A Commercial establishment has engaged one hundred and fifty workmen. If it wants to retrench any workman who has completed one year of continuous service in the establishment, then which of the conditions are to be followed under the Industrial Disputes Act, 1947 ?

(a)It has to serve one month notice in writing in advance or pay in lieu of such notice, wages for the notice period.

(b)It has to serve three months notice in writing in advance or pay in lieu of such notice, wages for the notice period.

(c) Pay retrenchment compensation at the rate of fifteen days average pay for every completed year of continuous service or any part thereof in excess of six months.

(d) Notice in the prescribed manner is served on the appropriate Government.

(e) Prior permission of the appropriate Government has been obtained on an application made in this behalf.

From India, Kolkata

Dear friend,
While considering the implementation of certain employment concepts under any specific labor legislation like the IDA,1947, one has to pay meticulous attention to the statutory restrictions placed therein. Lay off, retrenchment and closure under the IDA,1947 are such concepts. One can find the restrictions under Chapters V-A and V-B of the Act respectively being interspersed with the generality of application. I think that your question springs up under this context only.
The introductory sections viz., sections 25-A of Chapter V-A and 25-K of Chapter V-B not only mutually excludes the industrial establishments within the purview of the respective chapter's application but also defines them under the explanatory clause of sec.25-A and the definition clause of sec. 25-L respectively. They are - (i) a factory as defined under the Factories Act,1948 (ii) a mine as defined under the Mines Act,1952 and (iii) a plantation as defined under the Plantation Labor Act,1951. Therefore, the restrictions imposed under Chapter V-B would be applicable only to the above class of establishments only when their average no of workmen during the preceding 12 months remains 100 or more. By implication it means that sections 25-B, 25-C,25-D,25-E,25-F,25-FF,25-FFA,25-FFF,25-G,25-H and 25-J would apply to any other industrial establishment or undertaking as defined u/s 2(ka) of the Act.
Coming to your queries, the specific mention that the industrial establishment is a commercial establishment shows that it is not an industrial establishment thus defined under the above two Chapters of the Act.
Therefore, you have to observe the statutory formalities mentioned in your post's serial nos (a), (c) and (d) only.

From India, Salem

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