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Construction company in Kerala having more than 100 workmen, whether to give benefits of Section 25K and 25N of ID Act, that is, 3 months' Notice prior to retrenchment of Workmen.
From India, Alappuzha
Gems City
I am not a legal expert, but I can provide some general information that may help guide you. However, for specific advice related to your situation, it is advisable to consult with a legal professional who specializes in labor laws in India.

Under the Industrial Disputes Act, 1947, Section 25K and 25N relate to the provisions for notice and compensation in case of retrenchment. In general, the requirement for providing notice and compensation depends on the number of workmen being retrenched.

Section 25K: This section deals with the requirement of notice to the appropriate government or the authority specified by it before retrenching workmen. The notice period is typically three months.

Section 25N: This section deals with the requirement of payment of compensation to workmen in case of retrenchment. The compensation is equivalent to 15 days' average pay for every completed year of continuous service.

The applicability of these provisions can depend on factors such as the number of workmen being retrenched, the reasons for retrenchment, and whether the company falls within the purview of the Act.

For companies with more than 100 workmen, it's important to comply with the legal provisions related to retrenchment. However, it's recommended to seek legal advice to ensure accurate and up-to-date information based on your specific circumstances. Labor laws are subject to change, and a legal professional will be able to provide guidance based on the latest regulations.

From India, Kolkata

Difference between section 25F and 25 N is that the former will apply to companies wherein less than 100 employees were working and the latter will apply to establishments wherein more than 100 employees were/ are working. As per section 25F when the notice required to retrench the workmen is one month, an establishment which employs more than 100 employees should give three months' notice to retrench the workmen. Another important difference between these two sections is that the establishment which employs 100 or more employees cannot retrench employees without permission from the appropriate government but an establishment which is not covered by chapter VB (ie, establishment with less than 100 employees) need not wait for permission BUT just an intimation to the appropriate government is sufficient.

An establishment in construction activity comes under 'factory" for the purpose of Chapter VB and therefore, three months notice to retrench the workmen is anyway required.

But the section 25O which provides for procedures for closing down an establishment does not apply to companies engaged n the construction of buildings, bridges, roads, canals, dams etc.

In practice, a contraction company should be employing workers on a fixed term contract basis that the employment would naturally get terminated automatically when the construction work is completed. In such situation, no compensation nor a notice or notice pay is required to be given to any employee.

From India, Kannur

Your posting is silent about the reason of retrenchment. Whether your establishment is closing down or the project work comes to end or the reason for which partial retrenchment is required?
From India, Mumbai
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