As per the ID ACT 1947, Can we legally terminate the services of the workmen after 45 days (maximum) of lay off.
Is there any necessity of holding any domestic enquiry before termination? Can any of our esteemed readers educate me on the above?

From India, Bangalore
Management Consultancy
+1 Other


First of all, why you want to terminate service? If it is for business reasons then you need to pay retrenchment compensation and comply with its conditions. Domestic enquiry is needed if it for any misconduct, then the retrenchment compensation is not payable.
From India, Mumbai

Retrenchment benefits not payable if found guilty of misconduct/s after domestic enquiry
From India, Jalandhar

Thanks for your educative response to our above query.

On business situation,we want to terminate the services of two workmen on completion of their maximumn lay off period of 45 days. They will be paid retrenchment compensation also apart from other statutory payments.

Kindly let us know whether this termination can be done without holding domestic enquiry

From India, Bangalore

Dear Colleague,

If you read Section 25C of ID Act, 1947, it shall be lawful for the employer to retrench the workmen after 45 days of lay off subject to provision of Section 25F and in case of retrenchment, you can also set off the layoff compensation against the retrenchment compensation.

However, provisions of Section 25C do not give any liberty to the employer to violate the provisions of Section 25F/25N. Depending upon the strength of the workmen, you will have to see whether your Unit is falling under Section 25F or 25N and you will mandatorily have to comply with the applicable provisions, otherwise, retrenchment would be treated against the provisions of law.


Dr Kamlesh Agrawal

From India, Delhi

Thank you Kamalesh Sir for your above reply.
We will follow the provision of law as applicable in the event of termination of workmen after 45 days of Lay off.
I find that in the ID act, it is not mentioned that Domestic Enquiry is necessary before termination after 45 days of lay off.
My specific doubt is whether we can go ahead with termination without holding enquiry.
I would appreciate your reply, sir.

From India, Bangalore

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