Closure of industrial establishments requires 90 days prior permission, deemed approval after 60 days, and statutory compensation. Employers must apply at least ninety days before closing an industrial undertaking and notify worker representatives; the appropriate Government may grant or refuse permission after enquiry, and failure to decide within sixty days results in deemed grant. Orders are final for one year but may be reviewed or referred to a Tribunal. Closures without permission or after refusal are illegal and confer statutory benefits on workers. Exceptional circumstances may exempt the prior-permission requirement. Permitted or deemed closures entitle each worker employed before the application date to compensation equivalent to fifteen days' average pay per completed year of continuous service, with pro rata treatment for service beyond six months.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Closure of industrial establishments requires 90 days prior permission, deemed approval after 60 days, and statutory compensation.
Employers must apply at least ninety days before closing an industrial undertaking and notify worker representatives; the appropriate Government may grant or refuse permission after enquiry, and failure to decide within sixty days results in deemed grant. Orders are final for one year but may be reviewed or referred to a Tribunal. Closures without permission or after refusal are illegal and confer statutory benefits on workers. Exceptional circumstances may exempt the prior-permission requirement. Permitted or deemed closures entitle each worker employed before the application date to compensation equivalent to fifteen days' average pay per completed year of continuous service, with pro rata treatment for service beyond six months.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.