Firm running a manufacturing activity with more than 1000 permanent employees, but due to a shortage of raw materials, the firm is unable to provide work to its employees. The firm has already informed its employees that the raw material shortage will worsen day by day, leading to a 50% reduction in the organization's workforce. What legal liabilities does the firm bear?
From India , Ahmadabad
Acknowledge(1)
Amend(0)
2From India , Ahmadabad
Acknowledge(1)Amend(0)
As per the Industrial Disputes Act for shortage of raw material employer can lay-off employees. Such employees should be paid half of basic+DA as per section 25C of the said act.
From India, Mumbai
Acknowledge(0)Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)
Dear Friend,
Please study Chapter V B of the ID Act. This chapter starts with Section 25K, and the provisions are very easy and clear to understand.
As per Chapter VB of the Act, you can neither terminate/retrench nor lay off except by following due process of law as enshrined in the provisions of this chapter. You will have to obtain permission from the appropriate Government.
Warm Regards,
Bharat Gera
HR Consultant
From India, Thane
Acknowledge(0)Amend(0)
Please study Chapter V B of the ID Act. This chapter starts with Section 25K, and the provisions are very easy and clear to understand.
As per Chapter VB of the Act, you can neither terminate/retrench nor lay off except by following due process of law as enshrined in the provisions of this chapter. You will have to obtain permission from the appropriate Government.
Warm Regards,
Bharat Gera
HR Consultant
From India, Thane
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Legal Clarification on Non-Performer Termination, Project Based Appointment Letter, Setting UP .pdf