ID ACT 1947 Retrenchment Clauses

ID ACT 1947 Retrenchment Clauses

ID Act 1947 

2 [(oo) "retrenchment means the termination by the employer  of the service of a workman for any reason whatsoever,  otherwise than as a punishment inflicted by way of  disciplinary action, but does not include--

 (a) voluntary retirement of the workman; or

 (b) retirement of the workman on reaching the age  of superannuation if the contract of employment between  the employer and the workman concerned contains a  stipulation in that behalf; or

 2*[(bb) termination of the service of the workman  as a result of the non-renewal of the contract of  employment between the employer and the workman  concerned on its expiry or of such contract being  terminated under a stipulation in that behalf contained  therein; or]

 (c) termination of the service of a workman on the  ground of continued ill-health;]

 25F.  Conditions precedent to retrenchment of workmen.

 25F. Conditions precedent to retrenchment of workmen.- No workman  employed in any industry who has been in continuous service for not  less than one year under an employer shall be retrenched by that  employer until--

 (a) the workman has been given one month's notice in writing  indicating the reasons for  retrenchment and the period of notice has expired, or the workman has been paid in  lieu of such notice, wages for the period of the  notice:

(b) the workman has been paid, at the time of retrenchment,  compensation which shall be equivalent to fifteen days'  average pay 2*[for every completed year of continuous  service] or any part thereof in excess of six months;  and

 (c) notice in the prescribed manner is served on the  appropriate Government 3*[or such authority as may be  specified by the appropriate Government by notification  in the Official Gazette].

25FF  Compensation to workmen in case of closing down of undertakings.

 25FFF. Compensation to workmen in case of closing down of  undertakings.- (1) Where an undertaking is closed down for any reason  whatsoever, every workman who has been in continuous service for  not less than one year in that undertaking immediately before such  closure shall, subject to the provisions of sub-section (2), be  entitled to notice and compensation in accordance with the provisions  of section 25F, as if the workman had been retrenched:

 Provided that where the undertaking is closed down on account of  unavoidable circumstances beyond the control of the employer, the  compensation to be paid to the workman under clause (b) of section 25F  shall not exceed his average pay for three months.

1*[Explanation.--An undertaking which is closed down by reason  merely of--

 (i) financial difficulties (including financial losses); or

 (ii) accumulation of undisposed of stocks; or

 (iii) the expiry of the period of the lease or licence  granted to it; or

 (iv) in a case where the undertaking is engaged in mining  operations, exhaustion of the minerals in the area in  which such operations are carried on;   shall not be deemed to be closed down on account of unavoidable  circumstances beyond the control of the employer within the meaning of the proviso to this sub-section.]

 25G.  Procedure for retrenchment.

 25G. Procedure for retrenchment.- Where any workman in an  industrial establishment, who is a citizen of India, is to be  retrenched and he belongs to a particular category of workmen in that  establishment, in the absence of any agreement between the employer  and the workman in this behalf, the employer shall ordinarily retrench  the workman who was the last person to be employed in that category,  unless for reasons to be recorded the employer retrenches any other  workman.

 25N.  Conditions precedent to retrenchment of workmen.

2*[25N. Conditions precedent to retrenchment of workmen.-(1) No  workman employed in any industrial establishment to which this Chapter  applies, who has been in continuous service for not less than one year  under an employer shall be retrenched by that employer until,--

 (a) the workman has been given three months' notice in  writing indicating the reasons for retrenchment and the  period of notice has expired, or the workman has been  paid in lieu of such notice, wages for the period of  the notice; and

 (b) the prior permission of the appropriate Government or  such authority as may be specified by that Government  by notification in the Official Gazette (hereafter in  this section referred to as the specified authority)  has been obtained on an application made in this  behalf.

 (2) An application for permission under sub-section (1) shall be  made by the employer in the prescribed manner stating clearly the  reasons for the intended retrenchment and a copy of such application  shall also be served simultaneously on the workmen concerned in the  prescribed manner.