Lay Off simply means temporary closure of any work, division of establishment or entire establishment due to any reason such as non availability of material, power or for maintenance. By lay off workmen employed in such job, division or factory or other establishment will become jobless for the time being. In order to compensate loss of remuneration, compensation at the rate of half the ordinary rate of pay will have to be paid to them. Employees who are in the continuous service of at least one year will be eligible for lay off compensation. Continuous service means total employment of 240 days in a year. Wages for this purpose mean basic wages plus dearness allowance. No lay off compensation is required to be paid for the weekly off days and declared holidays.The law relating to lay off is provided in Industrial Disputes Act, 1947.
Regards,
Madhu.T.K