NITHYAVENDAN.

S
BA0140037
Abstract
In this article I am dealing with how the labors face problem in the form of layoff. All over labors
were in all industries face many problems .But the most important problem is layoff. The concept
of lay off is detrimental to the workers as they do not receive wagers properly. Layoff a temporary
interruption of the employment relationship at the direction of the employer because of lack of
work. Layoff in what circumstance it can applicable to the labors,how to prevent the labors from
the layoff.
The author will analysis the conceptual validity of layoff and discussion what are the condition
based on the layoff .employer and employee suffer by layoff compensation,time period, notice
requirement . layoff in india and other country comparative analysis based on the topic . cases
based on the layoff and what are the judgment and decision made what are legal provision related
on that under what law can be applicable to layoff. In issues will deal with all what I said in above
paragraph .In review of literacies it will deal with other people what discus about what they deal
with the article in my point of view how I deal with the article . In conclusion part will deal with
my opinion base on layoff. People working in the online shopping they also affect by the layoff or
not how they will face the consequence.
I would like to finalize sufficient solutions to overcome the problem faced by labors due to
condition based layoff
INTRODUCTION

Industrial Disputes Act, was introduce 1947 governs various provisions pertaining to lay-off to
the workmen. The scope of the Act is achieve harmony between employers and workmen and
promote economic and social justice, thereby, classifying the Act as welfare legislation. This
preamble of the Act clearly states the objective of this Act is to make provision for the
investigation and settlement of industrial dispute. Its shows that intention of the legislature is to
safeguard the right of workmen and the industrial establishment.
Meaning of lay-off
Before , lay-off was a practice that no provision for compensation. In 1953, the President
promulgated the Industrial Disputes (Amendment) Ordinance which made a provision for payment
of compensation for lay-off. This ordinance was repealed and replaced by Industrial Disputes
(Amendment) Act, 1953.

The present bulletin touches base upon the meaning of lay-off as a per the Act and deals with the
issue of compensation resulting from such lay-off. Some time most of establishments are
interested in knowing the monetary impact on laying-off workmen while reducing headcount, this
bulletin provides a insight on that process.
Nature of Lay off

A temporary interruption of the employment relationship at the direction of the employer because
of lack of work.

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 breakdown 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.
Section 25 D casts an obligation upon an employer of an industrial establishment to maintain a
muster roll and provide for the making of entries therein by workmen who may present themselves
for work. This provision is equally applicable to industrial establishment employing 100 or more
workmen.
Scope
Industrial Dispute is defined under Section 2(k) of this Act. It lays down certain prerequisites that
exist to constitute an industrial dispute. There can be no lay-off if dispute does not fall with in the
ambit of Section 2(k).
The application of this Act limited to industries is defined under Section 2(j). However,
in cases we cant make it separate where it is difficult to distinguish between an industrial and a
non-industrial activity, the dominant nature of the activity helps to determining the true scope
of industry.
Individual Layoff History
layoff history results in greater likelihood of quitting behavior for two distinct reasons:
(a) psychological spillover, in which experiencing a layoff leads to an untethering from, or looser
tie to, subsequent employment, as suggested by the literatures addressing psychological contracts,
trust, job insecurity, and the unfolding model of turnovers shock construct; and
(b) occupational underemployment, in which layoffs result in lower-quality post-layoff
employment. The former explanation Individual Layoff History and Voluntary Turnover can both
allow greater variety in layoff conceptualization (e.g., layoffs anytime in ones employment
history) and provide more compelling implications for theory and practice.
Special Provisions relating to Lay-Off
Section 25M in the Act further points out that prior approval from the appropriate
government is required to lay-off a workman when the industrial establishment (not being of a
seasonal
character or in which work is performed only intermittently), has more than hundred (100)
workmen
employed on an average per working day for the preceding twelve (12) months. The appropriate
government has the final authority to decide whether the establishment is in fact seasonal or not
and such decision shall be final12. It also provides stringent penalties for contravention of the
provisions13 of Chapter 5B along with providing compensation to the workman for any illegal
lay-off141.
Lay-off and section 33

Lay-off affects the earnings of the concerned industrial employees and therefore ,apparently
violatioes the provisions of clause (a) of sub-section (t) , 2 and 3 of section 33

This tribunal and courts have ,hoverer ,held that laying-off of workmen in accordance with the
establishment practice or provisions of stranding orders or statutory provisions are outside the
purview of section 332.

What is Temporary layoff and what are the requirement ?

1
Pramod Kumar Tiwari v. Hindustan Fertilizer Corporation Ltd., 1994 LLR 465 (MP) (DB).
2
Rodhee v. Government of Delhi, (2003)
Requirement of notice, content of notice and employers responsibility
An employer who wishes to maintain the employment relationship may temporarily lay off an
employee. In the Alberta Court of Appeal has clearly determined the valid notice of temporary
layoff must,
be in writing,

if it is a temporary layoff notice and effective date want to be mention , and

include under sections 62, 63 and 64 of the Code.

If these conditions are not met not fulfill, the employee may have been unjustly or constructively
dismissed. Some courts also held that the Code permits an employer to temporarily lay off an
employee in absence of collective agreement or contract allowing layoff, the employee maintain
the right to sue a constructive or wrongful dismissal if laid off in the circumstances.
How many days can be employee can be in temporary layoff .
A temporary layoff cant be more than 59 days in duration. On the 60th consecutive day of
temporary layoff, the employees employment terminates and the employer must pay the employee
termination pay on that day, unless,

wages or benefits continue to be paid on behalf of the employee; or

there is a collective agreement that provides other recall rights that are longer than the 59 days.

During the 59-day period, an employer may recall the employee with one week written notice.
Should the layoff extend past the 59 days, the employment terminates and termination will pay
appropriate (amount) to the length of service to the employee is required.
The employment of an employee may be terminated while on temporary layoff, however the
employee is entitled to termination pay.
If employer recalls a employee on a temporary layoff and requests the employee back to work and
at the time fail to back to the work in specified, the employee would not be entitled to any
termination notice or termination pay, provided that temporary layoff notice is valid. It is the
employers best interest to retain a copy of the written request or notice.

What is Special layoff.

Rules for school employees and school bus drivers
During the summer break in school year vacation on 59 days, under section 63(1) of the Code
which it provides for payment of termination pay on the 60th consecutive day of a temporary
layoff does not apply to school employees it also including school bus drivers. Section 5.1 of the
Employment Standards Regulation it permits a temporary layoff to exceed 59 days during the time
between the end of a school year and the beginning of the next school year, if certain conditions
are met.
Under ,what are the circumstance should be a employer choose to terminate or layoff an
employee?
if an employee has been employed under an employer for less than six months, the is not required
to give the any advance notice of the termination or layoff.3

if an employee has been employed under an employer for a period of at more than six months but
less than five years, the employer must give the employee by the written notice at least two weeks
before of the termination or layoff. 4

if an employee has been employed under an employer for a period of five years or more, the
employer must give the employee at least four weeks written notice of the termination or layoff.

The employer may choose to pay the employee the wages the employee would have earned during
the applicable two or four week notice period instead of providing a written notice.

Period of Layoff or termination

employment

Less than 6 months No notice required

More than 6 months, 2 weeks notice in

less than five years writing, or 2 weeks
pay

3
Gram Panchayat v. Sharadkumar D. Acharya, 1994 LLR 470 (Guj) (DB).
4
Mohan Lal v. Sharat Electronics Ltd.. AIR 1981 SC 1253.
 5 years or more 4 weeks notice in
writing, or 4 weeks
pay

Comparative analysis about layoff among India, china and srilanka

How to successfully conduct mass layoffs in china

Now days U.S companies with operations in china to increasingly been conducting mass layoffs.
Based on varies reasons on poor economic performance, rising labor costing, increased internal
operating efficiencies and restrictions on the use of dispatched labor.
In china terminating individual employees is difficult. Employer can only terminate employment
relationships for cause as set out in employment contract law (ECL), most grounds too difficult to
meet to be widely useful to employers. It is very for the situation to get out of control, resulting in
the potential of physical danger to those delivering the message to employees , loss or damage to
company asset and or a significant unexpected increase in the cost required to complete the layoffs.
Whether layoff and compensation of layoff is applicable in srilanka
No mention of lay off in the IDA of Sri Lanka. However termination of employment of workmen
is governed by the Termination Of Employment Of Workmen (Special Provisions) Act.

CONCLUSION
Layoff base on industry condition ,development on setting up any industrial establishment in India,
lay-off provisions acquire importance especially since most labor law legislations are very pro-
workmen. Laying-off is a power in the hands of the employer but it has to be exercised judiciously
in accordance with the applicable legal regulations. The monetary penalty for contravention of
these provisions is not a lot but it can impact the establishments goodwill and reputation. Further,
improper laying-off of workmen can lead to strikes and lock-outs, which can result in significant
business loss for the establishment. Therefore, there is reason enough for every.