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Avinash Kumar Sharma (Sr. Manager HR)     21 July 2013

Closure of factory

Dear Sir,


What are the formalities for closing a factory. If we want to adjust the employees in some other unit of the organisation then what formalities remains under Factories Act.

Regards,

Avinash



Learning

 4 Replies

HIRAL THAKKAR (ADVOCATE )     22 July 2013

You need to  inform to the facotory inspector of the area where the facory is located of the intended date,  reason of closure, number or workmen employed, muster roll , period of closure, type of closure and fill the relevant forms as are required before ninety days of intended closure. If you need to adjust the employees, you need to transfer them to your other unit without affecting their position and scale of payment and inform the same through letter to the factory inspector as well as to the commissioner of labour or GLO of your area.

 

Regards

HIRAL THAKKAR (ADVOCATE )     22 July 2013

Sir,

 

You need to send an intimation of intended closure atleast ninety days before, to the factory inspector with filled in prescribed forms containing details as to the number of employees, muster roll, reason of closure, type of closure etc. Further if there is permanent closure you need to pay to all the empoloyees who are continuining compensation at the rate of fifteen days pay completed years of service. As far as continuing the employees, you need to accordingly inform the factory inspector as well as commissioner of labour, although the continuing shall be without affecting their present position and pay.

 

Regards

dr g balakrishnan (advocate/counsel supreme court)     22 July 2013

ig  u r a company under companies Act 1956 , you shd indicate your winding up by iling winding up petition under companies Act beore registrar o companies, so too under incomer tax Act you have to indicate your intention to closure to get relie under income tax Act while ilimg your ROI,  so too central excise i u are a service tax payer, besides other central excise dues, under sales tax acts too og the state concerned,  that means u have as much hazzles you had when staring your actory!

Avinash Kumar Sharma (Sr. Manager HR)     24 July 2013

Dear Sirs,

We are closing the factory not company and adjusting our employees in other factory of company in same industrial area. Then what are the formalities under Factories Act.

Regards,

Avinash


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