Section 2(kkk) Of The Industrial Disputes Act, 1947 Defines Lay-off As The Failure, Refusal Or Inability Of An Employer On Account

Of:
a)

Shortage Of Coal And Power Or Raw Materials The Accumulation Of Stocks The Breakdown Of Machinery Or Any Other Such Reason

b) c) d)

To Give Employment To A Workmen Whose Name Is Borne On The Muster Roll Of His Industrial Establishment And Who Has Not Been Retrenched

The Temporary Removal Of An Employee From The Payroll Of The Organization Due To Circumstances Which Are Beyond The Control Of The Employer Which May Last For An Indefinite Period However The Employee Is Not Terminated Permanently And Is Expected To Be Called back In Future And Hence The EmployerEmployee Relationship Does Not Come To an End But Is Merely Suspended During The Period Of Lay-off The Main Purpose Of Lay-off Is To Reduce The Financial Burden On The Organization When The Human Resources Cannot Be Utilized Profitably

According To Section 25(c) Of The Industrial Disputes Act,1947, A Laid Off Worker Is Entitled To Compensation Equal to 50% Of their Basic Wages And Dearness Allowance That Would Have Been Payable To Him Had He Not Been Laid Off. However , In Order To Claim This Compensation, The Laid Off Workman Must Satisfy The Following Conditions:

He Should Not Be A Badli Or A Casual Worker His Name Should Appear On The Muster Rolls Of The Industrial Establishment He Must Have Completed Not less Than One Year Of Continuous Service He must Present Himself For Work At The Appointed Time During Normal Working Hours At Least For 2 Hours Compensation Will Not Be Payable If The Employee Refuses Alternate Employment Provided By His Employer

Lay-off Can Only Be Made After Obtaining Prior Permission Of The Government, Except In Cases Of:

Shortage Of Power Natural Calamity Fire/ Flood Excess Of Inflammable Gas

The Government Makes An Enquiry And If It Does Not Communicate With Permission Within 2 Months, Then The Lay-off Is Deemed To Be Granted, But If The Government Refuses The Permission Then The Lay-off Is Deemed Illegal, Then The Workmen Is Entitled For All The Benefits From The Time He Had Been Laid Off

The Industrial Disputes Act,1947 Defines Retrenchment As The Termination By The Employer Of The Services Of Any Workman For Any Reason Other Than The Termination Of Services As Punishment Given By Way Of Disciplinary Action, Or Retirement Either Voluntary Or Reaching The Age Of Superannuation, Or Continued Ill-health Or Closure Or Winding Up Of The Business

No Workman Employed In Any Industrial Establishment Who Has Been To Continuous Service For Not Less Than 1 Year Under An Employer Shall Be Retrenched By That Employer Until:
o

Has Been Given 3 Months Notice In Written, Indicating The Reason For Retrenchment Compensation Shall Be Equivalent To 15 Days Average Pay For Every Completed Years Of Continuous Service Or Any Part Thereof In Excess Of 6 Months Notice Shall Be Given To Appropriate Government Or Such Authority & The Permission Of Such Government Or Authority Is Obtained