Section 25K to 25U of Industrial Disputes Act 1947 Bare Act & Notes

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Section 25K of Industrial Disputes Act 1947

Application of Chapter VB

It provides that the provisions of this chapter shall apply to an industrial establishment which is not seasonal and which does not employ less than one hundred workmen on an average per working day for the preceding twelve months. In case of any determination as to whether an industrial establishment is seasonal, then in such cases, the decision of the appropriate government thereon shall be final. 

Illustration

An industry employing fifty workmen won’t be covered under the provisions of the Chapter. 

Section 25L of Industrial Disputes Act 1947

Definitions

It provides for a definition of the term industrial establishment as to mean as defined as a factory under the Factories Act, 1948, a mine as defined under the Mines Act, 1952, and a plantation, as defined under Plantations Labour Act, 1951. 

Illustration

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Industrial Establishment falling within the meaning provided as mentioned shall be considered as Industrial Establishment. 

Section 25M of Industrial Disputes Act 1947

Prohibition of Lay-off

It provides that no workman other than a casual workman, whose name is borne on the muster rolls of an industrial establishment shall be laid off except with prior permission of the appropriate Government or such authority as may be specified, unless such lay-off is due to shortage of power or natural calamity, and in the case of a mine, such lay-off is also to fire, flood, excess of inflammable gas or explosion. It provides that in case of an application for lay-off has been made, then the appropriate Government or the specified authority after making such inquiry and after providing a reasonable opportunity of being heard to the employer shall order in writing either grant or refusal of such permission and a copy of such order shall be communicated to the employer and the workmen. In case no communication is being received within sixty days from the date on which such application is made, then the permission applied shall be deemed to be granted on the expiration of the provided period. Also, any order made by the appropriate Government shall remain final and binding on all the parties concerned and shall remain in force for one year from the date of such order. It further provides that in case no application is made and permission is obtained, then any such lay-offs shall be deemed to be illegal from the date on which the workmen had been laid-off and the workmen shall be entitled to all benefits under any law for the time being in force. 

Illustration

An employer needs to submit an application to the appropriate Government for lay-offs and only after approval can lay-off the employees. It also provides that in case no response is received within sixty days of the filing of the application, then in such a case, it shall be deemed that permission has been granted. 

Case Law

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CENTRAL PULP MILLS LTD. V. CENTRAL PULP MILLS EMPLOYEES UNION, 1994 LLR 130 (GUJ) (DB).

It provided that to prevent hardship to the employees and to maintain a higher tempo of production and productivity, section 25M of the Act puts some reasonable restrictions on the employer’s right to lay-off, retrenchment, and closure. 

Section 25N of Industrial Disputes Act 1947

Conditions precedent to retrenchment of workers

It provides that no workmen employed in any industrial establishment, who has been in continuous service for not less than one year under an employer shall be retrenched by an employer unless three months’ notice is being provided indicating reason in writing and also the prior permission of the appropriate Government or such authority as may be specified. It provides that any order of the appropriate Government shall be binding on all the parties concerned and shall remain in force for one year from the date of such order. 

Illustration

An employee to be retrenched needs to be provided with a notice with reasons before three months and such prior permission needs to be obtained from the appropriate Government, both in the case where the employee has been in continuous service for not less than one year. 

Case Law

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SHIV KUMAR V. STATE OF HARYANA, 1994 LLR 522 (SC).

It provided that it is incumbent on the management to prove that the copies of the application as required by section 25N read with rule 76A of the Industrial Disputes Rules, 1957, were served on the concerned workman. 

Section 25O of Industrial Disputes Act 1947

Procedure for closing down an undertaking

It provides that an employer who intends to close down an undertaking of an industrial establishment shall apply for prior permission at least ninety days before the date on which the intended closure is to become effective. It further provides that the appropriate Government after conducting an inquiry and providing reasonable opportunity of being heard shall either grant or refuse such permission. In any case, when such order is not communicated within sixty days from the date of the application, then the permission applied for shall be deemed to have been granted on the expiration of the said period. Any order passed by the appropriate Government shall continue to bind both the parties and shall remain in force for one year from the date of such order. 

Illustration

An employer intending to close down an undertaking to apply to the appropriate Government at least ninety days before the date on which the intended closure is to become effective. The communication from the appropriate Government if not received within sixty days from the date of application shall be deemed to have been granted. 

Case Law

UNION CARBIDE KARAMCHARI SANGH V. UNION OF INDIA, 1993 LLR 481 (MP).

It provided that the section deals with the permission for closure of undertaking. 

Section 25P of Industrial Disputes Act 1947

Special provision as to restarting undertakings closed down before the commencement of the Industrial Disputes (Amendment) Act, 1976

It provides that in case any undertaking to which the chapter applies and which was closed down before the commencement of the act, then the appropriate Government in respect of any undertaking may on account that such undertaking was closed down otherwise than on account of unavoidable circumstances beyond the control of the employer, there lie possibilities of restarting the undertaking, 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 such restarting will not result in hardship to the employer concerning the undertaking. Instead of it, an opportunity to restart within such time may be provided by the appropriate Government through a notification in the Official Gazette. 

Illustration

An establishment which was shut before the commencement of the act, may be asked to restart the operation by the appropriate Government through a notification published in the Official Gazette in case it falls under any of the provision as has been specified in the section. 

Section 25Q of Industrial Disputes Act 1947

Penalty for lay-off and retrenchment without previous permission

It provides that any employer in contravention of the provision specified in Section 25M and Section 25N shall be punishable with imprisonment for a term which may extend to one month or a fine extending to rupees one thousand or with both. 

Illustration

An employer violates the provision under Section 25M, then in such case, he shall be liable for imprisonment for a term extending to one month or a fine extending to rupees one thousand or with both. 

Section 25R of Industrial Disputes Act 1947

Penalty for closure

It provides that in case any employer shuts down it’s undertaking without complying with the provisions of sub-section 1 of Section 25-O shall be punishable with imprisonment for a term extending up to six months and a fine extending to five thousand rupees or with both. It further provides that any employer contravening any direction provided which does not allow closing down of the establishment shall be punishable with imprisonment extending to one year or with fine extending to five thousand rupees or with both. In case of any such contravention continuing, then further rupees two thousand every day shall be payable. 

Illustration

An employer despite receiving a denial for the closure of the establishment shut down the establishment. In this scenario, the employer is liable for imprisonment extending up to one year or a fine extending to rupees five thousand or with both. Also, in the case of continuing default, two thousand rupees per day may be charged. 

Section 25S of Industrial Disputes Act 1947

Certain provisions of Chapter VA to apply to an industrial establishment to which this Chapter applies

It provides that any provisions as to Section 25B, 25D, 25F, 25FF, 25G, 25J in Chapter VA shall apply to the extent concerning an industrial establishment to which provisions of the Chapter apply. 

Illustration

Suppose there are certain provisions in Section 25B which relate to an industrial establishment as covered under the Chapter, then such provisions shall apply to the extent concerning an industrial establishment to which provisions shall apply. 

Section 25T of Industrial Disputes Act 1947

Prohibition of unfair labor practice

It provides that any employer, workman, or trade union whether registered under the Trade Unions Act, 1926, or not shall commit any unfair labor practices. 

Illustration

Irrespective of an employer, workman, or trade union is registered under the Trade Unions Act shall not indulge and commit any unfair labor practice which would be detrimental to the interest of the labor and the law provided therein for their protection.

Section 25U of Industrial Disputes Act 1947

Penalty for committing unfair labor practices

It provides that in case any person commits any unfair labor practice, then he shall be punishable with imprisonment extending up to six months or with a fine extending up to one thousand rupees or with both. 

Illustration

Suppose an employer commits an unfair labor practice, then he shall be punishable with imprisonment extending up to six months or with a fine extending up to rupees one thousand rupees or with both.  


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