Are you a laid-off techie? Here are a few legal remedies

With many tech businesses around the world announcing layoffs in 2023, employees are sometimes unaware of the legal options if they believe they were unlawfully fired off. Here are various options if you believe the employer's decision was unjust.

While the Industrial Disputes Act of 1947 defines layoff, it excludes employees in management or supervisory positions. The Act also states that an employee must be a 'workman' to be eligible for any legal redress provided by it. While the word "workman" is broadly defined, it does not apply to most IT personnel.

When you are laid off, what legislation regulates you?

The Industrial Disputes Act of 1947 was primarily created for blue-collar employees. Employment contracts govern employment in white-collar jobs in India. There is no legislation that governs the termination of technical staff.

An employment contract is a detailed agreement that an employee must sign before beginning work for a company. It is a document that outlines an employee's rights and the expectations of the organisation at work.

Before beginning any new job, the employee should be aware that the terms of the contract are not written in stone, and the employee can request a change of the conditions to meet their needs. When an employee is laid off, the employment contract should be the first document they see.

What should you do if you've been laid off?

Even if you are not covered by the ID Act, you still have certain legal remedies if you are laid off. You must consult your contract to see whether the cause for your termination is covered in that.


Contract infringement
If your employment contract does not include an arbitration clause, you can also file a claim in civil court. This is possible if you discover that your employer did not follow the termination method outlined in your contract.


Arbitration
Employment contracts typically include an arbitration provision that states that the employer and you agree to settle any disagreements via the employment of an arbitrator.

How can you tell whether you're a workman?

If you are a worker, you can file a claim with the labour courts. According to the ID Act, a workman is someone who works in any industry and does physical, unskilled, skilled, technical, operational, clerical, or supervisory work for pay or reward. A manager or supervisor is not a labourer.

FAQs

Q1 What are the norms and requirements governing employee layoffs?
According to the ID Act, enterprises employing 100 or more people must obtain prior approval from the competent authorities before closing, retrenchment, or layoff.


Q2 How long can you be laid off?
A worker is not laid off for more than 45 days in any 12-month period.