Director
6 months ago
Is Furlough legal in India? Can the corporate MNCs such IT companies or organization which are into Education Sector send employees on furlough leave and deduct these leaves from the leave balance of the employees Paid Leave
A.Dear Client,
Furlough leave is typically a temporary leave of absence that is granted to an employee because of the special circumstances of an organization. It is an unpaid leave of absence. Furloughed employees usually retain their jobs, but furlough does not entail compensating the staff, nor does end employment. Furloughs are temporary halts to work. Employees retain their jobs and benefits but do not get paid for the said leave, Simply a leave without pay. In the absence of any stipulation in the contract of employment specifying the furlough leave will be adjusted against your earned leave which is paid leave, a company can adjust or deduct from your earned leave which an employee earns by virtue of the number of days he worked in the establishment. So, in the prevailing situation, if you are not holding the position of Manager/Supervisor but a workman as defined u/s.2(s) of the Industrial Dispute Act then after serving a legal notice to the Company, reach out to the concerned Labour Commissioner office filing a complaint against the Company to redress your grievance over alleged arbitrary and unfair labour practice.
Furlough leave is typically a temporary leave of absence that is granted to an employee because of the special circumstances of an organization. It is an unpaid leave of absence. Furloughed employees usually retain their jobs, but furlough does not entail compensating the staff, nor does end employment. Furloughs are temporary halts to work. Employees retain their jobs and benefits but do not get paid for the said leave, Simply a leave without pay. In the absence of any stipulation in the contract of employment specifying the furlough leave will be adjusted against your earned leave which is paid leave, a company can adjust or deduct from your earned leave which an employee earns by virtue of the number of days he worked in the establishment. So, in the prevailing situation, if you are not holding the position of Manager/Supervisor but a workman as defined u/s.2(s) of the Industrial Dispute Act then after serving a legal notice to the Company, reach out to the concerned Labour Commissioner office filing a complaint against the Company to redress your grievance over alleged arbitrary and unfair labour practice.
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A.Dear
In India, the concept of "furlough" as it is understood in some other countries, especially the United States, is not a recognized legal term. The closest equivalent to furlough in India would be unpaid leave or leave without pay. However, the conditions and rules regarding unpaid leave can vary based on company policies, employment contracts, and applicable labor laws.
Generally, companies in India do have the flexibility to grant employees unpaid leave if the need arises, but they are usually expected to follow established procedures and get employee consent when doing so. Leave policies, including unpaid leave, are often detailed in employment contracts or company policies.
Deducting unpaid leave from an employee's leave balance may be allowed if it is explicitly mentioned in the employment contract or company policies. However, these policies must comply with relevant labor laws and regulations, which can vary by state in India.
As labor laws in India are complex and can vary by state, it is important for employers and employees to be aware of the specific employment contract and applicable labor laws in their region to understand their rights and responsibilities regarding unpaid leave or any related employment matters. If there are any disputes or concerns, employees can seek legal advice or contact relevant labor authorities for assistance.
Regards
In India, the concept of "furlough" as it is understood in some other countries, especially the United States, is not a recognized legal term. The closest equivalent to furlough in India would be unpaid leave or leave without pay. However, the conditions and rules regarding unpaid leave can vary based on company policies, employment contracts, and applicable labor laws.
Generally, companies in India do have the flexibility to grant employees unpaid leave if the need arises, but they are usually expected to follow established procedures and get employee consent when doing so. Leave policies, including unpaid leave, are often detailed in employment contracts or company policies.
Deducting unpaid leave from an employee's leave balance may be allowed if it is explicitly mentioned in the employment contract or company policies. However, these policies must comply with relevant labor laws and regulations, which can vary by state in India.
As labor laws in India are complex and can vary by state, it is important for employers and employees to be aware of the specific employment contract and applicable labor laws in their region to understand their rights and responsibilities regarding unpaid leave or any related employment matters. If there are any disputes or concerns, employees can seek legal advice or contact relevant labor authorities for assistance.
Regards
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