Anonymous
10

Hi,
As per the provisions of Section 25N /25 (O), the Authority while permitting retrenchment/closure gives a reasonable opportunity to the workmen to be heard. My query is that if the permission is granted, the workmen can raise a dispute challenging their retrenchment/closure. If yes, what kind of dispute and on what ground?

Further, as per Section 25(N)/25(O ), the permission granted shall remain in force for one year from the date of such order. Does it mean, the employer can close the undertaking within one year of the permission or retrench the workmen within one year of the permission?
Kindly guide whether the interpretations made above are correct or if not what are the correct interpretations.

Regards,

From India, Delhi
DIPTI SRIVASTAVA 83
24

According to Section 25N/25O, when an employer seeks permission for retrenchment or closure, the authority must give a reasonable opportunity to the workmen to be heard. This means that if permission is granted for retrenchment or closure, the affected workmen still have the right to raise a dispute challenging their retrenchment or closure. The dispute could be raised on various grounds such as improper procedure followed, unfair treatment, discrimination, or violation of any relevant laws or agreements.

The permission granted under Section 25N/25O remains valid for one year from the date of the order. This means that within this one-year period, the employer has the authority to retrench the workmen or close the undertaking, subject to the terms and conditions specified in the permission order. However, it's important to note that the one-year period does not necessarily mean that the employer must take action within that time frame. They can choose to retrench or close the undertaking at any time during that one-year period.


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