Closure procedures - id act Doc Download.. CiteHR

mkands Started The Discussion:


I am working in a FMCG Manufacturing company’s corporate office in chennai, we have 3 manufacturing unit in tamilnadu. Now, our management wants to close 2 manufacturing unit in October –07. In each unit we have nearly 60 employees [Both staff & Workes].

Please guide me what is the complete procedures and formalities I have to do. Waiting for your valuable instructions for the same.


pbskumar2006 -  Member Since: Mar 2006
Dear Mr. MKS Ji, The Closure procedure is as per the Industrial Disputes Act, 1947 under Chapter V-B Sec.25-O, The detailed note is attached. Regards, :) PBS KUMAR

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File Type: doc industrial_disputes_actsec.25_959.doc (30.0 KB, 1074 views)
abhirutu -  Member Since: Aug 2007
If the two manufacturing units being closed are under a different legal name and are a different legal entity, the situation will definitely change. Otherwise, it may amount to closure of substantial undertaking of the company. Similarly, keep all concerned departments informed of the closure by way of a written intimation either by regd post a.d. or by hand delivery. Also in order to avoid gate crash or untoward situation at entrance or in peripherals, keep the nearby police station informed for any support, if required. Rest is a procedure written in ID Act.
Wish you all the best.

anil kaushik -  Member Since: Apr 2006
my sincere request. pl. go to expert on this issue. it is a mixed question of facts and law. even a single fact will change the whole legal position. the opinion expressed should not be taken as conclusive because members express their views on the facts u narrate.
It is a sensitive issue and involves lot of procedural formalities.
ur decision will change the fate of ur organisation.
hope u will not take it otherwise.
anil kaushik


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