Hello,
First and foremost one must be clear about the law on the subject. Lay off is a temporary suspension of the contract of employment. The subject is covered by Industrial Employment (Standing Orders) Act and the Industrial Disputes Act . There are different provisions depending upon the strength of the unit and one must strictly follow these. I am attaching a note on the subject that explains the law. If on that note if you have queries, please raise them.
As to the other aspect of Lay-Off-the Human Aspect! This also needs to be handled with extreme care and compassion. To that extent kindly note the following points.
1) Resort to Lay_off bona-fide only. Do not use it as strategy to give "messages" to the employee organizations.
2) If you have a Union of employees do not expect them to necessarily cooperate with the proposed Lay_Off. You may have to resort to it even without consent! Depending upon the bona-fide reasons for the Lay_Off, the business situation, the actions initiated by the company to avoid laying_Off and the transparency of management approach nd the Union maturity, some Unions may even agree to suc a course of action. But experience suggests that overwhelming majority would oppose any such action. The company therefore will do well to INFORM them of its decision rather than to seek their CONSENT!!
3) While the employment is protected, there is loss of earning for the workman and his family and this is harsh on them, so the resistance!
4) Whether "before" or "after" the company must handle the issue with compassion but with a "fair and firm" policy.
5) The company must try to keep the period/loss of earning as limited as is possible. In the whole matter the company and the officials must be HUMANE at all times.
Even after such precautions are taken, there is no guarantee that the decision will go down well and the company must use the "time" to "heal" the bruises.
I suppose this addresses your concerns. if you need mors elaboration, please do not hesitate.
Regards
samvedan
August 7, 2007