What is Lay-Off?
A lay-off is when an employer cannot give work to a worker for reasons such as a shortage of power, coal or raw materials or breakdown, and the worker stays on the muster roll. Under the Industrial Relations Code, 2020 a laid-off worker gets compensation equal to 50% of basic wages plus dearness allowance.
Example
A plant stops for a week because of a machinery breakdown. Workers on the rolls are laid off and paid 50% of basic wages plus dearness allowance for the period, as the Ministry's handbook states.
Related
See retrenchment and Industrial Relations Code.
Related terms and guides
Sources
- Ministry of Labour and Employment, Compliance Handbook for Employers under the Four Labour Codes, https://www.labour.gov.in/static/uploads/2026/02/83978455025732b99b0165def80ab171.pdf, live official page, linked for readers; link checked 2026-10-31
This is general information, not legal, tax or immigration advice. Rules change and your situation may differ. Consult a licensed attorney or qualified adviser.