
Have a nice day

Dear Lalithal,
It seems that you have wrongly mentioned the date as 28.03.2009. In case of laid off there is no question of giving one month notice. You are covered under Industrial Disputes Act,1947 & therefore you are advised to go through the provisions of lay off under this Act & take action accordingly.
Skylark Associates, Gurgaon(Haryana)

thank you for your suggestion Khola. As mentioned by you, I have gone through the Induatrial Act 1947, but there I didn;t get solution for my querry.
could you please explain me in mail itself
Thanks & Regards,
Have a ncie day

Plz go through the chapters VA & V B of I D Act,1947. If you are employing 100 or more employees then permission to laid off employees will be compulsory. These chapters relates to laid off & retrechment.

for statutory requirement we have to give notice period compulsorily and also retrenchment benefit should be given as per your laid down company policy if any and as per the offer letter terms.

Lalithaj or the employer has combined the lay off with retrenchment. I understand that the attempt is not to lay off the 20 employees but to retrench them paying one month notice/ salary in lieu of notice. Since the establishment had employed 100 employees the chapter V B of the ID Act will apply and if so, prior permission from the government is required either to lay off or retrench the employees. Notice declaring lay off or retrenchment shall be simultaneously served both to the government and the employees concerned. Therefore, there is no possibilities of holding their last working day as 28th Feb, a date earlier to the actual date of laying off/ retrenchment.

Dear Lalitha,
I am just answering to the last part of your post. "Anyhow they are on Payroll til March 31st"...
When u issue them their releiving letter it must be mentioned that last day of working period is Mar 31st (end of notice period)

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