Selection order for dismissals and layoffs in detail
An employer will first need to determine which employees are ‘workmen’ under the Industrial Disputes Act (‘ID Act’) and which employees are ‘non-workmen’.
A workman would generally be any employee engaged to do manual, unskilled, skilled, technical, operational, clerical or supervisory work for hire or reward, but would not include an employee engaged in:
- a managerial or administrative capacity; or
- a supervisory capacity, drawing wages of more than INR 10,000 per month.
It is the actual job of the employee (and not the job title) that is critical in this.
The ID Act lays down a ‘last in, first out’ system under which the employer is statutorily required to make redundant the ‘workman’ last employed in the relevant employment category in the organisation, unless the requirement is contracted out by both parties or the employer is able to provide valid reasons for deviating from this requirement.
The above does not apply to ‘non-workman’ category employees.
Author: Kochhar & Co.
Date: December 2019