Understanding Layoffs in ITES: What Do They Mean and Are There Any Employee Benefits?

Dear Friends,

I work for an ITES company and would like to know what "layoff" means and what the benefits of a layoff are for employees in an ITES company.

Looking forward to your replies.

Regards,
Amith R.

Layoff simply means the temporary closure of any work, division of an establishment, or the entire establishment due to reasons such as non-availability of material, power, or for maintenance. When employees are laid off from such jobs, divisions, factories, or other establishments, they become jobless temporarily. To compensate for the loss of remuneration, they are entitled to compensation at half the ordinary rate of pay. Employees who have been in continuous service for at least one year are eligible for layoff compensation. Continuous service is defined as total employment of 240 days in a year. Wages, for this purpose, include basic wages plus dearness allowance. Layoff compensation does not need to be paid for weekly off days and declared holidays. The law regarding layoff is provided in the Industrial Disputes Act, 1947.

Regards, Madhu.T.K

Understanding Layoff Provisions for Workmen

Only workmen come under layoff provisions. However, you have to consider workmen in a broader perspective. Essentially, any employee who does not have supervisory, administrative, or managerial power, to whom no other employee functionally reports for sanctioning leave, evaluating performance, and who does not initiate any disciplinary proceedings against others, is considered a worker.

Regards,
Madhu.T.K