Due to uncertainty, persisting in duration of lock down in the city where establishment is situated and restriction on operating hours on business of establishment, the establishment was closed and all staffs were left after payment of all legitimate dues till day of closure. There services were marked as left in PF account maintained by EPFO.

The question is that if the establishment gets re-started after certain period, then

1. Is it necessary to employee same staff or given preference under any law of land, if yes under which Act
2. If some of the left employees are re-employed, will they be treated as fresh employees from the date of re-joining or shall be treated in continuation to past employment and what will be treatment of settlement amount paid to them in lieu of notice pay, encashment of leave salary and payment of gratuity.

From India, Jodhpur
Dear Jawahar,

With the insufficient information provided in your post, I think it will not be possible to give appropriate answers to the queries raised therein.

Better, you should provide the following additional details:

1) What is the type of your industry - a factory or other establishment?

2) What was the total no of employees on roll during the preceding 12 months prior to closure on an average?

3) Whether any notice u/s 25-FFA of the ID Act,1947 was issued or formal permission for closure was obtained from the appropriate Govt prior to closure?

4) Whether any industrial dispute was pending on non-payment of wages during the lock down period at the time of closure?

6) How and from when the employees were said to have " left " after receiving all their "legitimate dues"? - opted to resign under any scheme of VR or by making any bilateral settlement?

7) What is the break up of "legitimate dues" paid to the workmen?

8) Whether the closure was genuine and total by surrendering licence, registration certificate,if any and by clearing of all debts due to banks and other financial institutions as well as all other creditors?

9) If not, is the so-called closure of the establishment a mere suspension of its operations only?

From India, Salem
Your posting have been answered by our Sr member by raising some questions to give you a solution after your feedback is received.

Did you notify the authority under Factory, Shops & Establishment that your establishment has been closed?
Did you surrender your EPF registration that it has already closed, marking employee left is not a procedure?

Did you pay the F&F to employees as envisaged under the ID Act for closure of establishment?

1. It is not necessary to employ same staff but you can give preference, where the closure of establishment as per law.
2. If some of the left employees are re-employed, they will be treated as fresh employees from the date of joining.
( In absence of closure permission: The establishment takes resignation of employees[At will], the employee made an application to employer with a request to settle his dues as on date because this situation of uncertainty of running of establishment and he will look for some employment or/engagement at some other place).

From India, Mumbai
you should provide the following additional details:

1) What is the type of your industry - a factory or other establishment?

2) What was the total no of employees on roll during the preceding 12 months prior to closure on an average?

3) Whether any notice u/s 25-FFA of the ID Act,1947 was issued or formal permission for closure was obtained from the appropriate Govt prior to closure?

4) Whether any industrial dispute was pending on non-payment of wages during the lock down period at the time of closure?

6) How and from when the employees were said to have " left " after receiving all their "legitimate dues"? - opted to resign under any scheme of VR or by making any bilateral settlement?

7) What is the break up of "legitimate dues" paid to the workmen?

8) Whether the closure was genuine and total by surrendering licence, registration certificate,if any and by clearing of all debts due to banks and other financial institutions as well as all other creditors?

From Pakistan, Karachi

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