Dear All,
Recently, someone questioned me the about the Lay off Process in ITES/BPO sectors (INDIA)...
I tried Googling and found VA & VB Industrial Disputes Act 1947, however I think it implies only to (IR/Manufacturing Companies) and not for ITES/BPO...
I would appreciate if any one can let me know the process of Lay-Off's in ITES/BPO Companies...
Thanks
Goutham
From India, Hyderabad
Recently, someone questioned me the about the Lay off Process in ITES/BPO sectors (INDIA)...
I tried Googling and found VA & VB Industrial Disputes Act 1947, however I think it implies only to (IR/Manufacturing Companies) and not for ITES/BPO...
I would appreciate if any one can let me know the process of Lay-Off's in ITES/BPO Companies...
Thanks
Goutham
From India, Hyderabad
21
Dear Sirs
For the Industrial Disputes Act 1947 to be applicable, the establishment/organisation/company/factory should be an "industry" as defined under the Industrial Disputes Act. Further, the individual in respect of whom the applicability of the Industrial Disputes Act 1947 is discussed should be a "workman" as defined under the Industrial Disputes Act. If both these conditions are fulfilled then only the provisions of the Industrial Disputes Act is applicable. The Industrial Disputes Act 1947 in Chapters V-A and V-B lays down the procedures to be followed in case workmen are either laid off or retrenched or if the establishment is closed. The Industrial Disputes Act 1947 does not confer any power on the employer to lay off or retrench his workmen. The power of the employer to either lay off or retrench his workmen has to be read in the certified standing orders applicable to the establishment and the workmen who are employed there. If the certified standing orders are not available, then the Model Standing Orders have to be followed. If the Industrial Employment Standing Orders Act, under which the employer is statutorily obliged to have certified standing orders is not applicable to the establishment in question, then the power to lay off has to be read in the appointment order. If the appointment order is silent about the power to lay off the workmen, then the workmen cannot be laid off. Assuming that an employer lays off his workmen without any power to lay off then the workmen will be entitled to get full wages for the period of lay off. This post of mine is based on several judgments of the Honourable Supreme Court of India. In case you are able to lay your hands on any commentary on the Industrial Disputes Act, you will get the above points.
With regards
From India, Madras
For the Industrial Disputes Act 1947 to be applicable, the establishment/organisation/company/factory should be an "industry" as defined under the Industrial Disputes Act. Further, the individual in respect of whom the applicability of the Industrial Disputes Act 1947 is discussed should be a "workman" as defined under the Industrial Disputes Act. If both these conditions are fulfilled then only the provisions of the Industrial Disputes Act is applicable. The Industrial Disputes Act 1947 in Chapters V-A and V-B lays down the procedures to be followed in case workmen are either laid off or retrenched or if the establishment is closed. The Industrial Disputes Act 1947 does not confer any power on the employer to lay off or retrench his workmen. The power of the employer to either lay off or retrench his workmen has to be read in the certified standing orders applicable to the establishment and the workmen who are employed there. If the certified standing orders are not available, then the Model Standing Orders have to be followed. If the Industrial Employment Standing Orders Act, under which the employer is statutorily obliged to have certified standing orders is not applicable to the establishment in question, then the power to lay off has to be read in the appointment order. If the appointment order is silent about the power to lay off the workmen, then the workmen cannot be laid off. Assuming that an employer lays off his workmen without any power to lay off then the workmen will be entitled to get full wages for the period of lay off. This post of mine is based on several judgments of the Honourable Supreme Court of India. In case you are able to lay your hands on any commentary on the Industrial Disputes Act, you will get the above points.
With regards
From India, Madras
Dear Mr. V. Harikrishnan sir,
your post is very clear and detail so that i could able to understand to a greater extream of ID Act to the view of layoff. Thank you for that.
I had a situation where layoff had happened (layoff not mentioned in offer letter) and had got the benefits as you said.
My doubt is:
As per my knowledge IT/ITES companies will be coming under Shops and Establishment act. Does Layoff is part in that act or under what act these employees can be layoff?
Kindly please clarify the same.
Thanking you
Chandy
From India, Madras
your post is very clear and detail so that i could able to understand to a greater extream of ID Act to the view of layoff. Thank you for that.
I had a situation where layoff had happened (layoff not mentioned in offer letter) and had got the benefits as you said.
My doubt is:
As per my knowledge IT/ITES companies will be coming under Shops and Establishment act. Does Layoff is part in that act or under what act these employees can be layoff?
Kindly please clarify the same.
Thanking you
Chandy
From India, Madras
Dear Mr.Chandy
IT/ITES?BPO companies come within the ambit of the definition of the term "industry" as defined under the Industrial Disputes Act 1947. Therefore, the definition section of lay off that is Section 2(kkk) is applicable to these industries. As you said, these industries are covered by the provisions of the Shops and Establishments Act that are in force in the different States. Different States have different Shops and Establishments Act. As I pointed out in my previous post the Chapters V-A and V-B of the Industrial Disputes Act prescribe the procedure to be followed in the case of lay off, retrenchment and closure. Either Chapter V-A or Chapter V-B is applicable depending on the number of workmen employed. If you go through section 25A(1), you will see that Chapter V-A is applicable to industrial establishments employing 50 or more workmen but less than 100. You also go through the explanation to section 25C, you will see that the term "indsutrial establishment" is defined to include factories, mines and plantations. Similarly if you go through section 25K you will see that Chapter V-B is applicable to industrial establishments employing 100 or more persons. Again you go through section 25L you will see that the term "industrial establishment" is defined to include factories, mines and plantations. Therefore the entire Chapter V-A and Chapter V-B of the Industrial Disputes Act applies only to factories, mines or plantations employing the prescribed number of workmen as the case may be. Coming to your query, IT/ITES/BPO companies are not either factories or mines or plantations. Therefore, Chapter V-A and Chapter V-B are not applicable to IT/ITES/BPO companies. If you read my previous post, you will notice that I have stated that the Industrial Disputes Act prescribes the procedure to be followed in case of lay-off, retrenchment or closure and does not confer any power on the employer to lay-off, retrench or for closure. Therefore the power to lay-off has to be found in the certified standing orders, or model standing orders. If both the certified standing orders and the model standing orders are silent or in cases where the Industrial Employment(Standing Orders) Act is not applicable to the IT/ITES/BPO companies, then the power to lay off has to be found in the contract of employment which is the appointment letter. If the appointment letter is also silent then the employer has no power to lay off and if he lays off his workmen, they are entitled to full wages for the period for which they were laid off.
From India, Madras
IT/ITES?BPO companies come within the ambit of the definition of the term "industry" as defined under the Industrial Disputes Act 1947. Therefore, the definition section of lay off that is Section 2(kkk) is applicable to these industries. As you said, these industries are covered by the provisions of the Shops and Establishments Act that are in force in the different States. Different States have different Shops and Establishments Act. As I pointed out in my previous post the Chapters V-A and V-B of the Industrial Disputes Act prescribe the procedure to be followed in the case of lay off, retrenchment and closure. Either Chapter V-A or Chapter V-B is applicable depending on the number of workmen employed. If you go through section 25A(1), you will see that Chapter V-A is applicable to industrial establishments employing 50 or more workmen but less than 100. You also go through the explanation to section 25C, you will see that the term "indsutrial establishment" is defined to include factories, mines and plantations. Similarly if you go through section 25K you will see that Chapter V-B is applicable to industrial establishments employing 100 or more persons. Again you go through section 25L you will see that the term "industrial establishment" is defined to include factories, mines and plantations. Therefore the entire Chapter V-A and Chapter V-B of the Industrial Disputes Act applies only to factories, mines or plantations employing the prescribed number of workmen as the case may be. Coming to your query, IT/ITES/BPO companies are not either factories or mines or plantations. Therefore, Chapter V-A and Chapter V-B are not applicable to IT/ITES/BPO companies. If you read my previous post, you will notice that I have stated that the Industrial Disputes Act prescribes the procedure to be followed in case of lay-off, retrenchment or closure and does not confer any power on the employer to lay-off, retrench or for closure. Therefore the power to lay-off has to be found in the certified standing orders, or model standing orders. If both the certified standing orders and the model standing orders are silent or in cases where the Industrial Employment(Standing Orders) Act is not applicable to the IT/ITES/BPO companies, then the power to lay off has to be found in the contract of employment which is the appointment letter. If the appointment letter is also silent then the employer has no power to lay off and if he lays off his workmen, they are entitled to full wages for the period for which they were laid off.
From India, Madras
Hi Harikrishnan,
i have one query regarding the applicability of act as you explained in the above, is it necessary to register the IT/ITES/BPO under any act like Shops and Establishment Act, or Industrial Act can you please explain
Regards
Siva Kumar Tata
From India, Hyderabad
i have one query regarding the applicability of act as you explained in the above, is it necessary to register the IT/ITES/BPO under any act like Shops and Establishment Act, or Industrial Act can you please explain
Regards
Siva Kumar Tata
From India, Hyderabad
Dear Mr.Sivakumar Tata
I can say only about the State of Tamilnadu. In Tamilnadu, there is no need to register under the Tamilnadu Shops and Establishments Act. There is no need to register under the Industrial Disputes Act also. I do not have information about other States.
With regards
From India, Madras
I can say only about the State of Tamilnadu. In Tamilnadu, there is no need to register under the Tamilnadu Shops and Establishments Act. There is no need to register under the Industrial Disputes Act also. I do not have information about other States.
With regards
From India, Madras
Dear sir,
thanks for valuable suggestion on layoff. My questions,
1. during layoff do the company need to pay statutory obligations PF, ESI, PT and other compliance?
2. as per the factories act workmen are eligible for benefits of layoff. than what about the above category people (supervisor, executives, mangers etc.. what kind of benefit they will get?
3. how many days before do the company need to get permission for layoff from labour department?
4.without layoff can a company declare shut down and not paying of 3 months compensation (including workmen, supervisor and manger etc...?
please brief me the answers to questions.
thanks and regards!
Prashanth Joseph
From India, Bangalore
thanks for valuable suggestion on layoff. My questions,
1. during layoff do the company need to pay statutory obligations PF, ESI, PT and other compliance?
2. as per the factories act workmen are eligible for benefits of layoff. than what about the above category people (supervisor, executives, mangers etc.. what kind of benefit they will get?
3. how many days before do the company need to get permission for layoff from labour department?
4.without layoff can a company declare shut down and not paying of 3 months compensation (including workmen, supervisor and manger etc...?
please brief me the answers to questions.
thanks and regards!
Prashanth Joseph
From India, Bangalore
I need information on this immediately
If an IT software company having 98 employees want to have redundancy in workforce due to non availability of work like reduce their employee strength by 10-20 people permanently is it a layoff.
What procedure one need to follow to reduce the work force of 10-20 people together
What kind of law is their for redundancy
what compensation a company has to give
Should company intimate employees prior or just on the same day. What is the general procedure followed.
From India
If an IT software company having 98 employees want to have redundancy in workforce due to non availability of work like reduce their employee strength by 10-20 people permanently is it a layoff.
What procedure one need to follow to reduce the work force of 10-20 people together
What kind of law is their for redundancy
what compensation a company has to give
Should company intimate employees prior or just on the same day. What is the general procedure followed.
From India
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