As winter approaches, we are planning to implement layoffs. Please specify the eligibility criteria for paying 50% of wages to workers during the lay-off period - who is eligible to receive this reduced wage. I have workers who joined in October 2020 and others who have been with the company for over a year. Do all employees qualify for the 50% wage, or is it only those who have completed 240 days?
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From India, Kannur
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From India, Kannur
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You have not mentioned the type of your industrial establishment and the total number of workmen employed in the preceding 12-month period. To apply the process of layoff, your establishment must be one of the three industrial establishments as defined under the explanation to Section 25-A or 25-L of the IDA, 1947. If not, you cannot resort to layoff unless there is a provision in the contract of employment. If you are still compelled to lay off your workmen, you will have to pay them full wages.
Please refer to Section 25-C of the IDA, 1947. Whether your establishment falls under Chapter V-A or V-B, you can lay off those employees who have completed one year of continuous service or more in your establishment prior to the actual date of proposed layoff and pay them compensation equal to 50% of the sum of basic + D.A only.
From India, Salem
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6108Please refer to Section 25-C of the IDA, 1947. Whether your establishment falls under Chapter V-A or V-B, you can lay off those employees who have completed one year of continuous service or more in your establishment prior to the actual date of proposed layoff and pay them compensation equal to 50% of the sum of basic + D.A only.
From India, Salem
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Salary & Compensation Guidelines.zip
SC guidelines on compensation under MV Act 2.4.2013.pdf