Dear Experts,
We, the management of a private limited company engaging manufacturing process. Totally 80 employees are there. Since there is no sufficient orders for our products for certain months ( around 7 months continuously) in every year, shall we lay off some of the employees on rotation basis. Kindly guide us to meet out the situation by giving all procedures and formalities in detail so as to follow the same.
Thanks in advance.
From India, Chennai
We, the management of a private limited company engaging manufacturing process. Totally 80 employees are there. Since there is no sufficient orders for our products for certain months ( around 7 months continuously) in every year, shall we lay off some of the employees on rotation basis. Kindly guide us to meet out the situation by giving all procedures and formalities in detail so as to follow the same.
Thanks in advance.
From India, Chennai
Dear Kavithayini, Which state does your firm operate out of ? The process guidelines would adhere to it Looking forward to hear from you
From India, Mumbai
1859From India, Mumbai
Dear Ms Kavithayini,
Your query is related to lay off the workers on rotation basis as your company does not have adequate orders continuously for seven months in a year. My opinion for your guidance is as under:
The provision of Lay Off is covered in the Industrial Dispute Act, 1947. Section 25C and Section 25M of ID Act stipulate the procedure of Lay Off of workers. The following conditions and procedure are prescribed:
1. The workers, except casual/badli workers, who have completed one year of service can be laid off after giving notice to the Labour Department of the State Government with a copy to the worker. After obtaining permission from the Labour Dept. the workers can be laid off but they will have to be paid compensation at the rate of 50% of their basic wages plus DA (Dearness Allowance) for all days of Lay Off. If no order is passed by the Govt. within 60 days, then it would be deemed that permission has been granted.
2. The above rule does not apply to Casual and Badli workers or workers who have not completed one year of service.
3. However the Employer can make an agreement with the Union of workers or Workers that no compensation will be payable beyond 45 days if the lay off continues beyond a period of 45 days in one year either continuously or intermittently.
4. ID Act also provides for retrenchment of workers in accordance with Section 25F if the Lay Off continues for more than 45 days or the Employer can also offer alternative employment as per Section 25C.
From the above provisions of ID Act, it is clear that an Employer can put workers borne on muster roll, having minimum one year of service, on Lay Off either for continuous period or for intermittent period after obtaining permission from Labour Dept. Lay off on rotation basis is permissible. Compensation is to be paid for all days of Lay Off. However if there is an agreement with the Union/Worker then compensation will not be payable beyond 45 days.
I hope this satisfies your inquiry. For any further guidance you may mail me at
or call me at 09818680671.
Regards,
Srivastava Chandramani Lal
From India, New Delhi
Your query is related to lay off the workers on rotation basis as your company does not have adequate orders continuously for seven months in a year. My opinion for your guidance is as under:
The provision of Lay Off is covered in the Industrial Dispute Act, 1947. Section 25C and Section 25M of ID Act stipulate the procedure of Lay Off of workers. The following conditions and procedure are prescribed:
1. The workers, except casual/badli workers, who have completed one year of service can be laid off after giving notice to the Labour Department of the State Government with a copy to the worker. After obtaining permission from the Labour Dept. the workers can be laid off but they will have to be paid compensation at the rate of 50% of their basic wages plus DA (Dearness Allowance) for all days of Lay Off. If no order is passed by the Govt. within 60 days, then it would be deemed that permission has been granted.
2. The above rule does not apply to Casual and Badli workers or workers who have not completed one year of service.
3. However the Employer can make an agreement with the Union of workers or Workers that no compensation will be payable beyond 45 days if the lay off continues beyond a period of 45 days in one year either continuously or intermittently.
4. ID Act also provides for retrenchment of workers in accordance with Section 25F if the Lay Off continues for more than 45 days or the Employer can also offer alternative employment as per Section 25C.
From the above provisions of ID Act, it is clear that an Employer can put workers borne on muster roll, having minimum one year of service, on Lay Off either for continuous period or for intermittent period after obtaining permission from Labour Dept. Lay off on rotation basis is permissible. Compensation is to be paid for all days of Lay Off. However if there is an agreement with the Union/Worker then compensation will not be payable beyond 45 days.
I hope this satisfies your inquiry. For any further guidance you may mail me at
Regards,
Srivastava Chandramani Lal
From India, New Delhi
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