Industrial Disputes Act: Following news of massive layoffs by many organizations, 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.
The minister was reacting in the Rajya Sabha to a question on if the government was aware of huge layoffs in several multinational and Indian firms in the IT, social media, Edu Tech, and related sectors.
Layoffs and retrenchment in industrial facilities are managed by the rules of the Industrial Disputes Act, 1947 (ID Act), which also controls many parts of layoffs and conditions previous to worker retrenchment, according to Yadav in response to a question.
According to the ID Act, establishments employing 100 or more people must obtain prior approval from the competent authorities before closing, retrenchment, or layoff.
"Furthermore, any retrenchment or layoff that is not carried out in accordance with the rules of the ID Act is considered illegal. The ID Act also allows for the right of laid-off and retrenched workers to be compensated, as well as the re-employment of retrenched workers "He said.
The Central and State Governments take efforts to address the issues of workers and defend their interests in accordance with the provisions of the ID Act, based on their respective jurisdictions as defined in the Act.
The minister stated that the respective state governments have authority over multi-national and Indian corporations in the IT, social media, Edu Tech, and related sectors.
He further stated that no data on layoffs and retrenchments in these sectors is kept at the central level.