Leagl action against Layoff without advance salary

Dear Client,
Section 2(kkk) of the Industrial Disputes Act, 1947, defines layoff. It states that a workman is said to be laid off when an employer fails, refuses, or is unable to employ the workman whose name is mentioned in the muster roll of an industrial establishment due to reasons beyond the employer’s control. According to Section 25C of the Act, the workman who has been laid off is entitled to receive 50 percent of his total basic earnings and a dearness allowance for the duration of the layoff. If an employer fails to comply with the mandates under the said and relevant labor laws, then the employer shall be punishable under Section 25Q of the Act. In this situation, you can file a complaint to the State Labor Commissioner about your grievance and escalate the matter by filing a suit. You can file a suit against the employer before the Labour Court under Section 33C(2) of the Industrial Dispute Act, 1947 (ID Act) and seek for the recovery of the amount. If you are not covered under the definition of workmen in Section 2(s) of the I D Act, then you can file a civil suit. You can file a case before the jurisdictional civil court under Order 37 of the Civil Procedure Code, 1908 and seek for the compensation dues. If required, you can consult an advocate for advice and compliance.
Hope it helps.
Thank you.

Dear Client,
Layoff is defined under Section 2(kkk) of the Industrial Disputes Act, 1947, which says that a workman is said to be laid off when an employer fails, refuses or is unable to provide employment to the workman whose name is mentioned in the muster roll of an industrial establishment due to reasons beyond the employer’s control. According to, Section 25C of the Act, the workman who has been laid off is entitled to receive 50 percent of his total basic earnings and a dearness allowance for the duration of the layoff. As per Section 25M, the employer cannot lay off the employee without obtaining permission from the concerned government or the authority as specified by the government. Section 25Q of the Act lays down that when an employer violates the provisions mentioned under Section 25M in such circumstances, he will be held liable for the punishment under this Section 25Q, which is imprisonment, which may extend to one month, a fine, which may be extendable up to one thousand, or both. An employer with more than 50 workers must apply for prior permission of the appropriate government before laying off workers/employees of their establishment under Section 25(M) of the Industrial Dispute Act, 1947. To restrict IT Companies from exploiting their employees by playing double standards, the Division Bench of the Karnataka High Court in the case of Commissioner of Income Tax v. Texas Instruments India Pvt Ltd (2021) 435 ITR unambiguously held that the IT sector employees considered to be "workmen" under Section 2(s) of the Industrial Dispute Act, 1947. So, in the prevailing situation, if you are not holding the position of Manager/Supervisor then after serving a legal notice to the Company, you can raise an Industrial dispute over alleged illegal layoff and unfair labour practices before the concerned Labor Commissioner and simultaneously file an application u/s.33C(2) of the I D Act before the concerned Labour Court claiming dues/compensation from your employer receivable to an employee on illegal laid off from the employment. Otherwise, if you are holding the position of Manager/Administrative Officer in the Company, you have to file a civil suit before the Civil Court seeking appropriate relief in the matter. Feel free to contact our legal team. if you need any assistance in the matter of drafting the complaint or raising a dispute under the I D Act before the Industrial Tribunal / Labour Court/Civil Court, to navigate the issue in the right way.