Navigating Layoffs for 500+ Employees: Compensation, Union Concerns, and Legal Steps

What is the procedure for a layoff where more than 500 employees are working, and some of them are unionized?

How do we calculate the compensation? As per the ID Act, it is 50% of the sum of Basic and DA. What about other allowances like HRA, education, and medical benefits? How should we handle PF contributions? What are the forms that need to be used?

Dear Sanjiv,

For layoff and other related matters, you may refer to Chapter V B of the Industrial Disputes Act, 1947. You are required to follow the forms outlined in your State Industrial Disputes Rules that are applicable to the location of your unit.

Regards,

R.N. Khola
Labour Law & Legal Consultants
09810405361