Question:
What is the minimum amount of compensation paid to a laid off employee under section 25C of the Industrial Disputes Act, 1947?
What is the minimum amount of compensation paid to a laid off employee under section 25C of the Industrial Disputes Act, 1947?
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For lay-off compensation under Section 25C, remember \(50\%\) of basic wages plus dearness allowance.
Updated On: May 22, 2026
- Compensation which shall be equal to forty percent of the total of the basic wages
- Compensation which shall be equal to thirty percent of the total of the basic wages
- Compensation which shall be equal to fifty percent of the total of the basic wages
- Compensation which shall be equal to fifty percent of the total of the basic wages and dearness allowance
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The Correct Option is D
Solution and Explanation
Concept: Section 25C of the Industrial Disputes Act provides compensation to workmen who are laid off, subject to statutory conditions.
Step 1: Understand lay-off compensation.
Lay-off compensation is paid because the workman is willing to work but is not given work due to reasons like shortage of power, raw material, breakdown of machinery or similar reasons.
Step 2: Identify the statutory amount.
Section 25C provides compensation equal to fifty percent of the total of basic wages and dearness allowance. \[ \text{Lay-off compensation} = 50\%(\text{Basic wages} + \text{Dearness allowance}) \]
Step 3: Select the correct option.
The correct option includes both basic wages and dearness allowance. Therefore, the correct answer is option (D).
Step 1: Understand lay-off compensation.
Lay-off compensation is paid because the workman is willing to work but is not given work due to reasons like shortage of power, raw material, breakdown of machinery or similar reasons.
Step 2: Identify the statutory amount.
Section 25C provides compensation equal to fifty percent of the total of basic wages and dearness allowance. \[ \text{Lay-off compensation} = 50\%(\text{Basic wages} + \text{Dearness allowance}) \]
Step 3: Select the correct option.
The correct option includes both basic wages and dearness allowance. Therefore, the correct answer is option (D).
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