Planning a Factory Closure in December: Who Do I Need to Notify Legally?

Hi everybody,

I would like to know which are the statutory and regulatory bodies that need to be informed if I am planning to close the factory in the month of December. As I know, I have to inform the Factories Inspectorate. Apart from this, which are the other statutory and regulatory bodies I have to inform?

Dear Vinay, Intimation has to be given to the factory inspector and Joint Director of Health and Safety with filled-in prescribed forms containing details such as the number of employees, muster roll, reason for closure, type of closure, etc. Additionally, give intimation to the ESI and PF office. Notification for closure depends on the employee strength in the organization as mentioned below.

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 25FFA of the Industrial Disputes Act, 1947.

In respect of an industrial undertaking employing 100 or more workmen on average in the preceding 12 months, the employer has to obtain prior approval of the Government at least 90 days before the date of intended closure by submitting an application in Form QA to the Secretary to the Government (Labour), as stipulated under Section 25(O)(1) of the Industrial Disputes Act, 1947. A copy of the application shall be served simultaneously on the representatives of the workmen as well.

The Government shall grant such approval if it is satisfied with the genuineness and adequacy of the reasons stated for closure, the interests of the general public, and all other relevant factors. The Government will communicate the order within 60 days from the date of the application for closure by the employer.

Regards,

Thank you, Vijay, for the response. It is a permanent closure wherein the existing company shall close. All the workers are on a contract basis. On-roll employees shall be moved to another group company. The average number of on-roll employees for the year 2015 is 25.

Dear Vinay, Please refer to the details below, as they may be fruitful in this regard.

Procedure for the Closure of the Factory:

1. Intimation to the concerned factory inspector before 90 days of closure.
2. Update on closing the factory.
3. Update on the number of workers in the factory.
4. Period of closure.
5. Type of closure.
6. Submission of Form-32 (Rule 127(3)1).
7. Surrender a copy of the Service Tax, Sales Tax, EPF Registration, ESIC Registration, and other registration copies.

Transfer the employees to another unit without affecting their position and scale of payment, and inform the same to the factory inspector either directly or through a letter. If the establishment is closed permanently, it is necessary to pay 15 days' salary to the worker and inform the same to the factory inspector either directly or through a letter.

Thank you.

Dear Vinay,

In addition to statutory obligations, it is advisable to inform the following agencies as well:

1. Labour Commissioner under whose jurisdiction the falls.
2. Electricity Authority for minimum charges during the period.
3. Pollution Control Board for air and water.
4. Water Supply Organization.
5. Local police station for safety.
6. Fire Department.

These suggestions are to avoid future unforeseen liabilities and cases.

Regards

Factory Act - Application for Notice of Closure of Factory (Form-29)

I hope this message finds you well. I am writing to inform you that we will be closing down the factory temporarily for maintenance purposes. As per the Factory Act regulations, we are required to submit Form-29 for the closure of the factory.

Please find attached the completed Form-29 for your review and further processing. Kindly acknowledge receipt of this notice and let us know if any additional documentation is needed from our end.

Thank you for your attention to this matter. We appreciate your cooperation and understanding during this temporary closure period.

Best regards

Factory Act - Application for Notice of Closure of Factory (Form-29) in Tamil Nadu

Hi, I am writing to inform you about the procedure for submitting the Application for Notice of Closure of a Factory (Form-29) in Tamil Nadu. It is important to follow the guidelines outlined in the Factory Act to ensure compliance with the regulations.

To initiate the closure process, the concerned authority must be notified by submitting Form-29, which details the reasons for the closure and the proposed date of closure. This form plays a crucial role in the official documentation required for the closure of a factory in Tamil Nadu.

Please ensure that all the relevant information is accurately filled out in Form-29 to avoid any delays in the closure process. Additionally, it is advisable to seek guidance from legal professionals or HR experts to ensure that all legal requirements are met.

If you have any questions or need further assistance regarding the closure of a factory in Tamil Nadu, feel free to reach out for support.

Thank you.