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Press Information Bureau
Government of India
Ministry of Labour & Employment
14-May-2012 16:23 IST
Protection Against Retrenchment
Chapter V(a) & V(b) of the Industrial Disputes Act, 1947 provides for the protection against retrenchment/Layoff and closure as it stipulates that before retrenchment of any workman who has been in continuous service for not less than one year under an employer, one month’s notice in writing indicating the reasons for retrenchment is required to be served to the workman. Similarly, before closure of the establishment, an employer is required to give sixty days’ notice to the appropriate Government.

Under Chapter VB, in case of industrial establishments employing 100 and more workers, retrenchment, closure and lay-off can be affected only with the prior permission of appropriate Government and three months’ notice in writing indicating the reasons is required to be served by the employer to the workman who has been in continuous service for not less than one year.

The workman is also entitled for compensation in case of retrenchment, lay-off and closure as per provisions of Chapter VA and VB of the Industrial Disputes Act, 1947.

The Act also prescribes penalty against the employer in case of violation of the above mentioned provisions.

No case of violation of the above provisions has been registered in the Central Sphere during this period.

This information was given by the Union Minister for Labour & Employment Shri Mallikarjun Kharge in reply to a written question in the Lok Sabha today.

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