Lay Off Compensation whether payable after 45 days under I.D Act 1947
3 years ago
Once Layoff is declared, in a Factory or Mines, under Sec.25-C lay off compensation has to be paid. The law says that after 45 days of Lay off, the employer can go for retrenchment. The questions are (i) Whether the lay off compensation has to be paid even after 45 days, if the lay off still continues beyond 45 days or not (ii) After 45 days of lay off, if retrenchment is made, then whether the one month notice pay has to be given or not, (iii) After 45 days of lay off, if retrenchment is made, then whether the half month wages, paid for 45 days, can be deducted or adjusted in the retrenchment compensation payable to the workmen or not ?
A.Hi,
1. The general rule is that the workman must be paid for all days he is laid off, but if there is a clause in the employment contract stating that no compensation shall be paid after 45 days, then the employer is not bound to pay for more.
2. No, the need for notice is normally regarded as waived.
3. Yes, the sum can be deducted or adjusted according to the amount already paid.
1. The general rule is that the workman must be paid for all days he is laid off, but if there is a clause in the employment contract stating that no compensation shall be paid after 45 days, then the employer is not bound to pay for more.
2. No, the need for notice is normally regarded as waived.
3. Yes, the sum can be deducted or adjusted according to the amount already paid.
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Ayantika Mondal @ Prime Legal
Responded 3 years ago
A.Hi,
1. The general rule is that the workman must be paid for all days he is laid off, but if there is a clause in the employment contract stating that no compensation shall be paid after 45 days, then the employer is not bound to pay for more.
2. No, the need for notice is normally regarded as waived.
3. Yes, the sum can be deducted or adjusted according to the amount already paid.
1. The general rule is that the workman must be paid for all days he is laid off, but if there is a clause in the employment contract stating that no compensation shall be paid after 45 days, then the employer is not bound to pay for more.
2. No, the need for notice is normally regarded as waived.
3. Yes, the sum can be deducted or adjusted according to the amount already paid.
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