Dear Mr PBS Kumar,
Chapter V-A of the Industrial Disputes Act, 1947, (sections 25 C to 25 E) relating to lay off and retrenchment applies to those units in which not less than 50 workers are employed. This chapter does not apply to units employing more than 100 workers (to which Chapter V-B applies)
For companies employing less than 100 workers prior intimation to the government of its intention to close down the company and thereby retrench the workmen is required to be given (Section 25 F). At the same time for companies to which chapter V-B applies, prior permission from the government is required to close down ( Section 25 O). Please correct me if there exists any state amendment regarding the number of employees and application of these two chapters, viz, Chapter V-A and V-B.
Well, the issue was not in fact relating to closure and legality of such closure. Closure has been carried out and that also without any intimation. Since there is no dues pending to EPFO or ESIC filing of nil return for the forthcoming period is enough for them. If at all current year details are required, the same can be managed by consolidation of monthly returns. In order to claim the PF, since the authorised signatory has also left authorities mentioned in the Act, viz, Bank Manager etc, shall be approached and it will not be a problem for the employees to get it. Alternatively, they can easily get the PF transferred to the new account when they join some other firm.
Since the employees do not have any dues in the form of salary the question of filing suit against the company (under section 15 of Pyament of Wages Act?) will not come. Then what is required is to get protection from clients who have dues from the company. This will become a law and order matter and requires attention of the government and local administration.
As stated earlier, it requires a general attention and I feel some way will be found at the earliest.
Regards,
Madhu.T.K