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IT/ITES?

BPO companies come within the ambit of the definition of the term "industry" as defined under the Industrial Disputes Act 1947. Therefore, the definition section of lay off that is Section 2(kkk) is applicable to these industries. As you said, these industries are covered by the provisions of the Shops and Establishments Act that are in force in the different States. Different States have different Shops and Establishments Act. As I pointed out in my previous post the Chapters V-A and V-B of the Industrial Disputes Act prescribe the procedure to be followed in the case of lay off, retrenchment and closure. Either Chapter V-A or Chapter V-B is applicable depending on the number of workmen employed. If you go through section 25A(1), you will see that Chapter V-A is applicable to industrial establishments employing 50 or more workmen but less than 100. You also go through the explanation to section 25C, you will see that the term "indsutrial establishment" is defined to include factories, mines and plantations. Similarly if you go through section 25K you will see that Chapter V-B is applicable to industrial establishments employing 100 or more persons. Again you go through section 25L you will see that the term "industrial establishment" is defined to include factories, mines and plantations. Therefore the entire Chapter V-A and Chapter V-B of the Industrial Disputes Act applies only to factories, mines or plantations employing the prescribed number of workmen as the case may be. Coming to your query, IT/ITES/BPO companies are not either factories or mines or plantations. Therefore, Chapter V-A and Chapter V-B are not applicable to IT/ITES/BPO companies. If you read my previous post, you will notice that I have stated that the Industrial Disputes Act prescribes the procedure to be followed in case of lay-off, retrenchment or closure and does not confer any power on the employer to lay-off, retrench or for closure. Therefore the power to lay-off has to be found in the certified standing orders, or model standing orders. If both the certified standing orders and the model standing orders are silent or in cases where the Industrial Employment(Standing Orders) Act is not applicable to the IT/ITES/BPO companies, then the power to lay off has to be found in the contract of employment which is the appointment letter. If the appointment letter is also silent then the employer has no power to lay off and if he lays off his workmen, they are entitled to full wages for the period for which they were laid off.

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