Dear experts, Please elaborate the layoff and retrenchment process in detail for the firm registered under Bombay shop act. Kindest regards
From India, Bhubaneswar
Labour Law & Hr Consultant


The procedure of lay-off is different depending upon number of workmen employed in an establishment.
From India, Faridabad

Dear Shobhit Sir, We are a partnership firm. Since we are a retail shop dealing in jewelry, Bombay shop act is applicable to us. We have 27 employee on company payroll. Regards
From India, Bhubaneswar

Dear Amar,

As per the explanation to section 25-A under Chapter VA of the Industrial Disputes Act,1947, only (1) a factory as defined under the FA,1948 OR (2) a mine as defined under the MA,1952 OR (3) a plantation as defined under the PLA,1951 is an "industrial establishment". Similar is the definition u/s 25L of Chapter V-B too. Therefore, a shop or establishment coming under the purview of any State's Shops and Est Act is not an industrial establishment for the purpose of the regulatory provisions pertaining to lay off under both the chapters.

Similarly, the regulatory provisions pertaining to retrenchment given under Chapter V-B are also not applicable to any shop or establishment.

So far as lay off is concerned, this legal position creates an anomalous situation in respect of entities other than those thus defined above. As per the ratio decidendi of the judgment of the hon'ble Supreme Court in Firestone Tyre & Rubber Co. case [ 1976 (1) LLJ 493 ] compensation or no compensation would be payable in the case of industrial establishments to which the provisions of Chapter VA do not apply and it would be so as per the terms of employment. Therefore, if no provision for lay off is provided in the contract of employment, the employer of a Shop or Establishment cannot resort to lay off; if he does so the employees are entitled to full wages.

Regarding retrenchment, the employer of such an industry has to follow the conditions precedent to retrenchment stipulated under section 25F of the IDA,1947.

From India, Salem

Dear Sir Thanks once again. You are a lighthouse of our HR community. Regards
From India, Bhubaneswar

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