Press Information Bureau
Government of India
Ministry of Labour & Employment
12 DEC 2022 5:52PM by PIB Delhi
E-Commerce Platform

Employment and retrenchment including lay-offs are a regular phenomenon in industrial establishments. Matters relating to lay-off and retrenchment in industrial establishments are governed by the provisions of the Industrial Disputes Act, 1947 (ID Act) which also regulates various aspects of lay-off and conditions precedent to retrenchment of workmen. As per the ID Act, establishments employing 100 persons or more are required to seek prior permission of the appropriate Government before effecting closure, retrenchment or lay-off. Further, any retrenchment and lay-off are deemed to be illegal which is not carried out as per the provisions of ID Act. ID Act also provides for right of workmen laid off and retrenched for compensation and it also contains provision for re-employment of retrenched workmen. Based on their respective jurisdictions as demarcated in the ID Act, Central and State Governments take actions to address the issues of the workmen and protect their interests as per the provision of the Act. In the establishments that lie in the jurisdiction of Central Government, the Central Industrial Relations Machinery (CIRM) is entrusted with the task of maintaining good Industrial relations and protects the interest of workers including on the matters relating to lay off and retrenchment and their prevention. The jurisdiction in the matters with regard to multi-national and Indian companies in the IT, social media, Edu Tech firms and related sectors lie with the respective State Governments.

Amazon India has informed that as a part of their annual operating planning review process, they look at each of their businesses and they believe in change. While going through this process, given the current macro-economic environment, some of their teams are making adjustments, which include giving employees in certain teams an opportunity to opt in for the Voluntary Separation Programme (VSP). The VSP is a completely voluntary programme under which employees opt to receive a fair severance package. They have informed that they do not force its employees to opt for the VSP. The Amazon India informed that the decision to opt in for the VSP is 100% voluntary and they are offering an extended window to employees in case they choose to revisit and/or revoke their decision. Amazon India further informed that in the event an employee does not opt in for VSP, there is no impact on his employment due to the decision.

This information was given by the Minister of State for Labour & Employment, Shri Rameswar Teli in a written reply in Lok Sabha today.