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Question

Failure, refusal or inability of an employer to provide work due to shortage of coal, power or raw materials, accumulation of stocks, breakdown of machinery, natural calamity is called ___________.

A
retrenchment
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B
retirement
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C
discharge
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D
layoff
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Solution

The correct option is D layoff
Failure, refusal or inability of an employer to provide work due to shortage of coal, power or raw materials, accumulation of stocks, breakdown of machinery, natural calamity is called layoff.Under Industrial Dispute Act, 1947, the rate of compensation in layoff is 50% of basic wage and DA.When there are more than 100 or more workmen during proceeding 12 months prior permission by the government is necessary for layoff.

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