This State Allows Companies To Fire 300 Employees Without Approval; Notice Period Mandatory ?

This State Allows Companies To Fire 300 Employees Without Approval; Notice Period Mandatory ?
This State Allows Companies To Fire 300 Employees Without Approval; Notice Period Mandatory ?

At a time when employees across all verticals are finding it tough to survive, and continue their jobs, this state has made a severely anti-employee move: They have allowed all companies to fire upto 300 employees without any permission.

This means that more jobs will be lost, and more people will lose employment and a means to survive.

Why would any Govt do this? It’s baffling indeed.

Gujarat Companies Allowed To Fire Upto 300 Employees With No Permission

In a shocking move, Gujarat Govt has allowed companies to fire upto 300 employees, without any permission.

The Govt. has amended the critical Industrial Disputes Act, 1947, and made some changes to the laws, which now empowers all registered companies in the State of Gujarat to terminate 300 or less employees without any permission.

As per the original laws, if a company wants to fire 100 or more than 100 employees, they they must seek permission and approval from the Govt.

But since this range has been increased to 300, employees are now left at the mercy of their employers.

The state labour and employment department has already started implementing this order.

Reacting to this development, Harpreet Saluja, General Secretary, National Information Technology Employees Senate – NITES said, “Under Covid-19 lockdown a lot of State Government’s have amended Labour laws which is reprehensible as all the amendments are favorable for employers. Employees are the most affected part of the economy due to the coronavirus outbreak as they are at the receiving end. The employees were already struggling with salary cuts and layoffs. The Government’s decision to allow layoff will degrade the life of employees & their families drastically. Educational institutions are still charging fees, Medical facilities are not adequately available and above all lockdown conditions does not allow employees to move out and search new jobs. In such difficult circumstances Government should take cognizance of humongous problems faced by workers and employees instead of protecting crony capitalists.”

NITES is a nonprofit dedicated to empowering IT and ITeS employees.

Three Months Notice Period, Average Wage Compulsory In Layoff

Besides, the amendments have also been made to make payment of three-months wages and three months of notice period mandatory for the employers.

In the old laws, the employers were free to avoid giving notice period of three months, and in exchange, give three months of salary/wages.

This now changes, as the employers will be forced to give the three month notice period, as well as the wages.

This means that there is now some sort of financial security for the employees here, in case they are fired or the company closes down.

We will keep you updated, as more details come in.


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