Employ Rights when Laid Off

Your employee rights in India upon layoff depend on several factors, including your length of service, industry, and the size of your company. Here’s a breakdown:

• Severance pay:
  • Industrial Disputes Act (IDA): 15 days’ average pay for each completed year of service (if covered under the act).
  • Payment of Gratuity Act: Gratuity payment if you’ve worked for 5+ years.
  • Company policy: Additional severance might be provided based on the company’s policy or contractual agreement.

• Notice period: Depending on your employment contract or applicable law, you might be entitled to a notice period before being laid off.
• Unpaid dues: All earned wages, accrued leaves, and any other pending dues must be cleared by the employer.
• Protection against unfair termination: If the layoff is deemed unfair (e.g., discriminatory reasons, procedural flaws), you might have a case for challenging it through labor courts. Consult a lawyer for legal advice.
• Re-employment benefits: Certain industries offer schemes for re-employment or skill development assistance to laid-off workers.

Knowing solely about the laws is not enough if you don’t know how to use them. It is equally important to know what you should do after a layoff and get your rights.

Imagine walking into the office, expecting another workday, only to be met with unexpected news: “Your position has been eliminated.” Whether through formal termination or a company-wide layoff, losing your job can be overwhelming. But before the anxiety spirals, take a breath. While the initial shock is real, so is the opportunity to navigate this change with clarity and purpose. This article clears the difference between termination and layoff, empowers you with your rights, and provides practical steps to take control of your career path. So, let’s dive in.