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Dear All, As the Winter is approaching we are planning to lay-off. Please specify the eligibility criteria for 50% wages to be paid to the workers during the Lay-off period i.e. who is eligible to receive a 50% wage. I have workers who have joined in the month of October 2020 and I have workers who are with me for more than one year. Are they all required to be paid 50% wages or only who have completed 240 days?
From India, Kannur

Dear Khushal,

You have not mentioned the type of your industrial establishment and the total no of workmen employed in the preceding 12 months period. To apply the process of lay off, your establishment must be the one among the three industrial establishments as defined under the explanation to section 25-A or 25-L of the IDA,1947. If not, you cannot resort to lay off unless there is a provision in the contract of employment and still you are compelled to lay off your workmen, you will have to pay them full wages.

Please refer to section 25-C of the IDA,1947. Whether your establishment falls under Chapter V-A or V-B, you can lay off those employees who have completed one year of continuous service or more in your establishment prior to the actual date of proposed lay off and pay them compensation equal to 50% of the sum of basic + D.A only..

From India, Salem
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