Temporary Factory Closure: Are Contract Workers Entitled to Lay-Off Compensation?

My question is: When we temporarily close our factory for maintenance (15 days), are contract laborers eligible for lay-off compensation or not?

Regards,
Sujay

The primary purpose of engaging contract workers is to provide work whenever needed. Please inform the Contractor to instruct the workers to report for duty once work in the Factory resumes. While contract workers are considered workers under the Industrial Disputes Act for certain purposes, such as raising an industrial dispute and claiming specific statutory benefits from the Contractor, they are not entitled to lay-off compensation. Similarly, regular Company workers are not eligible for any lay-off compensation under Chapter V A of the ID Act if the Company employs less than 50 workers in their Factory.

Regards,
N. Nataraajhan
Sakthi Management Services
HP: [Phone Number Removed For Privacy Reasons]
Email: [Email Removed For Privacy Reasons]

With all due respect to everyone in the thread, I state that a workman employed by a contractor is NOT covered in the definition of a "workman" in the ID Act of 1947. Therefore, the applicability of any provisions of the said act is out of the question.

Depending on the exact stipulations between the company and the contractor, you may ask the contractor to discontinue providing a certain number of workmen during the period of layoff. This, of course, depends on the fact that the contract between the company and the contractor is NOT a sham and that compliances are proper.

Regards,
Samvedan
January 16, 2015