CHAPTER V

STRIKES AND LOCK-OUTS

22.Prohibition of strikes and lock-outs.

No person
employed in a public utility service shall
go on strike in breach of contract-22. Prohibition of strikes and lock-outs.- (1)

(a) without giving to the employer

provided, within

(b) within

(c)

notice of strike, as herein-after

6 weeks before striking

14

; or

days of giving such notice; or

before the expiry

strike specified in

any such

of the

date of

notice

as aforesaid;

or

(d)

during pendency
the

of any

conciliation

proceedings before a conciliation officer and

days after the

conclusion of such proceedings.

(2) No

employer carrying on any public utility service shall

lock-out

any of his workmen--

(a) without giving them notice of lock-out as hereinafter provided, within

weeks before locking out; or

--------------------------------------------------------------------1. Subs. by Act 36 of 1956, s. 16, for "or Tribunal" (w.e.f. 10-31957).
2. Subs. by s. 16, ibid., for "Court or Tribunal" (w.e.f. 10-31957).

171.(b) within

(c)

14

days of giving such notice; or

before the expiry of the date of lock-out

specified in any such notice as aforesaid; or

during the pendency of any conciliation

proceedings before a conciliation officer and seven days after the
(d)

conclusion of such proceedings.

(3) The notice of lock-out or strike under this section shall not be necessary
where there is already in existence a strike or, as the case may be, lock-out in

the public utility service, but the employer shall send intimation of such lockout or strike on the day on which it is declared, to such authority as may be
specified by the appropriate Government either generally or for a particular area
or for a particular class of public utility services.
(4) The notice of strike referred to in sub-section (1) shall be given by such
number of persons to such person or persons and in such manner as may be
prescribed.
(5) The notice of lock-out referred to in sub-section (2) shall be given in such
manner as may be prescribed.
(6) If on any day an employer receives from any persons employed by him any
such notices as are referred to in sub-section (1) or gives to any persons
employed by him any such notices as are referred to in sub-section (2), he shall
within

5 days

thereof

report to

the

appropriate

Government or to such authority as that Government may prescribe the

number of such notices received or given on that day.

23. General prohibition of strikes and

lock-outs.
23.

General prohibition

of strikes and lock-outs.-

No workman who is employed in any industrial

establishment shall go on strike in breach of contract & no
employer of any such workman shall
declare a lock-out--

during the pendency of conciliation

proceedings before a
Board and 7 days after the conclusion of such proceedings;
(a)

(b)

during the pendency of proceedings

before 1*[a Labour

Court, Tribunal or National Tribunal] and

months after

the conclusion of such proceedings; 2***

3*[(bb)

during the pendency of arbitration

proceedings before an arbitrator and

months after the conclusion of such proceedings, where a notification

has been issued under sub-section (3A) of section 10A;
or]
--------------------------------------------------------------------1. Subs. by Act 36 of 1956, s. 17, for "a Tribunal" (w.e.f. 10-31957).
2. The word "or" omitted by Act 36 of 1964, s. 11 (w.e.f. 19-121964).
3. Ins. by s. 11, ibid. (w.e.f. 19-12-1964).

during any period in which a

settlement or award is in operation, in
172.(c)

respect of any of the matters covered by the

settlement or award.

Illegal strikes and lock-outs.

24.

24. Illegal strikes and lock-outs.- (1) A strike or a lock-out shall be illegal if-(i) it is commenced or declared in contravention of section
22 or section 23; or
(ii) it is continued in contravention of an order made under sub-section (3) of
section 10 1*[or sub-section (4A) of section 10A].
(2) Where a strike or lock-out in pursuance of an industrial dispute

has

already commenced and is in existence at the time of the

reference of the dispute to a Board, 1*[an arbitrator, a] 2*[Labour
Court, Tribunal or National Tribunal], the continuance of such strike or lock-out

shall not be deemed to be

that

illegal provided
,

such strike or lock-out was not at its commencement in contravention

of the provisions of this Act or the continuance thereof was not prohibited under
sub-section (3) of section 10 1*[or sub-section (4A) of section
10A].
(3) A lock-out declared in consequence of an illegal strike or a strike declared in
consequence of an illegal lock-out

shall not be deemed to

be illegal.
25.Prohibition of financial aid to illegal strikes and lock-outs.

25. Prohibition of financial aid to illegal strikes and lockouts.- No person shall knowingly expend or apply any money in direct
furtherance of support of any illegal strike or lock-out.

CHAP
LAY-OFF AND RETRENCHMENT

3*[CHAPTER VA
LAY-OFF AND RETRENCHMENT

25A.
Application of sections 25C to 25E.

25A. Application of sections 25C to 25E.-(1) Sections 25C to 25E

inclusive 4*[

shall not apply

to industrial establishments

to which
Chapter VB applies, or--]
(a) to industrial establishments in which less than

50

workmen on an

average per working day have been employed in the

preceding calendar month; or
(b) to industrial establishments which are of a

seasonal character or

work

only intermittently.

in which
is performed
--------------------------------------------------------------------1. Ins. by Act 36 of 1964, s. 12 (w.e.f. 19-12-1964).
2. Subs. by Act 36 of 1956, s. 18, for "or Tribunal" (w.e.f. 10-31957).
3. Ins. by Act 43 of 1953, s. 3 (w.e.f. 24-10-1953).
4. Subs. by Act 32 of 1976, s. 2, for "shall not apply--" (w.e.f.
5-3-1976).

173.(2) If a question arises whether an industrial establishment is of a seasonal

character or whether work is performed therein only intermittently, the decision
of the appropriate Government thereon shall be final.
1*[Explanation.--In this section and in sections 25C, 25D and
25E, "industrial establishment" means-(i) a factory as defined in clause (m) of section 2 of the
Factories Act 1948 (63 of 1948); or
(ii) a mine as defined in clause (j) of section 2 of the
Mines Act, 1952 (35 of 1952); or
(iii) a plantation as defined in clause (f) of section 2 of the Plantations Labour
Act, 1951 (69 of 1951).]

25B.
Definition of continuous service.

2*[25B. Definition of continuous service.- For the purposes of this Chapter,-(1) a workman shall be said to be in continuous service for a period if he is, for
that period, in uninterrupted service, including service which may be interrupted
on account of sickness or authorised leave or an accident or a strike which is not
illegal, or a lock-out or a cessation of work which is not due to any fault on the
part of the workman;

(2) where a workman is not in continuous service within the meaning of clause
(1) for a period of one year or six months, he shall be deemed to be in
continuous service under an employer-(a) for a period of one year, if the workman, during a period of twelve calendar
months preceding the date with reference to which calculation is to be made,
has actually worked under the employer for not less than-(i) one hundred and ninety days in the case of a workman employed below
ground in a mine; and
(ii) two hundred and forty days, in any other case;
(b) for a period of six months, if the workman, during a period of six calendar
months preceding the date with reference to which calculation is to be made,
has actually worked under the employer for not less than-(i) ninety-five days, in the case of a workman employed below ground in a
mine; and
--------------------------------------------------------------------1. Subs. by Act 48 of 1954, s. 2, for the former Explanation (w.e.f.
1-4-1954).
2. Subs. by Act 36 of 1964, s. 13, for s. 25B (w.e.f. 19-12-1964).
174.(ii) one hundred and twenty days, in any other case.

For the purposes of clause (2), the number of days on

Explanation.--

which a workman has actually worked under an employer

shall

include the days on which-(i) he has been

laid-off

under an agreement or as permitted by

standing orders made under the Industrial Employment

(Standing Orders) Act, 1946 (20 of 1946), or under this Act or under any other
law applicable to the industrial establishment;

been on leave with full wages, earned in the

(ii) he has
previous years;

(iii) he has been

absent due to temporary

disablement caused by accident arising out of and in

the course of his employment; and
(iv) in the

case of a female, she has been on maternity

leave; so, however, that the total period of such maternity leave does
not exceed 12 weeks.]
25C.
Right of workmen laid-off for compensation.

1*[25C. Right of workmen laid-off for compensation.-

Whenever a

other than a badli workman or a casual

workman (

workman) whose name is borne on the muster rolls of an industrial

has completed not less than
1year of continuous service under an employer is laidestablishment and who

off, whether continuously or intermittently, he shall be paid by the employer

for all days during which he is so laid-off, except for such weekly holidays as

compensation which shall be equal to 50% of

the total of the basic wages and dearness allowance
may intervene,

that would have been payable to him had he not been so laid-off:
Provided that if during any period of twelve months, a workman is so laid-off
for more than forty-five days, no such compensation shall be payable in respect
of any period of the lay-off after the expiry of the first forty-five days, if there is
an agreement to that effect between the workman and the employer:
Provided further that it shall be lawful for the employer in any case falling
within the foregoing proviso to retrench the workman in accordance with the
provisions contained in section 25F at any time after the expiry of the first fortyfive days of the lay-off and when he does so, any compensation paid to the
workman for having been laidoff during the

preceding 12 months may be set

off

against

payable for retrenchment

the compensation
.
--------------------------------------------------------------------1. Subs. by Act 35 of 1965, s. 5, for the former section (w.e.f. 112-1965).
175.Explanation.--"Badli workman" means a workman who is employed in an
industrial establishment in the place of another workman whose name is borne
on the muster rolls of the establishment, but shall cease to be regarded as such
for the purposes of this section, if he has completed one year of continuous
service in the establishment.]

25D.
Duty of an employer to maintain muster rolls of workmen.

25D. Duty of an employer to maintain muster rolls of workmen.

Notwithstanding that workmen in any industrial establishment have been laidoff, it shall be the duty of every employer to maintain for the purposes of this
Chapter a muster roll and to provide for the making of entries therein by
workmen who may present themselves for work at the establishment at the
appointed time during normal working hours.

25E.
Workmen not entitled to compensation in certain cases.

No
compensation shall be paid to a workman who has
been laid-off-25E. Workmen not entitled to compensation in certain cases.-

if he refuses to accept any alternative

employment in the same establishment from which he
has been laid-off, or in any other establishment belonging to
the same employer situate in the same town or village
or situate within a radius of five miles from the establishment
to which he belongs, if, in the opinion of the
employer, such alternative employment does not
call for any special skill or previous experience and
can be done by the workman,
(i)

Provided that the wages which would normally have

been paid to the workman are offered for the alternative
employment also;

does not present himself for work at the

establishment at the appointed time during normal working hours at least
once a day;
(ii) if he

if such laying-off is due to a strike or

slowing-down of production on the part of workmen in
(iii)

another part of the establishment.

25F.
Conditions precedent to retrenchment of workmen.

No workman
employed in any industry who has been in continuous
service for not less than one year under an employer
shall be retrenched by that employer until-25F. Conditions precedent to retrenchment of workmen.-

one months notice

(a) the workman has been given

in writing
indicating the reasons for retrenchment and the period of notice has expired, or
the workman has been paid in lieu of such notice, wages for the period of the
notice:
176.1* * * * *

has been paid, at the time of

retrenchment, compensation which shall be
equivalent to fifteen days
average pay 2*[for every completed year of
continuous service] or any part thereof in excess
of six months (6 months);
(b) the workman

and

(c) notice in the prescribed manner is served on the appropriate Government

3*[or such authority as may be specified by the appropriate Government by
notification in the Official Gazette].

25FF
Compensation to workmen

in case of transfer of undertakings.

4*[25FF. Compensation to workmen in case of transfer of undertakings.- Where

ownership or management of an undertaking is

transferred, whether by agreement or by operation
of law, from the employer in-relation-to that
undertaking to a new employer, every workman who
the

has been in continuous service for not less

than one year in that undertaking
immediately before such transfer shall be
entitled to notice and compensation in
accordance with the provisions of
section 25F, as if the workman had
been retrenched:
Provided that nothing in this section shall
apply to a workman in any case where there has

a change of employers by reason of

the transfer, if-been

service of the workman has not been

interrupted by such transfer;
(a) the

terms and conditions of service

applicable to the workman after such transfer are not
in any way less favourable to the workman than
those applicable to him immediately before
(b) the

the transfer; and

terms of such transfer

or otherwise, legally liable to pay to the workman,
in the event of his retrenchment, compensation
on the basis that his service has been continuous and has not been
(c) the new employer is, under the

interrupted by the transfer.

--------------------------------------------------------------------1. Omitted by Act 49 of 1984, s. 3 (w.e.f. 18-8-1984).
2. Subs. by Act 36 of 1964, s. 14, for "for every completed year of service"
(w.e.f. 19-12-1964).
3. Ins. by s. 14, ibid. (w.e.f. 19-12-1964).
4. Subs. by Act 18 of 1957, s. 3, for the former section (w.e.f. 2811-1956). S. 25FF was ins. by Act 41 of 1956, s. 3.176A

25FF

60 days notice

to be given of

intention to close

down any undertaking.

1*[25FFA.

60

days notice to be given of intention to close down any

undertaking.- (1) An employer who intends to close down an undertaking shall

60

on which the
intended closure is to become effective, a
notice, in the prescribed manner, on the
appropriate Government stating clearly
the reasons for the intended closure of the
undertaking:
serve, at least

days before the date

Provided that nothing in this section shall apply to-an undertaking in which--

(a)

(i)

less 50

(ii)

than

less 50
than

workmen are employed, or

workmen

were employed on an

average per working day in the preceding

12 months,
an undertaking set up for the construction
of buildings, bridges, roads, canals, dams
or for other construction work or project.
(b)

(2) Notwithstanding anything contained in sub-section (1), the appropriate

if it is satisfied that owing to such

exceptional circumstances as accident in
the undertaking or death of the employer or the like it
is necessary so to do, by order, direct that provisions
Government may,

of sub-section (1) shall not apply in relation to such undertaking for such period
as may be specified in the order.]

25FF

Compensation to workmen in case of

closing down of undertakings.
25FFF. Compensation to workmen in case of closing down of
undertakings.- (1) Where an undertaking is closed down for
any reason whatsoever, every workman

who has

been in continuous service for

--------------------------------------------------------------------1. Ins. by Act 32 of 1972, s. 2 (w.e.f. 14-6-1972).

not less than one year in that

undertaking immediately before such
closure shall, subject to the provisions of subsection (2), be entitled to notice and
compensation in accordance with the
177.

provisions of section

25F as if the workman

,

had been retrenched:

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

three months

pay for

1*[Explanation.--An undertaking which is

closed down

by

reason merely
(i)

of--

financial difficulties

(including financial

losses); or

(ii)

accumulation of undisposed stocks; OR

expiry of the period of the lease or

licence granted to it; or
(iii) the

in a case where the undertaking is engaged in

mining operations, exhaustion of the
minerals in the area in which such operations
are carried on;
(iv)

SHALL NOT BE DEEMED to be closed down on

account of unavoidable circumstances beyond the
control of the employer within the meaning of the proviso to this sub-section.]

Notwithstanding anything contained in subsection (1), where an undertaking engaged in mining

operations is closed down by reason merely of
2*[(1A)

exhaustion of the minerals in the area in which such operations are carried on,

no workman referred to in that sub-section shall be

entitled to any notice or compensation in

accordance with the provisions of section 25F, if-employer provides the workman with
alternative employment with effect
from the date of closure at the same
remuneration as he was entitled to receive,
and on the same terms and conditions of
service as were applicable to him,
immediately before the closure;
(a) the

service of the workman has not been

interrupted by such alternative
employment; and
(b) the

under the terms of such

alternative employment or otherwise,
legally liable to pay to the workman, in the
event of his retrenchment, compensation on
the basis that his service has been continuous
and has not been interrupted by such alternative
(c) the employer is,

employment.
--------------------------------------------------------------------1. Subs. by Act 45 of 1971, s. 4, for the original Explanation
(w.e.f. 15-12-1971).
2. Ins. by s. 4, ibid. (w.e.f. 15-12-1971).
178.(1B) For the purposes of sub-sections (1) and (1A), the expressions
"minerals" and "mining operations" shall have the meanings respectively
assigned to them in clauses (a) and (d) of section 3 of the Mines and Minerals
(Regulation and Development) Act, 1957 (67 of
1957).]
(2) Where any undertaking set-up for the construction of buildings, bridges,
roads, canals, dams or other construction work is closed down on account of the
completion of the work within two years from the date on which the
undertaking had been set-up, no workman employed therein shall be entitled to
any compensation under clause
(b) of section 25F, but if the construction work is not so completed within two
years, he shall be entitled to notice and compensation under that section for
every 1*[completed year of continuous service]
or any part thereof in excess of six months.]

25G.
Procedure for retrenchment.

Procedure for retrenchment- Where any

workman in an industrial establishment, who is a citizen of India, is
to be retrenched and he belongs to a particular
category of workmen in that establishment,
in the absence of any agreement between the employer
25G.

retrench
the workman who was the last person to
be employed in that category, unless for reasons to be
and the workman in this behalf, the employer shall ordinarily

recorded the employer retrenches any other workman.

25H.
Re-employment of retrenched workmen.

Re-employment of retrenched
workmen.- Where any workmen are
retrenched, and the employer proposes to take into his employ any
persons, he shall, in such manner as may be prescribed, give an
opportunity 2*[to the retrenched
workmen who are citizens of India to offer
themselves for re-employment and such
25H.

retrenched workman] who offer themselves for re-employment shall have

preference over other persons.

25I.
[Repealed.]

251. [Recovery of moneys due from employres under this chapter.]Rep. by the Industrial Disputes (Amendment and Miscellaneous

Provisions) Act, 1956 (36 of 1956), s. 19 (w.e.f. 10-3-1957).

25J.
Effect of laws inconsistent with this Chapter.

25J. Effect of laws inconsistent with this Chapter.- (1) The provisions of this
Chapter shall have effect notwithstanding anything inconsistent therewith
contained in any other law [including standing orders made under the Industrial
Employment (Standing Orders) Act,
1946 (20 of 1946)]:
3*[Provided that where under the provisions of any other Act or rules, orders or
notifications issued thereunder or under any standing orders or
--------------------------------------------------------------------1. Subs. by Act 36, of 1964, s. 15, for "completed year of service"
(w.e.f. 19-12-1964).
2. Subs. by s. 16, ibid. for certain words (w.e.f. 19-12-1964).
3. Subs. by s. 17, ibid., for the proviso (w.e.f. 19-12-1964).
178A
under any award, contract of service or otherwise, a workman is entitled to
benefits in respect of any matter which are more favourable to him than those to
which he would be entitled under this
Act, the workman shall continue to be entitled to the more favourable benefits
in respect of that matter, notwithstanding that he receives benefits in respect of
other matters under this Act.]

nothing
contained in this Chapter shall be
deemed to affect the provisions of any other
law for the time being in force in any State in so far as that law provides for
(2) For the removal of doubts, it is hereby declared that

but the rights and

liabilities of employers and workmen in so
far as they relate to lay-off and retrenchment
shall be determined in accordance with the provisions of this
Chapter.]
the settlement of industrial disputes,

CHAP

SPECIAL PROVISIONS RELATING TO LAY-OFF,

RETRENCHMENT AND CLOSURE IN CERTAIN
ESTABLISHMENTS
1*[CHAPTER VB
SPECIAL PROVISIONS RELATING TO LAY-OFF, RETRENCHMENT
AND CLOSURE
IN CERTAIN ESTABLISHMENTS

25K.
Application of Chapter VB.

provisions of this
CHAPTER SHALL apply to an industrial
establishment (NOT BEING an establishment of a
25K. Application of Chapter VB.- (1) The

seasonal character or in which work is

performed only intermittently) in which not
less than 2*[100] workmen were employed on an
average per working day for the
preceding twelve months.
(2) If a question arises whether an industrial establishment is of a seasonal
character or whether work is performed therein only intermittently, the decision
of the appropriate Government thereon shall be final.

25L.
Definitions.

25L. Definitions.-

For the purposes of this

Chapter,-(a) "industrial establishment" means-(i) a factory as defined in clause (m) of section 2 of the Factories Act, 1948 (63
of
1948)
(ii) a mine as defined in clause (i) of subsection (1) of section 2 of the Mines Act, 1952.(35 of 1952); or
(iii) a plantation as defined in clause (f)
of section 2 of the Plantations Labour Act, 1951.(69 of 1951)
--------------------------------------------------------------------1. Ins. by Act 32 of 1976, s. 3 (w.e.f. 5-3-1976).

2. Subs. by Act 46 of 1982, s. 12 (w.e.f. 21.8.1984).

178B
(b) notwithstanding anything contained in sub-clause (ii) of clause (a) of section
2,--

51

in which not less than

% of the paid-up share capital is held by the
Central Government, or
(i) in relation to any company

(ii)

in relation to any corporation [NOT being

a corporation referred to in sub-clause (i)

of clause (a) of section 2] established by or under any law made by Parliament,

the Central Government shall be

appropriate Government.
25M.
Prohibition of lay-off.

No workman (other
than a badli workman or a casual workman) whose name
is borne on the muster rolls of an industrial establishment to
which this Chapter applies shall be laid-off by
25M. Prohibition of lay-off.- (1)

his employer except 1*[with the prior permission

of the appropriate Government or such
authority as may be specified by that
Government by notification in the Official Gazette (hereinafter in this section
referred to as the specified authority), obtained on an application made in this

unless such lay-off is due to shortage

of power or to natural calamity, and in the case
of a mine, such lay-off is due also to fire, flood,
excess of inflammable gas or explosion].
behalf,

1*[(2) An application for permission under sub-section (1) shall be made by the

stating clearly the

reasons for the intended lay-off and a copy of such
employer in the prescribed manner

application shall also be served simultaneously on the workmen concerned in

the prescribed manner.

an
industrial establishment, being a mine,
(3) Where the workman (other than badli workmen or casual workmen) of

have been laidoff under sub-section (1) for reasons of fire, flood or excess of inflammable gas
or explosion,

the employer, in-relation-to such

establishment,

shall, within a period of

30 days

from the date of

commencement of such lay-off, apply, in the prescribed manner, to the

appropriate Government or the specified authority for permission to continue
the lay-off.

(4) Where an application for permission under sub-section (1) or sub-section (3)

appropriate Government or the

specified authority, after making such enquiry as it thinks fit
has been made, the

and after giving a reasonable opportunity of being heard to the employer, the
workmen concerned and the persons interested in such lay-off,

may,

having regard to the genuineness and

adequacy of the reasons for such lay-off, the
interests of the workmen and all other
relevant factors, by order and for reasons to be recorded in
writing, grant or refuse to grant such permission and a
copy of such order shall be communicated to the employer and the workmen.
(5) Where an application for permission under sub-section (1) or sub-section (3)
has been made and the appropriate Government or the specified authority

DOES NOT communicate the order

granting or refusing to grant permission to the

60

within a period of
days from the date on which such
application is made, the permission applied for
SHALL BE DEEMED to have been
granted on the expiration of the said period of
employer

sixty days.
(6) An order of the appropriate Government or the specified authority granting
or refusing to grant permission shall, subject to the provisions of sub-section

(7), be final and binding on all the parties concerned and

remain in force for

1 year

shall

from the date of such

order.
(7) The appropriate Government or the specified authority may, either on its
own motion or on the application made by the employer or any workman,
review its order granting or refusing to grant permission under sub-section (4)
or refer the matter or, as the case may be, cause it to be referred, to a Tribunal
for adjudication:
Provided that where a reference has been made to a Tribunal under this subsection, it shall pass an award within a period of thirty days from the date of
such reference.
(8) Where no application for permission under sub-section (1) is made, or where
no application for permission under sub-section (3) is made within the period

OR where the permission for

any lay-off has been refused, such layoff shall be deemed to be illegal from the date
on which the workmen had been laidoff and the workmen shall be entitled to all the
benefits under any law for the time being in force as
if they had not been laid-off.
specified therein,

(9) Notwithstanding anything contained in the foregoing provisions of this

section, the appropriate Government may, if it is satisfied that owing to such
exceptional circumstances as accident in the establishment or death of the
employer or the like, it is necessary so to do, by order, direct that the provisions
of sub-

section (1), or, as the case may be, sub-section (3) shall not apply in relation to
such establishment for such period as may be specified in the order.]
--------------------------------------------------------------------1. Subs. by Act 49 of 1984, s. 4 (w.e.f. 18.8.1984).
178C

The provisions of section 25C

(other than the second proviso thereto)
SHALL apply to cases of lay-off
referred to in this section.
1*[(10)]

a workman
SHALL NOT BE DEEMED to be laidoff by an employer if such employer offers any
alternative employment (which in the
opinion of the employer DOES NOT CALL for any
special skill or previous experience and can
be done by the workman) in the same
establishment from which he has been laid-off or
in any other establishment belonging to the same
employer, situate in the same town or
village, or situate within such distance from the
establishment to which he belongs that the
Explanation.--For the purposes of this section,

transfer WILL NOT involve undue

hardship to the workman having regard to the
facts and circumstances of his case, provided that the
wages which would normally have been paid to the workman are
offered for the alternative appointment also.
25N.
Conditions precedent to retrenchment of workmen.

2*[25N. Conditions precedent to retrenchment of workmen.-(1) No workman

IN ANY INDUSTRIAL
ESTABLISHMENT to which this Chapter
applies, who has been in continuous service for not less than one year
employed

under an employer shall be retrenched by that employer until,--

(a) the workman has been given

3 MONTHS

NOTICE in writing indicating the reasons for retrenchment and the

period of notice has expired,

in lieu of such notice,

notice; and

OR
wages

the workman has

for the

been paid

period of the

(b) the prior permission of the appropriate Government or such authority as may
be specified by that Government by notification in the Official Gazette
(hereafter in this section referred to as the specified authority)
has been obtained on an application made in this behalf.
(2) An application for permission under sub-section (1) shall be made by the
employer in the prescribed manner stating clearly the reasons for the intended
retrenchment and a copy of such application shall also be served simultaneously
on the workmen concerned in the prescribed manner.
(3) Where an application for permission under sub-section (1) has been made,
the appropriate Government or the specified authority, after making such
enquiry as it thinks fit and after giving a reasonable opportunity of being heard
to the employer, the workmen concerned and the persons interested in such
retrenchment, may, having regard to the genuineness and adequacy of the
reasons stated by the employer, the interests of the workmen and all other
relevant factors, by order and for reasons to be recorded in writing, grant or
refuse to grant such permission and a copy of such order shall be communicated
to the employer and the workmen.
(4) Where an application for permission has been made under subsection (1) and the appropriate Government or the specified authority does not
communicate the order granting or refusing to grant permission to the employer
within a period of sixty days from the date on which such application is made,
the permission applied for shall be deemed to have been granted on the
expiration of the said period of sixty days.
(5) An order of the appropriate Government or the specified authority granting
or refusing to grant permission shall, subject to the provisions of sub-section
(6), be final and binding on all the parties concerned and shall remain in force
for one year from the date of such order.
(6) The appropriate Government or the specified authority may, either on its
own motion or on the application made by the employer or any workman,
review its order granting or refusing to grant permission under sub-section (3)
or refer the matter or, as the case may be, cause it to be referred, to a Tribunal
for adjudication:
Provided that where a reference has been made to a Tribunal under this subsection, it shall pass an award within a period of thirty days from the date of

such reference.
(7) Where no application for permission under sub-section (1) is made, or where
the permission for any retrenchment has been refused, such retrenchment shall
be deemed to be illegal from the date on which the notice of retrenchment was
given to the workman and the workman shall be entitled to all the benefits under
any law for the time being in force as if no notice had been given to him.
(8) Notwithstanding anything contained in the foregoing provisions of this
section, the appropriate Government may, if it is satisfied that owing to such
exceptional circumstances as accident in the establishment or death of the
employer or the like, it is necessary so to do, by order, direct that the provisions
of subsection (1) shall not apply in relation to such establishment for such period as
may be specified in the order.
(9) Where permission for retrenchment has been granted under subsection (3) or where permission for retrenchment is deemed to be granted under
sub-section (4), every workman who is employed in that establishment
immediately before the date of application for permission under this section
shall be entitled to receive, at the time of retrenchment, compensation which
shall be equivalent to fifteen days average pay for every completed year of
continuous service or any part thereof in excess of six months.]
--------------------------------------------------------------------1. Re-numbered by Act 49 of 1984, s. 4 (w.e.f. 18.8.1984).
2. Subs. by s. 5, ibid., (w.e.f. 18.8.1984).
178E

25O.
Procedure for closing down an undertaking.

1*[25-O. Procedure for closing down an undertaking.- (1) An employer who

intends to close down an undertaking of an industrial establishment to which
this Chapter applies shall, in the prescribed manner, apply, for prior permission
at least ninety days before the date on which the intended closure is to become
effective, to the appropriate Government, stating clearly the reasons for the

intended closure of the undertaking and a copy of such application shall also be
served simultaneously on the representatives of the workmen in the prescribed
manner:
Provided that nothing in this sub-section shall apply to an undertaking set up for
the construction of buildings, bridges, roads, canals, dams or for other
construction work.
(2) Where an application for permission has been made under subsection (1), the appropriate Government, after making such enquiry as it thinks
fit and after giving a reasonable opportunity of being heard to the employer, the
workmen and the persons interested in such closure may, having regard to the
genuineness and adequacy of the reasons stated by the employer, the interests of
the general public and all other relevant factors, by order and for reasons to be
recorded in writing, grant or refused to grant such permission and a copy of
such order shall be communicated to the employer and the workman.
(3) Where an application has been made under sub-section (1) and the
appropriate Government does not communicate the order granting or refusing to
grant permission to the employer within a period of sixty days from the date on
which such application is made, the permission applied for shall be deemed to
have been granted on the expiration of the said period of sixty days.
(4) An order of the appropriate Government granting or refusing to grant
permission shall, subject to the provisions of sub-section
(5), be final and binding on all the parties and shall remain in force for one year
from the date of such order.
(5) The appropriate Government may, either on its own motion or on the
application made by the employer or any workman, review its order granting or
refusing to grant permission under sub-section (2)
or refer the matter to a Tribunal for adjudication:
Provided that where a reference has been made to a Tribunal under this subsection, it shall pass an award within a period of thirty days from the date of
such reference.
(6) Where no application for permission under sub-section (1) is made within
the period specified therein, or where the permission for closure has been
refused, the closure of the undertaking shall be deemed to be illegal from the

date of closure and the workmen shall be entitled to all the benefits under any
law for the time being in force as if the undertaking had not been closed down.
(7) Notwithstanding anything contained in the foregoing provisions of this
section, the appropriate Government may, if it is satisfied that owing to such
exceptional circumstances as accident in the undertaking or death of the
employer or the like it is necessary so to do, by order, direct that the provisions
of sub-section (1)
shall not apply in relation to such undertaking for such period as may be
specified in the order.
(8) Where an undertaking is permitted to be closed down under sub-section (2)
or where permission for closure is deemed to be granted under sub-section (3),
every workman who is employed in that undertaking immediately before the
date of application for permission under this section, shall be entitled to receive
compensation which shall be equivalent to fifteen days average pay for every
completed year of continuous service or any part thereof in excess of six
months.]
--------------------------------------------------------------------1. Subs. by Act 46 of 1982, s. 14 (w.e.f. 21.8.1984).
178F

25P.
Special provision as to restarting of undertakings closed down
beforecommencement of the Industrial Disputes (Amendment) Act, 1976.25P.
Special provision as to restarting of undertakings closed down before
commencement of the Industrial Disputes (Amendment) Act,
1976.- If the appropriate Government is of opinion in respect of any
undertaking of an industrial establishment to which this Chapter applies and
which closed down before the commencement of the
Industrial Disputes (Amendment) Act, 1976 (32 of 1976),-(a) that such undertaking was closed down otherwise than on account of
unavoidable circumstances beyond the control of the employer;
(b) that there are possibilities of restarting the undertaking;

(c) that it is necessary for the rehabilitation of the workmen employed in such
undertaking before its closure or for the maintenance of supplies and services
essential to the life of the community to restart the undertaking or both; and
(d) that the restarting of the undertaking will not result in hardship to the
employer in relation to the undertaking,
it may, after giving an opportunity to such employer and workmen, direct, by
order published in the Official Gazette, that the undertaking shall be restarted
within such time (not being less than one month from the date of the order) as
may be specified in the order.
178G

25Q.
Penalty for lay-off and retrenchment without previous permission.

25Q. Penalty for lay-off and retrenchment without previous permission.-Any

employer who contravenes the provisions of section 25M
or 1*** of section 25N shall be punishable with imprisonment for a term which
may extend to one month, or with fine which may extend to one thousand
rupees, or with both.

25R.
Penalty for closure.

25R. Penalty for closure.- (1) Any employer who closes down an undertaking
without complying with the provisions of sub-section (1)
of section 25-O shall be punishable with imprisonment for a term which may
extend to six months, or with fine which may extend to five thousand rupees, or
with both.
(2) Any employer, who contravenes 2*[an order refusing to grant permission to
close down an undertaking under sub-section (2) of section 25-O or a direction

given under section 25P], shall be punishable with imprisonment for a term
which may extend to one year, or with fine which may extend to five thousand
rupees, or with both, and where the contravention is a continuing one, with a
further fine which may extend to two thousand rupees for every day during
which the contravention continues after the conviction.
3* * * * *

25S.
Certain provisions of Chapter VA to apply to an industrialestablishment to
which this Chapter applies.

25S. Certain provisions of Chapter VA to apply to an industrial establishment to

which this Chapter applies.- The provisions of sections 25B, 25D, 25FF, 25G,
25H, and 25J in Chapter VA shall, so far as may be, apply also in relation to an
industrial establishment to which the provisions of this Chapter apply.]

CHAP
UNFAIR LABOUR PRACTICES

4*[CHAPTER VC
UNFAIR LABOUR PRACTICES

25T.
Prohibition of unfair labour practice.

25T. Prohibition of unfair labour practice.- No employer or workman or a trade

union, whether registered under the Trader Unions
Act, 1926 (16 of 1926), or not, shall commit any unfair labour practice.

25U. Penalty for committing unfair labour practices.-Any person who commits
any unfair labour practice shall be punishable with imprisonment for a term
which may extend to six months or with fine which may extend to one thousand
rupees or with both.]