Madhu.T.K
Industrial Relations And Labour Laws
Mnwakodkar
Statutory Compliance
9871103011
Private Consultant On Labour Laws
Srihari2720
Manger H R And Ir

Questions:
1.If a Company is giving a lay off to their employees than will they are entitle for any monthly remuneration.? if yes than = If a employee is earning 10000/month than what will be the calculation?
2.At the time of lay off an employee can claim of VRS (Voluntary retirement of Services) ?
3.If company is not giving any remuneration than what can be done? (they are having Union)

From India, Mormugao
hi
tushar
1. the lay off payment will be the 50 % of the basic pay
2. we cant take VRS when the company is in lay off
3. if the company is not giving the remuneration meet the consent labour department give a written complaint form union complaint
regds

From India, Hyderabad
First of all, inorder to be called lay off the temporary closure should be due to 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. Any reason not connected with the above will not fall within the purview of section 2 (kkk) of the Industrial Disputes Act. Lay off compensation as per section 25C at the rate of 50% of salary is available only to those who have worked for at least one year and one year means paid working days (including paid holidays and leaves) of 240 days in the preceding 12 months. Lay off compensation is worked out on basic wages and dearness allowances.

The layoff provisions are not applicable to an establishment employing less than 50 workers. It should not be construed that in such companies no need to pay any layoff compensation but as per Workmen Vs Firestone Tyre and Rubber Co [1976 (1) LLJ 493 SC] the workmen in such establishments are entitled to full wages if they are laid off.

Lay off compensation is not available to workmen who refuses to accept alternative employment requiring the same skill and expertise in the same establishment of other establishment of the same employer within a radius of five miles.

If compensation legally payable is not paid, the same can be recovered by approaching the appropriate authorities.

Madhu.T.K

From India, Kannur
Dear Madhu sir, If alternative employmenet is accepted then can compensation for lay off and remuneration for alternative employment,be claim. Mangesh Wakodkar Aurangabad
From India, Pune
Dear Tushar,
Sh Madhu.T.K has very well explained the provisions relating to lay-off existing under the Industrial Disputes Act,1947.
As regards your subsequent query is concerned, it seems that you are not clear about the concept of lay-off. Lay-off is restored by an employer when he is unable to provide employment to his workers. Once a worker accepts an alternative employment, then there is no question of lay off compensation, rather he will continue to get the regular remuneration, which he has been receiving earlier.
BS Kalsi
Member since Aug 2011

From India, Mumbai
Dear Mr.Kalsi, I mean to say that alternative employment is offered from same employer. please clear. Mangesh Wakodkar Aurangabad
From India, Pune
Dear Mangesh,
Yes, it has to be under the same employer.For your clarity, you may refer to Section 25 E of the Industrial Disputes Act,1947, which debar a workmen to receive compensation for lay-off in certain cases.Sub-section 25E (i) stipulates that if a workman refuses to accept any alternative employment in the same establishment from which he has been laid- off, or in any other establishment belonging to the same employer situated in the same town or village or situated within a radius of five miles from the establishment to which he belongs, if, in the opinion of the employer, such alternative employment does not call for any special skill or previous experience and can be done by the workman, provided that the wages which would normally have been paid to the workman are offered for the alternative employment also.
Hope the position is clear to you.
BS Kalsi
Member since Aug 2011

From India, Mumbai
Dear Tushar,

The general provisions relating to lay-off have been explained by Sh Madhu as well as by me in our earlier mails.However, I would like to answer your queries,which you have raised in your initial mail for your better understanding as under:-

1.If a Company is giving a lay-off to their employees than will they are entitle for any monthly remuneration.? if yes than = If a employee is earning 10000/month than what will be the calculation?-If an employer is giving lay-off compensation to the employees, then they will not be entitled to get any monthly remuneration.For answering your next query, you should have provided the bifurcation of Rs.10000/-. However, it is for your information that the lay off compensation shall be equal to fifty per cent of the total of his basic wages and dearness allowance.

2.At the time of lay off an employee can claim of VRS (Voluntary retirement of Services) ?--No, a workman can not claim VRS suo motu, but if there is some scheme prevailing at that point of time, then of course he is entitled to avail it.



3.If company is not giving any remuneration than what can be done? (they are having Union)-If an employer is not giving any remuneration for the lay-off period and there is an union existing in the establishment, the union can espoused the cause of non- payment of lay-off compensation of his members and raised a dispute before the conciliation officer of the labour department.

BS Kalsi

Member since Aug 2011

From India, Mumbai
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