Facing Retrenchment of 300 Unionized Employees: Do I Need Government Approval?

Retrenchment of Unionized Employees: Legal Considerations

I have an assignment involving the retrenchment of about 300 unionized employees out of a total of 500, who are currently posted in the office of a PSU in Mumbai. I am uncertain whether I need to obtain permission from the appropriate government as mandated under Section 25N of Chapter VB, or if I can proceed without permission by following the provisions of Section 25F of Chapter VA of the ID Act, 1947. Obtaining permission from the appropriate government seems nearly impossible. Given the number of employees to be retrenched, which is 300, Section 25N appears to be the only option.

Please advise.

It seems our HR professionals don't want to apply their minds and give me advice. Anyways, I would like to reply to myself. Since my establishment is neither a factory, mine, nor a plantation, it is covered under the Shops and Establishments Act. Despite the fact that the total number of employees is more than 100, the provision of Section 25N will not be applicable. Hence, retrenchment is possible without the permission of the appropriate government. This is for information to all interested HR professionals.