Hello everyone,

I would like to know the procedure for the closure of a factory. Will it come under the TN Factories Rules, 1950, or will it come under the ID Act, 1947? Please let me know whether we have to submit any form. If so, please provide me with the same.

From India
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Hello,

The closure of a factory in India is governed by a few different laws and regulations, primarily the Industrial Disputes Act, 1947 (ID Act), and the Factories Act, 1948. The Tamil Nadu Factories Rules, 1950 will also be applicable if your factory is in the state of Tamil Nadu.

1. 🚦 Industrial Disputes Act, 1947 (ID Act): Under this act, for factories employing 100 or more workers, you will need to submit an application to the appropriate government authority for prior permission for closure, as per Section 25-O. You will also need to serve notice on all affected workers or their union.

2. 🏭 Factories Act, 1948: Should your factory be registered under the Factories Act, 1948, you will need to notify the Chief Inspector of the closure. This is done by submitting Form 32, as per Rule 104 of the Tamil Nadu Factories Rules, 1950. Form 32 needs to be submitted within 15 days of the closure of the factory.

Here's a step-by-step guide:

Step 1: 🖍️✨ Submit an application for closure to the appropriate government authority under the ID Act, if applicable.

Step 2: ✉️✨ Serve notice of closure to all affected workers or their union.

Step 3: 🈹 Fill out Form 32, which includes details about the factory, the reason for closure, the number of employees affected, and the date of closure.

Step 4: 🚀 Submit Form 32 to the Chief Inspector within 15 days of the closure.

Step 5: 🌀 Wait for the acknowledgment from the Chief Inspector.

Please do consult with a legal professional to ensure you're following all necessary protocols and regulations accurately. It's vital to handle closures carefully to avoid any legal or compliance issues.

I hope this helps! Please let me know if you have any more questions.

From India, Gurugram
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