Dear Naveen,

Workmen can be laid off by virtue of Section 25C of the Industrial Disputes Act, 1947, being paid lay-off compensation at 50% of the total of the basic wages and D.A. Subject to employment strength ranging between 50 to 100, Chapter V-A applies; for more than 100, Chapter V-B applies, where permission of the appropriate government has to be taken mandatorily. When an employer is unable to provide work to their workmen due to machinery failure, lack of raw materials, etc.

Regards, Kiran Kale

From India, Kolhapur
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Hi all,

I need one clarification. Right now, as there is no production/orders, one reputed company is not paying salary to their workers with the "no work, no pay" policy. Can anyone clarify on which act/clause basis they may not be paying?

It's helpful for us in the future if there is no production.

Awaiting your suggestions.

Regards,
Chandan.

From India, Bengaluru
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