Defined under Section 2(kkk) of the Industrial Disputes Act, a lay-off is the failure, refusal, or inability of an employer to give employment to a workman whose name is on the muster rolls and who has not been retrenched.
Valid Grounds: Shortage of coal, power, or raw materials; accumulation of stocks; breakdown of machinery; or natural calamity.
Compensation: Under Section 25-C, a workman who has completed one year of continuous service is entitled to lay-off compensation equal to 50% of the total basic wages and dearness allowance for the period of lay-off (up to 45 days).
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