Navigating Establishment Closure: What You Need to Know About the ID Act, 1947

Subject: Closure Procedure and Forms for Establishment under the ID Act, 1947

Enclosed, please find the procedure and forms for the closure of an establishment as per the ID Act, 1947. I hope this information will be helpful to you.

Regards,
Jawed

Under the Industrial Dispute Act of 1947, for the closing down of a place of employment, if the establishment falls within the definition of an industry where less than 100 workmen are engaged, a prior notice has to be served to the Secretary of the Labour Department before two months. If the establishment has more than 100 workmen, then a prior notice must be served before closing down the place of employment, with a three-month notice period. The closure compensation payable to the workmen is 15 days of pay for every completed year of service.

We have closed down the activities of the establishment since 1st March '13. Presently, we have neither business nor orders for execution. We need to inform the ESIC & EPFO departments. If we receive orders in the future, we will resume the service.

Kindly advise on the ESIC & EPFO non-contribution period.

Regards,
Abu

Dear Sir,

Please help regarding the procedure for closure of an establishment in EPFO.

Dear Friend,

Please find attached a write-up explaining the legal framework for closure procedures under the ID Act. This is in reference to an industrial establishment in Tamil Nadu. You need to follow the rules of the appropriate government while the central legislation, i.e., the ID Act 1947, remains applicable.