Lay Off - Definition - Law Dictionary Home Dictionary Definition lay-off

Definition :

Lay off, s. 2(kkk) of Industrial Disputes Act, 1947 defines a lay off. Lay-off may be due to shortage of coal or shortage of power or shortage of raw materials or accumulation of stocks or break-down of machinery or any other reason, Management of Kairbetta Estate v. Rajamanickam, AIR 1960 SC 893: (1960) 3 SCR 371.

It means the failure, refusal or inability of employer on account of contingencies mentioned in clause (kkk) of the Industrial Disputes Act, s. 2 to give employment to a workman whose name is borne on the muster rolls of his industrial establishment. It is merely a fact of temporary unemployment of the workman in the work of the industrial establishment. The principles governing the case of lay-off are very akin to those applicable to a suspension case. When lay-off is found justified workmen may not be awarded any wages or compensation, Workmen of M/s. Firestone Tyre & Rubber Co. of India (P) Ltd. v. Firestone Tyre & Rubber Co., AIR 1976 SC 1775: (1976) 3 SCC 819: (1976) 3 SCR 369. [Industrial Disputes Act, 1947, s. 2(kkk)]

It means to discontinue work or activity; to dismiss or discharge temporarily, Priya Laxmi Mills Ltd. v. Mazdoor Mahajan Mandal, AIR 1976 SC 2584 (2588): (1977) 1 SCC 28: (1977) 1 SCR 709.

The term 'lay off' implies that the employer is not in a position to offer employment to his employee and, therefore, he terminates his employment temporarily during the emergency, Nutan Mills v. Employees State Insurance Corporation, AIR 1956 Bom 336 (340). [Employees' State Insurance Act, (34 of 1948)]