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Deepika (HR Manager)     02 May 2014

Notice period under shop and establishment act

HI Friends,

 

I have a query, if a company wants to layoff people due to lack of projects , what should be the notice period ? and will also appreciate if you can help me ... do we need to pay gratuity to them , even though they have not completed 5 years.

 

Please help asap.

 

Regards

Deepika



Learning

 3 Replies

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 )     02 May 2014

employers to provide notice 60 days in advance of covered plant closings and covered mass layoffs. This notice must be provided to either affected workers or their representatives (e.g., a labor union); to the State dislocated worker unit; and to the appropriate unit of local government.

Lawyer SALEEMA (Advocate Madras High Court & Legal Consultant Chennai Law in Law Firm. +91-9698884779)     02 May 2014

In case of an Industrial Establishment, an employer employing 100 or more workers, no worker can be laid off without permission of the appropriate government. Chapter V-B of the Industrial Disputes Act prohibits lay off in case of Industrial Establishments employing 100 or more workers without prior permission of the appropriate government or authority constituted by the appropriate government for such permission.

 

In case an Industrial Establishment employs less than 100 workers and the Industrial Establishments Standing Orders are applicable to the establishment, the employer is requested to pay 50% of the total of basic and Dearness Allowance during the period of lay off. No special permission is required if number of employees are more than 50 and less than 100.

 

If the Industrial Establishment is employing less than 50 workers, the employer can give lay off, however, the provisions relating to lay off provided in Chapter V-A are not applicable to Industrial Establishments employing less than 50 workmen.

 

Minimum period of service required for getting gratuity  is 4yrs and 240 days of continuity of service in the preceding year. 

Lawyer SALEEMA (Advocate Madras High Court & Legal Consultant Chennai Law in Law Firm. +91-9698884779)     02 May 2014

In case of an Industrial Establishment, an employer employing 100 or more workers, no worker can be laid off without permission of the appropriate government. Chapter V-B of the Industrial Disputes Act prohibits lay off in case of Industrial Establishments employing 100 or more workers without prior permission of the appropriate government or authority constituted by the appropriate government for such permission.

 

In case an Industrial Establishment employs less than 100 workers and the Industrial Establishments Standing Orders are applicable to the establishment, the employer is requested to pay 50% of the total of basic and Dearness Allowance during the period of lay off. No special permission is required if number of employees are more than 50 and less than 100.

 

If the Industrial Establishment is employing less than 50 workers, the employer can give lay off, however, the provisions relating to lay off provided in Chapter V-A are not applicable to Industrial Establishments employing less than 50 workmen.

 

Minimum period of service required for getting gratuity  is 4yrs and 240 days of continuity of service in the preceding year. 


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