Lay-offs Takes A New Lane Towards Legality

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Following allegations of widespread layoffs by many companies, particularly those in the IT sector, Labour and Employment Minister Bhupender Yadav stated on Thursday that any retrenchment and layoffs are illegal if not carried out in accordance with the rules of the Industrial Disputes Act. According to the ID Act, establishments employing 100 or more people must obtain prior approval from the competent authorities before closing, retrenchment, or layoff.

“Further, any retrenchment and lay-off are deemed to be illegal which is not carried out as per the provisions of the ID Act. ID Act also provides for the right of workmen laid off and retrenched for compensation and it also contains provision for re-employment of retrenched workmen,” he said.