Contents of the Industrial Relations Code

The Industrial Relations Code, 2020

Section 67. Rights of workers laid-off for compensation, etc

In force since 21 Nov 2025Chapter IX — Lay-off, Retrenchment and Closure

Official text

Whenever a worker (other than a badli worker or a casual worker) whose name is borne on the muster rolls of an industrial establishment and who has completed not less than one year of continuous service under an employer is laid-off, whether continuously or intermittently, he shall be paid by the employer for all days during which he is so laid-off, except for such weekly holidays as may intervene, compensation which shall be equal to fifty per cent. of the total of the basic wages and dearness allowance that would have been payable to him, had he not been so laid-off:

Provided that if during any period of twelve months, a worker is so laid-off for more than forty-five days, no such compensation shall be payable in respect of any period of the lay-off after the expiry of the first forty-five days, if there is an agreement to that effect between the worker and the employer:

Provided further that it shall be lawful for the employer in any case falling within the foregoing proviso to retrench the worker in accordance with the provisions contained in section 70 at any time after the expiry of the first forty-five days of the lay-off and when he does so, any compensation paid to the worker for having been laid-off during the preceding twelve months may be set off against the compensation payable for retrenchment.

Explanation.— For the purposes of this section "badli worker" means a worker who is employed in an industrial establishment in the place of another worker whose name is borne on the muster rolls of the establishment, but shall cease to be regarded as such, if he has completed one year of continuous service in the establishment.

Source: The Industrial Relations Code, 2020, Act No. 35 of 2020 — Gazette of India, pp. 32–33 of the PDF. Open our copy at p. 32 · official download · all sources

Compliance obligations under this provision

Commencement In force since 21 Nov 2025

Notification wording (1)
  • S.O. 5320(E), in force from 21 Nov 2025: “the Central Government hereby appoints the 21st day of November, 2025 as the date on which the provisions of the said Code, shall come into force”