Lok Sabha Question No. 1965 (UNSTARRED), answered on 2023-03-13
Subject: Layoffs in Multinational and Indian Companies
Ministry: LABOUR AND EMPLOYMENT
Asked by: S. Venkatesan, Nusrat Jahan Ruhi, Su Thirunavukkarasar, Bhartruhari Mahtab

## MINISTRY OF LABOUR AND EMPLOYMENT

## GOVERNMENT OF INDIA LOK SABHA

UNSTARRED QUESTION NO. 1965 TO BE ANSWERED ON 13.03.2023

## LAYOFFS IN  MULTINATIONAL AND INDIAN COMPANIES

1965. SHRI S. VENKATESAN: SHRI BHARTRUHARI MAHTAB: MS. NUSSRAT JAHAN: SHRI THIRUNAVUKKARASAR SU:

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

- (a) whether the Government has taken cognizance of the mass layoffs in  various  multinational and  Indian  companies  in  the  IT,  social media, Edu Tech firms, online shop traders within the country and abroad,  start-up companies  and related  sectors;
- (b) whether  the  Government  is  aware  about  the  unethical  and  illegal layoffs  of  the  employees  by  many  big  IT  companies  and  online retail companies;
- (c) if so, the number of workers who have lost their jobs in mass layoffs in these sectors, company/ sector-wise;
- (d) whether the Government has taken any steps to address the issues of those employees  and  to ensure the welfare of these workers and conducted  any study on unethical and illegal layoffs by companies;
- (e) if  so,  the  details  thereof  along  with  any  guidelines  issued  in  this regard including steps taken to protect the interests of the working class and  to save their livelihood; and
- (f)whether the Government proposes to intervene  to prevent such mass layoffs in future, if so,  the details  thereof  and  if  not,  the  reasons therefor?

## ANSWER

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

(a) to (f) Employment and retrenchment including lay-offs are a regular phenomenon in industrial establishments. Matters relating to lay-offs in  industrial  establishments  in  the  country  are   governed   by   the Contd..2/-

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 its prevention. The jurisdiction in the matters with regard to multi-national and Indian companies in the IT, social media, Edu Tech firms, online shop traders, start-up companies and related sectors lie with the respective State Governments.

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