A.
Dear Client,
Layoff is defined under Section 2(kkk) of the Industrial Disputes Act, 1947, which says that a workman is said to be laid off when an employer fails, refuses or is unable to provide employment to the workman whose name is mentioned in the muster roll of an industrial establishment due to reasons beyond the employer’s control. According to, Section 25C of the Act, the workman who has been laid off is entitled to receive 50 percent of his total basic earnings and a dearness allowance for the duration of the layoff. As per Section 25M, the employer cannot lay off the employee without obtaining permission from the concerned government or the authority as specified by the government. Section 25Q of the Act lays down that when an employer violates the provisions mentioned under Section 25M in such circumstances, he will be held liable for the punishment under this Section 25Q, which is imprisonment, which may extend to one month, a fine, which may be extendable up to one thousand, or both. An employer with more than 50 workers must apply for prior permission of the appropriate government before laying off workers/employees of their establishment under Section 25(M) of the Industrial Dispute Act, 1947. So, in the prevailing situation, if you are not holding the position of Manager/Supervisor then after serving a legal notice to the Company, you can raise an Industrial dispute over alleged illegal layoff and unfair labour practices before the concerned Labor Commissioner and simultaneously file an application u/s.33C(2) of the I D Act before the State Labour Court claiming dues/compensation from your employer receivable to an employee on illegal laid off from the employment. Otherwise, if you are holding the position of Manager/Administrative Officer in the Company, you have to file a civil suit before the Civil Court seeking appropriate relief in the matter.
Posted On 07-Aug-2025
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