Labour and Employment Minister Bhupender Yadav has said that any layoffs carried out by firms has to abide by the Industrial Disputes Act.
Context
The minister was answering a question about whether the government has taken cognizance of the mass layoffs in various MNCs and Indian companies in the IT, social media, Edu Tech firms and related sectors.
The provisions of the Industrial Disputes Act, 1947 (ID Act) cover matters relating to layoffs and retrenchment in industrial establishments.
What the law says
As per this act, firms that employ 100 or more people have to seek prior permission before carrying out closure, retrenchment or lay-off.
“Further, any retrenchment and lay-off are deemed to be illegal which is not carried out as per the provisions of the ID Act.
The ID Act also provides for the right of workmen laid off and retrenched for compensation and it also contains provision for re-employment of retrenched workmen,” said Yadav.
Who holds the right of enforcement?
Based on their respective jurisdictions as laid out in the ID Act, Central and State Governments take actions to address the issues of the workmen and protect their interests.
The jurisdiction in the matters with regard to multi-national and Indian companies in the IT, social media, Edu Tech firms and related sectors, in this case, lie with the respective state governments.
The minister also informed that no data is maintained at the Central level on laying off and retrenchment with reference to these sectors.
