Vol. 4, Issue 5 (2019)
The effects of retrenchment on morale and social life of industrial workers in India
Author(s): Dr. Anita Paliwal
Abstract: All over the country in the last several years, a large number of workers have lost their employments due to voluntary retirement schemes, layoffs and closures in both organized and unorganized sectors. In practice, there is hardly any scrutiny on the use of contract labour for jobs of a permanent nature or when the units are trimmed or closed. Employees are often victims of layoffs. Loss of service due to discontinuation stands on the same footing as loss of service due to retention, in both cases; the employee is suddenly out of employment and is not at fault. Closing an undertaking involves the termination of employment of several employees. Not only the workers concerned but their entire family also faces unemployment. This article presents a study of the socio-economic impact of an unexpected and involuntary loss of workers' employment layoffs, evaluates the effectiveness of the law in this regard and tries to assess that those who have lost their employment, they are struggling with retention. Their findings showed that layoffs have a painful effect on a person's life and his family. Even employees who manage to survive, the company, the organization, and the entire society experience the side effects of layoffs. On account of retrenchment, the situation is impenetrable and unalterable.