Dear Professional Colleagues,

Does anyone know what the difference in regards to the law between terminating or laying off someone? We have a situation where someone is not meeting performance expectations and we are going to terminate them. If it meant this person receiving or not receiving some benefit (either from us or the government) we would be willing to call it a layoff. Any other info that you think is related would be appreciated.

Sincerely

prakash

There is a lot of difference between layoff and termination :-

LAYOFF: Layoff as defined in ID ACT 1947, Failure, refusal or inablity of an employer to provide employment on account of shortage of raw material, power, natural calamities, for the employees whose name is borne on the muster roll. Layoff can be given to a entire set-up, partial set-up (Department), i have my own doubts with regard to individual layoff.

Layoff is a temporary phenomena, wherein during the laid off period the employees should be paid 50% of the last drawn wages.

If the layoff is extended for more than 45 days (consecutive or in a period of 12 month) the employer has a choice of Retrenching the employees, wherein any retrenchement compensation can be adjusted against already paid lay off compensation.

Layoff in case if you engage more than 100 workmen, you need to apply to government for getting permission. Read Chapter vA, vB OF ID ACT to get more light.

TERMINATION: Termination is once for all sending an employee out of organsiation, termination should have a valid reason, Disciplinary actions , Principle of Natural Justice as the case may be should be adopted.

Hello friends,

Going thru your mails on this issue. There is great diff. bet. laying off and termination and the only similarity between the two is that they both close employment. Wish to call ceassation of employment as lay off makes no difference . It is the factors that you have relied upon will be taken into consideration. Lay off happens when a employer is unable to offer employment due to certain factors beyond his control and there are certain steps as per the governing act to make it happen.

Where as termination is a disciplinary action undertaken by the management against employee(s) for some of their misconduct as pper standing orders or service rules governing the terms of employments, after all set procedure like domestic enquiry etc.

Regards

Vijayraj

Hello chrm'ites

Layoff :
The employer applies to the govt. to cease work due to lack of production work/orders/etc. The employees can be laid-off for a pre-defined period, say upto 45 days. No remuneration is payable during this period, by the employer. The workers will join back after this period, unless they wish to leave.

Retrenchment :
Permission to be sought from the govt. The employer has a right to terminate employment of certain employees.

VRS :
Option of offering a certain package to those employees, who may see a benefit in opting for a one-time bulk payment in exchange for leaving the organisation. The package to be decided based on a specific formula, to avoid bias.

Termination:
termination is a disciplinary action undertaken by the management against employee(s) for some of their misconduct as paper standing orders or service rules governing the terms of employments, after all set procedure like domestic enquiry etc.

Kindly look up the statutory norms for the above, relevant to your geographical location.

Regards,
ankur