The Minister of State for Labour and Employment, Shri RameswarTeli in a written reply to a question in Lok Sabha on March 13, 2023 informed that 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 provisions of the Industrial Disputes Act, 1947 (ID Act) which also regulates various aspects of lay-off and conditions precedent to retrenchment of workmen.
The Hon’ble Minister further stated that 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 the Central Government, the Central Industrial Relations Machinery (CIRM) is entrusted with the task of maintaining good industrial relations and protecting the interest of workers including on matters relating to layoff 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 lies with the respective State Governments.