Hello,
In my Opinion:
You cannot directly Lay off/Terminate employees directly.
Please do the following:
1. Define a clear cut parameters of work (measurable) that has to be completed by the employees
2. On Non completion of the same, you have to serve them with a warning letter.
3. Further, also if the Employees do not complete the work only then can you take disciplinary action against them.
4. Please remember that the disciplinary action should not be disproportionate.
5. If the employees are categorized under Workmen, the termination cannot take place without a domestic enquiry.
the provisions of layoff might not be useful at the moment, as full salary has to be paid to the employees as per Govt directives under Disaster Management Act.
As this may be construed only as a tactic for non paying salary, you have to be careful in the actions, and follow the procedure else the company may open itself for various litigation from the employees in near future.
Hope this helps
Regards