Director told me that he wants to close down company due to his health issue and said to issue notice to all employees

Dear all respected members,

I am working in the HR department of a software company. My query is that yesterday, my director informed me that he wants to close down the company due to his health issues and has instructed me to issue a notice to all employees. Could you please advise on the procedure or format for issuing the notice?

Note: The number of employees is 8.

Dear Ashish,

Since the number of employees in the company is only 8, there is no need to obtain prior permission from any statutory authorities under the Labor Laws for closing down an industry. However, the employer is required under section 25-F of the Industrial Disputes Act, 1947, to serve one month's notice of retrenchment or to pay one month's salary at the time of retrenchment. Additionally, the employer must pay retrenchment compensation at a rate of 15 days' average wages last drawn for every year of service rendered to all employees who have completed one year of continuous service in the establishment on the date of retrenchment. A copy of such notice should also be served on the appropriate government. Other terminal benefits such as gratuity, cash value of earned leave at credit, proportionate bonus, etc., are also payable depending on the application of the respective provisions applicable to the employees or the relevant law governing the establishment.

For the exact format of the notice, please refer to your State Industrial Disputes Rules.