Hi! All
I am in a manufacturing unit as HR exe.
I am facing a prob. here ,as what compensation should be given to the workers,if the unit remain closed or sealed due to not applying some statutory norms related to Pollution,and employer had to return back some workers for not having production.Pls Clear all the limits of layoff and its compensation. :?:
Thanks n regards
M.S Beg

30th August 2007 From India, Kanpur

Sap Hr Professional
Hr Generalist
Md Meraj
Hr Business Partner
Textile Industry
Managing Director
+2 Others

As per the norms of Employees Compensation Act, if an organisation is not able to provide job temporarily due to any of the reasons, the employees may be laid off with the compensation of 15 days salary per month.
Amit Goyal
30th August 2007 From India, Delhi
Hi Shafiq,
It seems you are a bit confused. Lay Off period is the temporary period for which the employees are not provided a job. So the lay off compensation is to be given for the entire period of lay off.
Amit Goyal
30th August 2007 From India, Delhi
Thanks ,Amit But, u said that ,employer has to pay only 15days wages for a lay off month,but i want to know , wat is to b paid ,if the employer has to laid off for 2 months or more. :?:
31st August 2007 From India, Kanpur
Dear Friends,
Regarding Laid-Off compensation, ;
As per Industrial DisputesAct,1947Section 25-C says that a workmen shall be paid by the employer for all days during which he is so laid off, except for such wekly holidays as may intervene, compensation which shall be equal to 50% of the total of the basic wages and dearness allowance that would have been payable to him had he not been so laid off.
If any detailed notes on this my please refer I.D Act 1947.
31st August 2007 From India, Kakinada
Hi Mr Beg,
Seems your unit is closed/ sealed due to non compliance to certain norms under Environment Act.
In my view lay off compensation would not technically apply here. I would suggest that you pay employees their Basic pay till the time your factory becomes operational.
Md Meraj
31st August 2007
If any company closed for a temporary period (short duration) its called at Lay-off. At the same time if it closed permanently (or without any result) its Lock-out.
But as per BMS Kumar its right of giving 50% of basic wages to the employees at the time of Lay-Off. but before that you have to confirm which type of employees are they? whether temporary/permanent/contract workers.
31st August 2007 From India, Dindigul
Dear Mr Mariyappan,
If I am not wrong Lock out is not permanent closure but it is just temporarily denial of work by the management to show protest just like strike by the worker. In strike workers refuse to work while in lock out management refuse to give work to show protest against the workers. Here it is imperative to mention that Lock Out is not Lay Off and hence no wages are payable to the workers if lock out is called through legal procedures. Generally Lock out is called against unfair practices by the workers.
Amit Goyal
31st August 2007 From India, Delhi
Dear Amit Goyal,
Thanks for your explaination about Lay Off and Lock Out. But the books which i verified is one of the referred book at Anna University which gave me the different meaning like Lay off means Temporary Close, Lock Out means Permanent Colse.
1st September 2007 From India, Dindigul
Lay off or lock out, if there is anything employees can do to change the decision of management that would be negotiation to get best possible compensation and supports during difficult time frame.
From worker side is there any way doing strike and getting help from union to get compensation , let me know.
24th February 2008

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