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Lay off reasons - Industrial establishment - whom should we inform about this plan? to Inspector of factories or Labor commissioner? - CiteHR

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umakanthan53
5967

Thank you, Mr.Varghese! This is the judgment I searched for but in vain. Generally, we find the numerical strength of the employees as one of the criteria fixed for the purpose of applicability of Labour legistions either in totality or in respect of particular chapters relating to certain conditions of employment and other aspects of managerial decisions affecting employment in larger scale.. The various conditions of employment, per se, are not just creatures of Law but originate from customs and practices followed ever since human labour started to be barted for reward from times immemorial and later came to be codified with the metamorphosis of the relationship of hirer and the hired from that of master and servant to employer and employee with its ever-icreasing complexities.The logic behind such a move is equity and social justice. That's why leizzez faire has universally given way to State intervention in matters of trade, commerce and indusrial employment.For examlpe payment of bonus.Though, the term " bonus" escapes a precise legal definition, literally it means "anything pleasant that is extra and more or better than expected ". When the agreed due compensation part of the terms of employment is fulfilled by the employer then and there, what is the necessity of paying bonus to the employed at the end of the year? Is it not an additional and unagreed liability imposed on him? In every economic society grant of festival inam to servants is a custom in vouge. In every agrarian community, festival is associated with harvest. When the harvest is objectively fair, the farmer comes forward to apportion a part of his harvest to all the people associated with it directly or indirectly. It is a compassionate gesture in recognition of their services.It arises spontaneously out of the employment relationship of the partners of production.But,in the context of industrial employment as it has been obtaining ever since Industrial Revolution, the relatioship has become highly impersonal and the owner or the master of the business need not be the employer.So, legal compulsion becomes inevitable particularly in the absence of fair or living wages after making provision for equitable dividends to the share holders, depreciation of plant and machinery and future development of the enterprise. The complex nature of financial calculations in this regard makes it imperative for exempting the small enterprise and where the number of employees criteria comes into play.It is not the intent of the Law that a small employer need not pay bonus or his employees have no right to claim bonus.But it is an implied and positive expectation of Law that they would work it out amicably. Similarly, when Chapter V-A of the Industrial Disputes Act is neither applicable nor the strength of workmen is 50 or above, the underlying legislative intention is that the employer and the employees would come to an amicable decision of lay-off as per their subsisting contract of employment or otherwise befitting their mutual interests. Hope, Mr.Kumar agrees with me now.
From India, Salem
stephen_7
147

Dear Sirs,
Thanks for the valuable information with practical ideas. I have one query here. At the period of layoff, Can employer appoint casual labours for full month and pay wages to them for dispatching the available stock to customers and do some emergency services (Electrical work) in factory. Unionized workmen anyway will not support it due to some workmen will get full wages and others will not. It will cause internal fight between them.
In this case, Can employer appoint maximum 6 (2 workmen x 3 shifts) contract labours at layoff period?

From India, Chennai
Eswararao Ivaturi
16

Dear stephen Greetings!!!
As our friend Umakant rightly said, in an unionised organisa-
tion, we have to deal and take
decisions on practically within
the framework of the rules.
Here, interpretation of rules
based on the problems we are
facing in day to day organisation is also more
important. Regarding engagement of casual labour
during the period of lay off.
no union leader or worker generally agree. To come out
from such problem first of all option should be given to the existing employees whether they would like to work till the available stock is dispatched. If they agree
the required no. of workers can be engaged on routine basis without giving any chance for dispute. This I am
mentioning on practical basis. Hope this may be helpful.
Eswararao Ivaturi.

From United States, Cupertino
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