Labour Law & Hr Consultant
Senior Officer - Hr
Asso.prof.(commerce & Management) Pg
Hope that your Management intends to keep some workmen off work temporarily due to their inability to provide work to all the workmen for the reasons stated. Given the reasons cited are genuine and the particulars given are correct, you can straight away lay the required no of workmen off according to the order of their juniority simultaneously informing the Area Conciliation Officer and the Commissioner of Labour( Form Q1 ). Remember that you will have to pay 50% of the last-drawn wages for the days of lay-off. Ask your Management to make a critical analysis of the present situation and if the chances of revival or improvement is very remote or impossible, better devise a voluntary separation scheme in consultation with the workmen and try to implement it forthwith. Otherwise, sooner or later, your establishment will become a white elephant.
1st July 2014 From India, Salem
Mr.Umakanthan's suggestion is the need of the hour. Incidentally, you mentioned that your factory (manufacturing or fabrication industry ? ) is running into loss for the lost 5 yrs. If so I presume by now your Net worth should have eroded beyond restructuring in which case it now attained the status of a "SICK" co. if so, it should get registered with the BIFR under the SICA (if applicable to you) and apply for closure. This is a binding provision under the Companies Act as well. However you should consult your Auditors for a proper guidance before taking any decision. On the other hand, to smoothen the process it's necessary that all employees should be settled after reaching to a mutually agreed solution. Laying off or lockout only add to your burden especially you may not have a revival plan on hand for a foreseeable near future viewing from the hopeless power situation and bleak monsoon in TN.
2nd July 2014 From India, Bangalore
Thanks for your valuable suggestion. We are planning for lay off as of now. We have the below queries. Please help us by clarifying the below doubts.
1. Last drawn wages means, do we need to pay 50% of their basic wages? or 50% of their gross salary?
2. Are they supposed to come 2 weeks (15 days) per month whenever there is work in the factory? if so, how many days before we should inform them to come to work?
3. If they don't turn up to the work at critical times on lay off period, what can company do?
Management doesn't want to lock out now. As they are expecting that the situation will improve in next few months.
2nd July 2014 From India, Chennai
1) Lay-Off compensation = 50% of Basic+D.A only. No compensation payable for intervening weekly holidays during Lay-Off period.
2) During the entire period of Lay-Off, the laid-off workmen should present themselves for work at the establishment at the appointed time during normal working hours at least once a day.
3) Failure to do so will result in deprivation of compensation.
2nd July 2014 From India, Salem
circulars with a copy to Asstt. Labour Commissioner or
Labour Commissioner about the gravity of the situation of the factory. Also separate letters should be addressed
to the Union concerned marking s copy to ACL/DCL indicating the inability to
run the factory/establishment. Better to hold talks with the Union to make them understand the need to declare layoff. Lay off wages are required to be paid for 45 days and thereafter \"No work no pay\" will apply. There is a clause in the Industrial disputes act for the layoff on account of shortage of Raw material or power. Alternatively, taking into confidence of the Union, on rotation 50% of the
workwes can be engaged on full working and remaining on lay off. However everything depends on how the HR rep. convince the Union and the legal authorities.
3rd July 2014 From United States, Cupertino
4th July 2014 From India, Salem
There were some discussions in citehr. earlier which probably not giving a definitive answer to the query, read from these links:
Friends can find some references reg.Lay off in an estt. where the employees are < 50 (ID Act applies only to estts. where 50 or more employees on roll) read from the following link.
Still, I feel, we have to find conclusive legal provisions which applies to lay off in estt. where employees are less than 50. Till such time it's "time out time" , a strategic break.
4th July 2014 From India, Bangalore
6th July 2014 From India, Salem
Thanks for the valuable information with practical ideas. I have one query here. At the period of layoff, Can employer appoint casual labours for full month and pay wages to them for dispatching the available stock to customers and do some emergency services (Electrical work) in factory. Unionized workmen anyway will not support it due to some workmen will get full wages and others will not. It will cause internal fight between them.
In this case, Can employer appoint maximum 6 (2 workmen x 3 shifts) contract labours at layoff period?
8th August 2014 From India, Chennai
As our friend Umakant rightly said, in an unionised organisa-
tion, we have to deal and take
decisions on practically within
the framework of the rules.
Here, interpretation of rules
based on the problems we are
facing in day to day organisation is also more
important. Regarding engagement of casual labour
during the period of lay off.
no union leader or worker generally agree. To come out
from such problem first of all option should be given to the existing employees whether they would like to work till the available stock is dispatched. If they agree
the required no. of workers can be engaged on routine basis without giving any chance for dispute. This I am
mentioning on practical basis. Hope this may be helpful.
9th August 2014 From United States, Cupertino