A, a workman working in a factory employing 80 workers in Hyderabad was laid off by his employer who offered him an alternate similar job in another factory at Secunderabad. But A refused to go. A wants to claim lay-off compensation. Advise.

Facts of the Case

A, a workman employed in a factory in Hyderabad with 80 workers, was laid off due to non-availability of work. The employer offered A an alternate job of similar nature in another factory located in Secunderabad. A refused to accept the alternate employment and now seeks to claim lay-off compensation from the original employer. The dispute revolves around whether refusal of alternate employment affects entitlement to statutory lay-off compensation.

Issues in the Case

1. Whether A is entitled to lay-off compensation despite refusal of alternate employment.
2. Whether the employer has fulfilled statutory obligations by offering alternate employment.
3. The legal effect of refusal on the right to claim lay-off compensation under Indian law.

Legal Principles Covered to Support Case Proceedings and Judgements

• Under Section 2(kkk) and Section 25C of the Industrial Disputes Act, 1947, a workman is entitled to lay-off compensation when laid off due to non-availability of work.
• Section 25C(2) specifies that if the employer offers suitable alternate employment and the workman refuses, lay-off compensation is not payable.
• Courts have consistently held that refusal to accept alternate employment severs the claim to lay-off wages, as the workman cannot claim compensation when gainful alternative work is available.

Possible Judgement

Since A refused the alternate job offered by the employer, he is not entitled to lay-off compensation under Section 25C. The employer’s obligation is limited to providing suitable alternate work, which has been fulfilled. The claim for lay-off compensation is likely to be rejected by the Labour Court or appropriate forum.

About Lawgnan

Lay-off compensation is a statutory right but comes with specific conditions. Refusing alternate employment offered by an employer can affect entitlement to statutory benefits. Workers must understand these provisions under the Industrial Disputes Act, 1947, to protect their rights effectively. If you face disputes regarding lay-offs, alternate employment, or compensation claims, timely legal guidance is essential. Visit lawgana.in for expert insights, step-by-step guidance, and practical solutions on labour disputes. Stay informed, understand your rights, and ensure lawful action to secure compensation or resolve employment conflicts in compliance with Indian labour laws.