Lay-Off Compensation Under the Industrial Disputes Act
Section 25-C of the Industrial Disputes Act stipulates a formula for the computation of lay-off compensation. It states that lay-off compensation shall be equal to fifty percent of the total of the basic wages and dearness allowance that would have been payable to the employee had they not been laid off. The compensation calculated is to be payable to the workman concerned for all the days they are laid off, except for weekly holidays. The same formula is applied for lay-offs effected under Section 25-M of the I.D. Act as well.
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