Rights of workers laid-off for compensation, etc
Section 67 of the Industrial Relations Code, 2020 deals with rights of workers laid-off for compensation, etc. 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 em The Act was enacted on 28 Sep 2020.
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 laidoff, 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.
Section 67, The Industrial Relations Code, 2020 (Act 35 of 2020).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
This section refers to
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Apollo Tyres vs Industrial Tribunal
Court's Decision & Legal Precedent
An employer who never in fact laid off its workmen, and who followed none of the lay-off procedure prescribed by section 25C read with section 25M and Rules 75B and 75BB (held to be mandatory), cannot invoke the section 25E(iii) disqualification to deny wages to workers of other sections idled by a strike confined to one section; mere expressions of solidarity with the striking section do not make those workers strikers, and the shortage of power contemplated by the lay-off provisions means an external failure of supply, not a stoppage caused by the employer's own striking workmen.
On this section: Fixes the entry point of the lay-off compensation right that section 67 confers: the employer must actually invoke and complete the statutory lay-off procedure before any lay-off consequence, favourable or disqualifying, can be claimed.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Questions about Section 67
What have the courts held on Section 67 of the Industrial Relations Code?
Apollo Tyres vs Industrial Tribunal (16 Sep 2015) is the leading judgment on this section among those set out below: Fixes the entry point of the lay-off compensation right that section 67 confers: the employer must actually invoke and complete the statutory lay-off procedure before any lay-off consequence, favourable or disqualifying, can be claimed.
How do I find court cases under Section 67 of the Industrial Relations Code?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Industrial Relations Code 67, section 67 Industrial Relations Code, section 67 of the Industrial Relations Code. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with Apollo Tyres vs Industrial Tribunal (16 Sep 2015).
What should I read with Section 67 of the Industrial Relations Code, and has it changed?
Its own text turns on section 70 (Conditions precedent to retrenchment of workers), so none of them can safely be read on its own. 3 other provisions in this corpus refer back to it.
When was Section 67 of the Industrial Relations Code enacted?
Section 67 of the Industrial Relations Code, cited as Industrial Relations Code 67, was enacted on 28 Sep 2020 as Act 35 of 2020. It is in force as at the date shown on this page.
Other sections of this Act
- 2. Definitions3327 words
- 99. Power of appropriate Government to make rules1827 words
- 86. Penalties1320 words
- 30. Preparation of draft standing orders by employer and procedure for certification942 words
- 78. Prohibition of lay-off858 words
- 79. Conditions precedent to retrenchment of workers to which Chapter X applies706 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.