Dear Seniors, Myself Aathira working as an HR in a reputed Hospital in Kerala. Our management is planning to close this organization. The staff strength is nearly 200. As an HR what all things I need to do before closing this organization. Legal side and others. Please help me.
From India, Ramankari
Labour Law & Hr Consultant
Loginmiraclelogistics & Management)
Hr Manager
Mandala Prasad
+1 Other

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Pl.clarify these points-
1. What are the reasons for the intented closure
2. Is't a Co or a partnership or a proprietorship
3. Does all the 200 are permanent employees or some on permanent roll and some are temporary/contract labour?
4. Any Union(s) recognised/regd & in operation there? And they are in know of things what's your intention?
5. How many years this hospital is in operation?
6. Is this earning profit or loss making and still operations are going on as usual.
7. What registration your hospital have?

From India, Bangalore

For closure, you will have to follow the procedure laid down in Industrial Disputes Act 1947. It will also have to be ascertained whether your hospital is covered within the term "industrial establishment" or not. You will appreciate that due to closure, services of the employees are terminated, hence there will be labour unrest. Therefore, before initiating any action in furtherance to closure, you must consult Labour Lawyer.
From India, Faridabad
Hi Kumar Sir,

Thank you for you're reply.
1) Our owner planning to be a part of a new hospital in partnership
2)its a single owned company working in a leased building
3) Nearly 20% staffs are temperory basis
4) No active unions.All staff knows about this closure
5)Nearly 15 years
6) Company is going on normal mode.Neither profit nor loss
7) Paramedical Institution registration

From India, Ramankari

The closure of Hospital has to be dealt under the ID Act. These are my suggestions-
1. Try to introduce a VRS, under which whoever willing can avail the benefits under this scheme and will be treated as voluntarily retired. In respect of contract labour you have to issue adequate notice to the contractor reg.proposed closure;
2. Rest will have to be issued advance notice termination with required compensation as per ID Act. Consult the Labour Dept. for taking adequate steps.
3. Parallelly file application with the state govt.(Labour & Director of Industries/Health Dept.)for approval for termination & closure of hospital;
4. Once the formal approval is received rest of the compliance can take place.
5. You may engage an able advocate for compliance of all these procedures.
Some of the relevant provisions & procedures under ID Act is discussed in the attachment.

From India, Bangalore

Attached Files (Download Requires Membership)
File Type: docx CLOSURE OF AN ESTABLISHMENT UNDER THE ID ACT.docx (27.0 KB, 148 views)


Overview: The awaited introduction of Labour Codes contains certain provisions also relating to closure and other relevant subjects. My hunch is even if you apply now your application may be delayed resulting consideration under new regime of Labour codes instead of extant provisions. Come Dec.2020 you are likely to have a clear picture on this. You may consider this aspect also.
From India, Bangalore

How many of the staff are workmen?Athira ,if you can call me I will provide procedure under ID Act. Varghese Mathew 9961266966 Trivandrum
From India, Thiruvananthapuram
mandala prasad
how can i close HR service Pvt ltd? and what problems will comes in case company is not close?
From India, Hyderabad

Hi Athira, Our Forum members are interested to know the outcome of your query.
From India, Aizawl

Dear Aathira,

Your hospital, even though having a workforce of 200 employees in total as of now, is not an "industrial establishment" as defined u/s 2-L of the IDA,1947 and as such the restrictions imposed under Chapter V B of the Act on closure are not applicable to it.

On the same analogy, the restrictions in this regard under Chapter V A are also not applicable either except section 25-F under which notice and payment of compensation for retrenchment are mandatory.

So far as the settlement of legal dues to the employees like retrenchment compensation and gratuity ( in case of employees including non-workman cadre), better engage the services of a labor law consultant like Mr.Varghesemathew or someone else as per your choice.

Regarding surrender of licence/registration under the MCI norms, you should contact the Regional Joint Director of State Medical Services.

From India, Salem

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