Anonymous
My partnership firm has 2 factories at 2 locations 30 km apart within the same District. Each factory has around 30 workers and put together we have 62 workers. For the last decade or so, we have been paying lay off wages when there is no work. Recently I read that layoff wages are not applicable for factories with strength below 50 workers. Since put together we have 50-100 workers will we be considered as a single unit or different units?
If not, am I right in continuing to pay to lay off wages since it has been the prevailing practice for more than a decade?

From India, Kozhikode
If the two units of the same partnership firm have functional integrality or common balance sheet, then they should be treated as one unit for the purpose of employment benefits like layoff compensation.
Basically it is a wrong notion that lay off compensation is not applicable when the total no of workmen falls below 50. Strictly speaking, the employer of such a unit has no right to lay his workers off unless there is a provision in the contract of employment. Still if he resorts to lay off, the workmen must be paid full wages for the entire period of lay off.

From India, Salem
Please Login To Add Reply






About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service



All rights reserved @ 2021 Cite.Co™