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Industrial Relations Code, 2020 · CHAPTER IX — LAY-OFF, RETRENCHMENT AND CLOSURE

Section 67: Rights of workers laid-off for compensation, etc

Reviewed by Finin2min Editorial Desk · Last reviewed 30 August 2026

Section 67 — Governs rights of workers laid-off for compensation, etc and the rights, duties, powers or procedure expressly stated in this section. Key operative text: Whenever a worker (other than a badli worker or a casual worker) whose name is borne on the muster rolls of an industrial establishment and who has completed not less than one year of continuous service under an employer is…

Full official textSource checked: 20 August 20260 direct Central Rule link(s)
Current-law status

All provisions were brought into force from 21 November 2025 under S.O. 5320(E); use the current India Code consolidation because the Code also reflects the 2026 amendment/transition framework.

Primary sources

Provision / India Code ↗ · Official Act PDF ↗ · 2026 Central Rules ↗

Finin2min analysis — what the section actually does

Operative clauses

  • Whenever a worker (other than a badli worker or a casual worker) whose name is borne on the muster rolls of an industrial establishment and who has completed not less than one year of continuous service under an employer is laid-off, whether continuously or intermittently, he shall be paid by the employer for all days during which he is so laid- off, except for such weekly holidays as may intervene, compensation…
  • Provided that if during any period of twelve months, a worker is so laid-off for more than forty-five days, no such compensation shall be payable in respect of any period of the lay-off after the expiry of the first forty-five days, if there is an agreement to that effect between the worker and the employer:
  • Provided further that it shall be lawful for the employer in any case falling within the foregoing proviso to retrench the worker in accordance with the provisions contained in section 70 at any time after the expiry of the first forty-five days of the lay-off and when he does so, any compensation paid to the worker for having been laid-off during the preceding twelve months may be set off against the…
  • Explanation.— For the purposes of this section “badli worker” means a worker who is employed in an industrial establishment in the place of another worker whose name is borne on the muster rolls of the establishment, but shall cease to be regarded as such, if he has completed one year of continuous service in the establishment.

Provisos, explanations & qualifications

  • Provided that if during any period of twelve months, a worker is so laid-off for more than forty-five days, no such compensation shall be payable in respect of any period of the lay-off after the expiry of the first forty-five days, if there is an agreement to that effect between the worker and the employer:
  • Explanation.— For the purposes of this section “badli worker” means a worker who is employed in an industrial establishment in the place of another worker whose name is borne on the muster rolls of the establishment, but shall cease to be regarded as such, if he has completed one year of continuous service in the establishment.

Thresholds and timelines in the text

  • Rights of workers laid-off for compensation, etc.—Whenever a worker (other than a badli worker or a casual worker) whose name is borne on the muster rolls of an industrial establishment and who has completed not less than one year of continuous service under an employer is laid-off, whether continuously or intermittently, he shall be paid by the employer…
  • Provided that if during any period of twelve months, a worker is so laid-off for more than forty-five days, no such compensation shall be payable in respect of any period of the lay-off after the expiry of the first forty-five days, if there is an agreement to that effect between the worker and the employer:
  • Provided further that it shall be lawful for the employer in any case falling within the foregoing proviso to retrench the worker in accordance with the provisions contained in section 70 at any time after the expiry of the first forty-five days of the lay-off and when he does so, any compensation paid to the worker for having been laid-off during the…
  • Explanation.— For the purposes of this section “badli worker” means a worker who is employed in an industrial establishment in the place of another worker whose name is borne on the muster rolls of the establishment, but shall cease to be regarded as such, if he has completed one year of continuous service in the establishment.

Actors expressly appearing in the text

Employer, Worker

Full statutory text — Section 67

Official English text transcribed from the current India Code consolidation; page headers/line breaks are normalised for web reading. The Gazette/India Code PDF remains authoritative for typography, amendment footnotes and schedules.
67. Rights of workers laid-off for compensation, etc.—Whenever a worker (other than a badli
worker or a casual worker) whose name is borne on the muster rolls of an industrial establishment and
who has completed not less than one year of continuous service under an employer is laid-off, whether
continuously or intermittently, he shall be paid by the employer for all days during which he is so laid-
off, except for such weekly holidays as may intervene, compensation which shall be equal to fifty per
cent. of the total of the basic wages and dearness allowance that would have been payable to him, had
he not been so laid-off:
   Provided that if during any period of twelve months, a worker is so laid-off for more than forty-five
days, no such compensation shall be payable in respect of any period of the lay-off after the expiry of
the first forty-five days, if there is an agreement to that effect between the worker and the employer:
    Provided further that it shall be lawful for the employer in any case falling within the foregoing
proviso to retrench the worker in accordance with the provisions contained in section 70 at any time
after the expiry of the first forty-five days of the lay-off and when he does so, any compensation paid
to the worker for having been laid-off during the preceding twelve months may be set off against the
compensation payable for retrenchment.
   Explanation.— For the purposes of this section “badli worker” means a worker who is employed in
an industrial establishment in the place of another worker whose name is borne on the muster rolls of
the establishment, but shall cease to be regarded as such, if he has completed one year of continuous
service in the establishment.

How to apply this provision

  1. Primary statutory test — Whenever a worker (other than a badli worker or a casual worker) whose name is borne on the muster rolls of an industrial establishment and who has completed not less than one year of continuous service under an employer is laid-off, whether continuously or intermittently, he shall be paid by the employer for all days during which he is so laid- off, except for such weekly holidays as may intervene, compensation…
  2. Additional operative limb — Provided that if during any period of twelve months, a worker is so laid-off for more than forty-five days, no such compensation shall be payable in respect of any period of the lay-off after the expiry of the first forty-five days, if there is an agreement to that effect between the worker and the employer:
  3. Qualification / exception to test — Provided that if during any period of twelve months, a worker is so laid-off for more than forty-five days, no such compensation shall be payable in respect of any period of the lay-off after the expiry of the first forty-five days, if there is an agreement to that effect between the worker and the employer:
  4. Numerical or timing control — Rights of workers laid-off for compensation, etc.—Whenever a worker (other than a badli worker or a casual worker) whose name is borne on the muster rolls of an industrial establishment and who has completed not less than one year of continuous service under an employer is laid-off, whether continuously or intermittently, he shall be paid by the employer…
  5. Evidence file — retain facts and records proving the role/status of: Employer, Worker.
Why this is section-specific: the operative-clause, exception, threshold and cross-reference panels above are extracted from Section 67 itself rather than a generic “trigger/control/evidence” template.

Rules, forms and cross-references

Direct 2026 Central Rule mapping

Forms mapped

No prescribed form is directly mapped in the current concordance.

Other sections cited in this text

A direct concordance is not exhaustive. Central/State jurisdiction, schemes, authority appointments, saved instruments and later notifications may change the practical route without changing the section wording.

Worked example

Suppose an industrial establishment reaches a step governed by rights of workers laid-off for compensation, etc. HR/IR should create a dated file showing coverage, the competent authority/union status, required notice or application, service proof and the result. One operative text point to test is: “Rights of workers laid-off for compensation, etc.—Whenever a worker (other than a badli worker or a casual worker) whose name is borne on the muster rolls of an industrial establishment and who has completed not less than one year of continuous service under an employer is laid-o” Also test the express qualification/proviso before concluding the result.

Illustration only; it is not statutory text or a substitute for applying the actual facts, jurisdiction, current rule/scheme and official instrument.

Q&A — Section 67

What does Section 67 of the Industrial Relations Code cover?

Section 67 — Governs rights of workers laid-off for compensation, etc and the rights, duties, powers or procedure expressly stated in this section. Key operative text: Whenever a worker (other than a badli worker or a casual worker) whose name is borne on the muster rolls of an industrial establishment and who has completed not less than one year of continuous service under an employer is…

What is the main legal requirement or power in Section 67?

The first operative clause identified from the official text is: “Whenever a worker (other than a badli worker or a casual worker) whose name is borne on the muster rolls of an industrial establishment and who has completed not less than one year of continuous service under an employer is laid-off, whether continuously or intermittently, he shall be paid by the employer for all days during which he is so laid- off, except for such weekly holidays as may intervene, compensation…” Read it with the remaining subsections and any proviso below.

Does Section 67 contain a proviso or explanation?

Yes. A qualification extracted from the official text is: “Provided that if during any period of twelve months, a worker is so laid-off for more than forty-five days, no such compensation shall be payable in respect of any period of the lay-off after the expiry of the first forty-five days, if there is an agreement to that effect between the worker and the employer:”

What time limit, percentage or amount appears in Section 67?

The provision contains this numerical/time expression: “Rights of workers laid-off for compensation, etc.—Whenever a worker (other than a badli worker or a casual worker) whose name is borne on the muster rolls of an industrial establishment and who has completed not less than one year of continuous service under an employer is laid-off, whether continuously or intermittently, he shall be paid by the employer…” Apply it only in the clause and context in which it appears.

Which 2026 Central Rules are linked to Section 67?

No direct Central Rule is recorded in the current concordance. That does not exclude a relevant scheme, notification, State rule or enabling provision.

Is Section 67 currently operative?

All provisions were brought into force from 21 November 2025 under S.O. 5320(E); use the current India Code consolidation because the Code also reflects the 2026 amendment/transition framework.

Source & verification trail

Act: Industrial Relations Code, 2020 — official India Code PDF ↗

Central Rules: Industrial Relations (Central) Rules, 2026 — G.S.R. 342(E), 8 May 2026 ↗

Official library: Ministry of Labour & Employment — Labour Codes ↗

Source check: 20 August 2026. Individual professional interpretation should be re-reviewed when the section, rules, notification, scheme, State overlay or controlling judgment changes.

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Reliance note: This page is an educational legal-reference layer. Verify the current official text, the applicable Central/State rules, notifications, schemes and judicial decisions before acting on a live matter.
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Editorial owner: CA Nikhil Gupta · Official-source set checked 20 August 2026; provision-level professional review remains matter-specific
Educational purposes only. Exact notified law, rules, schemes, regulator instruments, judicial decisions, state overlays, portal behaviour and facts must be checked before reliance. Verify with a qualified professional.