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M S PRADEEP (DGM)     31 October 2011

Labor laws

MY COMPANY - AN INDIAN MNC IS PLANNING TO CLOSE DOWN ITS MANUFACTURING UNIT (CHEMICAL PLANT) IN KARWAR, KARNATAKA. COULD YOU PLEASE LET ME KNOW THE COMPLIANCES (LABOR & OTHER RELATED LAWS) REQUIRED TO BE CARRIED OUT IN THIS REGARD? THANKS.
 



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 10 Replies

akash kapoor (*************)     31 October 2011

 WHETEHER OR NOT ALL YOUR STATUTORY LIABILTIES ARE PAID IN FULL?

Rajesh Hazra (Mediator Mediation Counsel)     31 October 2011

There should be no pending litigation.

M S PRADEEP (DGM)     01 November 2011

WE ARE WILLING TO COMPLY WITH ALL THE STATUTORY DUES PAYABLE TO THE EMPLOYEES. HOWEVER, APART FROM THE STATUTORY DUES PAYABLE TO EMPLOYEES, WHAT WILL BE THE OTHER COMPILANCES, WHICH ARE REQUIRED TO BE COMPLIED?

VIJAYAKUMAR (Asst.Manager Lega)     01 November 2011

For closing of company, you need to do the following things.

1. Give notice to labour department

2. Settle all the claims to employees

3. Submit closure application to Industry department

4. closure application to Registrar of companies

5. Municipality and other department you have applied licenses

VIJAY

M S PRADEEP (DGM)     01 November 2011

THANKS FOR THE RESPONSE.

Yuvaraj.L. (Manager - Accounts)     03 November 2011

I worked in a PVT LTD co. from 01/02/2008 to 12/02/2010. The company has deducted PF from my salary but it is not remitted when applied for a PF claim. The same I have given complaint to  regional PF commissioner -KR puram, bangalore. But no reply received, now what should i do ? how to get my PF amount from the company.

Company is not responding properly. Please advice.

 

Thanks & Regards,

Yuvaraj.L.

radha krishna (vp-hr)     05 November 2011

Dear Pradeep,

Pl check Industrial Disputes Act for closure provisions.

Based on the number of employees you are engaging, the closure porcess to be intiaitated i.e., either by taking prior approval of Government/giving notice etc., Pay required Closure compensation to workers.

The above is the legal process. But  (1) getting approval for closure from the Government  and  (2) also convincing workers is not an easy task .

OPTION-1

Therefore, initiate discussions with workers/unions about your proposal and come to an understanding so that they will not block the process of getting approvals under ID act. .

OPTION-2

Initiate discussions with workers/unions for arriving at an agreement on closure without going thro the process of Government approvals etc., Either we can workout a package in line with VRS scheme or some other package so that all of them will submit resignations and leave the firm.

for the above two options you simultaneously try to reduce the number of casual/contract labour and also white collar employees who are not unionised.

darshana sawant (associate consultant)     05 November 2011

dear mr Pradeep,

 

What is the strength of your company, if the workmen are more than 100 in preceding calendar you have to seek permission of the Govt, however normally permission for closure is not granted by the Govt.  So you can examine ways of reducing the strength  which will go below 100 so that you can close the factory.  But you have to pay closure compensation as per Industrial Disputes Act, notice pay, gratuity, leave wages, surrender factory licence tothe Factory Inspector, in addition give notice to all the authorities, under ESI, PF, Labour welfare fund (if appl) Labour Commissioner, etc.

M S PRADEEP (DGM)     07 November 2011

MANY THANKS FOR THE REPLY. THE CURRENT STRENGTH OF THE FACTORY IS AROUND 300. WE WILL DEFINITELY EXPOLORE THE OPTION OF REDUCING THE NUMBER OF WORKMEN BY 100. HOWEVER, COULD YOU PLEASE LET ME KNOW THE RELEVANT PROVISIONS WHEREUNDER THE SAID REQUIREMENT IS MANDATED?

 

THANKS & REGARDS,

 

M.S. PRADEEP

darshana sawant (associate consultant)     08 November 2011

dear mr Pradeep,

 

The relevant provisions are there in chapter VB of the Industrial Disputes Act, section 25-O specifically.

adv sawant

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