Section 25A of Industrial Disputes Act 1947
Application of Sections 25C to 25E
It provides that the provisions of Section 25C to 25E shall not apply to Industrial Establishments referred under Chapter VB which provides for any industrial establishment in which less than fifty workmen on an average per working day have been employed in the preceding calendar month or the industrial establishment are seasonal. It provides that in case of any question which arises in respect of classifying one industry as a seasonal character, then in such case the decision of the appropriate Government shall be final.
Illustration
The provision of the sections shall not apply to industries that are seasonal and which employ less than fifty workers on an average day per working day. So, in this case, if the industry employs twenty workmen on an average basis, then in such case the industry won’t be referred under Chapter VB.
Section 25B of Industrial Disputes Act 1947
Definition of continuous service
It provides that a workman may be regarded to be continuous service for a period if he is, for that period in uninterrupted service, including service which may be interrupted on account of sickness, authorized leave, or any such where leave is not due to his fault. It further provides that a workman may be deemed to be in continuous service under an employer for one year if the workman during the period had worked for the employer not less than one hundred and ninety days in case of working under the ground and two hundred forty days in a case in any other case. Likewise, for six months, ninety-five days in the case of workman employed below the ground and one hundred and twenty days in any other case. Also, any such number of days shall include the days on which he has been laid off under an agreement, has been on leave with full wages, or has been absent due to temporary disablement and in case of a female who has been on maternity leave.
Illustration
A person working in a coal mine shall be deemed to be working for a year when he has worked for a period of one hundred ninety days and such days shall also include the leave which would be classified as working days has been provided.
Case Law
MOHAL LAL V. BHARAT ELECTRONICS LTD., AIR 1981 SC 1253.
It provides that Section 25B (2) comprehends a situation where a workman is not in employment for 12 calendar months but has rendered service for 240 days within 12 calendar months commencing and counting backward from the relevant date i.e., the date of retrenchment. He would be deemed to be in continuous service for one year for section 25B and Chapter VA.
Section 25C of Industrial Disputes Act 1947
Right of workmen laid-off for compensation
It provides that any workmen whose name is borne in the muster rolls and has been employed in the factory for not less than a year of continuous service have been laid off, then he shall be paid by the employer for all days during which he is so laid-off, compensation for which would be equal to fifty percent of the total of the basic wages and dearness allowances that would have been payable by him had he not been laid off. Also, no such workman shall be paid after the lapse of forty-five days for the period for which he has been laid off.
Illustration
A workman who was in continuous service has been laid off by the industry. In this case, considering his name is present in the muster list, he shall be liable to receive compensation but only for forty-five days. In any case, his layout extends forty-five days, then he is not liable for any compensation.
Section 25D of Industrial Disputes Act 1947
Duty of an employer to maintain muster rolls of workmen
It provides that the employer must maintain for the Chapter a muster roll, along with providing making of entries therein by workmen who may present themselves for work at the establishment at the appointed time during normal working hours.
Illustration
An employer needs to maintain the muster roll and keep the data of the employees as has been provided in the muster roll. Such, muster roll would be required to determine a workman as a continuous workman.
Section 25E of Industrial Disputes Act 1947
Workmen not entitled to compensation in certain cases
It provides that the workman who has been laid off would not be entitled to any compensation if he refuses to accept any alternative job provided that he would have normally have been paid to the workman, also if he does not present himself for work at the establishment at the appointed time during normal working hours at least once a day and if any such laying off is done to a strike or slowing down of production on the part of the workmen in another part of the establishment.
Illustration
A workman was laid-off and was offered a different job at a different location at a slightly upper pay scale. In this case, if he refuses to accept the offer, then he won’t be liable to claim for any compensation.
Section 25F of Industrial Disputes Act 1947
Conditions precedent to retrenchment of workmen
It provides that the employer shall not retrench any workman employed in the industry who has been in continuous service for not less than one year under an employer until he has been provided with a one month’s notice in writing and the prescribed manner and such has been paid wages for the period of the notice. Also, the workmen need to be paid compensation equivalent to fifteen days average pay for every completed year of service or any part thereof above six months.
Illustration
Until the employer serves notice in the prescribed format and writing by fulfilling all the conditions mentioned under the provisions provided, the payment criteria have also been satisfied as has been mentioned.
Case Law
EMPIRE INDUSTRIES LTD. V. STATE OF MAHARASHTRA, AIR 2010 SC 1389.
It provides that section 25F lays down the conditions precedent to retrenchment of the workman and requires the employer to give notice to the appropriate government/prescribed authority apart from giving one month’s notice in writing or one month’s wages in place of the notice and payment of retrenchment compensation to the concerned workman.
Section 25FF of Industrial Disputes Act 1947
Compensation to workmen in case of transfer of undertaking
It provides that in case the ownership of an undertaking is transferred, whether by agreement or by operation of law the employer concerning that undertaking, then every workman who has been in continuous service for not less than one year shall be entitled to notice and compensation following provision under Section 25F, as if the workman had been retrenched.
Illustration
An industry was transferred to another party. In such a case, the employee working under the industry is liable for compensation and notice as provided under Section 25F.
Section 25FFA of Industrial Disputes Act 1947
Sixty-days’ notice to be given of intention to close down any undertaking
It provides that an employer who intends to close down an undertaking shall serve at least sixty days before the date on which the intended closure is to become effective in the prescribed manner along with an appropriate reason stating the reason for such closure. Such provisions won’t be applicable in the undertaking in which less than fifty workmen are employed or less than fifty workmen were employed on an average per working day in the preceding twelve months, and also to an undertaking set up for the construction of buildings, roads, bridges, canals or for other construction work or project.
Illustration
An employer who does not fall under the criteria specified shall provide a notice in the prescribed format along with reasons for such closure at least sixty days before the date of intended closure.
Section 25FFF of Industrial Disputes Act 1947
Compensation to workmen in case of closing down of undertakings
It provides that where an undertaking is closed down for any reason, then every workman who has been in continuous service for not less than one year in that undertaking immediately before such closure date shall be subject to the provisions laid down under Section 25F. Also, provided further that where the undertaking is closed down on account of unavoidable circumstances beyond the control of the employer, the compensation to be paid shall not exceed his average pay for three months. Also, in case any undertaking engaged in mining operations is closed down by reason merely of exhaustion of minerals in the area in which such operations are carried on, then such employee shall not be entitled to any notice or compensation following the provisions of section 25F.
Illustration
Employees of the organization which is closed down for any reason shall be liable for compensation and notice as provided under Section 25F.
Case Law
PRAMOD KUMAR TIWARI V. HINDUSTAN FERTILIZER CORPORATION LTD.,1994 LLR 465 (MP) (DB).
It provided that payment of compensation and payment of wages for the notice period have not been made conditions precedent to retrenchment on closure under section 25FFF. However, the liability of the employer to make payments remains, which may be enforced.
Section 25G of Industrial Disputes Act 1947
Procedure for retrenchment
It provides that in case of retrenchment of any workman in industrial establishment, who is a citizen of India and belongs to one particular category of the workmen in that establishment, then in such case the last employee in that person shall ordinarily be retrenched, in absence of any agreement between the employer and the workman in this behalf.
Illustration
A workman was associated with stockpiling work. He didn’t have any agreement with the employer and was also the last one to be appointed for the work. In any case of retrenchment, the workmen shall ordinarily be retrenched as per the provision provided under the act.
Case Law
HARJINDER SINGH V. PUNJAB STATE WAREHOUSING CORPORATION, AIR 2010 SC 1116.
It provided that for attracting the applicability of section 25G of the Act, the workman is not required to prove that he had worked for 240 days during twelve calendar months preceding the termination of his service and it is sufficient for him to plead and prove that while effecting retrenchment, the employer violated the rule of last come first go’ without any tangible reason.
Section 25H of Industrial Disputes Act 1947
Re-employment of retrenched workmen
It provides that in case a workman is retrenched and the employer desires to fill up the position, then in such case the preference shall be given to retrenched workmen who are citizens of the County and also who offer themselves for re-employment having preference over another person.
Illustration
A workman retrenched from an organization and who is willing to be re-employed shall be provided with preference in case any organization decides to employ any person.
Case Law
KARNAL CENTRAL CO-OPERATIVE BANK LTD. V. PRESIDING OFFICER, INDUSTRIAL TRIBUNAL-CUM-LABOUR COURT, 1994 LLR 248 (P&H).
It provided that re-employment in terms of section 25H of the Act pre-supposes a valid termination in the first instance and, therefore, constitutes a different cause of action and can be gone into by the Labour Court only if a reference is to be made in this regard but not otherwise. It cannot be described as a matter incidental to the dispute relating to termination.
Section 25I of Industrial Disputes Act 1947
Recovery of money due from employers under this Chapter
Repealed by the Industrial Disputes (Amendment and Miscellaneous Provisions) Act, 1956 (36 of 1956), sec. 19 (w.e.f. 10-3-1957)
Section 25J of Industrial Disputes Act 1947
Effect of Laws inconsistent with this Chapter
It provides that nothing provided under this chapter shall not be deemed to have an effect on the provisions of any other law for the time being in force. Also, but in case of any determination of rights and liabilities of employers and workmen relating to lay-off and retrenchment shall be determined following provisions of this Chapter.
Illustration
In the existence of any other laws relating to other aspects shall not be deemed to have been affected by the provisions provided, but would be rightfully referred in case of rights and liabilities of employers and workmen relating to rights and liabilities of employers and workmen relating to lay-off and retrenchment.
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