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Anupam Midha   02 June 2020

IT Company Layoff

Hello,

Recently one of IT firm based in Gurugram did a layoff of multiple
employees on a single day citing reason as 'loss of business due to COVID19' with a guarantee to pay 2 months gross salary as severance package and extended insurance. Is this legal and as per IT labour laws? Need inputs


Learning

 8 Replies

G.L.N. Prasad (Retired employee.)     03 June 2020

There is one Association at BANGALORE  only for IT employees that exclusively deal with specific IT employee's problems/issues..  Just make a search in google and if possible form as an association and send one smart guy to get personal guidance from them.  I understand that they have back up of legal and other Labour law experts.

Dr J C Vashista (Advocate)     03 June 2020

Move collectively to the court of Labour commissioner, if compensation is not paid in terms of service contract.

P. Venu (Advocate)     03 June 2020

How long is the period of lay off? Is it based on 'last come, first go' principle?

Anupam Midha   03 June 2020

No, there was no specific period and no rule. They have just reduced around 20% staff at various levels.

P. Venu (Advocate)     03 June 2020

Facts posted are inconsistent. Lay off does not involve reduction in strength.

Anupam Midha   03 June 2020

Mr. VENU, THANKS for the reply.
Let me share more details on nature of layoff here..the company has sent an email to the laid off employees that they could not find any further client based project for them because of loss of business during COVID19 and even don't forsee any growth in business, hence cannot avail their services anymore.
Technically I see it is a lay-off or reduction in workforce to sustain company's profit margins.
Pls feel free to throw light here.

(Guest)
kindly send the mail that you received from your employer, so I can advise accordingly.

Regards
mishrasatyam6804@gmail.com

Ritesh Maity (Labour Law Advocate)     04 June 2020

1. The person employed last, has to go first. 

2. Compensation needs to be paid - 15 days salary per completed years of service

3. Permission of govt may/ may not be required depending on certain factors.

These above mentioned criterias are required to be fulfilled (generally speaking). If not, then it is apparently illegal.  


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