[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.
(3) Where an application for permission under sub-section
(1) has been made, the appropriate
Government or the specified authority, after making such enquiry as it thinks fit and after giving a
reasonable opportunity of being heard to the employer, the workmen concerned and the persons interested
in such retrenchment, may, having regard to the genuineness and adequacy of the reasons stated by the
employer, the interests of the workmen and all other relevant factors, by order and for reasons to be
recorded in writing, grant or refuse to grant such permission and a copy of such order shall be
communicated to the employer and the workmen.
(4) Where an application for permission has been made under sub-section
(1) and the appropriate
Government or the specified authority does not communicate the order granting or refusing to grant
permission to the employer within a period of sixty days from the date on which such application is made,
the permission applied for shall be deemed to have been granted on the expiration of the said period of
sixty days.
(5) An order of the appropriate Government or the specified authority granting or refusing to grant
permission shall, subject to the provisions of sub-section
(6), be final and binding on all the parties
concerned and shall remain in force for one year from the date of such order.
(6) The appropriate Government or the specified authority may, either on its own motion or on the
application made by the employer or any workman, review its order granting or refusing to grant
permission under sub-section
(3) or refer the matter or, as the case may be, cause it to be referred, to a
Tribunal for adjudication:
Provided that where a reference has been made to a Tribunal under this sub-section, it shall pass an
award within a period of thirty days from the date of such reference.
(7) Where no application for permission under sub-section
(1) is made, or where the permission for
any retrenchment has been refused, such retrenchment shall be deemed to be illegal from the date on
which the notice of retrenchment was given to the workman and the workman shall be entitled to all the
benefits under any law for the time being in force as if no notice had been given to him.
(8) Notwithstanding anything contained in the foregoing provisions of this section, the appropriate
Government may, if it is satisfied that owing to such exceptional circumstances as accident in the
establishment or death of the employer or the like, it is necessary so to do, by order, direct, that the
provisions of sub- section
(1) shall not apply in relation to such establishment for such period as may be
specified in the order.
1. Subs. by Act 49 of 1984, s. 5, for section 25N (w.e.f. 18-8-1984).
45
(9) Where permission for retrenchment has been granted under sub-section
(3) or where permission
for retrenchment is deemed to be granted under sub-section
(4), every workman who is employed in that
establishment immediately before the date of application for permission under this section shall be
entitled to receive, at the time of retrenchment, compensation which shall be equivalent to fifteen days’
average pay for every completed year of continuous service or any part thereof in excess of six months.]
STATE AMENDMENT
Rajasthan
Amendment of section 25-N, Central Act No. 14 of 1947.--In section 25-N of the principle Act,-
(a) in sub-section
(1),-
(i) between the expression “this Chapter applies” and the expression “who has been”, the
expression “or is applied under sub-section (1-A) of section 25-K” shall be inserted; and
(ii) for clause
(c), the following clause shall be substituted, namely:-
"
(c) three months’ notice in writing stating clearly the reasons for retrenchment is served on
the State Government or such authority as may be specified by the State Government by
notification in the Official Gazette by registered post with acknowledgement due, and
the permission of the State Government or of such authority is obtained under sub
section
(2).”;
(b) for sub-section
(2), the following sub-section shall be substituted, namely:-
“
(2) On receipt of a notice under clause
(c) of sub-section
(1), the State Government or
authority, after making such enquiry as it thinks fit and after giving reasonable
opportunity of being heard to the employer, the workman and the office-bearer of the
representative union of the concerned industrial establishment, may, having regard to the
genuineness and adequacy of the reasons stated by the employer, requirements of
industrial peace, prevention of victimisation and unfair labour practice, by order and for
reasons to be recorded in writing grant or refuse to grant such permission and such order
shall be communicated to the employer, the workman and the office-bearer of such
representative union.”;
(c) in sub-section
(4), for the expression “(Amendment) Act, 1976", the expression “(Rajasthan
Amendment) Act, 1984”, for the expression “
(a) of section 25-F", the expression “
(c) of sub
section
(1)”, for the word “appropriate”, the word “State” and for the expression “sub-section
(2)” the expression “the said clause of the said sub-section” shall respectively be substituted;
(d) in sub-section
(5), for the word “appropriate”, the word “State” shall be substituted;
(e) after sub-section
(5), the following sub-section shall be inserted, namely:-
“
(6) An order of the State Government or the authority granting or refusing to grant
permission shall, subject to the provisions of sub-section
(7), be final and binding on all
the parties and shall remain in force for on year form the date of such order.
(7) The State Government or, as the case may be, the authority may, either on its own motion
or on the application made by the employer or the workman, review its order granting or
refusing to grant permission under sub-section
(2) or refer the matter to a Tribunal for
adjudication:
Provided that where a reference has been made to a Tribunal under this sub-section, it shall
pass an award within a period of thirty days from the date of such reference.”;
(f) the existing sub-sections
(6) and
(7) shall respectively be re-numbered as sub- sections
(8) and
(9) thereof; and
(g) in sub-section
(9) as so re-numbered,-
(i) for the expression “(Amendment) Act, 1976”, the expression “(Rajasthan
Amendment) Act, 1984” shall be substituted;
(ii) the expression “or the Central Government” shall be deleted;
46
(iii) for the word “appropriate”, wherever occurring, the word “State” shall be
substituted; and
(iv) for the expression “and any order passed by such authority shall be final and
binding on the employer and the workman or workmen”, the expression "and such
authority while deciding such matter shall proceed to hold the enquiry in the
manner and have regard to the matters specified in sub-section
(2). Any order
passed by such authority shall, subject to review under the proviso to this sub-
section, be final and binging on the employer and the workman or workman:
Provided that such authority as aforesaid may, either on its own motion or on the
application made by the employer or the workman review the order passed by it under
this sub-section or refer the matter to a Tribunal for adjudication and to such reference,
the provisions contained in the proviso to sub-section
(7) shall, mutatis matandis,
apply,” shall be substituted.
[Vide Rajasthan Act 8 of 1984, s. 5]
Rajasthan
Amendment of section 25N, Central Act No. 14 of 1947.- In section 25N of the principal Act,-
(a) in clause
(a) of sub-section
(1), the existing expression “, or the workman has been paid in
lieu of such notice, wages for the period of the notice” shall be deleted; and
(b) in sub-section
(9), after the existing expression “six months” and before the existing
punctuation mark “.”, appearing at the end, the expression “and an amount equivalent to his
three months average pay” shall be inserted.
[Vide Rajasthan Act 21 of 2014, s. 8]
Gujarat
Amendment of section 25N of XIV of 1947.— In the principal Act, in section 25N,-
(i) in sub-section
(1), in clause
(a), the words “or the workman has been paid in lieu of such
notice, wages for the period of the notice” shall be deleted;
(ii) in sub-section
(9), the words “and an amount equivalent to his last three months average pay”
shall be added at the end.
[Vide Gujarat Act 1 of 2021, s. 3]
1
[25-O. Procedure for closing down an undertaking.—
(1) An employer who intends to close down
an undertaking of an industrial establishment to which this Chapter applies shall, in the prescribed
manner, apply, for prior permission at least ninety days before the date on which the intended closure is to
become effective, to the appropriate Government, stating clearly the reasons for the intended closure of
the undertaking and a copy of such application shall also be served simultaneously on the representatives
of the workmen in the prescribed manner:
Provided that nothing in this sub-section shall apply to an undertaking set up for the construction of
buildings, bridges, roads, canals, dams or for other construction work.
(2) Where an application for permission has been made under sub-section
(1), the appropriate
Government, after making such enquiry as it thinks fit and after giving a reasonable opportunity of being
heard to the employer, the workmen and the persons interested in such closure may, having regard to the
genuineness and adequacy of the reasons stated by the employer, the interests of the general public and all
other relevant factors, by order and for reasons to be recorded in writing, grant or refused to grant such
permission and a copy of such order shall be communicated to the employer and the workmen.
(3) Where an application has been made under sub-section
(1) and the appropriate Government does
not communicate the order granting or refusing to grant permission to the employer within a period of
sixty days from the date on which such application is made, the permission applied for shall be deemed to
have been granted on the expiration of the said period of sixty days.
1. Subs. by Act 46 of 1982, s. 14, for section 25-O (w.e.f. 21-8-1984).
47
(4) An order of the appropriate Government granting or refusing to grant permission shall, subject to
the provisions of sub-section
(5), be final and binding on all the parties and shall remain in force for one
year from the date of such order.
(5) The appropriate Government may, either on its own motion or on the application made by the
employer or any workman, review its order granting or refusing to grant permission under sub-section
(2)
or refer the matter to a Tribunal for adjudication:
Provided that where a reference has been made to a Tribunal under this sub-section, it shall pass an
award within a period of thirty days from the date of such reference.
(6) Where no application for permission under sub-section
(1) is made within the period specified
therein, or where the permission for closure has been refused, the closure of the undertaking shall be
deemed to be illegal from the date of closure and the workmen shall be entitled to all the benefits under
any law for the time being in force as if the undertaking had not been closed down.
(7) Notwithstanding anything contained in the foregoing provisions of this section, the appropriate
Government may, if it is satisfied that owing to such exceptional circumstances as accident in the
undertaking or death of the employer or the like it is necessary so to do, by order, direct that the
provisions of sub-section
(1) shall not apply in relation to such undertaking for such period as may be
specified in the order.
(8) Where an undertaking is permitted to be closed down under sub-section
(2) or where permission
for closure is deemed to be granted under sub-section
(3), every workman who is employed in that
undertaking immediately before the date of application for permission under this section, shall be entitled
to receive compensation which shall be equivalent to fifteen days’ average pay for every completed year
of continuous service or any part thereof in excess of six months.]
STATE AMENDMENT
Orissa
Amendment of section 25-O.—For section 25-o of the principal Act, the following section shall be
substitute namely:—
25-O. Procedure or closing down an undertaking.—
(1) An employer who intends to close down an
undertaking of an industrial establishment to which this Chapter applies shall, in the prescribed manner,
apply, for prior permission at least ninety days before the date on which the intended closure is to
become effective, to the appropriate Government , stating clearly the reasons for the intended closure of
the undertaking and a copy of such application shall also be served simultaneously on the representatives
of the workman in the prescribed manner:
Provided that nothing in this sub-section shall apply to an undertaking set up for the construction of
buildings, bridges, roads, canals, dams or for other construction work.
(2) where an application for permission has been made under sub-section
(1), the appropriate
Government , after making such enquiry as it thinks fit and after giving a reasonable opportunity of being
heard to the employer, the workmen and the persons interested in such closure may, having regard to the
genuineness and adequacy of the reasons stated by the employer, the interests of the general public and
all other relevant factors, by order and for reasons to be recorded in writing , grant or refuse to grant such
permission and a copy of such order shall be communicated to the employer and the workmen.
(3) Where an application has been made under sub-section
(1) and the appropriate Government does
not communicate the order granting or refusing to grant permission to the employer within a period of
sixty days from the date on which such application is made, the permission applied for shall be deemed to
have been granted on the expiration of the said period of sixty days.
(4) An order of the appropriate Government granting or refusing to grant permission shall, subject to
the provisions of sub-section
(5), be final and binding on all the parties and shall remain in force for one
year from the date of such order.
48
(5) The appropriate Government may, either on its own motion or on the application made by the
employer or any workman, review its order granting or refusing to grant permission under sub-section
(2)
or refer the matter to a Tribunal for adjudication:
Provided that where a reference has been made to a Tribunal under this sub section, it shall pass an
award within a period of thirty days from the date of such reference.
(6) Where no application for permission under sub-section
(1) is made within the period specified
therein, or where the permission for closure has been refused, the closure of the undertaking shall be
deemed to be illegal from the date of closure and the workmen shall be entitled to all the benefits under
any law for the time being in force as if the undertaking had not been closed down.
(7) Notwithstanding anything contained in the foregoing provisions of this section, the appropriate
Government may, if it is satisfied that owing to such exceptional circumstances as accident in the
undertaking or death of the employer or the like it is necessary so to do, by order, direct that the
provisions of sub-section
(1) shall not apply in relation to such undertaking for such period as may be
specified in the order.
(8) Where an undertaking is permitted to be close down under sub-section
(2) or where permission for
closure is deemed to be granted under sub-section
(3) every workman who is employed in that
undertaking immediately before the date of application for permission under this section shall be
entitled to receive compensation which shall be equivalent to fifteen day’s average pay for every
completed year of continuous service or any part thereof in excess of six months.”.
[Vide the Orissa Act 6 of 1983, s. 3]
Substitution of section 25-O, Central Act No. 14 of 1947:-For section 25-O of the principle Act, the
following section shall be substituted, namely:-
“25-O. Procedure for closing down an undertaking.-
(1) An employer who intends to close
down an undertaking of an industrial establishment to which this Chapter applies including an
employer who has served a notice under sub-section
(1) of section 25-FFA on the State Government
of his intention to close down such an undertaking but the period of such a notice has not expired at
the commencement of the Industrial Disputes(Rajasthan Amendment) Ordinance, 1983 shall apply
for prior permission at least ninety days before the date on which the intended closure is to become
effective, to the State Government, stating clearly the reasons for the intended closure of the
undertaking and a copy of such application shall also be served simultaneously on the representatives
of the workmen by registered post with acknowledgment due.
(2) where an application for permission has been made under sub-section
(1), and the State
Government after making such enquiry as it thinks fit and after giving reasonable opportunity of
being heard to the employer, the workmen and the person interested in such closure may, having
regard to the genuineness and adequacy of the reasons stated by employer, the interests of the general
public and all other relevant factors, by order and for reasons to be recorded in writing, grant or refuse
to grant such permission and a copy of such order shall be communicated to the employer and the
workmen.
(3) Where an application has been made under sub-section
(1), and the State Government does
not communicate the order granting or refusing to grant permission to the employer within a period
of sixty days from the date on which such application is made, the permission applied for shall be
deemed to have been granted on the expiration of the said period of sixty days.
(4) An order of the State Government granting or refusing to grant permission shall, subject to the
provision of sub-section
(5), be final and binding on all the parties and shall remain in force for one
year from the date of such order.
(5) The State Government may, either on its own motion or on the application made by the
employer or any workman, review its order granting or refusing to grant permission under sub-section
(2) or refer the matter to a Tribunal for adjudication:
Provided that where a reference has been made to a Tribunal under this sub-section, it shall pass
an award within a period of thirty days from the date of such reference.
(6) Where no application for permission under sub-section
(1) is made within the period specified
therein, or where the permission for closure has been refused, the closure of the undertaking shall be
49
deemed to be illegal from the date of closure and the workmen shall be entitled to all the benefits
under any law for the time being in force as if the undertaking had not been closed down.
(7) Notwithstanding anything contained in the foregoing provision of this section, the State
Government may, If it is satisfied that owing to such exceptional circumstance as accident in the
undertaking or death of the employer or the like it is necessary so to do, by order, direct that the
provisions of sub-section
(1) shall not apply in relation to such undertaking for such period as may be
specified in the order.
(8) Where an undertaking is permitted to be closed down under sub-section
(2) or where
permission for closure is deemed to be granted under sub-section
(3), every workman who is
employed in that undertaking immediately before the date of application for permission under this
section, shall be entitled to receive compensation which shall be equivalent to fifteen days' average
pay for every completed year of continuous service or any part thereof in excess of six months.”.
[Vide Rajasthan Act 8 of 1984, s. 6]
Rajasthan
Amendment of section 25-O, Central Act No. 14 of 1947.- In sub-section
(8) of section 25-O of the
principal Act, after the existing expression “six months” and before the existing punctuation mark “.”,
appearing at the end, the expression “and an amount equivalent to his three months average pay” shall be
inserted.
[Vide Rajasthan Act 21 of 2014, s. 9]
25P. Special provision as to restarting of undertakings closed down before commencement of
the Industrial Disputes (Amendment) Act, 1976.—If the appropriate Government is of opinion in
respect of any undertaking of an industrial establishment to which this Chapter applies and which closed
down before the commencement of the Industrial Disputes (Amendment) Act, 1976 (32 of 1976),—
(a) that such undertaking was closed down otherwise than on account of unavoidable
circumstances beyond the control of the employer;
(b) that there are possibilities of restarting the undertaking;
(c) that it is necessary for the rehabilitation of the workmen employed in such undertaking before
its closure or for the maintenance of supplies and services essential to the life of the community to
restart the undertaking or both; and
(d) that the restarting of the undertaking will not result in hardship to the employer in relation to
the undertaking,
it may, after giving an opportunity to such employer and workmen, direct, by order published in the
Official Gazette, that the undertaking shall be restarted within such time (not being less than one month
from the date of the order) as may be specified in the order.
Rajasthan
Substitution of section 25-P, Central Act No. 14 of 1947:- For section 25-P of the principle Act, the
following section shall be substituted, namely:-
“25-P. Special provision as to restarting of undertaking closed down before commencement of the
Industrial Disputes (Rajasthan Amendment) Act, 1984.-
(1) Where the undertaking of
an industrial establishment to which this Chapter applies had been closed down before
the commencement of the Industrial Disputes (Rajasthan Amendment) Act, 1984 and
the State Government, after giving reasonable opportunity of being heard to the
employer, workmen and the office bearer of the representative union of the concerned
industrial establishment and after making such enquiry as it thinks fit, is satisfied that,-
(a) such undertaking was closed down otherwise than on account of unavoidable
circumstances, beyond the control of the employer;
(b) there are possibilities of restarting the undertaking;
(c) it is necessary for the rehabilitation of the workmen employed in such undertaking
before its closure or for the maintenance of supplies and services essential to the
life of the community or both to restarted the undertaking ; and
(d) the restarting of the undertaking will not result in hardship to the employer in
relation to the undertaking,
50
It may direct, by order published in the Official Gazette, that the undertaking shall be
restarted within such time (not being less than one months from the date of the
order) as may be specified in the order.
(2) An order of the State Government directing the restarting of the undertaking under
sub-section
(1) shall, subject to the provisions of sub-section
(3), be final and binging
on all the parties.
(3) The State Government may either on its own motion or on the application made by the
employer and after giving to such employer, the workmen and the office-bearer of the
representative union of the concerned industrial establishment an opportunity of being
heard, review its order directing the restarting of the undertaking under sub-section
(1)
or refer the matter to a Tribunal for adjudication:
Provided that where a reference has been made to a Tribunal under this sub-section, it shall pass
and award within a period of sixty days from the date of such reference and pending award by the
Tribunal, the undertaking shall continue to remain restarted.”
[Vide Rajasthan Act 8 of 1984, s. 7]
Insertion of new section 25-PP, Central Act No. 14 of 1947:- After section 25-P of the principle
Act as so substituted, the following new section shall be added, namely:-
“25 PP. Special provision as to reinstatement of workmen retrenched before the
commencement of the Industrial Disputes (Rajasthan Amendment) Act, 1984.-
(1)
Notwithstanding any award or order of a Tribunal or any judgement , order or direction of any Court
upholding the validity of retrenchment of an
