Understanding ID Act 1947: Which Clause Applies to Retrenching Workers in Chrome Mines?

I would like to know which clause of the ID Act 1947, Section 25F or 25N, is applicable in the case of Chrome Mines in Orissa and why. We are mining contractors, and one of our contracts is going to be closed, so we have to retrench the workers.

Section 25-N of the ID Act 1947 is applicable in the case of lay-off, retrenchment, and closure in a mine.

- Lay-off requires permission from the appropriate government or specified authority.
- An application must be made by the employer for permission.
- An application for permission to continue a lay-off in a mine is necessary.
- Orders granting or refusing permission for lay-off must be communicated to the employer and workmen.
- There is a presumption of permission if no order is communicated within 60 days.
- The order is binding for all parties for one year.
- There is a provision for the review of the order.
- Lay-off is illegal in certain cases. Exemption: Penalty for illegal lay-off includes imprisonment for up to one month or a fine of up to Rs. 1,000 or both.

Retrenchment Conditions

To retrench the workers, the conditions precedent for workmen are:

- A three-month notice and prior permission of the appropriate government or the specified authority are required before retrenchment.
- An application must be made for permission.
- Orders granting or refusing permission for retrenchment must be communicated to the employer and workmen.
- There is a presumption of permission if no order is communicated within 60 days.
- The order is binding on all parties for one year.
- There is a provision for reviewing the order.

Regards

I thank you very much for your response. Kindly let me know why 25 F is not applicable. In 25 F, it is one month's notice instead of three months. Also, let me know which types of industries come under 25 F.

With regards

Under Sec. 25 FFA - No workman employed in any industry who has been in continuous service for not less than 1 year under an employer shall be retrenched by that employer. However, this is applicable only if the new employer is under such transfer and 60 days' notice is to be given of intention to close down any undertaking.

CLOSURE:

An employer who intends to close down an industrial undertaking wherein 50 workmen or more, but less than 100, are employed or were employed during the preceding 12 months has to serve a notice to the Government in "Form Q" at least 60 days before the date of intended closure, stating the reasons for the proposed closure as laid down under Section 25 FFA of the Industrial Disputes Act, 1947. Large-scale industries that have employed 50 workmen or more will have the ID Act applicable.

Forms that have to be submitted in both cases:

- Form of Notice for permission for retrenchment of workmen to be given by an employer under Clause (c) of Sub-section (1) of Section 25N of the Industrial Disputes Act, 1947 (See Rule 76A(1)) Form PA

- Form of Notice of Closure to be given by an employer under Section 25FFA of the I.D. Act, 1947. Form Q.