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- Lay-off means the failure, refusal or inability of employer on account of contingencies mentioned in Section 2(kkk) to give employment to a workman whose name is borne on the Muster Rolls. It has been called a temporary discharge of the workmen or a temporary suspension of his contract of service. Strictly speaking, it is not so. It is merely a fact of temporary unemployment of the workman in the work of the industrial establishment. Mere refusal or inability to give employment to the workman when he reports for duty is not temporary discharge of the workman.
- There is no provision in the Act specifically providing that an employer would be entitled to lay-off his workmen. Such power therefore must be found out from the terms of contract of service or the Standing orders governing the Establishment.
- In this case, there being no Standing orders certified and there being no contract of service conferring any such right of lay-off, the inescapable conclusion is that the workmen were laid-off without any authority of law or the power in the management under the contract of service. If the terms of a contract of service or the statutory terms engrafted in the Standing orders do not give the power to lay-off to the employer, the employer would be bound to pay compensation for the period of lay-off which ordinarily and general would be equal to the full wages of the concerned workman.
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