It shall be appropriate to approach a competent and experience labor consultant/service lawyer with all the possible information and your appointment letter, standing orders, HR policy, communication from company for closure and discuss in person.
Company might have informed the labor office also for closure. You can approach ALC and gather information.
Your boss may not be aware or is aware but is feigning ignorance. For your interest you may proceed yourself. For you your boss must not be the only and reliable source of information.
How many employees are employed in the company?
Has the company applied to the Govt. for closure?
Has the company communicated to employees that the operation being closed?
---Has the company framed its certified standing orders?
“17. CLOSURES, STOPPAGE AND LAY-OFF: -
(ii) In the event of stoppage or closure for any of the reasons mentioned above but other than a lock out or strike, if the Company is unable to provide work for any particular workman or workmen, the Factory Manager shall be entitled to lay-off from work or duty all workman/workmen and the payment of such lay-off will be made in accordance with the provisions of the Industrial Dispute Act, 1947 but in case during any year lay-off is declared beyond 45 days. The workman shall not be entitled for any compensation.
The Industrial Employment Standing Orders Act is applicable to the Establishment? If yes mode standing orders may be looked into.
“12. Stoppage of work.--(
(3) In case where workmen are laid off for short periods on account of failure of plant or a temporary curtailment of production, the period of unemployment shall be treated as compulsory leave either with or without pay, as the case may be. When, however, workmen have to be laid off for an indefinitely long period, their services may be terminated after giving them due notice or pay in lieu thereof.
If say more than 100 workmen are employed then company might have applied for closure.
Assess what is actual intention of the company lay off/retrenchment/closing off the establishment.
ID Act Sec 2{KKK}
During lay off days the workers who have been in continuous service for at least one year are to be paid lay off compensation @ 50% of the normal wages. However, no compensation shall be paid if such lay off is extended for a period beyond 45 days.
section 25A(1)- Chapter V-A is applicable to industrial establishments employing 50 or more workmen but less than 100.
section 25K you will see that Chapter V-B is applicable to industrial establishments employing 100 or more persons.
Industrial Disputes Act prescribes the procedure to be followed in case of lay-off, retrenchment or closure and does not confer any power on the employer to lay-off, retrench or for closure. Therefore the power to lay-off has to be found in the certified standing orders, or model standing orders. If both the certified standing orders and the model standing orders are silent or in cases where the Industrial Employment(Standing Orders) Act is not applicable to the IT/ITES/BPO companies, then the power to lay off has to be found in the contract of employment which is the appointment letter. If the appointment letter is also silent then the employer has no power to lay off and if he lays off his workmen, they are entitled to full wages for the period for which they were laid off.
