Dear Respected seniors,
In a medium-sized engineering company (turnover less than Rs 3 (three) crores, number of employees is 30), due to poor order position and difficult financial position, the company declared a layoff of employees for 15 days without any wages. Is it legally okay? What are the legal formalities to be complied with for a layoff without payment of any wages? Kindly advise.
With regards,
Sr. Laksminarasimman
From India, Madras
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1In a medium-sized engineering company (turnover less than Rs 3 (three) crores, number of employees is 30), due to poor order position and difficult financial position, the company declared a layoff of employees for 15 days without any wages. Is it legally okay? What are the legal formalities to be complied with for a layoff without payment of any wages? Kindly advise.
With regards,
Sr. Laksminarasimman
From India, Madras
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Normally, layoff wages/compensation at the rate of half the daily rate of wages are to be paid for laying off the employees. However, for the applicability of Section 25C of the Industrial Disputes Act, which deals with layoff and compensation payable thereon, a minimum of 50 employees are required as provided in Section 25A of the Act. Therefore, you are requested to verify any state amendment also in this regard.
Regards,
Madhu.T.K
From India, Kannur
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Regards,
Madhu.T.K
From India, Kannur
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dear provisions of section 25 c will be applied to you as number of employees are less than 50.as per provisions of this section 50% wages to be paid to employees for laid off period. tks j s malik
From India, Delhi
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From India, Delhi
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The Industrial Disputes Act of 1947 defines what is meant by the term "lay-off" and lays down the procedure to be followed when workmen to whom Chapter V-A and Chapter V-B of the Industrial Disputes Act are applicable. Chapter V-A applies to factories, mines, and plantations where 50 or more workmen but less than 100 workmen are employed. Chapter V-B of the Industrial Disputes Act applies to factories, mines, and establishments where 100 or more workmen are employed.
I presume that the industry you are referring to is a factory employing 30 workmen. Therefore, neither Chapter V-A nor Chapter V-B of the Industrial Disputes Act is applicable. As of today, the Government of Tamil Nadu has not amended the Industrial Disputes Act to make the provisions of Chapter V-A or Chapter V-B applicable to factories employing less than 50 workmen.
It is important to note that the Industrial Disputes Act in Chapter V-A and Chapter V-B has only outlined the procedure for laying off and has not granted the power to the employer to lay off their workmen. The authority of the employer to lay off their workmen, regardless of whether they employ less than fifty or more than fifty but less than one hundred or more than one hundred workmen, must be specified in the certified standing orders applicable to the factory/industrial establishment. If the standing orders do not address this, or if there are no standing orders in place, then the employer's power to lay off the workmen should be detailed in the appointment order issued to the workmen.
If the appointment order does not mention the employer's authority to lay off their workmen, then the worker cannot be laid off. In case the employer lays off their workmen without the proper authority, the workmen are entitled to full wages for the duration of the layoff.
Thank you.
From India, Madras
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I presume that the industry you are referring to is a factory employing 30 workmen. Therefore, neither Chapter V-A nor Chapter V-B of the Industrial Disputes Act is applicable. As of today, the Government of Tamil Nadu has not amended the Industrial Disputes Act to make the provisions of Chapter V-A or Chapter V-B applicable to factories employing less than 50 workmen.
It is important to note that the Industrial Disputes Act in Chapter V-A and Chapter V-B has only outlined the procedure for laying off and has not granted the power to the employer to lay off their workmen. The authority of the employer to lay off their workmen, regardless of whether they employ less than fifty or more than fifty but less than one hundred or more than one hundred workmen, must be specified in the certified standing orders applicable to the factory/industrial establishment. If the standing orders do not address this, or if there are no standing orders in place, then the employer's power to lay off the workmen should be detailed in the appointment order issued to the workmen.
If the appointment order does not mention the employer's authority to lay off their workmen, then the worker cannot be laid off. In case the employer lays off their workmen without the proper authority, the workmen are entitled to full wages for the duration of the layoff.
Thank you.
From India, Madras
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Industrial Disputes Amendment Act 2010.doc
INDUSTRIAL DISPUTES ACT.pdf
6519499-The-Ind ustrial-Dispute s-Act-1947-late r-part.ppt