retenchment compensation

TS Bhatia (Querist) 14 October 2008 This query is : Resolved
What is the legal formality for making retrenchment of workers in factory ?

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Adv.Shine Thomas (Expert) 15 October 2008
The employer u/s 25N of Factories Act,is prohibited from retrenching a workman without giving 3 months notice or wages in lieu of notice.Payment of retrenchment as specified in sec.25F(b).In A.P.Patel v. Gujarat State Machine Tools Corpn.1993 1 CLR 1094,it was contended that clasus (a) and (b) of sec 25(1) are both mandatory and pre-conditions for effective retrenchment.Clause (a) requires the employer to give notice of three months to the workmen,and clause (b) requires prior permission of the appropriate govt.

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