Layoffs: Amidst the continuous retrenchment, this news is a relief for the employees. Labor and Employment Minister Bhupendra Yadav has asked to make it illegal to expel employees without any reason from the company. If any company commits such a mistake, then it has also been warned to take action against it.
What has the minister said?
Speaking in the Rajya Sabha on layoffs in several firms, including IT and Ed-Tech, Labor and Employment Minister Bhupendra Yadav said today that unnecessary layoffs would be considered illegal as per the provisions of the Industrial Disputes Act and the company would also have to pay compensation to the employee. Will happen.
What does the rule say?
According to the provisions of the Industrial Disputes Act 1947 (ID Act), action is taken against those companies who lay off without following the terms and conditions. This Act is applicable only to those companies which have the capacity to employ 100 persons or more. This Act advocates for giving compensation to the employees and providing new employment opportunities.
The Minister said that the Central Industrial Relations Machinery (CIRM) has been entrusted with the task of maintaining good relations and safeguarding the interests of the employees with certain private companies or government institutions falling under the jurisdiction of the Central Government, including retrenchment and related matters. Case prevention is included.
Record layoffs in last few months
The past few months have seen massive layoffs in tech companies across the world, mainly due to the economic slowdown. Big tech companies like Twitter, Netflix, Microsoft, Snap have cut their workforce by thousands, while reports claim that companies like Meta, Amazon and others have put a halt on hiring and some companies have laid off their employees. Planned to hand over pink slips to the employees. Its effect is also being seen on Indian companies. Companies like Sharechat, Versa Innovation and Ola, Byju’s are also laying off their own.
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