18 December 2008
eventhough the company has indicated about the lay off clause, the company has to get permission from the labour commissioner to declare layoff and should pay 50% of wage to it's permanent employees alone KAMARAJ BHARATHY 91 98942 99192
20 December 2008
I dissent from the opinion of my Ld. friend Mr. Kamaraj.
We have to differentiate between a layoff effected without the consent of employees/workmen and reduction of wages after a settlement has been reached with the workmen.
Section 9A of the ID Act lays down procedure for change of conditions described in the schedule to the Act. Wages being one of the item in the schedule and hence to reduce the wages procedure under section 9A of the Act has to be followed. But a proviso says that where a change is in consequent to a settlement or award, it shall not be necessary to follow the said procedure. therefore in the given circumstances it shall not be necessary to seek permission from the labour authorities.
22 December 2008
Thanks for your opinion Mr. Thakral.
You gave a good insight into the matter. However, the fourth schedule which you mentioned does not have any clause for temporary closure of undertaking. So whether in this situation can we treat such closure and deduction of wages as change in condition of service. Other provisions aptly canbe applied to our situation.