Whenever a worker (other than a badli worker or a casual worker) 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, 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 worker 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 between the worker and the employer to that effect.
Legal Commentary & Landmark Judgments: Section 67
Section 67 of the Industrial Relations Code, 2020 grants non-casual, non-badli workers with at least one year of continuous service an enforceable statutory right to lay-off compensation equal to 50% of basic wages and dearness allowance for all lay-off days, subject to a 45-day cap by agreement.
When laying off workers due to coal shortages, power cuts, or breakdown of machinery, issue a formal lay-off notice specifying the statutory reason. Disburse the 50% compensation on normal monthly wage dates. If the stoppage extends beyond 45 days, execute a bipartite agreement with the negotiating union before suspending compensation.