Lay-off : Meaning, Definition, Essentials of Lay-off

1) Meaning:

          Lay-off is occasioned by the employer's failure or inability on account of economic reasons to give employment to a workman whose name is born on the muster roll. It means Putting aside workmen temporarily. Lay-off is for trade reasons beyond the control of the employer, i.e, it is not an intentional act. In Lay-off the employer and employee relationship does not come to an end but it is merely suspended during the period of emergency.

2) Definition: 

          The Term Lay-off is defined in section 2(kkk) of the Industrial Dispute Act, 1947 as follows -
“Lay-off” (with its grammatical variations and cognate expressions) means the failure, refusal or inability of an employer on account of shortage of coal, power or raw materials or the accumulation of stocks or the breakdown of machinery or natural calamity or for any other connected reason to give employment to a workman whose name is borne on the muster rolls of his industrial establishment and who has not been retrenched.

[  See... Difference between Lay-off and Retrenchment ]

Explanation: Every workman whose name is borne on the muster rolls of the industrial establishment and who presents himself for work at the establishment at the time appointed for the purpose during normal working hours on any day and is not given employment by the employer within two hours of his so presenting himself shall be deemed to have been laid-off for that day within the meaning of this clause:
 
         Provided that if the workman, instead of being given employment at the commencement of any shift for any day is asked to present himself for the purpose during the second half of the shift for the day and is given employment then, he shall be deemed to have been laid-off only for one-half of that day:

         Provided further that if he is not given any such employment even after so presenting himself, he shall not be deemed to have been laid-off for the second half of the shift for the day and shall be entitled to full basic wages and dearness allowance for that part of the day.

[ See...Difference/ Distinction between Layoff and Strike ]

3) Essentials of Lay-off:

Following are the essential elements of Lay-off

     1) There must be failure or refusal or inability of an employer to give the employment to the worker.

     2) The name of workman must appear on the muster rolls of the establishment

     3) The failure, refusal or inability of an employer to give the employment must be on account of one or more of the following reasons –

  (i) Shortage of Coal

  (ii) Shortage of power

 (iii) Shortage of raw materials 

 (iv) The accumulation of stocks

 (v) The breakdown of machinery

 (vi) Natural calamity or for any other connected reason

     4) The workman, in question, must not have been retrenched.

See also....

Difference between Lay-off and Lockout