Dear Sir,
I run a small factory with fewer 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
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I run a small factory with fewer 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
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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 off the amounts due to the workers such as salaries, gratuity, retrenchment compensation, etc. Since you have fewer than 50 workers, you need not seek approval or inform the government of your intention to close down the unit. However, you should provide the employees with one month's notice and also pay retrenchment compensation at the rate of 15 days' wages for each year of service.
From India, Kannur
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4473From India, Kannur
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Anyone can close down the factory by submitting an application in the relevant form under the Factories Rules and Industrial Dispute Act/Rules of the state where the factory exists, at least 60 days before the proposed date of closing. All the dues owed to the employee, such as notice pay, retrenchment compensation, gratuity, and other receivables, are likely to be received by the employee through leave encashment, bonuses, etc.
From India, Mumbai
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From India, Mumbai
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