Definition of Lay-off under the Industrial Dispute Act
Lay-off is a practice whereby the employer cannot provide employment to workmen for various reasons, including a shortage of raw materials, coal or power, accumulation of stocks, breakdown of machinery, etc., or for any other related reason. It has been defined under Section 2(kkk) of the ID Act. If a workman, whose name is on the muster rolls of the industrial establishment, presents himself for work and is not given employment within two (2) hours of presenting himself, he shall be deemed to have been laid-off for that day.
Compliance with Labour Legislations
All industrial establishments in India must ensure compliance with various labour legislations, including the Act. The application of the provisions pertaining to lay-off is restricted by virtue of Section 25A. It states that industrial establishments with below fifty (50) workmen on average per working day in the preceding calendar month, or industrial establishments of a seasonal character, or industrial establishments to which Chapter 5B3 of the Act applies, will not be bound by Sections 25C to 25E (both inclusive). This implies that such workmen:
- will not be entitled to any compensation for being laid off.
- will not be entered into the muster rolls of the employer.
- will not fall under any of the exceptions to avail compensation.
Entitlement to Compensation
It is important to note that workmen are entitled to compensation only if they have been in continuous service. Defined under Section 25B of the Act, a workman is said to be in continuous service if he provides uninterrupted service, which includes interrupted service due to sickness, accident, strikes that are not illegal, lockout, or cessation of work not due to the fault of the workman. In other words, the duration when the workman is out of the office on account of illness is not excluded while computing continuous service.
Criteria for Continuous Service
The service is construed as continuous for a period of 1 year if the workman works in the previous year for:
- 190 days below the ground in a mine.
- 240 days in any other job.
The service is construed as continuous for a period of 6 months if the workman works in the preceding 6 months for:
- 95 days below the ground in a mine.
- 120 days in any other job.