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Establishment was employing 20 workmen and their demand relating to better service conditions was pending before the Industrial Tribunal.Packaging section of production dept.was closed by paying closure compensation to concerned.Will the action amount to change in service conditions within the meaning of Sec.33(1) of Industrial Dispute Act 1947.Support of citation would be appreciated. Regards.

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From India, Pune

Dear Jagdish,

Closure of a particular department/section of an industrial establishment results in retrenchment of the workmen employed therein. Retrenchment is one among the conditions of employment. Therefore, when a dispute for betterment of existing working conditions of the industrial establishment is pending adjudication before an Industrial Tribunal, certainly such retrenchment will attract the provisions of section 33 of the Industrial Disputes Act,1947.

However, if the retrenchment is as a consequence of an agreement/settlement with all the workmen of the particular section/department, the provisions of section 33 will not be applicable.

From India, Salem
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