Hi, I have question. if a project is getting clsoed and the employee is applying for other projects. He is also not geting selected since he is not capable for the same. The comany is now asking employee to leave. So what's the compensation that the employee be entitled for.
From India, Madras

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In my Opinion:
You are looking for a way of Retrenchment of Employees. (As termination has to be backed by a misconduct )
There are two categories of employee here.
1. Wokrman under IDA 1947
2. Non - Workman (Managerial) Cadre
For Retrenchment of Workman the compensation and procedure according to IDA 1947 Sec 25 have to be followed if your company is an Industrial Establishment.
Generally he will be entitled for Gratuity (if applicable), Leave with Wages, Leave Balance, Unpaid salary for the period, Notice pay (if applicable), etc. and compensation of 15 days avg pay for every year that he has worked in your company
2. Non-Workman : He may be dismissed by the company by giving due notice. He will be entitled for Gratuity (if applicable), Leave Balance, Unpaid salary for the period, Notice pay (if applicable), etc. and any other form of pay/allowances that your company provides but has not paid for.
Important: Please note NOT to terminate/dismiss an employee during the current Lockdown period, as it will open up the company for Litigation under the Disaster Management Act 2005 and IDA 1947. You will have to continue the employee with his full salary payment during this period.

the establishment is a IT firm. I am going to layoff as the employee is not able to find any jobs with the company which ws provided by the organization. Hence we have to lay off as the employee did not find a job even after the company provding the oppertunity.

From India, Madras
Sir to add on under the disaster management act, i did not see any provisions that a compnay cannot lay off. Can you please share the document if you may have.
From India, Madras

Considering the case here that the company is an IT company. I presume that the employee was on your payroll at present and he was deputed to another organisation/company for some Job work - IT Outsourcing.

Considerig that the employee has not found any Job with the company provided by organisation, he may be Retrenched.

If he Employee (although in an IT Company) is not working at any supervisory or Managerial level, still fits in the definition of a "Workmen" doing work of skilled/Technical nature. Hence the provisions of the ID Act, has to be followed or the company may open itself for litigations.

Secondly, to your query that the provisions of lay off do not appear in Disaster Management Act....

The Governement vide its notification have clearly directed the Employers not to terminate employemnt of the Employees, specifally workmen or deduct any part of their salary. These directives of the Government have come out under the Disaaster Management Act. The Act provides the Govt to give such orders/directions that are necessary for the containment/spread of the Disease and other related measures for its curtailment.

Hence considering that in the Retrenchment/Layoff there will be termination of employment and also reduction in the salary of the employee, the Employer cannot do either of it during the Lockdown situation.

Even though such a provision in not there directly under the DM Act, the prders of the Gvot are Manadatory for complaince.

The company may take a view after the locdown period is over.

Hope this answers your query.


fantastic sir. this gives a full picture.
If its under a normal circumstance and the IT compnay lays off a work man due to non availability of project. Currently we are ony giving 2 weeks of pay. Can you please let me know what dose the LAW says . What is the money that i need to pay as notice pay for employees who we are laying off on normal circumstance.

From India, Madras
Dear Friend,
This is a tough time for everyone both for employee and employer. The lock down period is not even a longer period, the employer should not behave like in human.
You better knock the door of Govt. how your employer is firing amidst lock down, whereas Govt of India brought advisory under the Disaaster Management Act. The Act provides the Govt to give such orders/directions that are necessary for the containment/spread of the Disease and other related measures for its curtailment. All those are going to affect are directly sent an application enclosing the order of your establishment to the Chief Justice of High Court of your Jurisdiction state, possibly you with others shall get justice.

From India, Mumbai
Dear Sir,
I have been working with reputed travel agency in Mumbai since past 3.5 years on contract/third party basis. On 17th March our management decided to cut off few employees result of no business due to Covid-19.
They shortlisted around 10-12 employees including me and verbally asked us to give resignation till 20th March. We asked them to email us that we need to resign due to so and so reason.
They didn't email us instead they were pressurising us verbally through calls that if we don't resign they will terminate us.
After that lockdown was imposed so there was no action taken on resignation matter and suddenly yesterday I received contract closure letter from my actual employer/Staffing company stating that my employment/contract will get over on 15th May 2020 due to business exigency. Even I am not sure if I will get my FNF.
Please advise as this is very crucial situation and I have to look after my family🙏

From India, Mumbai

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