Under the Industrial Relations Code, 2020, a worker who has completed at least one year of continuous service and is laid off is entitled to compensation equal to fifty per cent of the total of his basic wages and dearness allowance for the lay-off period, except that such compensation is not payable, if there is an agreement to that effect, for any lay-off period beyond the first:

Under the lay-off compensation provisions of the Industrial Relations Code, 2020, a worker (other than a badli or casual worker) whose name is on the muster roll and who has completed not less than one year of continuous service is entitled, for every day of lay-off (excluding intervening weekly holidays), to compensation equal to fifty per cent of the total of his basic wages and dearness allowance that would have been payable had he not been laid off. The proviso, however, permits that if a worker is laid off for more than forty-five days in any period of twelve months, no compensation is payable for the lay-off period beyond the first forty-five days, provided there is an agreement to that effect between the worker and employer. Beyond this point, the employer may instead choose to retrench the worker, in which case any lay-off compensation already paid for the preceding twelve months is set off against the retrenchment compensation payable.