Umakanthan53
Labour Law & Hr Consultant
Mani.ps
Office-hr

Thread Started by #Mani.ps

Hi to all,
This is Mani. My sister concern employing less than 50 employees has declared lay off for a few employees in the production line because of lack of order and accumulation of excess finished stock. The lay off was declared from 1st August 2017. Now I want to know how the lay off wages are to be calculated and whether PF and ESI is applicable for the lay off wages.
Pl. also advise me how long (no. of days) the lay off can be declared.
14th August 2017 From India, Salem
Dear Mr.Mani,
You may refer to sec.25-C of the ID Act,1947.
The lay-off compensation should be equal to 50% of the total of the basic wages and dearness allowance payable but for the lay-off. However, no compensation for the intervening weekly holidays during the period of lay-off.
EPF and ESI contributions are to be deducted from Lay-off compensation.
14th August 2017 From India, Salem
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