In force · As amended up to 2026-08
Chapter V: STRIKES AND
LOCK-OUTS
``` | Section 25F(2): Conditions precedent to retrenchment of workmen
(2) Notwithstanding anything contained in sub-section (1), the
appropriate Government may, if it is satisfied that owing to such
exceptional circumstances as accident in the undertaking or death of the
employer or the like it is necessary so to do, by order, direct that
provisions of sub-section (1) shall not apply in relation to such undertaking
for such period as may be specified in the order.]
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25FF
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Compensation to workmen in case of closing down of undertakings.
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25FFF. Compensation to workmen in case of closing down of
undertakings.- (1) Where an undertaking is closed down for any reason
whatsoever, every workman who has been in continuous service for
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1. Ins. by Act 32 of 1972, s. 2 (w.e.f. 14-6-1972).
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not less than one year in that undertaking immediately before such closure
shall, subject to the provisions of sub-section (2), be entitled to
notice and compensation in accordance with the provisions of section 25F, as
if the workman had been retrenched:
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Provided that where the undertaking is closed down on account of
unavoidable circumstances beyond the control of the employer, the
compensation to be paid to the workman under clause (b) of section 25F shall
not exceed his average pay for three months.
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1*[Explanation.--An undertaking which is closed down by reason merely
of--
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Chapter V: STRIKES AND
LOCK-OUTS
``` | Section 25F: Conditions precedent to retrenchment of workmen
25F. Conditions precedent to retrenchment of workmen.- No workman
employed in any industry who has been in continuous service for not less
than one year under an employer shall be retrenched by that employer
until--
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(a) the workman has been given one month's notice in writing
indicating the reasons for retrenchment and the period
of notice has expired, or the workman has been paid in lieu
of such notice, wages for the period of the notice:
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"Provided that in such industrial establishment where more
than fifty workmen have been employed on an average per
working day in preceding twelve months, the workman has been
given forty five days notice in writing indicating the
reasons for retrenchment and period of notice has expired."[1]
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`1. Amended by Jharkhand Act No.22,2017, Notification no:L.G.-04/2016-127/LEG.Dated 14/11/2017`
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Chapter V: STRIKES AND
LOCK-OUTS
``` | Section 25F: Conditions precedent to retrenchment of workmen
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1* * * * *
(b) the workman has been paid, at the time of retrenchment,
compensation which shall be equivalent to fifteen days'
average pay 2*[for every completed year of continuous
service] or any part thereof in excess of six months; and
"Provided that in such industrial establishments where more
than fifty and less than three hundred workmen have been
employed on an average per working day in preceding twelve
months, the workman shall be paid at the time of
retrenchment, compensation which shall be equivalent to forty
five days average pay for every completed year of continuous
service or any part thereof in excess of six months."[3]
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(c) notice in the prescribed manner is served on the
appropriate Government 4*[or such authority as may be
specified by the appropriate Government by notification in
the Official Gazette].
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25FF
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Compensation to workmen in case of transfer of undertakings.
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Chapter V: STRIKES AND
LOCK-OUTS
``` | Section 25F(2): Conditions precedent to retrenchment of workmen
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(i) financial difficulties (including financial losses); or
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(ii) accumulation of undisposed of stocks; or
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(iii) the expiry of the period of the lease or licence
granted to it; or
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(iv) in a case where the undertaking is engaged in mining
operations, exhaustion of the minerals in the area in which
such operations are carried on;
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shall not be deemed to be closed down on account of unavoidable
circumstances beyond the control of the employer within the meaning of the
proviso to this sub-section.]
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2*[(1A) Notwithstanding anything contained in sub-section (1), where
an undertaking engaged in mining operations is closed down by reason merely
of exhaustion of the minerals in the area in which such operations are
carried on, no workman referred to in that sub-section shall be entitled to
any notice or compensation in accordance with the provisions of section 25F,
if--
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(a) the employer provides the workman with alternative
employment with effect from the date of closure at the
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same remuneration as he was entitled to receive, and on the
same terms and conditions of service as were
applicable to him, immediately before the closure;
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(b) the service of the workman has not been interrupted by such
alternative employment; and
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Chapter V: STRIKES AND
LOCK-OUTS
``` | Section 25F: Conditions precedent to retrenchment of workmen
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5*[25FF. Compensation to workmen in case of transfer of undertakings.-
Where the ownership or management of an undertaking is transferred, whether
by agreement or by operation of law, from the employer in relation to
that undertaking to a new employer, every workman who has been in
continuous service for not less than one year in that undertaking immediately
before such transfer shall be entitled to notice and compensation in
accordance with the provisions of section 25F, as if the workman had been
retrenched:
Provided that nothing in this section shall apply to a workman in any
case where there has been a change of employers by reason of the transfer,
if--
(a) the service of the workman has not been interrupted by such
transfer;
(b) the terms and conditions of service applicable to the
workman after such transfer are not in any way less
favourable to the workman than those applicable to him
immediately before the transfer; and
(c) the new employer is, under the terms of such transfer or
otherwise, legally liable to pay to the workman, in the event
of his retrenchment, compensation on the basis that his
service has been continuous and has not been interrupted by
the transfer.
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1.Omitted by Act 49 of 1984, s. 3 (w.e.f. 18-8-1984).
2.Subs. by Act 36 of 1964, s. 14, for "for every completed year of service" (w.e.f.
19-12-1964).
3.Amended by Jharkhand Act No.22,2017, Notification no:L.G.-04/2016-127/LEG. Dated
14/11/2017
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Chapter V: STRIKES AND
LOCK-OUTS
``` | Section 25F(2): Conditions precedent to retrenchment of workmen
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(c) the employer is, under the terms of such alternative
employment or otherwise, legally liable to pay to the
workman, in the event of his retrenchment, compensation on
the basis that his service has been continuous and has
not been interrupted by such alternative
employment.
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1. Subs. by Act 45 of 1971, s. 4, for the original Explanation
(w.e.f. 15-12-1971).
2. Ins. by s. 4, ibid. (w.e.f. 15-12-1971).
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(1B) For the purposes of sub-sections (1) and (1A), the expressions
"minerals" and "mining operations" shall have the meanings respectively
assigned to them in clauses (a) and (d) of section 3 of the Mines and
Minerals (Regulation and Development) Act, 1957 (67 of
1957).]
Chapter V: STRIKES AND
LOCK-OUTS
``` | Section 25F: Conditions precedent to retrenchment of workmen
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4. Ins. by s. 14, ibid. (w.e.f. 19-12-1964).
5. Subs. by Act 18 of 1957, s. 3, for the former section(w.e.f. 28-11-1956).S.25FF
was ins. by Act 41 of 1956, s. 3.
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176A
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25FF
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Sixty days' notice to be given of intention to close down any
undertaking.
1*[25FFA. Sixty days' notice to be given of intention to close down any
undertaking.- (1) An employer who intends to close down an undertaking shall
serve, at least sixty days before the date on which the intended closure is to
become effective, a notice, in the prescribed manner, on the appropriate
Government stating clearly the reasons for the intended closure of the
undertaking: Provided that nothing in this section shall apply to--
(a) an undertaking in which--
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(i) less than fifty workmen are employed, or
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(ii) less than fifty workmen were employed on an
average per working day in the preceding twelve months,
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(b) an undertaking set up for the construction of buildings,
bridges, roads, canals, dams or for other construction work
or project.
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Chapter V: STRIKES AND
LOCK-OUTS
``` | Section 25F(2): Conditions precedent to retrenchment of workmen
(2) Where any undertaking set-up for the construction of
buildings, bridges, roads, canals, dams or other construction work is closed
down on account of the completion of the work within two years from the date
on which the undertaking had been set-up, no workman employed therein
shall be entitled to any compensation under clause (b) of section 25F, but
if the construction work is not so completed within two years, he shall be
entitled to notice and compensation under that section for every
1*[completed year of continuous service] or any part thereof in excess of six
months.]
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25G.
Procedure for retrenchment.
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Source: India Code