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By Joy Sarkar - Feb 01, 2026
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Employees’ Rights Matter | Lay-Off & Death Compensation Explained
Lay-Off & Compensation
Applicable to permanent workers (not a transfer or temporary worker) with at least 3 months of service and listed on the register. Compensation up to 45 days during lay-off. Rate includes:· 50% of basic wage;
· Dearness & ad-hoc allowance;
· Full house rent allowance.
Extension beyond 45 days (if no contract) requires continued payment or retrenchment (if the employer wants) as per law; Attendance during lay-off (at a specific time) is mandatory with a separate register.
Death Compensation Natural death while working (after 1 year of service):
30 days’ wages for each year of service. Death due to work-related accident: 45 days’ wages or gratuity (whichever is higher) for each year; Payable in addition to retirement benefits.
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