Our organisation has applied for Lay Off and clearance from Govt. officials expected soon. Please let me know what will be remuneration of employees? Will it be half of Basic salary or gross salary.
From India, Sambalpur
Dear Harishsbp,

Employee is eligible for Layoff compensation at the rate 50% of Basic + DA for the days laid off subject to maximum 45 days during the period of 12 months. The relevant section 25C is reproduced hereunder for your ready reference and more details.

Section 25C: Right of 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 25F 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.

From India, Mumbai

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