Dear Tushar, the general provisions relating to lay-off have been explained by Sh. Madhu as well as by me in our earlier mails. However, I would like to answer your queries, which you have raised in your initial mail for your better understanding as under:
1. Lay-off Compensation and Monthly Remuneration
If a company is giving a lay-off to their employees, will they be entitled to any monthly remuneration? If yes, then if an employee is earning ₹10,000/month, what will be the calculation? If an employer is giving lay-off compensation to the employees, then they will not be entitled to receive any monthly remuneration. For answering your next query, you should have provided the bifurcation of ₹10,000. However, it is for your information that the lay-off compensation shall be equal to fifty percent of the total of his basic wages and dearness allowance.
2. Voluntary Retirement Services (VRS) During Lay-off
At the time of a lay-off, can an employee claim VRS (Voluntary Retirement of Services)? No, a workman cannot claim VRS suo motu, but if there is some scheme prevailing at that point of time, then of course, he is entitled to avail it.
3. Action When No Remuneration is Provided
If a company is not giving any remuneration, then what can be done? (They have a Union) If an employer is not giving any remuneration for the lay-off period and there is a union existing in the establishment, the union can espouse the cause of non-payment of lay-off compensation to its members and raise a dispute before the conciliation officer of the labor department.
Regards,
BS Kalsi
Member since Aug 2011