Hi Team, Could you please address the following concerns to relieve the employees during the layoff time.

1. Do we need to add any additional note to the exiting relieving documents.

2. Payment procedures.

3. If any employee does not accept the lay-off decision and he said he did not resign his current position so what are the action will take from HR side.

4. Any additional instructions and guidelines to follow.

Additional information:

Our employee’s strength is 158 and presently we are going to lay off 3 employees due to low performance. This is purely to reduce our cost structure to meet the realities of our business today.

We are providing the following to all three employees:

• Two months’ notice period pay

• Leave encashment for unused leaves.

• Severance pay-It is similar to gratuity all three employees are eligible against the experience (for Gratuity: These “3” are not eligible for gratuity pay).

• Statutory bonus based on eligibility

• Outplacement assistance for 3 months.

From India, Hyderabad
Labour Law & Hr Consultant
Management Consultancy

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We are handling layoffs for the first time. We would like to know how staff are to be relieved as part of layoff? Will they be terminated? We do not want to Terminate as it may create problems for taking new Job. Do we need to mention layoff in the relieving letter? Do they have to resign from the Job so that they can be relieved immediately?
From India, Hyderabad

There is a bit of semantic confusion in your query. It appears you are wanting to terminate three employees, but you have used the term 'Lay Off'. Lay off is a technical term used in Industrial Disputes Act 1947. The term ‘lay-off’ has been defined under section 2 (kkk) of the Industrial Disputes Act, 1947, thus lay-off means the failure, refusal or inability of an employer on account of the shortage of coal, power or raw materials or the accumulation of stocks or the breakdown of machinery or natural calamity or for any other unconnected reason to give employment to a workman whose name is borne on the muster rolls. Hence don't use the term Lay Off. So as regards the three persons being terminated, you may also indicate their length of service. Since you are terminating them you may consider giving them a Golden Handshake, if your Finance permits. Your package looks good but it will be better to talk it over to them.
From India, Mumbai

Thank you sir. Can I follow the normal exit process documentation? like when employee resign their position without mentioning any wording i.e. Layoff or Term.
3Q. If any employee does not accept the lay-off decision and he said he did not resign his current position so shall we terminate him as per appointment letter "Seperation-Termination"

From India, Hyderabad

Dear Venkatesh,

I fully concur with Mr.KK!HR. You're using the term "lay off" interchangeably with that of "retrenchment" both of them have got different legal connotations under the IDA, 1947. Better you should go through sections 2(kkk) and 2(oo) and Chapter V-B of the Act.

You cannot pick and choose people and retrench them at your discretion. Particularly, in respect of people with continued poor performance, you cannot simply terminate the services of employees without affording them sufficient opportunity to improve upon under documentation and exploring alternate arrangements. If you are under the impression that just because you are complying with the provisions of compensation u/s 25-F(b), you can terminate them with the stroke of your pen, sorry, you will be in for much trouble later.

If you feel it imperative that the dead wood must be got rid of at any cost, better follow the process of VRS as suggested by Mr. KK!HR.

From India, Salem

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