Labour Codes FAQs
When does an employer need government permission to lay off or retrench workers?
Under the Industrial Relations Code, prior government permission for lay-off, retrenchment and closure is required in factories, mines and plantations employing 300 or more workers, up from 100 under the old law. Retrenched workers are entitled to notice and compensation, and the employer must also contribute fifteen days’ wages per worker to a re-skilling fund.
General information on Indian law, not legal advice. For advice on your situation, contact the firm.
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