Can a Company End 250 Jobs with Just a Three-Month Notice, or Are There Legal Hurdles?

If the appointment letter of the employees specifies that the agreement would come to an end at the instance of either party by giving the other a notice in writing for three months, will this clause be sufficient for the company to terminate the employment contract with 250 employees by giving a three-month notice period, or do the rules specified in the Industrial Dispute Act regarding retrenchment have to be followed? Kindly advise.

The conditions of retrenchment vary from the termination of service by payment of the notice period. By the 1984 amendment to Section 2(oo), adding sub-section (bb) to it, the termination of the service of the workman as a result of such contract being terminated under a stipulation in that behalf has been excluded from 'Retrenchment'. This has to be examined in depth.

When 250 employees are terminated
Is it because of the closure of the firm? Then the corresponding provisions in the ID Act have to be considered. More details are needed to give a considered view on the matter.