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In the current context – The Ministry of Labour and Employment has issued advisories to public and private employers and establishments to not terminate their employees, particularly casual or contractual employees, from their jobs or reduce their wages. The notification mentions that even if a place of employment is non-operational, the employees would be deemed to be on duty. Being so the various directions/circulars/communications of the government can at best be advisory and not mandatory.
There are certain provisions introduced in the Industrial Disputes Act, for payment of compensation in the event of a lay-off. As per Section 2 of ID Act, if an employer is unable to provide employment to an employee due to a natural calamity or for any other connected reason, then the same would fall within the definition of “Lay Off”
The Industrial Disputes Act 1947 is a Special Law that mandates payment of lay-off compensation in the event of a natural calamity or other connected reasons. The liability in this Special Lay Off which is specific has restricted the payment of 50% of wages as compensation.
Irrespective of the foregoing, these are trying times, and employers should deal with these matters sensitively and after seeking legal counsel.