Section 25C of IDA : Section 25C: Right Of Workmen Laid-Off For Compensation

Explanation using Example

Imagine a scenario where Ravi, a machine operator at a manufacturing plant, has been working with the company for over two years. Due to a sudden drop in demand for the company's products, the management decides to temporarily reduce the workforce and Ravi is laid off for a period of time. According to Section 25C of The Industrial Disputes Act, 1947, since Ravi is not a badli or casual worker and has more than one year of continuous service, he is entitled to receive lay-off compensation from his employer.

The compensation will be 50% of his basic wages and dearness allowance for the days he is laid off, excluding the weekly holidays. If Ravi is laid off for more than 45 days in a 12-month period and there's an agreement between him and his employer, the compensation will not be paid for the days exceeding the first 45 days of the lay-off.

Furthermore, if the employer decides to retrench Ravi after the first 45 days of lay-off, the compensation Ravi received during the lay-off can be set off against the retrenchment compensation as per the Act's provisions.