Dear seniors, Respected Madhu T K kindly tell me the procedure of legal strike and retrenchment under id act in private manufacturing companies . paramjeet singh
From India, Dehra Dun
Industrial Relations And Labour Laws
Payroll, Domestic Inquiry, Administration,
+1 Other

There is no illegal strike or illegal retrenchment as it is. All strikes or retrenchment against the provisions of Law (Industrial Disputes Act) are illegal. Section 22 of the ID Act deals with prohibition of strikes and lock out (though it applies to public utility services) As per the Act strike by employees without notice of 14 days shall be illegal. Similarly, a strike commenced during a conciliation is pending is also illegal. The same applies to lock out by the employer.

Section 25F says that in case any employee or a batch of employees is required to be retrenched, the employer should served a notice of retrenchment at least 30 days in advance. In case no notice is served the employee(s) should be paid one month salary in lieu of notice. Similarly, a compensation at the rate of 15 days salary calculated for every year of service of the employee should also be paid as retrenchment compensation. The Act also says that a notice informing the employer's intention of retrenching employee(s) should also be given to the Labour Department (Govt)

Retrenchment in companies which employ 100 or more workers will follow procedures as per section 25N wherein instead of one month notice or payment in lieu of notice, three month's notice or three month's salary in lieu of notice is required to be given to employee(s) retrenched. Moreover, in such companies mere intimation of retrenchment is sufficient but you have to obtain PERMISSION from the Govt. to retrench the employees.

All retrenchments which are made without following the above procedures will be illegal.



From India, Kannur
Dear Sir,
Of late, we have declared lock out for unionized cadre. due to inevitable production schedule, the management propsed to complete the production with the assistance of non-unionized cadre.
kindly suggest,
1. Is it advisable to start production, while the company is in lock out.
2. Can the unionized member justified that is is ill-legal lock out, since production activities is under process

From Switzerland, Langenthal
Lock out refers to closure of establishment and therefore, when a lock out is declared the question of continuing production does not arise. I cannot understand how could you 'lock out' unionised employees. Though you can declare lock out in a particular division alone and not necessarily the entire establishment, you cannot declare lockout in respect of a selected employees. If you mean to say that you have retrenched/ terminated the unionised employees and then started production with non unionised employees then it is okay. But in such a case you should have retrenched following the principle of last employee to be employed to be retrenched first and you can not select the employees to be retrenched according to their union membership. If you have done that, the same can be challenged by raising an industrial dispute.

From India, Kannur
Dear Madhu Sir, Before declaring lockout, is it necessary for an employer to give notice period of 14 days to the affected employees Regards Sither
From Switzerland, Langenthal
Certainly yes, you have to give notice of lock out to employees with a copy to Labour Department. Regards, Madhu.T.K
From India, Kannur

Hi Madhuji,

I required your guidance related to below situation:

In our mfg. plant, which works for 3 shifts. We were doing negotiation with workers union for wage settlement. But all of sudden, the union representative (who were our workers) walk out of meeting and go to the plant and stop it. Then they have taken all employees with them and went outside of the gate. They started sloganeering against Management, in other words, they called up strike.

I have immediately put notice on notice board at company gate urging all workers to immediately resume the duty also inform them if they continue with strike they will loose the wages as per "No Work No Pay". Also simultaneously inform Asst.Labour Commissioner, Director of Ind Safety & Health, Electricity board office and police station about the strike.

I have put the notice at the start of each shift and also sent the copy of the same to above. This activity was done through out the strike period i.e . 4 days. During these day, we have also tries to negotiate with workers representative to call off the strike but no avail. we have also went to labour court to declare this strike as illegal also file caveat-emptor.

Finally we have started talk with another group of workers and pursuit them to resume duty, they agree and entered in plant along with other employees. here we have taken surety from them that they will not go on strike. once the employee sign then he can resume the duty.

Union representatives had not signed the surety and also had threaten the workers those who went inside and the staff. Finally I have send them suspension pending enquiry order along with charge sheet.I have then conducted the domestic enquiry with independent E.O. we have paid subsistence allow. as per law and conveyance amount to these representative to attend the enquiry. we have followed all the principles of natural justice. once we enquiry concluded we have send them enquiry report along with second show-cause notice. which they didn't reply. After the period of 7 days (which mentioned in show-cause) we send them Dismissal letter asking them to take all their legal due as part of Full & final.

Now they have move to Labour Court citing it as unfair labour practice on our part as we dismiss them.

Please let me know correctness of the procedure that I have followed.



From India, Mumbai
From the post I do not find any illegality in your move. At he same time, the act of workers going for strike during a negotiation is in progress is unfair. Therefore, you can file a counter stating the reasons for suspension, conducting enquiry and dismissal. Now the only question is whether the dismissed workers were protected workers and if so before initiating disciplinary action whether you informed the labour Officer, the conciliation officer who is to give approval for taking disciplinary action against such workers at a time when demands are pending.

From India, Kannur
The charges leveled were of threatening, riotous behavior, indiscipline etc.
Total 12 workers were dismissed of which 7 were union representatives. After breaking the strike, new union representatives were elected at the time of domestic enquiry charge-sheeted employees were not protected employees.

From India, Mumbai

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