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.
5th October 2007 From India, Madras

Anil Kaushik
Chief Editor,businessmanager
Group Compliance Manager
Consultant In Legal, Hr, Ir, M&a, New
Sr. Manager-hr

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.
5th October 2007 From India, Mumbai
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
6th October 2007 From India, Delhi
If you have central office in one place and different manufacturing units in another locations, you can very well close these units by following due procedures, if these units has separate factory licenses.
You have to submit a closure letter to the inspector of factories atleast 15 days advance of factory closure. on obtaining acknowledge in closure letter the same can be submitted to ESI/PF authorities.
Detailed guidelines are available in rule 108, Tamilnadu factories rules. 1950
Hope this is clear now.
5th April 2017 From India, Coimbatore
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