Navigating Layoffs in Public Sector: How to Follow the ID Act Procedure?

Dear All,

Kindly let us know the procedure on how to carry out a layoff under the ID Act. Since our organization is a public sector undertaking, we are planning to declare a layoff. Please provide guidance on the procedure under the ID Act.

Regards,
RNS

If the public sector has more than 100 employees, then it has to obtain prior permission from the appropriate government authority. The application for permission has to be made in triplicate, and copies of such application shall be served by the employer to the concerned workmen. The employer must also submit proof of serving the copies along with the application.

After permission to LAY OFF is granted by the authority, the employer has to give the Regional Labor Commissioner concerned a notice of the commencement and termination of LAY OFF in the appropriate forms.

Even if the application for permission is made, if the authority fails to communicate its decision within a period of 60 days, deemed permission is considered to have been granted.

The laid-off workmen are eligible for lay-off compensation amounting to 50% of the total of Basic & DA.

Dear RNS,

For more details, you may go through Chapter VA & VB of the Industrial Disputes Act, 1947 on Layoff & Retrenchment.

Regards,
R.N. Khola

It may take 90 days to wait for permission for lay off after application with the concerned state government. Please reach out to the labor department for further assistance.