Type:Trigger
Frequency: Quarterly
Action to be taken:
Where an establishment is not seasonal nor one where work is performed intermittently and employs at least 50 but less than 100 workmen on an average per working day, if a workman (other than a badli or a casual workman) who has completed one year of continuous service (Section 25-B) is laid off whether continuously or intermittently, the workman shall be paid compensation at 50% of his basic wage and DA for all days he is laid off except for weekly holidays. The employer shall maintain a muster roll to enable laid off employees to make entries when they present themselves for work.
A workman is not eligible for compensation if
(a) he refuses to accept alternative employment at his current wages in the same establishment or in an establishment belonging to the same employer within a 5 mile radius
(b) If he does not present himself for work at the appointed time at least once a day
(c) If the lay off is due to a strike or slowing down of production of workers in the same establishment
Audit Requirement:Have all workmen who have been laid off been paid compensation as per Section 25-C & E ? Is a muster roll maintained for laid off workmen ?
Supporting Documents:Details of Lay Offs and Compensation Paid
Related Triggers:
Lay Off Of Employees
Number of Workers In The Establishment
Stoppage of Work
Temporary Closure or Reopening Of An Establishment
Related Keywords:
Dispute, Industrial Dispute
Lay-Off
Remuneration/Wages/Compensation
Related Sections:
Industrial Disputes Act, 1947
Chapter:Lay-off and Retrenchment|
25-C:Right or workmen laid off for compensation:
Whenever a workman (other than a badli workman or a casual workman) whose name is borne on the muster - rolls of an industrial establishment and who has completed not less than one year of continuous service under an employer is laid off, whether continuously or intermittently, he shall be paid by the employer for all days during which he is so laid off, except for such weekly holidays as may intervene, compensation which shall be equal to fifty per cent of the total of the basic wages and dearness allowance that would have been payable to him had he not been so laid off :
Provided that if during any period of twelve months, a workman is so laid off for more than forty-five days, no such compensation shall be payable in respect of any period of the lay-off after the expiry of the first forty-five days, if there is an agreement to that effect between the workman and the employer :
Provided further that it shall be lawful for the employer in any case falling within the foregoing proviso to retrench the workman in accordance with the provisions contained in Section 25-F at any time after the expiry of the first forty-five days of the lay-off and when he does so, any compensation paid to the workman for having been laid off during the preceding twelve months may be set off against the compensation payable for retrenchment.
Explanation - "Badli workman" means a workman who is employed in an industrial establishment in the place of another workman whose name is borne on the muster-rolls of the establishment, but shall cease to be regarded as such for the purposes of this section, if he has completed one year of continuous service in the establishment.
Industrial Disputes Act, 1947
Chapter:Lay-off and Retrenchment|
25-D:Duty of an employer to maintain muster-rolls of workmen:
Notwithstanding that workmen in any industrial establishment have been laid off, it shall be the duty of every employer to maintain for the purposes of this Chapter a muster-roll, and to provide for the making of entries therein by workmen who may present themselves for work at the establishment at the appointed time during normal working hours.
Industrial Disputes Act, 1947
Chapter:Lay-off and Retrenchment|
25-E:Workmen not entitled to compensation in certain cases:
Workmen not entitled to compensation in certain cases - No compensation shall be paid to a workman who has been laid off -
(i) if he refuses to accept any alternative employment in the same establishment from which he has been laid off, or in any other establishment belonging to the same employer situate in the same town or village or situate within a radius of five miles from the establishment to which he belongs, if, in the opinion of the employer, such alternative employment does not call for any special skill or previous experience and can be done by the workman, provided that the wages which would normally have been paid to the workman are offered for the alternative employment also;
(ii) if he does not present himself for work at the establishment at the appointed time during normal working hours at least once a day;
(iii) if such laying-off is due to a strike or slowing-down of production on the part of workmen in another part of the establishment.
