Query: Closing Of One Division In The Company And ML Case

jayaashree
Seniors kindly advise:-
My company is pvt ltd and into service industry.We are shutting off one of the division due to non- viability and non - performance of the service product. We have one employee who is pregnant. Can we terminate her along with other employees of the division. Thanks
manojkamble
Dear Jayashree,
Maternity Benefit act gives protection to every pregnant women employed by the organisations. Thus you cannot terminate an pregnant employee.
Srinath Sai Ram
The question of Termination of other Employees and 1 Female Employee who is Pregnant does not arise at all.As per your information, you are closing your unit for Economically non viability reasons. Further, you have just mentioned that your Female Employee is pregnant. Whether she is under Maternity Leave? It would be most appropriate to pay Closure Compensation as provided under Industrial Disputes Act, 1947 to all Employees including to Female Employee.
With regard to Payment of maternity benefit to Female Employee, it depends from when she will be on Maternity leave? what will be the date of Closure of your unit etc
jayaashree
Thank you Manoj and Srinath.
Srinath Sai Ram will the payment be under the following 25FFF
"PROVIDED that where the undertaking is closed down on account of unavoidable circumstances beyond the control of the employer, the compensation to be paid to the workman under clause (b) of section 25F, shall not exceed his average pay for three months"
ML for the colleague would be applicable 3 months after closure.
Kindly guide further. Thank you.
Srinath Sai Ram
with regard to compensation, you may work out the same after discussion with affected Employees.
Consequent to Closure, the question of ML payment does not arise.If Employees are covered under ESI, they can avail the same.
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute