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CS Professional · Labour Laws and Practice · Law of Industrial Relations

Mr. Iyer, a muster-roll worker with two years of continuous service at Kaveri Engineering, is laid off for 10 working days in a month with one intervening weekly holiday. His basic wages plus dearness allowance would have been Rs 1,000 per day. Under the Code, what compensation is he entitled to for the lay-off period?

He is entitled to Rs 5,000. A worker with at least one year of continuous service gets fifty per cent of basic wages and dearness allowance for all lay-off days except intervening weekly holidays. Ten days at Rs 1,000 gives Rs 10,000, and half of that is Rs 5,000.

  1. ARs 5,000, being fifty per cent for the 10 daysCorrect
  2. BRs 5,500, being fifty per cent for 11 days including the weekly holiday
  3. CRs 10,000, being full wages for 10 days
  4. DRs 2,500, being twenty-five per cent for 10 days

Explanation

Compensation is fifty per cent of basic wages plus dearness allowance for all days of lay-off except intervening weekly holidays. The 10 working days are counted: 10 x 1,000 x 50% = Rs 5,000. Including the holiday would wrongly add a day.

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