25K. Application of Chapter VB.—(1) The provisions of this Chapter shall apply to an industrial
establishment (not being an establishment of a seasonal character or in which work is performed only
intermittently) in which not less than 5
[one hundred] 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.
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 Act 36 of 1964, s. 17, for the proviso (w.e.f. 19-12-1964).
4. Ins. by Act 32 of 1976, s. 2 (w.e.f. 5-3-1976).
5. Subs. by Act 46 of 1982, s. 12, for “three hundred” (w.e.f. 21-8-1984).
41
STATE AMENDMENT
Andhra Pradesh
In Section 25K
The following shall be substituted, namely:—
“25-K.Application of Chapter V-B:—(1) The provisions of this chapter shall apply to an industrial
establishment (not being an establishment of a seasonal character or in which work is performed only
intermittently) in which not less than three hundred workmen were employed on an average per working
day for the preceding twelve months.
(2) Without prejudice to the provisions of sub-section (1), the State Government, may, if satisfied that
maintenance of industrial peace or prevention of victimization of workmen so requires, by notification in
the official gazette apply the provisions of this chapter to an industrial establishment (not being an
establishment of a seasonal character or in which work is performed only intermittently) in which such
number of workmen which may be less than three hundred but not less than one hundred, as may be
specified in the notification, were employed on an average per working day for the preceding twelve
months.
(3) 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 State Government thereon shall be final.”
[Vide Andhra Pradesh 12 of 2015, s. 3]
Assam
Amendment of section 25K.-In the principal Act, in section 25K, for the words “one hundred”,
appearing in between the words “than” and “workmen”, the words
three hundred” shall be substituted.
[Vide Assam Act 22 of 2018, s. 2]
Karnataka
Amendment of section 25K.—In section 25K of the principal Act, after sub-section (1), the
following sub-section shall be inserted, namely:—
“(1A) Notwithstanding anything contained in sub-section (1) the State Government may, from time to
time by notification in the official gazette, apply the provisions of section 25-O and section 25-R in so far,
as they relate to contravention of sub-section (2) of section 25-O, also to an industrial establishment of a
seasonal character or in which work is performed only intermittently in which not less than one hundred
workmen were employed on an average per working day for the preceding twelve months.”
[Vide the Karnataka Act 5 of 1988, s. 5]
Orissa
Amendment of section 25K.—In section 25K of the Industrial Disputes Act, 1947 (14 of 1947)
(hereinafter referred to as the principal Act), in sub-section (1), for the words “three hundred”, the words
“one hundred” shall be substituted.
[Vide the Orissa Act 6 of 1983, s. 2]
Union Territory of Jammu and Kashmir and Ladakh
Section 25K.--In sub-section (1), for "one hundred", substitute "three hundred".
[Vide Union Territory of Jammu and Kashmir Reorganisation (Adaptation of Central Laws) Second
Order, 2020, Notification No. S.O. 3465(E), dated (5-10-2020) and Vide Union Territory of Ladakh
Reorganisation (Adaptation of Central Laws) Order, 2020, Notification No. S.O. 3774(E), dated
(23-10-2020).
Rajasthan
Amendment of section 25-k, Central Act No. 14 of 1947.- After sub-section (1) of section 25-k of
the Industrial Disputes Act, 1947 (Central Act No. 14 of 1947), hereinafter referred to as the principle
Act, the following new sub-section shall be inserted, namely:-
“(1-A) Without prejudice to the provisions contained in sub section (1), the State Government
may, if satisfied that maintenance of industrial peace or prevention of vietimisation of workmen so
42
requires, by notification in the Official Gazette, apply the provisions of this Chapter to an industrial
establishment (not being an establishment of a seasonal character or in which work is performed only
intermittently) in which such number of workmen, which may be less than three hundred but not less
than one hundred as may be specified in the notification, were employed on an average per working
day for the preceding twelve months.”
[Vide Rajasthan Act 8 of 1984, s.2]
Rajasthan
Amendment of section 25K, Central Act No. 14 of 1947.- For the existing section 25K of the principal
Act, the following shall be substituted, namely:-
“25K. Application of Chapter VB.- (1) The provisions of this Chapter shall apply to an
industrial establishment (not being an establishment of a seasonal character or in which work is
performed only intermittently) in which not less than three hundred workmen were employed on an
average per working day for the preceding twelve months.
(2) Without prejudice to the provisions of sub-section (1), the State Government may, if satisfied
that maintenance of industrial peace or prevention of victimization of workmen so requires, by
notification in the Official Gazette apply the provisions of this Chapter to an industrial establishment,
(not being an establishment of a seasonal character or in which work is performed only intermittently)
in which such number of workmen which may be less than three hundred but not less than one
hundred, as may be specified in the notification, were employed on an average per working day for
the preceding twelve months.
(3) 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.”.
[Vide Rajasthan Act 21 of 2014, s. 7]
Gujarat
Amendment of section 25K of XIV of 1947.—In the Industrial Disputes Act, 1947 (XIV of 1947),
in its application to the State of Gujarat (hereinafter referred to as “the principal Act”), in section 25K,--
(i) in sub-section (1), for the words “one hundred”, the words “three hundred” shall be
substituted;
(ii) after sub-section (1), the following sub-section shall be inserted, namely:-
“(1A) Without prejudice to the provisions of sub-section (1), the State Government may, if
satisfied that the maintenance of industrial peace or prevention of victimization of workmen so
requires, by notification in the Official Gazette, apply the provision of this Chapter to an
industrial establishment (not being an establishment of a seasonal character or in which work is
performed only intermittently) in which such number of workmen which may be less than three
hundred but not less than one hundred, as may be specified in the notification, were employed on
an average per working day for the preceding twelve months.”.
[Vide Gujarat Act 1 of 2021, s. 2]
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 sub- section (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);
(b) notwithstanding anything contained in sub-clause (ii) of clause (a) of section 2,—
(i) in relation to any company in which not less than fifty-one per cent. of the paid-up share
capital is held by the Central Government, or
43
(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 the appropriate Government.
Rajasthan
Amendment of section 25-L, Central Act No. 14 of 1947.---In clause (b) of section 25-L of the
principle Act, for the expression “the Central Government shall be the appropriate Government”, the
expression “the State Government shall have no powers under his this Chapter” shall be substituted.
[Vide Rajasthan Act 8 of 1984, s. 3]
25M. Prohibition of lay-off.—(1) 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 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 (hereafter in this
section referred to as the specified authority), obtained on an application made in this behalf, 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].
2
[(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 lay-off and a copy of such application shall
also be served simultaneously on the workmen concerned in the prescribed manner.
(3) Where the workman (other than badli workmen or casual workmen) of an industrial
establishment, being a mine, have been laid-off 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
thirty 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) 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 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 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.
(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 shall remain in force for one year 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 sub-section, 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 specified therein, or where the permission for
any lay-off has been refused, such lay-off shall be deemed to be illegal from the date on which the
1. Subs. by Act 49 of 1984, s. 4, for certain words (w.e.f. 18-8-1984).
2. Subs. by Act 49 of 1984, s. 4, for sub-sections (2) to (5) (w.e.f. 18-8-1984).
44
workmen had been laid-off 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.
(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
[(10)] The provisions of section 25C (other than the second proviso thereto) shall apply to cases of
lay-off referred to in this section.
Explanation.—For the purposes of this section, a workman shall not be deemed to be laid-off 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 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.
STATE AMENDMENT
Rajasthan
Amendment of section 25-M, Central Act No. 14 of 1947.- In section 25-M of the principle Act,-
(a) in sub-section (1), between the expression “this Chapter applies” and the expression “shall be
laid off", the expression “or is applied under sub-section (1-A) of section 25-k” shall be inserted and
for the expression “apropriate Government”, the expression “State Government" shall be substituted;
(b) in sub-section (2), for the expression “(Amendment) Act, 1976” the expression “(Rajasthan
Amendment) Act, 1984” shall be substituted;
(c) for the existing sub-section (3), the following sub-sections shall be substituted, namely:-
“(3) In the case of every application for permission under sub-section (1) or sub-section
(2), the employer shall state clearly the reasons due to which he intends to lay off or continue the
lay off of a workman and a copy of such application shall be served on the workman Intended to
be laid off or continued to be laid off by registered post with acknowledgment due.
(4) Where an application for permission has been made under sub-section (1) or sub-section
(2), the authority to whom the application has been made, after making such enquiry as it thinks
fit and after giving reasonable opportunity of being heard to the employer and the workman, may,
having regard to the genuineness and adequacy of the reasons stated by the employer, the terms
of contract of service and the standing orders governing the establishment, by order and for
reasons to be recorded in writing grant or refuse to grant such permission and such order shall be
communicated to the employer and the workman.”;
(d) the existing sub-section (4) shall be re-numbered as sub-section (5) thereof;
(e) after sub-section (5) as so re-numbered the following sub-section shall be inserted, namely:-
"(6) An order of the authority specified under sub-section (1) granting or refusing to grant
permission shall, subject to the provisions of sub-section (7), be final and binding on both the
parties.
(7) The authority specified under sub-section (1) may, either of its own motion or on the
application made by the employer or the workman , review its order granting or refusing to grant
permission under sub-section (4) or refer the matter to the Labour Court having jurisdiction for
adjudication:
1. Sub-section (6) re-numbered as sub-section (10) by s. 4, ibid., (w.e.f. 18-8-1984).
45
Provided that where a reference has been made to a Labour Court under this sub-section, it
shall pass an award within a period of thirty days from the date of such reference.”, and
(f) the existing sub-sections (5) and (6) shall be renumbered as sub-sections (8) and (9) thereof.
[Vide Rajasthan Act 8 of 1984, s. 4]
1
[25N. Conditions precedent to retrenchment of workmen.—(1) No workman employed in any
industrial establishment to which this Chapter applies, who has been in continuous service for not less
than one year under an employer shall be retrenched by that employer until,—
(a) the workman has been given three months’ notice 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; and
(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 sub-section (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 sub-section, 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 sub- section (1) 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. 5, for section 25N (w.e.f. 18-8-1984).
46
(9) Where permission for retrenchment has been granted under sub-section (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.]
STATE AMENDMENT
Rajasthan
Amendment of section 25-N, Central Act No. 14 of 1947.--In section 25-N of the principle Act,-
(a) in sub-section (1),-
(i) between the expression “this Chapter applies” and the expression “who has been”, the
expression “or is applied under sub-section (1-A) of section 25-K” shall be inserted; and
(ii) for clause (c), the following clause shall be substituted, namely:-
"(c) three months’ notice in writing stating clearly the reasons for retrenchment is served on
the State Government or such authority as may be specified by the State Government by
notification in the Official Gazette by registered post with acknowledgement due, and
the permission of the State Government or of such authority is obtained under sub
section (2).”;
(b) for sub-section (2), the following sub-section shall be substituted, namely:-
“(2) On receipt of a notice under clause (c) of sub-section (1), the State Government or
authority, after making such enquiry as it thinks fit and after giving reasonable
opportunity of being heard to the employer, the workman and the office-bearer of the
representative union of the concerned industrial establishment, may, having regard to the
genuineness and adequacy of the reasons stated by the employer, requirements of
industrial peace, prevention of victimisation and unfair labour practice, by order and for
reasons to be recorded in writing grant or refuse to grant such permission and such order
shall be communicated to the employer, the workman and the office-bearer of such
representative union.”;
(c) in sub-section (4), for the expression “(Amendment) Act, 1976", the expression “(Rajasthan
Amendment) Act, 1984”, for the expression “(a) of section 25-F", the expression “(c) of sub
section (1)”, for the word “appropriate”, the word “State” and for the expression “sub-section
(2)” the expression “the said clause of the said sub-section” shall respectively be substituted;
(d) in sub-section (5), for the word “appropriate”, the word “State” shall be substituted;
(e) after sub-section (5), the following sub-section shall be inserted, namely:-
“(6) An order of the State Government or the authority granting or refusing to grant
permission shall, subject to the provisions of sub-section (7), be final and binding on all
the parties and shall remain in force for on year form the date of such order.
(7) The State Government or, as the case may be, the authority may, either on its own motion
or on the application made by the employer or the 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 sub-section, it shall
pass an award within a period of thirty days from the date of such reference.”;
(f) the existing sub-sections (6) and (7) shall respectively be re-numbered as sub- sections
(8) and (9) thereof; and
(g) in sub-section (9) as so re-numbered,-
(i) for the expression “(Amendment) Act, 1976”, the expression “(Rajasthan
Amendment) Act, 1984” shall be substituted;
(ii) the expression “or the Central Government” shall be deleted;
47
(iii) for the word “appropriate”, wherever occurring, the word “State” shall be
substituted; and
(iv) for the expression “and any order passed by such authority shall be final and
binding on the employer and the workman or workmen”, the expression "and such
authority while deciding such matter shall proceed to hold the enquiry in the
manner and have regard to the matters specified in sub-section (2). Any order
passed by such authority shall, subject to review under the proviso to this subsection, be final and binging on the employer and the workman or workman:
Provided that such authority as aforesaid may, either on its own motion or on the
application made by the employer or the workman review the order passed by it under
this sub-section or refer the matter to a Tribunal for adjudication and to such reference,
the provisions contained in the proviso to sub-section (7) shall, mutatis matandis,
apply,” shall be substituted.
[Vide Rajasthan Act 8 of 1984, s. 5]
Rajasthan
Amendment of section 25N, Central Act No. 14 of 1947.- In section 25N of the principal Act,-
(a) in clause (a) of sub-section (1), the existing expression “, or the workman has been paid in
lieu of such notice, wages for the period of the notice” shall be deleted; and
(b) in sub-section (9), after the existing expression “six months” and before the existing
punctuation mark “.”, appearing at the end, the expression “and an amount equivalent to his
three months average pay” shall be inserted.
[Vide Rajasthan Act 21 of 2014, s. 8]
Gujarat
Amendment of section 25N of XIV of 1947.— In the principal Act, in section 25N,-
(i) in sub-section (1), in clause (a), the words “or the workman has been paid in lieu of such
notice, wages for the period of the notice” shall be deleted;
(ii) in sub-section (9), the words “and an amount equivalent to his last three months average pay”
shall be added at the end.
[Vide Gujarat Act 1 of 2021, s. 3]
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 sub-section (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 workmen.
(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.
1. Subs. by Act 46 of 1982, s. 14, for section 25-O (w.e.f. 21-8-1984).
48
(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 sub-section, 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.]
STATE AMENDMENT
Orissa
Amendment of section 25-O.—For section 25-o of the principal Act, the following section shall be
substitute namely:—
25-O. Procedure or 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 workman 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 sub-section (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 refuse to grant such
permission and a copy of such order shall be communicated to the employer and the workmen.
(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.
49
(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 sub section, 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 close 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 day’s average pay for every
completed year of continuous service or any part thereof in excess of six months.”.
[Vide the Orissa Act 6 of 1983, s. 3]
Substitution of section 25-O, Central Act No. 14 of 1947:-For section 25-O of the principle Act, the
following section shall be substituted, namely:-
“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 including an
employer who has served a notice under sub-section (1) of section 25-FFA on the State Government
of his intention to close down such an undertaking but the period of such a notice has not expired at
the commencement of the Industrial Disputes(Rajasthan Amendment) Ordinance, 1983 shall apply
for prior permission at least ninety days before the date on which the intended closure is to become
effective, to the State 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 by registered post with acknowledgment due.
(2) where an application for permission has been made under sub-section (1), and the State
Government after making such enquiry as it thinks fit and after giving reasonable opportunity of
being heard to the employer, the workmen and the person interested in such closure may, having
regard to the genuineness and adequacy of the reasons stated by employer, the interests of the general
public 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.
(3) Where an application has been made under sub-section (1), and the State 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 State Government granting or refusing to grant permission shall, subject to the
provision 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 State 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 sub-section, 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
50
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 provision of this section, the State
Government may, If it is satisfied that owing to such exceptional circumstance 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.”.
[Vide Rajasthan Act 8 of 1984, s. 6]
Rajasthan
Amendment of section 25-O, Central Act No. 14 of 1947.- In sub-section (8) of section 25-O of the
principal Act, after the existing expression “six months” and before the existing punctuation mark “.”,
appearing at the end, the expression “and an amount equivalent to his three months average pay” shall be
inserted.
[Vide Rajasthan Act 21 of 2014, s. 9]
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.
Rajasthan
Substitution of section 25-P, Central Act No. 14 of 1947:- For section 25-P of the principle Act, the
following section shall be substituted, namely:-
“25-P. Special provision as to restarting of undertaking closed down before commencement of the
Industrial Disputes (Rajasthan Amendment) Act, 1984.- (1) Where the undertaking of
an industrial establishment to which this Chapter applies had been closed down before
the commencement of the Industrial Disputes (Rajasthan Amendment) Act, 1984 and
the State Government, after giving reasonable opportunity of being heard to the
employer, workmen and the office bearer of the representative union of the concerned
industrial establishment and after making such enquiry as it thinks fit, is satisfied that,-
(a) such undertaking was closed down otherwise than on account of unavoidable
circumstances, beyond the control of the employer;
(b) there are possibilities of restarting the undertaking;
(c) 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 or both to restarted the undertaking ; and
(d) the restarting of the undertaking will not result in hardship to the employer in
relation to the undertaking,
51
It may direct, by order published in the Official Gazette, that the undertaking shall be
restarted within such time (not being less than one months from the date of the
order) as may be specified in the order.
(2) An order of the State Government directing the restarting of the undertaking under
sub-section (1) shall, subject to the provisions of sub-section (3), be final and binging
on all the parties.
(3) The State Government may either on its own motion or on the application made by the
employer and after giving to such employer, the workmen and the office-bearer of the
representative union of the concerned industrial establishment an opportunity of being
heard, review its order directing the restarting of the undertaking under sub-section (1)
or refer the matter to a Tribunal for adjudication:
Provided that where a reference has been made to a Tribunal under this sub-section, it shall pass
and award within a period of sixty days from the date of such reference and pending award by the
Tribunal, the undertaking shall continue to remain restarted.”
[Vide Rajasthan Act 8 of 1984, s. 7]
Insertion of new section 25-PP, Central Act No. 14 of 1947:- After section 25-P of the principle
Act as so substituted, the following new section shall be added, namely:-
“25 PP. Special provision as to reinstatement of workmen retrenched before the
commencement of the Industrial Disputes (Rajasthan Amendment) Act, 1984.-(1)
Notwithstanding any award or order of a Tribunal or any judgement , order or direction of any Court
upholding the validity of retrenchment of any workman employed is any industrial establishment to
which this Chapter applies who is retrenched at any time during six months immediately before the
commencement of the Industrial Disputes (Rajasthan Amendment) Act, 1984, the State Government
shall, either on its own motion or on the application made by any such retrenched workman or by the
office-bearer of the representative union of the concerned industrial establishment, examine the
validity of retrenchment of such workman and if, after making such enquiry as it thinks fit and after
giving reasonable opportunity of being heard to the employer, the retrenched workman, or, as case
may be, to such office-bearer, it is satisfied that,-
(a) the retrenchment of the workman was without genuine or adequate reasons;
(b) the retrenchment was by way of victimisation and unfair labour practice; and
(c) the reinstatement of the workman is required for maintaining industrial peace in the
industrial establishment,
it shall by order and for reasons to be recorded in writing, direct the employer to reinstate
the retrenched workman within such time as may be specified in the order and if it is not
so satisfied, it shall by such reasoned order uphold the validity of retrenchment of the
workman and shall communicate its order to the employer and the workman.
(2) An order of the State Government under sub-section (1), subject to the order passed by it
as a result of review under sub-section (3) and, where a reference has been made by it to a Tribunal
under the said sub-section, subject to the award passed by the Tribunal, shall be final and binding
on the employer and the workman.
(3) The State Government may, either on its own motion or on the application made by the
employer or the retrenched workman, review its order directing reinstatement of the retrenched
workman or, as the case may be, the order upholding the validity of retrenchment of the workman
under sub section (1) or refer the matter to a Tribunal for adjudication:
Provided that where a reference has been made to a Tribunal under this sub-section , it shall
pass an award within a period of thirty days from the date of such reference.”.
[Vide Rajasthan Act 8 of 1984, s. 8]
Gujarat
Amendment of section 25-O of XIV of 1947.—In the principal Act, in section 25-O, in sub-section
(8), the words “and an amount equivalent to his last three months average pay” shall be added at the end.
[Vide Gujarat Act 1 of 2021, s. 4]
52
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.
STATE AMENDMENT
Rajasthan
Substitution of section 25-Q Central Act No 14 of 1947.- For section 25-Q of the principle Act, the following
section shall be substituted, namely:-
“25-Q. Penalties for lay-off and retrenchment without previous permission.- Any employer who-
(a) lays off a workman without complying with the provisions of sub-section (1) or subsection (2) of section 25-M; or
(b) Contravenes an order refusing to grant permission to lay-off or to continue the lay-off
of a workman under sub-section (4) of section 25-M; or
(c) Contravenes such an order as is referred to in clause (b) passed as a result of review
under sub-section (7) of section 25-M; or
(d) Contravenes the provisions of clause (c) of sub-section (1) or sub section (4) of section
25-N; or
(e) Contravenes an order refusing to grant permission to retrench a workman under subsection (2) or an order under sub-section (9) of section 25-N; or
(f) Contravenes such an order as is referred to in clause (e) passed as a result of review
under sub-section (7) or sub section (9) of section 25-N; or
Contravenes the direction to reinstate a retrenched workman given under sub-section (1) of section 25 -
pp or such a direction given as a result of review under sub-section (3) of the said section, Shall be
punishable with imprisonment for a term which may extend to three months, or with fine which may
extend to two thousand rupees or with both.”.
[Vide Rajasthan Act 8 of 1984, s. 9]
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* * * * *
STATE AMENDMENT
Orissa
Amendment of section 25-R.—In section 25-R of the principal Act;—
(a) in sub-section (2), for the words, brackets, figures and letters, “a direction given under sub-section
(2) of section 25-O or section 25-P”, the words, brackets, figures and letters “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 25-P” shall be substituted;
(b) Sub-section (3) shall be omitted.
[Vide the Orissa Act 6 of 1983, s. 4]
1. Certain words omitted by Act 49 of 1984, s. 6 (w.e.f. 18-8-1984).
2. Subs. by Act 46 of 1982, s. 15, for certain words (w.e.f. 21-8-1984).
3. Sub-section (3) omitted by s. 15, ibid. (w.e.f. 21-8-1984).
53
Rajasthan
Amendment of section 25-R, Central Act No. 14 of 1947:- In section 25-R of the principle Act,-
(a) for sub-section (2), the following sub-section shall be substituted, namely:-
“(2) Any employer, who contravenes an order refusing to grant permission to close down an
undertaking under sub-section (2) of section 25-0 or a direction given under section 25-P,
shall be punishable with an 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.”; and
(b) sub section (3) shall be omitted.
[Vide Rajasthan Act 8 of 1984, s. 10]
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.]
Rajasthan
Amendment of section 25-S, Central Act No. 14 of 1947:-In section 25-S of the principle Act, after
the expression “provisions of this Chapter apply”, the expression “or are applied under sub-section (1-A)
of section 25-k” shall be added.
[Vide Rajasthan Act 8 of 1984, s. 11]