There have been retrenchment and layoffs across various sectors in the country including in IT, Minister Bhupender Yadav has said that Layoffs are deemed illegal if not carried out as per Industrial Disputes (ID) Act.
Minister Bhupender Yadav said, “Further, any retrenchment and lay-off are deemed to be illegal which is not carried out as per the provisions of the Industrial Disputes Act.”
“Industrial Disputes Act also provides rights of workmen laid off and retrenched for compensation and it also contains provision for re-employment of retrenched workmen,” he added.
He said while addressing the Rajya Sabha, “The Industrial Disputes Act, 1947 (ID Act) provisions govern the concerns and matters relating to layoffs and retrenchment in industrial establishments.”
What is Industrial Disputes Act?
The Industrial Disputes Act, of 1947 extended to the whole of India and regulated Indian labour law so far as that concerned trade unions as well as Individual workmen employed in any Industry within the territory of the Indian mainland. Enacted on 11 March 1947 and it came into force on 1 April 1947.
As per Industrial Disputes Act establishments employing 100 persons or more are required to seek prior permission from the appropriate government before effecting closure, retrenchment, or lay-off.
The Industrial Disputes Act also governs that the Central and State Governments can take necessary actions based on their respective jurisdictions to address the issues of the workmen and protect their interests as per the provision of the Act.
Most recently, companies Byju, FrontRow, Lido, and Frontrow among others have cumulatively retrenched thousands of employees this year. In June, WhiteHat Jr and Toppr combined laid off about 500Â employees.
On the other hand, IT companies Cognizant & Accenture in India laid off employees due to failed background checks. Happiest Minds Technologies, Infosys, and Wipro laid off employees due to Moonlighting.
