Which one of the following statements about layoff as stated in Chapter V B of the Industrial Disputes Act, 1947 is not correct ?
This is applicable to industrial establishments employing not less than 100 workmen on an average per working day for the preceding 12 months.
Prior permission of the appropriate Government or specified authority is necessary before layoff.
The compensation for layoff is twice the compensation as in Chapter V A.
If the Government does not respond within 60 days of receiving the application for permission to layoff, the permission shall be deemed to have been granted.
Answer is Right!
Answer is Wrong!
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UPSC CISF-AC-EXE – 2018
B) Section 25M(1) requires an employer to obtain prior permission of the appropriate Government or such authority before laying off a workman to whom Chapter VB applies. This statement is correct.
C) Section 25M(6) states that where permission for lay-off is granted, the workman shall be entitled to compensation as specified in Section 25C. Section 25C, which is in Chapter VA, provides compensation for lay-off at the rate of fifty per cent. of the total of the basic wages and dearness allowance. Therefore, the compensation for layoff under Chapter VB is the *same* as under Chapter VA (Section 25C), i.e., 50% of wages. The statement that the compensation is *twice* the compensation as in Chapter VA is incorrect.
D) Section 25M(4) states that if the appropriate Government does not communicate refusal within sixty days of the application for permission, the permission applied for shall be deemed to have been granted on the expiration of the said period. This statement is correct.