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 comapny declared lay off of employees for 15 days with out any wages. Is it legally ok ? what are the legal formalities to be complied with for lay off with out payment of any wages? Kindly advice. with regards sr laksminarasimman
From India, Madras
From India, Madras
Normally, lay off wages/ compensation at the rate of half the daily rate of wages is to be paid for laying off the employees. However, for applicability of section 25 C of the Industrial Disputes Act which deals with lay off and compensation payable thereon, a minimum 50 employees is required as provided in section 25 A of the Act. Therefore, you are requested to verify any state amendment also in this regard. Regards, Madhu.T.K
From India, Kannur
4252From India, Kannur
Dear Mr.Lakshminarassimman
The Industrial Disputes Act 1947 defines what is meant by the term "lay-off". It also 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 is applicable in the case of factories, mines and plantations in which 50 or more workmen but less than 100 workmen are employed. Chapter V-B of the Industrial Disputes Act is applicable to factories, mines and establishments in which 100 or more workmen are employed. I presume that the industry referred to by you is a factory employing 30 workmen. Therefore neither Chapter V-A or Chapter V-B of the Industrial Disputes Act are applicable. As on date the Government of Tamilnadu had not amended the Industrial Disputes Act so as to make the provision of Chapter V-A or Chapter V-B applicable to factories employing less than 50 workmen. You would notice that the Industrial Disputes Act in Chapter V-A and Chapter V-B has only laid down the procedure for laying off and had not conferred on the power of the employer to lay off his workmen. The power of the employer to lay off his workmen, whether he employs less than fifty or more than fifty but less than one hundred or more than one hundred workmen has to be found in the certified standing orders applicable to the factory/industrial establishment. If the standing orders are silent,or if there are no standing orders, then the power of the employer to lay off the workmen has to be found in the appointment order issued to the workmen. If the appointment order is silent about the power of the employer to lay off his workmen then the worker cannot be laid off. If the employer lays off his workmen without a power to lay them off, then the workmen are entitled to full wages for the period for which they are so laid off.
From India, Madras
The Industrial Disputes Act 1947 defines what is meant by the term "lay-off". It also 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 is applicable in the case of factories, mines and plantations in which 50 or more workmen but less than 100 workmen are employed. Chapter V-B of the Industrial Disputes Act is applicable to factories, mines and establishments in which 100 or more workmen are employed. I presume that the industry referred to by you is a factory employing 30 workmen. Therefore neither Chapter V-A or Chapter V-B of the Industrial Disputes Act are applicable. As on date the Government of Tamilnadu had not amended the Industrial Disputes Act so as to make the provision of Chapter V-A or Chapter V-B applicable to factories employing less than 50 workmen. You would notice that the Industrial Disputes Act in Chapter V-A and Chapter V-B has only laid down the procedure for laying off and had not conferred on the power of the employer to lay off his workmen. The power of the employer to lay off his workmen, whether he employs less than fifty or more than fifty but less than one hundred or more than one hundred workmen has to be found in the certified standing orders applicable to the factory/industrial establishment. If the standing orders are silent,or if there are no standing orders, then the power of the employer to lay off the workmen has to be found in the appointment order issued to the workmen. If the appointment order is silent about the power of the employer to lay off his workmen then the worker cannot be laid off. If the employer lays off his workmen without a power to lay them off, then the workmen are entitled to full wages for the period for which they are so laid off.
From India, Madras
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