Umakanthan53
Labour Law & Hr Consultant
Venkatdommeti
Hr Consultant

Thread Started by #venkatdommeti

Our management would like to layoff of all our workmen on account of shortage of coal . Please let me know the procedure on the following points.
1) When we should send notice to appropriate govt./Labour dept.(1 month/2 months/3 months)
2) 50% Lay off compensation(45 days) on Basic + DA or Total monthly wages.
3) For 45 days payment whether employees needs to come to Factory or not.
28th May 2018 From India, Hyderabad
1) When we should send notice to appropriate govt./Labour dept.(1 month/2 months/3 months).
30 days notice period.
2) 50% Lay-off compensation (45 days) on Basic + DA or Total monthly wages.
a) Workmen whose name is there in the muster roll and who has completed one year of continuous service of your industry will be entitled to get paid for the all days of laid off except for weekly holidays at the rate of 50% of the total basic wages and DA.
b) Provided the compensation shall be payable only for a period of 45 days if the laid of lasts for more than 45 days during a period of 12 months and the same is jotted down in an agreement between the workman and the employer.
3) For 45 days payment whether employees needs to come to Factory or not.
An employee is required to be present during the 45 days at least once. He/she may be disqualified from getting laid off pays if he/she does not present himself/herself for work at the establishment at the appointed time during normal working hours at least once a day.
28th May 2018 From India, Kolkata
Thank you so much Mr. Pradipta Nath for your update....
I have one doubt in your update i.e compensation for 45 days should be jotted down in an agreement. Can you please explain me?
28th May 2018 From India, Hyderabad
Dear Venkat,
Though the title to your post says that yours is a manufacturing unit with 400 employees, there is no mention about it in the text. If it is correct, then the special provisions relating to lay-off laid down under Chapter V-B of the Industrial Disputes Act,1947 would be applicable to the proposed lay-off on account of shortage of coal and you can not straight away resort to lay-off as per SE.25-M(1) of the Act.You have to obtain prior permission from the appropriate Govt as set out in sec.25-M(2). Better verify your State I.D Rules for other procedural details.
Regarding the amount of lay-off compensation, pl see sec.25-C. Your presumption of compensation for 45 days only is not correct because of the express provision of sec.25-M(10).
28th May 2018 From India, Salem
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