Press "Enter" to skip to content

Labour Ministry says 3557 workers were laid off from January-June this year

However, the number is expected to be higher as companies across the board had announced layoffs in May which amount to more than the government figure.
Image for representation
A total of 3557 workers were laid off during the period from January to June this year, the Union Ministry of Labour and Employment said. During the first three months of the current fiscal when the lockdown was in force, 1748 workers got impacted, Minister of State (IC) for Labour and Employment, Santosh Kumar Gangwar said in response to a question in the Rajya Sabha posed by Congress leader Ripun Bora. 
Further, the minister said in his response that 16,161 jobs were lost during the corresponding 6-month period last year.  
Among other things, the questions asked included whether there were random lay-offs of employees of the MNCs and private entities in the country since COVID-19 period, and if so, the monthly report and data on the suspension and termination of staff since January 2017 including the last six months of COVID-19 period.
In response, the Ministry stated, “Labour Bureau brings out Statistics on “Industrial Disputes, Closures, Retrenchments and Lay-offs in India” based on the voluntary returns received every month from the Labour Departments of the States and the Regional Labour Commissioner (Central).”
However, a survey by in May had revealed that at least one in 10 Indian jobseekers were confirmed to have been laid off and nearly three in 10 jobseekers feared a layoff is imminent.
Several companies, large and small, laid off employees including startups such as BookMyShow, Swiggy, Indiabulls, Ola, Uber, Zomato, WeWork,, Livspace, Bounce and others. 
Swiggy is said to have laid off 1100 employees in May across business functions as it looked to trim costs to achieve profitability. Ola said it was laying off 1400 employees across its mobility, foods and financial services businesses.
Financial services group Indiabulls Group had reportedly asked over 2000 employees to resign as a result of company restructuring. 
Zomato said in May that it is letting go 13% of its workforce, which equates to around 650 employees. 
Event ticket platform BookMyShow had said that 270 employees out of its total workforce of 1450 in India and globally will be impacted, with a mix of furloughs and layoffs across functions and teams.
This contradicts the government figures as the layoffs already add up to over 5000. 
Meanwhile, the Ministry’s statement said that under the Constitution of India, labour falls under the Concurrent list and the Central government and state governments are competent to enact legislations in their respective jurisdictions. 
“Ministry of Labour & Employment has the mandate to protect & safeguard the interests of workers with due regard to creating a healthy work environment for higher production and productivity and to provide social security to the labour force Central Labour Laws dealing with minimum wages, accidental and social security benefits, occupational safety and health, conditions of employment, disciplinary action, formation of trade unions, industrial relations etc.,” it added. 
Further, the statement said that the office of Chief Labour Commissioner (Central) conducts inspections from time to time through its regional offices under various Labour Laws to ensure that statutory provisions are implemented and legal actions are initiated as per law in case of any violations. ​