Trace Your Case

ISSUE:

Whether section 25C of the Industrial Disputes Act, 1947 confers an inherent power on management to declare a lay-off, particularly in cases not explicitly covered by the standing order ?

Whether the management had the right to lay-off?

Whether the workmen are entitled to claim wages or compensation?

RULE:

The Industrial Disputes Act does not inherently grant management the power to lay off employees without compensation unless this right is explicitly included in the contract of service or standing orders.

In the absence of such contractual terms, any lay-off imposed is unauthorized, and full wages are generally due to the affected workmen, subject to the Tribunal's discretion to adjust the compensation based on lay-off justification.

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