Indian HR Laws For Lay Offs - CiteHR
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Ramit_chd
Manpower Planning
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I work for a UK based company head quartered in UK and an Indian entity. The Indian entity is only about 7 months old, though I have been their sole representative in India for the last 2.5 years.They expanded operations in India in September 2013. Recently due to their restructuring plans, they have laid-off 4 employees in UK and one in India -me (all women, I might add though I don't know if this is of any relevance).
I wonder if you could you please ‎let me know what the Indian HR policy guidelines and my compensation entitlements for lay off are? This would be a huge help to me as I am a middle aged woman who needs to fend for herself and it's not easy to get a job at this level.
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Please go through the Industrial Dispute Act 1947, Chapter V-A Sec. 25 ' LAY OFF & RETRENCHMENT' (R K Singh)
Mr Anonymous Is your Company in India a factory,mine or plantation? Varghese Mathew
Dear Anonymous,

I am sorry to say that yopu have furnished incomplete inputs for proper examination of your case.Please always remember that a doctor can treat patients properly when he gets complte deatils of the illness.You have not mentioned type of organisation or nature of its activities, no. of persons employed etc.However I shall try to deal with the general provisions regulating the Lay-Off and Retrenchment.

There are two Chapters dealing with the lay-off and retrenchment namely Chapter VA and Chapter VB under Industrial Disputes Act,1947. Application of Section 25A under Chapter VA is extended to (a) to industrial establishments in which LESS THAN FIFTY workmen on an average per working day have been employed in the preceding calendar month; or (b) to industrial establishments which are of a seasonal character or in which work is performed only intermittently.

Similarly application of 25K under Chapter V-B is extended to an industrial establishment (not being an establishment of a seasonal character or in which work is performed only intermittently) in which not less than ONE HUNDRED workmen were employed on an, average per working day for the preceding twelve months.
Dear Anonymous,
In continuation to my trailing mail,I would like to add that unlike Chapter VA, the Govt permission is required under Chapter VB. Section 25C stipules that whenever a workman whose name is borne on the muster rolls of an industrial establshment and who has completed not less than one year of continuous service under an employer is laid-off, he shall be paid compensation which shall be equal to fifty per cent of the total of the basic wages and dearness allowance that would have been payable to him had he not been so laid-off:
What I have explined above is in INDIAN context but you are advised to check the meaning of lay- off in UK context. I hope LAID-OFF in UK context is not termination of service.
BS Kalsi
member since Aug 2011
Many thanks for your response. My company is a subsidiary of the UK company and is based in India. It is a membership led trade association along the lines of FICCI and CII in India. Their remit is to promote UK business in India. In India the number of Full Time Employees is about 10. Hope this will be sufficient information to help you respond.
Many thanks for your response. My company is a subsidiary of the UK company and is based in India. It is a membership led trade association along the lines of FICCI and CII in India. Their remit is to promote UK business in India. In India the number of Full Time Employees is about 10. Hope this will be sufficient information to help you respond.
Your's is not an industrial establishment as per the explanation under sec 25A of ID Act, and the provisions of lay off under the Act do not apply to you .Lay off compensation depends on your contract of appointment.
Varghese Mathew
09961266966
Dear Neeru Sood,
In response to your further query, I wish to clarify that there may not be mention of termination or redundancy in your contract but I am sure that there must be a stipulation or clause as to how you can leave the company, what is the minimum period required for the resignation or to part with the company. It can not be a one-sided contract. You go thorough the terms & conditions of the contract minutely and proceed accordingly.
BS Kalsi
Member since Aug 2011
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