Dear Sir, I run a small factory with less than 20 employees it is a partnership firm. I have some health issues and am not able to manage it. I am the managing partner and the other partners are not willing to run the factory, so I need to know the procedures to be followed for closing the factory permanently.
Regards
From India, Chennai
Regards
From India, Chennai
You can close down the unit by surrendering the various RCs to the respective departments like, GST, Factories and Boilers/ Labour department, EPF, ESI, etc and paying of the amounts due to the workers like, salaries, gratuity, retrenchment compensation etc. Since you have less than 50 workers, you need not take approval nor intimate the government of your intention to close down the unit. But you should give the employees one month notice and also pay retrenchment compensation at the rate of 15 days wages for each year of service.
From India, Kannur
4244From India, Kannur
Anyone can close down the factory by making application in relevant form under Factories Rules and Industrial Dispute Act/ Rule of the state factory exist, before 60 days proposed date of closing. All the dues to the employee i.e, notice pay, retrenchment compensation, gratuity & other receivable likely to get by the employee leave encashment & bonus etc.
From India, Mumbai
From India, Mumbai
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Factory Rules 1950.zip
Amendment of factory act MP rules.pdf