Retrenchment Norms

Amid reports of mass layoffs by several firms, including in the IT sector, Labour and Employment Minister Bhupender Yadav on Thursday said any retrenchment and layoffs are deemed to be illegal if not carried out as per the provisions of the Industrial Disputes Act. The minister was replying in the Rajya Sabha to a question about whether the government has taken cognizance of the mass layoffs in various multi-national and Indian companies in the IT, social media, Edu Tech firms and related sectors. Matters relating to layoffs and retrenchment in industrial establishments are governed by the provisions of the Industrial Disputes Act, 1947 (ID Act) which also regulates various aspects of layoffs and conditions precedent to retrenchment of workmen, said Yadav in reply to a question in the Rajya Sabha. As per the ID Act, establishments employing 100 persons or more are required to seek prior permission of the appropriate government before effecting closure, retrenchment or ...

If they are unable to reskill within a fixed period of time, they will have to return the money given to them by the government

Defends move to have fixed-term employment, insists present system of hiring workers through contractors is exploitative

Company denies retrenching 'workers', says cost rationalisation has impacted some managerial positions

In a recent letter to the Prime Minister, Union Minister for Road, Transport, and Highways Nitin Gadkari had suggested the need for an insurance product that gives subsistence salary

The fund will be formed through contribution from employers equivalent to '15 days of wages last drawn' by workers being retrenched

Central trade unions protested against any change in laws that allow factories to hire and fire workers without govt's permission

Protests by labour unions, political risk likely reasons