dear all can we lay off workmen due to shortage of orders? whether it comes under the definition of "lay off " under industrial disputes act? Pls substantiate your view with any case law if u have?
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Dear all pls reply to the above question. Pls specify if there is an agreement to this effect in the so whether it is legally valid or not regards ravi
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After reviewing the definition of 'lay off,' it appears that a shortage of orders is not considered one of the reasons for declaring a lay off. The definition of 'lay off' can be read as follows:
(kkk) “lay-off” (with its grammatical variations and cognate expressions) means the failure, refusal, or inability of an employer on account of shortage of coal, power, or raw materials, or the accumulation of stocks, or the breakdown of machinery, or natural calamity, or for any other connected reason to give employment to a workman whose name is borne on the muster rolls of his industrial establishment and who has not been retrenched.
Submitted as requested.
Regards,
R.N.Khola
From India, Delhi
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(kkk) “lay-off” (with its grammatical variations and cognate expressions) means the failure, refusal, or inability of an employer on account of shortage of coal, power, or raw materials, or the accumulation of stocks, or the breakdown of machinery, or natural calamity, or for any other connected reason to give employment to a workman whose name is borne on the muster rolls of his industrial establishment and who has not been retrenched.
Submitted as requested.
Regards,
R.N.Khola
From India, Delhi
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That is my doubt. I have gone thru CSO of a company whrein theres is an agreement on lay off on shortage of orders. I am not undersatnding the same as lay off is not possible on account of the same.
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If you are allowed to do a layoff as per CSO, then go for a layoff keeping in view chapters VA & VB of the Industrial Disputes Act, 1947 on Layoff & Retrenchment.
Regards,
R.N. Khola
From India, Delhi
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Regards,
R.N. Khola
From India, Delhi
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Legality of Layoffs Due to Lack of Orders
Layoffs on account of a lack of orders are absolutely legal and within the legal provisions of the ID Act. The inclusion of the phrase "the accumulation of stocks" indicates a lack of orders. I do not know where you get the idea that a layoff is not possible due to a lack of orders.
Regards,
T. Sivasankaran
From India, Chennai
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Layoffs on account of a lack of orders are absolutely legal and within the legal provisions of the ID Act. The inclusion of the phrase "the accumulation of stocks" indicates a lack of orders. I do not know where you get the idea that a layoff is not possible due to a lack of orders.
Regards,
T. Sivasankaran
From India, Chennai
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Is it possible to lay off workers for 4 months in a year regularly? Since our company is a mining firm where we cannot have production during monsoon because of heavy rainfall, what is the procedure for seasonal businesses? Please help me out.
Thank you.
From India, Belgaum
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Thank you.
From India, Belgaum
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Layoffs can only be made for the reasons specified in the definition of layoff in the Industrial Disputes Act. As pointed out by Mr. R. N. Khola, layoffs cannot be made for a shortage of orders. "Shortage of orders" is not the same as "accumulation of stocks." The company may not have any orders, yet still be without any accumulated stocks.
Regards
From India, Madras
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Regards
From India, Madras
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Industrial Disputes Amendment Act 2010.doc
Industrial Employment Standing Orders Act 1946.pdf