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Rajkiransingh (clerical)     30 December 2008

Lay off

Dear Friends

I would like to know the procedure for lay off,we have 45 permenant workers and 52 staff members,what procedures to be follow?

Rajkiransingh



Learning

 1 Replies

sanjeev murthy desai (Advocate)     06 January 2009

You have to refer Industrial dispute Act-1947



25M. Prohibition of lay-off.- (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 1*[with the prior permission of the


appropriate Government or such authority as may be specified by that


Government by notification in the Official Gazette (hereinafter 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].


1*[(2) An application for permission under sub-section (1) shall


be made by the employer 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.


(3) Where the workman (other than badli workmen or casual


workmen) of an industrial establishment, being a mine, have been laidoff


under sub-section (1) for reasons of fire, flood or excess of


inflammable gas or explosion, the employer, in relation to such


establishment, shall, within a period of thirty days from the date of


commencement of such lay-off, apply, in the prescribed manner, to the


appropriate Government or the specified authority for permission to


continue the lay-off.


(4) Where an application for permission under sub-section (1) or


sub-section (3) has been made, the appropriate Government or the


specified authority, after making such enquiry as it thinks fit and


after giving a reasonable opportunity of being heard to the employer,


the workmen concerned and the persons interested in such lay-off, may,



having regard to the genuineness and adequacy of the reasons for such


lay-off, the interests of the workmen and all other relevant factors,


by order and for reasons to be recorded in writing, grant or refuse to


grant such permission and a copy of such order shall be communicated


to the employer and the workmen.


(5) Where an application for permission under sub-section (1) or


sub-section (3) has been made and the appropriate Government or the


specified authority does not communicate the order granting or


refusing to grant permission to the employer within a period of sixty


days from the date on which such application is made, the permission


applied for shall be deemed to have been granted on the expiration of


the said period of sixty days.


(6) An order of the appropriate Government or the specified


authority granting or refusing to grant permission shall, subject to


the provisions of sub-section (7), be final and binding on all the


parties concerned and shall remain in force for one year from the


date of such order.


(7) The appropriate Government or the specified authority may,


either on its own motion or on the application made by the employer or


any workman, review its order granting or refusing to grant permission


under sub-section (4) or refer the matter or, as the case may be,


cause it to be referred, to a Tribunal for adjudication:


Provided that where a reference has been made to a Tribunal under


this sub-section, it shall pass an award within a period of thirty


days from the date of such reference.


(8) Where no application for permission under sub-section (1) is


made, or where no application for permission under sub-section (3) is


made within the period specified therein, or where the permission for


any lay-off has been refused, such lay-off shall be deemed to be


illegal from the date on which the workmen had been laid-off and the


workmen shall be entitled to all the benefits under any law for the


time being in force as if they had not been laid-off.


(9) Notwithstanding anything contained in the foregoing


provisions of this section, the appropriate Government may, if it is


satisfied that owing to such exceptional circumstances as accident in


the establishment or death of the employer or the like, it is


necessary so to do, by order, direct that the provisions of subsection


(1), or, as the case may be, sub-section (3) shall not apply


in relation to such establishment for such period as may be specified


in the order.



Explanation.--For the purposes of this section, a workman shall


not be deemed to be laid-off by an employer if such employer offers


any alternative employment (which in the opinion of the employer does


not call for any special skill or previous experience and can be done


by the workman) in the same establishment from which he has been


laid-off or in any other establishment belonging to the same employer,


situate in the same town or village, or situate within such distance


from the establishment to which he belongs that the transfer will not


involve undue hardship to the workman having regard to the facts and


circumstances of his case, provided that the wages which would


normally have been paid to the workman are offered for the alternative


appointment also.



 


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