Procedure for Retrenchment in Karnataka for Factories with Over 100 Workers
In Karnataka, when a factory has more than 100 workers employed, the retrenchment procedure is governed by the Industrial Disputes Act (IDA) and the Karnataka Rules. Specifically, in this scenario, Section 25N of the IDA would be applicable rather than Section 25F. Here's a practical guide on the procedure for retrenchment in such cases:
1. Notification: The employer must provide written notice to the appropriate government authority and the concerned workers' representatives at least 60 days before retrenchment.
2. Compensation: According to Section 25N, workers are entitled to a compensation amounting to 15 days' average pay for every completed year of continuous service or any part thereof in excess of six months.
3. Prior Approval: Prior approval from the appropriate authority is required before initiating the retrenchment process.
4. Consultation: The employer must consult with the workers' representatives regarding the reasons for retrenchment, the number of workers to be retrenched, and the selection criteria.
5. Last-in-First-Out (LIFO): The principle of LIFO should be followed when selecting workers for retrenchment, meaning the most recently hired workers should be the first to be retrenched.
6. Avoid Discrimination: Ensure that the retrenchment process does not discriminate based on factors such as gender, caste, religion, etc.
By following these steps and complying with the relevant provisions of the IDA and Karnataka Rules, the retrenchment process for factories with over 100 workers in Karnataka can be carried out smoothly and in accordance with the law.
Reference
https://www.india.gov.in/topics/labour-employment/industrial-relations/industrial-disputes-act-1947