1. #1
    Unregistered

    Can we layoff the employees because of the shortage of work? Do we need to pay them for the duration of layoff?

    Ours a small software company name Cognas. We have 500 employees. Recently one of the competitor has taken up our company and planning to layoff some of the employees. They think this resource are in excess and need to reduce because of cost cutting and recession. Can we layoff the employees because of shortage of work? Do we need to pay them for the duration of layoff? Can we layoff them permanently?

  2. #2
    SKS Array
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    Re: Can we layoff the employees because of the shortage of work? Do we need to pay them for the duration of layoff?

    Employees can be laid off Permanently also.
    But in that case you need to pay them either 2-3 months salary.
    This is the Normal Prcatice that is followed across companies.
    You cannot just ask them not to come to office from tomorrow.

    Also if the work is less and the employees do not have work to do, than in that case you can ask the employee to go on leave.
    You need to tell them that presently work is less, so they can take leaves.
    You can just Pay them the Basic salary for the time they are given leave and are sitiing at home.

    In this way employee also feels that they might be called again for work and they also are getting some salary each month, so they can spend it on their monthly expenses.

    So you can utilise both the options.

  3. #3
    vijaybanna Array
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    Re: Can we layoff the employees because of the shortage of work? Do we need to pay them for the duration of layoff?


    Dear friend

    Yes it is possible you can do this..

    You can permanently send them on leave and give some compensation to them if their shortage of money in the company..

    And this situation arises that there is very less work and the employees are sitting idle then you can send them on temporary leave and pay them the basic salary and when the work increases tell them to return back..

    So do that thing only that makes the company prosper..

    ALL THE BEST

  4. #4
    Arjun Array
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    Re: Can we layoff the employees because of the shortage of work? Do we need to pay them for the duration of layoff?

    Dear, asker Today lay-off means termination of an employee. But you cannot directly terminate you have to explain the reason of lay-off suppose to say that at present there is no work for 500 men only 100-200 men can work. But the company have to give salary for 3-4 months to employee before lay-off

  5. #5
    neha agarwal Array
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    Re: Can we layoff the employees because of the shortage of work? Do we need to pay them for the duration of layoff?

    Hi,

    You can layoff the employees as per the company need, but according to me instead of taking a decision of layoff instantly, you can do the following:

    1. You can ask the employees to take a leaves for sometime and can pay them only basic salary. Once the market will be up and you will get the work, you can ask them to join again.
    2. If you do not have a technical work, then you can ask the employee to do some non technical work if required.
    3. You can also ask them to keep looking forward in the market for new job.

    At last if situation is worst for company, then if you will ask them for resignation, then you have to allow the employee to serve the entire notice period and pay them full month salary, by this the employee will get enough time to look forward.

  6. #6
    Sai Deep Array
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    Re: Can we layoff the employees because of the shortage of work? Do we need to pay them for the duration of layoff?

    Hello,

    The employees get lay off during the recession time as there is no work and market is down .

    And you can pay them but on temporary basis.

    But its not good to lay off the employees without any reason.

    so do not take such steps as so many employee's career would be at stake.

    Thank you

  7. #7
    Ashok Array
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    Re: Can we layoff the employees because of the shortage of work? Do we need to pay them for the duration of layoff?

    Dear Aspirant,

    It is a matter of terms & conditions of the appointment to the employees.The employer has always right to lay off the employees permanently,but after giving them notice of 2 to 3 months in advance or paying them salary for 2 to 3 months.This is a common practice being adopted particularly in software companies across the world.The companies recruits the employees in need & they layoff in recession period of the company.

    Thanks.

  8. #8
    G.one Array
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    Re: Can we layoff the employees because of the shortage of work? Do we need to pay them for the duration of layoff?


    • Layoff has become common in all kind of companies as every company is going through receission period.
    • If your company has less work and excessive human resources, so in order to increase profit or say for cost cutting laying off the employees becomes necessary.
    • You may lay off the employees either temporarily or permanently basis.
    • In temporarily basis you need to compensate your employees for the time they will be at the home.
    • The amount of compensation will be mutually decided by the management and all the employees.
    • In permanent basis, In order to layoff, you must have to pay 2-3 months salary for being laying off.

  9. #9
    Chittaranjan Array
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    Re: Can we layoff the employees because of the shortage of work? Do we need to pay them for the duration of layoff?

    Dear Sir, A company can not take any action/punishment against employee without following the company guidelines/rules.

    layoff is a usual phenomenon of the company,this trend prevail when company suffers from getting orders due to recession.

    company can lay off employees under the company law,but they are eligible to get salary partially as they were not terminated from the company following rules.

    Thank you,

  10. #10
    Boss Array
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    Re: Can we layoff the employees because of the shortage of work? Do we need to pay them for the duration of layoff?

    Employees are often arranged off for good conjointly.
    however therein case you wish to pay them either 2-3 months earnings.
    this can be the traditional Practice that's followed across corporations.
    you can't simply raise them to not return to workplace from tomorrow.

    Also if the work is a smaller amount and also the workers don't have work to try to to, than therein case you'll be able to raise the worker to travel inactive.
    you wish to inform them that presently work is a smaller amount, in order that they will take leaves.
    you'll be able to simply Pay them the essential earnings for the time {they square measure|they're} given leave and are sitiing reception.

    during this means worker conjointly feels that they could be referred to as once more for work and that they are obtaining some earnings every month, in order that they will pay it on their monthly expenses.

    So you'll be able to utilize each the choices.
    these days lay-off suggests that termination of associate degree worker. however {you willnot|you can't|you can not} directly terminate you've got to clarify the explanation of lay-off suppose to mention that at the moment there's no work for five hundred men solely 100-200 men can work. however the corporate got to offer earnings for 3-4 months to worker before lay-off.
    It is a matter of terms & conditions of the appointment to the staff.The leader has continually right to get off the staff for good,but when giving them notice of two to three months prior to or paying them earnings for two to three months.This is a typical follow being adopted notably in package corporations across the globe.The companies recruits the staff in want & they closedown in recession amount of the corporate.

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