• Company planning to lay me and many employees for cost cutting

Company planning to lay me and many employees off for cost cutting. They are giving notice period of 3 months, however in current scenario finding jobs will not be easy. Can i legally do something?
My company is a large mnc. Can i appeal to government? There should be other cost saving measures than laying off staff
Asked 4 years ago in Labour

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36 Answers

1. True, the Co. should have tried other cost saving measures, before "lay off" employees.  However the Co. is not wrong in its administrative actions, IF the purposes are genuine.

2.  However, the Co. after lay-off proceedings, CANNOT employee again for atleast one year.  Try to keep an eye on this and then file labor court disputes alongwith claims of compensation and reinstatement.

 

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

5.0 on 5.0

Terms of appointment letter are sacrosanct 

 

2) company can terminate your services by giving 3 months notice as per terms of your appointment letter 

Ajay Sethi
Advocate, Mumbai
94853 Answers
7567 Consultations

5.0 on 5.0

Dear Sir,

You are suggested to reply the notice given by company through your advocate stating that such lay off is neither legal nor ethical and the company may have to bear the expenses of such lay off. If needful not done by the company, you may file the case as well as appeal to government authorities.  

Ganesh Singh
Advocate, New Delhi
6757 Answers
16 Consultations

4.5 on 5.0

It depends on the terms and conditions of employment contract. company has the right to serve 3 months notice . 

Mohammed Mujeeb
Advocate, Hyderabad
19299 Answers
32 Consultations

4.7 on 5.0

1. Unless you fall within the definition of ' workman " as provided in Industrial Disputes Act you have no remedy against such lat off.

2. In the private job sector the parties are strictly guided by job contract which no where gives guarantee of jib.

3. So consider yourself luxky that you have at least provision for next three months after which the job from the market would not vanish. 

Devajyoti Barman
Advocate, Kolkata
22844 Answers
492 Consultations

5.0 on 5.0

Lay off is volatile, employees can be recalled on lay off period over if it for limited period.

Employees is entitled to compensation for lay off. 50% of basic + deafness allowance. 

Company giving 3 mothsn notice period, no help except claiming compensation.

Yogendra Singh Rajawat
Advocate, Jaipur
22669 Answers
31 Consultations

4.4 on 5.0

If they are laying off and giving you proper notice and salary for that notice period there remains very less ground to challenge. Still you can challenge the same discriminatory

Prashant Nayak
Advocate, Mumbai
31997 Answers
183 Consultations

4.1 on 5.0

Please do understand that the Individual dispute regarding lay-off compensation is not legally sustainable in frustration and uncontrollable  period .

Section 2 (kkk)of The Industrial Disputes Act 1947 defines the term “Lay off”. As per the definition, if an employer is unable to provide employment to an employee due to a natural calamity or for any other connected reason, then the same would fall within the definition of “Lay off”. Section 25C of the ID Act mandates employers laying off workmen to pay a compensation equivalent to 50 per cent of the wages. Section 25M of the ID Act requires an industrial establishment with more than 100 workmen to seek prior permission. However, such permission is not mandated if the lay-off is due to a natural calamity. Considering the burden of lockdown would have on industries, governments across the globe have taken measures to aid the employers. The Industrial Disputes Act 1947 is a Special Law which mandates payment of lay-off compensation in the event of a natural calamity or other connected reasons. The liability in this Special Law which is specific has restricted the payment of 50 per cent of wages as compensation.

Please note that there has been adverse impact on the world as well as Indian economy. The impact of COVID-19 on domestic and international businesses is severe, across countries and sectors. GoAir has asked many employees to go on leave without pay on a rotational basis and has also terminated services of expat pilots. Everyone is doing what they can to overcome the crisis — businesses have extended insurance benefits for employees, founders and CEOs are foregoing salaries and the employees are working harder than ever in the fears of job loss. And, those are important factors to be borne in mind while considering the extent of the application of the principles of frustration of contracts, as a result of intervening impossibility.

In the private sector the employees are strictly guided by job contract which no where gives guarantee of job. It must be there on the policy ad agreement you have received during your  joining or on employment agreement.

If possible made a settlement agreement through union for lay-off compensation it would obviously be binding on all the members of the union and if such settlement based on agreement  is arrived at during conciliation proceedings it would be binding to the entire class of workmen covered by the industrial dispute regarding lay-off compensation.The individual workman can raise his grievance under Section 25C only if his statutory right of lay-off under Section 25C is not hedged on by any binding effect of an agreement entered into by its own union with the management, whether in or outside conciliation proceedings or even by other unions that may arrive such settlement during the course of conciliation proceedings. Then only individual workman can have full play under Section 25C for vindicating his right of lay-off compensation.

 

You can file appeal before labour court .But keep in mind that and factors to be borne in mind while considering lay off . More over In Workmen of Dewan Tea Estate & Ors. vs. The Management [(1964) 5 SCR 548]It was held that the lay-offcompensation would be permissible only where one or the other of the factors mentioned by Section 2(kkk) is present, and for such a lay-off compensation would be permissible only where one or the other of the factors mentioned by Section 2(kkkk) is present, and for such a lay- off, compensation could be awarded under Section 25C.

 

Ajay N S
Advocate, Ernakulam
4078 Answers
111 Consultations

5.0 on 5.0

Yes you can approach the labour court but they will say about pandemic.

Regards

Swarupananda Neogi
Advocate, Kolkata
2964 Answers
6 Consultations

4.7 on 5.0

1. Is it an industrial establishment? If yes, the procedure laid down in Section 25-M has to be followed.

    Section 25-M Prohibition of lay-off is extracted below-
(1) No workman (other than a badli workman or a casual workman) whose name is borne on the muster rolls of an industrial establishment to which this Chapter applies shall be laid-off by his employer except [with theprior permission of the appropriate Government or such authority as maybe specified by that Government by notification in the Official Gazette (hereafter in this section referred to as the specified authority), obtained on an application made in this behalf, unless such lay-off is due to shortage of power or to natural calamity, and in the case of a mine, such lay-off is due also to fire, flood, excess of inflammable gas or explosion],
(2) An application for permission under sub-section (1) shall be made by theemployer in the prescribed manner stating clearly the reasons for the intended lay-off and a copy of such application shall also be served simultaneously on the workmen concerned in the prescribed manner.

2. If the employer is not an industrial establishment then the scope of legal challenge is very narrow.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

Hi

File a writ petition in high court against the cutoff.

You will need documentary proof of cut off that is going to take place.

Also file a temporary injunction application against the company for having a stay on the cut off.

Thanks 

Rahul Jatain
Advocate, Rohtak
5365 Answers
4 Consultations

4.8 on 5.0

First, you check the T&C of your appointment, if the company is following the terms and conditions, its acts cannot be found fault. 

No, you cannot do anything legally, unless the company breaches any T&C of your appointment.

Company is following due process of law, by giving three months notice.

Due to prevailing situation, you cannot do any thing.

However, if you want to challenge the act of company, you may issue notice and file case against it. 

The chances will be bleak.

S Srinivasa Prasad
Advocate, Hyderabad
2876 Answers
9 Consultations

5.0 on 5.0

Dear querist, 

Yes, the Ministry of external affairs have issued a circular dated 29.03.2020 which is clearly stating a direction which itself is obligatory in the nature of the circular as the power is derived from section 10(2) of disaster management act. Cost cutting measures can be done but termination sine dine can not be permitted. First, you should give a warning through a legal notice to the company and after that a official letter of complaint can be written to the ministry on the  basis of the legal notice as warning was given. 

You can contact me for sending the notice and complaint on your behalf. 

 

Regards, 

YUGANSHU SHARMA 

ADVOCATE 

DELHI HIGH COURT

Yuganshu Sharma
Advocate, Delhi
433 Answers
1 Consultation

5.0 on 5.0

If what they are doing(laying off), in in accordance of the employment agreement that you have signed with this company and the company is not violating your employment agreement, I think there's hardly something that you could do in the matter. 

Having said the above, the Union and State Govts have had asked the employers to refrain from termination of employees. You may intimate in this matter to your Regional Lawbour Commisisoner, marking a copy thereof to the Union Labour and Employment Ministry.

Vibhanshu Srivastava
Advocate, Lucknow
9613 Answers
303 Consultations

5.0 on 5.0

Dear Concerned. 

 

The company is giving you three months notice as per the employment contract and hence can lay off the employees, the present lockdown situtation is not only affecting the individuals but the companies too and hence the  company following proper procedure, like they are doing in your case can lay off. 

 

Regards

Atulay Nehra
Advocate, Noida
1308 Answers
58 Consultations

5.0 on 5.0

Dear Sir,

Yes, it is your duty to do something to save your colleagues. After MNCs in India labor laws are forgotten and youth being treated as slaves  You need discussion if you wish particular solution to resolve your issue. You can get my mobile number from the administrators of this website Use the following and discuss with me and proceed.

============================================================

https://labour.gov.in/advisories-covid-19

EMPLOYEE CIRCULARS BY LABOUR DEPARTMENT

 

  1. Extension Of Return Filing (COVID-19)

  2. In this critical time of the coronavirus (COVID-19) epidemic, the Ministry of Labour and Employment advises all public and private employers to support their employees and workers.  dated 20/03/2020

  3. Advisory to Secretary , Department of Public Enterprises to the employers on Covid-19 outbreak dated 20/03/2020

  4. Advisory to the Chief Secretaries of States and UTs to ease the hardship being faced by workers due to COVID-19 outbreak dated 20/03/2020

  5. Advisory to secretary, Ministry of Housing and Urban affairs to ease the hardship being faced by workers due to COVID-19 outbreakdated 20/03/2020

  6. Advisory to all Workers and Employers' Organisations on COVID-19 Dt19/03/2020

  7. Preventive measures to contain the spread of COVID-19 dated 19/03/2020

================================================================

 

Employment Lawsfor Multinational Companies in India

https://singhania.in/wp-content/uploads/2019/08/Employment-Law-Primer-For-Multinational-Companies-In-India-2019.pdf

 

Section 12 in The Industrial Disputes Act, 1947

  1. Duties of conciliation officers.-

(1) Where any industrial dispute exists or is apprehended, the conciliation officer may, or where the dispute relates to a public utility service and a notice under section 22 has been given, shall hold conciliation proceedings in the prescribed manner.

(2) The conciliation officer shall, for the purpose of bringing about a settlement of the dispute, without delay, investigate the dispute and all matters affecting the merits and the right settlement thereof and may do all such things as he thinks fit for the purpose of inducing the parties to come to a fair and amicable settlement of the dispute.

(3) If a settlement of the dispute or of any of the matters in dispute is arrived at in the course of the conciliation proceedings the conciliation officer shall send a report thereof to the appropriate Government 1 or an officer authorised in this behalf by the appropriate Government] together with a memorandum of the settlement signed by the parties to the dispute.

(4) If no such settlement is arrived at, the conciliation officer shall, as soon as practicable after the close of the investigation, send to the appropriate Government a full report setting forth the steps taken by him for ascertaining the facts and circumstances relating to the dispute and for bringing about a settlement thereof, together with a full statement of such facts and circumstances, and the reasons on account of which, in his opinion, a settlement could not be arrived at.

(5) If, on a consideration of the report referred to in sub- section (4), the appropriate Government is satisfied that there is a case for reference to a Board, 2 Labour Court, Tribunal or National Tribunal,] it may make such reference. Where the appropriate Government does not make such a reference it shall record and communicate to the parties concerned its reasons therefor.

(6) A report under this section shall be submitted within fourteen days of the commencement of the conciliation proceedings or within such shorter period as may be fixed by the appropriate Government: 3 Provided that, 4 subject to the approval of the conciliation officer,] the time for the submission of the report may be extended by such period as may be agreed upon in writing by all the parties to the dispute.]

Employment Lawsfor Multinational Companies in India

https://singhania.in/wp-content/uploads/2019/08/Employment-Law-Primer-For-Multinational-Companies-In-India-2019.pdf

  1. Government-Mandated Employee Monitoring and Dispute-Resolution Bodies Under various pieces of labour legislation, the government is required to create administrative networks in all units employing more than 50 employees, to oversee the implementation of workplace benefits and ensure the representation of employee interests. These networks exist simultaneously with the trade unions. An employee may file his or her grievance either through the union or through any network that exists in the workplace (although, as noted above, normally the union takes up matters of common interest to groups of employees and the grievance cell represents single employees with individual grievances). Administrative networks can be created through the following: advisory councils;· advisors, officers, inspectors, etc., appointed under various labour laws;·  medical benefit councils and medical officers;·  welfare committees and officers;·

Pay boards;  conciliation committees and officers;·  grievance cells;·  workers’ committees; or·  consultation committees.· Individuals acting as representatives of employees under the various “welfare mechanisms” listed above have a wide range of powers. These individuals should not be confused with government inspectors and officers affiliated with the Ministry of Labour, who are employed and paid by the appropriate government to implement and enforce the labour laws. In contrast, the welfare officers discussed here are hired and paid by the employer in accordance with rules framed by the government and are essentially semi-official compliance officers, assisting the employer to comply with mandatory welfare and benefit measures established under various labour laws. Although appointed by the employer, these officers are considered government officials charged with proper enforcement of the employee welfare provisions of labour laws. Their duties, qualifications, and conditions of service generally are prescribed by the various state governments, although, as noted above, they are paid by the employer and reviews of their performance are conducted by the employer. Individuals hired by employers under government requirements and acting as representatives of employees have the following powers:  they can carry out any inquiry and examination with respect to the interests of the employees;·  they can make and implement programs for the benefit of the employees, e.g., provident fund· plans and insurance plans;  they can provide for any damages suffered by an employee during the course of employment;·  they ensure compliance with provisions of various labour legislation regarding sickness benefits,· maternity benefits, disability benefits, etc.;  they are responsible for promoting health programs and measures for the benefit of employees;·  they can investigate, or form committees to investigate, complaints filed by employees;·  they have the power to call for adoption of proper safety measures;·  they can call for, or require medical examination of, employees to check for healthy working· conditions and a healthy environment. As mentioned above, grievance cells are a part of this welfare mechanism for employees. Employees may bring to grievance cells any matter ranging from the employer’s noncompliance with employee welfare provisions to variations in service conditions and health and safety concerns. Because these cells are perceived as helping to solve matters amicably, they are classified as measures for employee welfare and benefit.

 

Kishan Dutt Kalaskar
Advocate, Bangalore
6136 Answers
487 Consultations

4.8 on 5.0

Layoffs are legal in India and there is nothing to protect persons legally.

Illegal terminations dont exist. Many states like Karnataka actually have given exemption from labor laws for IT companies.

Under Indian law - employees have to be paid for every single day of work and employees have to be given proper notice or alternately be paid for notice period. So if you are fired overnight with 30 days pay and all dues cleared - it is perfectly legal.

(Notice period is 30 days under law - even if contract may state 3 months - you need to go to court).

Layoff is closing part of the unit due to problems like lack of market sale finance etc .The factory or its portion is closed .

According to section 25A of chapter VA of Industrial Dispute Act 1947, certain establishments do not have any provisions relating to layoff of the employees by the employer. In such circumstances, layoff would be considered without any authority of law.


According to [section 2 (kkk)] of Industrial disputes act, 1947 "lay-off 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 break-down 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.

 

T Kalaiselvan
Advocate, Vellore
85054 Answers
2212 Consultations

5.0 on 5.0

You cannot go to the government for this because if there is no work then you can do nothing to make them retain you. What you can do is take adequate compensation from them and wait for the economy to start.

Rahul Mishra
Advocate, Lucknow
14088 Answers
65 Consultations

5.0 on 5.0

1. As per the offer letter of most of the organization employer can terminate the service of their employees by giving a notice for some period like 1 or three months or salary for that notice period in case of immediate retrenchment.

2. You can file suit against your employer only in case where your employer breach any of the condition mentioned on your offer letter. 

Mohit Kapoor
Advocate, Rohtak
10687 Answers
7 Consultations

5.0 on 5.0

- The Ministry of Labour and Employment, Government of India, has asked both private and public organizations to not terminate jobs on the pretext of the prevailing conditions of corona-virus. 

- Further , as per law, an employer cannot terminate an employee without giving the employee at least 30 days to 3 months of notice or a salary in lieu of such notice. 

- Further, as per the Industrial Disputes Act , any such employee who has been employed for greater than a year can only be terminated after permission is granted by a suitable government office. Additionally, an employer must provide valid reason for termination and pay a severance amount that is equivalent to 15 days’ average salary for each year of uninterrupted employment.

- Further as this lockdown circumstance are for limited period of times, hence on this ground a company cannot terminate its employees for cost cutting . If the company will do the same , it is against the law, 

- You can challenge the said decision of the company before the court , and further you should sent an information /complaint to the Ministry of labour and employment . 

Mohammed Shahzad
Advocate, Delhi
13307 Answers
198 Consultations

5.0 on 5.0

Ans: There is nothing that the government can do, even if you move a Writ Petition, the company is going to take the defense that the whole economy is in a mess and hence, the company will also be not having the necessary funds to accumulate these many employees. Hence you have been given a 3 months notice so as to find another job or look out for other opportunities. 

Garima Anil Mehrotra
Advocate, Mumbai
514 Answers
1 Consultation

4.9 on 5.0

If Rs 1200 has been deducted from your account then lawyer would receive intimation from webiste about Payment has been received for phone consultation 

 

there may be some delay from website in intimation to you and the lawyer 

 

you would not lose your money 

Ajay Sethi
Advocate, Mumbai
94853 Answers
7567 Consultations

5.0 on 5.0

the lawyer you have contacted will call you or you should call him. E mail the customer support.

Rahul Mishra
Advocate, Lucknow
14088 Answers
65 Consultations

5.0 on 5.0

Talk to admin 

Yogendra Singh Rajawat
Advocate, Jaipur
22669 Answers
31 Consultations

4.4 on 5.0

Check your email or sms , you must have received the contact number of the lawyer. 

Customer Support is Upto the mark for this particular website. 

Send a query mail to the email id from "contact us"section

Rahul Jatain
Advocate, Rohtak
5365 Answers
4 Consultations

4.8 on 5.0

I suggest you to click on the contact us button. 

Swarupananda Neogi
Advocate, Kolkata
2964 Answers
6 Consultations

4.7 on 5.0

I think you can contact the customer support people of this website on the email ID given on the website

Vibhanshu Srivastava
Advocate, Lucknow
9613 Answers
303 Consultations

5.0 on 5.0

1. Usually you get a SMS /Email with details of the Lawyer.

2. You have to call the Lawyer from your Mobile /Phone and not via "Talk" button on this website.

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

5.0 on 5.0

You can send message to the admin of this forum whose address will be found in the website.

Which lawyer did you tried to contact, you can send an email to the team kaanoon in this regard.

 

T Kalaiselvan
Advocate, Vellore
85054 Answers
2212 Consultations

5.0 on 5.0

Customer Support (CS) is very much available.

Write to CS about your  issue by attaching the payment details.

Probably there might have been delay in contacting you by your chosen Advocate.

In case if you have chosen an Advocate, you can directly contact him / her.

Don't worry, you will get response.

S Srinivasa Prasad
Advocate, Hyderabad
2876 Answers
9 Consultations

5.0 on 5.0

The 1200 rs are one time charges for 30 min if you have doubt you can request the advocate you paid to clarify things

Prashant Nayak
Advocate, Mumbai
31997 Answers
183 Consultations

4.1 on 5.0

1. Customer support is there. It may be a technical glitch.

2. If you have applied for consultation then you must have got the number. You are free to speak to the lawyer you had opted for.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

pls contact web admin. 

Mohammed Mujeeb
Advocate, Hyderabad
19299 Answers
32 Consultations

4.7 on 5.0

- you can get the customer support number online or loge your complaint in the column given feedback of the website.

Mohammed Shahzad
Advocate, Delhi
13307 Answers
198 Consultations

5.0 on 5.0

[deleted] 

 

You may send an e-mail to the said mail ID

Anilesh Tewari
Advocate, New Delhi
18079 Answers
377 Consultations

5.0 on 5.0

support at the rate kaanoon dot com

Anilesh Tewari
Advocate, New Delhi
18079 Answers
377 Consultations

5.0 on 5.0

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