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Section 69: Workers not entitled to compensation in certain cases

The Industrial Relations Code, 2020 (Act No. 35 of 2020) • Official Statutory Text & Plain English Practice Guide

Statutory Mandate
Chapter IX: Lay-off, Retrenchment and Closure
Competent Labour Forum
Act No. 35 of 2020
Section 68 All 104 Sections of Industrial Relations Code, 2020 Section 70

Legal Commentary & Landmark Judgments: Section 69

Section 69 of the Industrial Relations Code, 2020 specifies three exhaustive statutory conditions disentitling laid-off workers from receiving compensation: refusal of alternative employment within 5 miles / same town; failure to report daily at the appointed hour; or lay-off caused by a strike/go-slow in another section.

  • Refusal of Alternative Employment: Forfeits compensation if the worker refuses alternative employment in the same establishment or another establishment of the same employer situated in the same town/village or within 5 miles, requiring no special skills and preserving wages.
  • Failure to Present at Appointed Time: Forfeits compensation if the worker fails to present himself for work at the establishment at the appointed time at least once a day during regular working hours.
  • Strike or Slow-Down in Another Section: Absolute forfeiture where the laying-off is directly caused by a strike or slowing-down of production on the part of workers in another part of the same establishment.
Key Landmark Precedents:
  • Industrial Chemicals Ltd. v. Labour Court (1977) II LLJ 137 (Mad): Madras High Court held that refusal of alternative employment within the statutory radius without valid justification disentitles the worker to lay-off compensation, provided wages and conditions are protected.
  • Associated Cement Companies Ltd. v. Their Workmen AIR 1960 SC 56: Supreme Court laid down the test of functional integrality; where a strike in one department halts operations in interdependent departments, lay-off compensation is forfeited under the statutory exception.
Courtroom Practice & Strategic Litigation Guidance:

When offering alternative employment during a lay-off, serve written letters demonstrating that the job is within 5 miles, does not require specialized training, and pays identical wages. If workers fail to sign the Section 68 muster roll, preserve the register entries with supervisor signatures to successfully defend against compensation claims.

Section 68 All 104 Sections of Industrial Relations Code, 2020 Section 70