As per the Industrial Disputes Act, 1947, can we legally terminate the services of the workmen after 45 days (maximum) of layoff? Is there any necessity of holding any domestic enquiry before termination? Can any of our esteemed readers educate me on the above?
Regards
From India, Bangalore
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1Regards
From India, Bangalore
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First of all, why do you want to terminate service? If it is for business reasons, then you need to pay retrenchment compensation and comply with its conditions. A domestic enquiry is needed if it is for any misconduct; in that case, retrenchment compensation is not payable.
From India, Mumbai
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From India, Mumbai
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Retrenchment benefits not payable if found guilty of misconduct/s after domestic enquiry
From India, Jalandhar
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From India, Jalandhar
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Thank you for your informative response to our previous inquiry.
Regarding the business situation, we are looking to terminate the services of two workers upon the completion of their maximum layoff period of 45 days. They will receive retrenchment compensation in addition to other statutory payments.
Please advise us on whether this termination can be carried out without conducting a domestic inquiry.
From India, Bangalore
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Regarding the business situation, we are looking to terminate the services of two workers upon the completion of their maximum layoff period of 45 days. They will receive retrenchment compensation in addition to other statutory payments.
Please advise us on whether this termination can be carried out without conducting a domestic inquiry.
From India, Bangalore
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Dear Colleague,
If you read Section 25C of the ID Act, 1947, it shall be lawful for the employer to retrench the workmen after 45 days of layoff subject to the provisions of Section 25F. In the case of retrenchment, you can also set off the layoff compensation against the retrenchment compensation.
However, the provisions of Section 25C do not give any liberty to the employer to violate the provisions of Section 25F/25N. Depending upon the strength of the workmen, you will have to see whether your unit is falling under Section 25F or 25N, and you will mandatorily have to comply with the applicable provisions; otherwise, retrenchment would be treated against the provisions of the law.
Regards,
Dr. Kamlesh Agrawal
Mumbai
From India, Delhi
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If you read Section 25C of the ID Act, 1947, it shall be lawful for the employer to retrench the workmen after 45 days of layoff subject to the provisions of Section 25F. In the case of retrenchment, you can also set off the layoff compensation against the retrenchment compensation.
However, the provisions of Section 25C do not give any liberty to the employer to violate the provisions of Section 25F/25N. Depending upon the strength of the workmen, you will have to see whether your unit is falling under Section 25F or 25N, and you will mandatorily have to comply with the applicable provisions; otherwise, retrenchment would be treated against the provisions of the law.
Regards,
Dr. Kamlesh Agrawal
Mumbai
From India, Delhi
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Thank you, Kamalesh Sir, for your above reply. We will follow the provision of the law as applicable in the event of the termination of workmen after 45 days of layoff. I find that in the ID act, it is not mentioned that a Domestic Enquiry is necessary before termination after 45 days of layoff. My specific doubt is whether we can go ahead with termination without holding an inquiry. I would appreciate your reply, sir.
From India, Bangalore
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From India, Bangalore
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ID Act 1947.pdf
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