Can Workers Challenge Retrenchment or Closure Under Section 25N/25(O) of the ID Act? Seeking Clarification on Legal Interpretations

Hi, As per the provisions of Section 25N/25(O), the Authority, while permitting retrenchment/closure, gives a reasonable opportunity to the workmen to be heard. My query is, if the permission is granted, can the workmen raise a dispute challenging their retrenchment/closure? If yes, what kind of dispute and on what grounds?

Further, as per Section 25(N)/25(O), the permission granted shall remain in force for one year from the date of such order. Does it mean the employer can close the undertaking within one year of the permission or retrench the workmen within one year of the permission? Kindly guide whether the interpretations made above are correct or, if not, what are the correct interpretations.

Regards,

Understanding Section 25N/25O: Retrenchment and Closure

According to Section 25N/25O, when an employer seeks permission for retrenchment or closure, the authority must provide a reasonable opportunity for the workmen to be heard. This implies that if permission is granted for retrenchment or closure, the affected workmen still have the right to raise a dispute challenging their retrenchment or closure. The dispute could be raised on various grounds such as improper procedure followed, unfair treatment, discrimination, or violation of any relevant laws or agreements.

Validity and Implications of Permission

The permission granted under Section 25N/25O remains valid for one year from the date of the order. This means that within this one-year period, the employer has the authority to retrench the workmen or close the undertaking, subject to the terms and conditions specified in the permission order. However, it's important to note that the one-year period does not necessarily mean that the employer must take action within that time frame. They can choose to retrench or close the undertaking at any time during that one-year period.