Lok Sabha Question No. 785 (UNSTARRED), answered on 2022-12-12
Subject: E-commerce Platform
Ministry: LABOUR AND EMPLOYMENT
Asked by: Feroze Varun Gandhi

## GOVERNMENT OF INDIA MINISTRY OF LABOUR AND EMPLOYMENT LOK SABHA

## UNSTARRED QUESTION NO. 785 TO BE ANSWERED ON 12.12.2022

## E-COMMERCE PLATFORM

## 785.  SHRI FEROZE VARUN GANDHI:

Will  the  Minister  of  LABOUR  AND  EMPLOYMENT  be  pleased  to state:

- (a)whether the Government has an account of the number of employees in the country that have been laid off in 2022 by global companies such as Twitter, Meta, Amazon and Cisco;
- (b)if so, the details thereof;
- (c)whether the Government recently summoned e-commerce platform
- Amazon over layoffs in the country; and
- (d)if so, whether they were able to reach a consensus about Amazon
- scrapping the voluntary separation policy?

## ANSWER

## MINISTER OF STATE FOR LABOUR AND EMPLOYMENT (SHRI RAMESWAR TELI)

(a) & (b): Employment  and  retrenchment  including  lay-offs  are  a regular  phenomenon in industrial establishments. Matters  relating  to lay-off and retrenchment in industrial establishments are governed by the provisions of the Industrial Disputes Act, 1947 (ID Act) which also regulates  various  aspects  of  lay-off  and  conditions  precedent  to retrenchment of workmen. 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  lay-off.  Further,  any  retrenchment  and  lay-off  are  deemed  to  be illegal which is not carried out as per the provisions of ID Act. ID Act also provides  for right of workmen  laid  off  and  retrenched  for compensation  and  it  also  contains  provision  for  re-employment  of retrenched workmen.  Based  on  their respective jurisdictions as demarcated in the ID Act, Central and State Governments take actions to  address  the  issues  of  the  workmen  and  protect  their  interests  as per  the  provision  of  the  Act.  In  the  establishments  that  lie  in  the jurisdiction  of  Central  Government,  the  Central  Industrial  Relations Machinery  (CIRM)  is  entrusted  with  the  task  of  maintaining  good Industrial relations and protects the interest of workers including on

the matters relating to lay off and retrenchment and their prevention. The jurisdiction in the matters with regard to multi-national and Indian companies in the IT, social media, Edu Tech firms and related sectors lie  with  the  respective  State  Governments.  No  data  is  maintained  at the  Central  level  on  laying  off  and  retrenchment  with  reference  to these sectors.

(c)  &  (d):    Amazon  India  has  informed  that  as  a  part  of  their  annual operating planning review process, they look at each of their businesses  and  they  believe  in  change.  While  going  through  this process, given the current macro-economic environment, some of their teams  are  making  adjustments,  which  include  giving  employees  in certain  teams  an  opportunity  to  opt  in  for  the  Voluntary  Separation Programme  (VSP).  The  VSP  is  a  completely  voluntary  programme under which employees opt to receive a fair severance package. They have informed that they do not force its employees to opt for the VSP. The Amazon India informed that the decision to opt in for the VSP is 100%  voluntary and they are offering an extended window  to employees in case they choose to revisit and/or revoke their decision. Amazon India further informed that in the event an employee does not opt  in  for  VSP,  there  is  not  impact  on  his  employment  due  to  the decision.

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