Rico Auto Industries on Monday said it has laid off 119 permanent workers from its Dharuhera (Haryana) plant with effect from May 22.
In a regulatory filing, the auto-components maker said it had introduced VRS (voluntary retirement scheme) for its permanent associates inDharuhera facility in October, 2019 to rationalise manpower based on business demand.
However, only 42 associates out of 208 took the VRS and to run the plant on a sustainable basis the company needed to reduce the manpower
substantially, by another 119 persons, it added.
"It is for this objective of viability of the plant that 119 workmen have been laid-off with effect from May 2020," Rico Auto Industries said.
The sacked workmen shall be paid compensation as per the provisions of Section 25C of the Industrial Dispute Act, 1947, it added.
Rico's supplies components to various leading four and two wheeler companies.
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