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

Section 69: Workers not entitled for compensation in certain cases

Reviewed by Finin2min Editorial Desk · Last Reviewed 12 September 2026

Section 69 — Governs workers not entitled for compensation in certain cases and the rights, duties, powers or procedure expressly stated in this section. Key operative text: No compensation shall be paid to a worker who has been laid-off— (i) if he refuses to accept any alternative employment in the same establishment from which he has been laid-off, or in any other establishment belonging to the…

Full official textSource checked: 20 August 20260 direct Central Rule link(s)

2-minute answer

Section 69: Workers not entitled for compensation in certain cases explained with current labour-code/scheme context, eligibility or compliance steps, records to retain.

Current-law check: Reviewed for source/currentness on 12 September 2026. Re-check any later notification, circular, amendment, rate, deadline or portal instruction before acting.

How to use this page

Section 69: Workers not entitled for compensation in certain cases should be read with the operative Code/Scheme/Rules and the establishment or employee facts to which it applies. Coverage, wage base, service history, State overlay and commencement date can change the outcome.

Practical checklist

Worked use case

Example: the same employee event can produce a different compliance result if the establishment is exempt, the service period is different, or the operative rule changed after the relevant date. Record those facts before calculating the benefit or obligation.

Official-source checks

Related Finin2min guidance

Reviewed for currentness: 12 September 2026. Educational/professional reference; the controlling law, notification, order or official filing instruction prevails.

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

  • No compensation shall be paid to a worker who has been laid-off— (i) if he refuses to accept any alternative employment in the same establishment from which he has been laid-off, or in any other establishment belonging to the same employer situate in the same town or village or situate within a radius of eight kilometres from the establishment to which he belongs, if, in the opinion of the employer, such…

Provisos, explanations & qualifications

  • provided that the wages which would normally have been paid to the worker are offered for the alternative employment also; (ii) if he does not present himself for work at the establishment at the appointed time during normal working hours at least once a day; (iii) if such laying-off is due to a strike or slowing-down of production on the part of workers…

Thresholds and timelines in the text

  • (ii) if he does not present himself for work at the establishment at the appointed time during normal working hours at least once a day;

Actors expressly appearing in the text

Employer, Worker

Full statutory text — Section 69

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.
69. Workers not entitled for compensation in certain cases.—No compensation shall be paid to
a worker who has been laid-off— (i) if he refuses to accept any alternative employment in the same establishment from which he has been laid-off, or in any other establishment belonging to the same employer situate in the same town or village or situate within a radius of eight kilometres from the establishment to which he belongs, if, in the opinion of the employer, such alternative employment does not call for any special skill or previous experience and can be done by the worker, provided that the wages which would normally have been paid to the worker are offered for the alternative employment also; (ii) if he does not present himself for work at the establishment at the appointed time during normal working hours at least once a day; (iii) if such laying-off is due to a strike or slowing-down of production on the part of workers in another part of the establishment.

How to apply this provision

  1. Primary statutory test — No compensation shall be paid to a worker who has been laid-off— (i) if he refuses to accept any alternative employment in the same establishment from which he has been laid-off, or in any other establishment belonging to the same employer situate in the same town or village or situate within a radius of eight kilometres from the establishment to which he belongs, if, in the opinion of the employer, such…
  2. Qualification / exception to test — provided that the wages which would normally have been paid to the worker are offered for the alternative employment also; (ii) if he does not present himself for work at the establishment at the appointed time during normal working hours at least once a day; (iii) if such laying-off is due to a strike or slowing-down of production on the part of workers…
  3. Numerical or timing control — (ii) if he does not present himself for work at the establishment at the appointed time during normal working hours at least once a day;
  4. 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 69 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 workers not entitled for compensation in certain cases. 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: “(ii) if he does not present himself for work at the establishment at the appointed time during normal working hours at least once a day;” 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 69

What does Section 69 of the Industrial Relations Code cover?

Section 69 — Governs workers not entitled for compensation in certain cases and the rights, duties, powers or procedure expressly stated in this section. Key operative text: No compensation shall be paid to a worker who has been laid-off— (i) if he refuses to accept any alternative employment in the same establishment from which he has been laid-off, or in any other establishment belonging to the…

What is the main legal requirement or power in Section 69?

The first operative clause identified from the official text is: “No compensation shall be paid to a worker who has been laid-off— (i) if he refuses to accept any alternative employment in the same establishment from which he has been laid-off, or in any other establishment belonging to the same employer situate in the same town or village or situate within a radius of eight kilometres from the establishment to which he belongs, if, in the opinion of the employer, such…” Read it with the remaining subsections and any proviso below.

Does Section 69 contain a proviso or explanation?

Yes. A qualification extracted from the official text is: “provided that the wages which would normally have been paid to the worker are offered for the alternative employment also; (ii) if he does not present himself for work at the establishment at the appointed time during normal working hours at least once a day; (iii) if such laying-off is due to a strike or slowing-down of production on the part of workers…”

What time limit, percentage or amount appears in Section 69?

The provision contains this numerical/time expression: “(ii) if he does not present himself for work at the establishment at the appointed time during normal working hours at least once a day;” Apply it only in the clause and context in which it appears.

Which 2026 Central Rules are linked to Section 69?

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 69 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.