How to Handle Employee Layoffs: Guidance Needed for Closing Manufacturing Units in Tamil Nadu

Hi
Greetings,
I am working in a FMCG Manufacturing company's corporate office in chennai, we have 3 manufacturing unit in tamilnadu. Now, our management wants to close 2 manufacturing unit in October –07. In each unit we have nearly 60 employees [Both staff & Workes].
Please guide me what is the complete procedures and formalities I have to do. Waiting for your valuable instructions for the same.
Regards
MKS

Hi,

If the two manufacturing units being closed are under a different legal name and are a different legal entity, the situation will definitely change. Otherwise, it may amount to the closure of a substantial undertaking of the company. Similarly, keep all concerned departments informed of the closure by way of a written intimation either by registered post A.D. or by hand delivery. Also, in order to avoid gate crash or untoward situations at the entrance or in peripherals, keep the nearby police station informed for any support, if required. The rest is a procedure written in the ID Act.

Wish you all the best.

Hi,

My sincere request is to please consult an expert on this issue. It is a mixed question of facts and law, where even a single fact can change the entire legal position. The opinions expressed should not be considered conclusive because members provide their views based on the facts you narrate.

This is a sensitive issue that involves a lot of procedural formalities. Your decision will impact the fate of your organization. I hope you will not take this the wrong way.

Regards,
Anil Kaushik

Hi MKS, if you have a central office in one place and different manufacturing units in other locations, you can close these units by following due procedures if these units have separate factory licenses. You have to submit a closure letter to the Inspector of Factories at least 15 days in advance of the factory closure. Upon obtaining acknowledgment of the closure letter, the same can be submitted to ESI/PF authorities. Detailed guidelines are available in Rule 108 of the Tamil Nadu Factories Rules, 1950. Hope this is clear now.