In force · As amended up to 2026-08
Chapter V: STRIKES AND
LOCK-OUTS
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Procedure for closing down an undertaking.
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1*[25-O. Procedure for closing down an undertaking
(3) Where an application has been made under sub-section (1) and the
appropriate Government does not communicate the order granting or refusing to
grant permission to the employer within a period of sixty days from the date
on which such application is made, the permission applied for shall be deemed
to have been granted on the expiration of the said period of sixty days.
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Chapter V: STRIKES AND
LOCK-OUTS
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Procedure for closing down an undertaking.
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1*[25-O. Procedure for closing down an undertaking
(5) The appropriate Government may, either on its own motion or on the
application made by the employer or any workman, review its order granting
or refusing to grant permission under sub-section (2) or refer the matter to
a Tribunal for adjudication:
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Provided that where a reference has been made to a Tribunal under this
sub-section, it shall pass an award within a period of thirty days from
the date of such reference.
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Chapter V: STRIKES AND
LOCK-OUTS
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Procedure for closing down an undertaking.
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1*[25-O. Procedure for closing down an undertaking
(4) An order of the appropriate Government granting or refusing to
grant permission shall, subject to the provisions of sub-section (5), be
final and binding on all the parties and shall remain in force for one year
from the date of such order.
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Chapter V: STRIKES AND
LOCK-OUTS
``` | Section 25O(6): ```
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Procedure for closing down an undertaking.
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1*[25-O. Procedure for closing down an undertaking
(6) Where no application for permission under sub-section (1) is made
within the period specified therein, or where the permission for closure has
been refused, the closure of the undertaking shall be deemed to be illegal
from the date of closure and the workmen shall be entitled to all the benefits
under any law for the time being in force
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as if the undertaking had not been closed down.
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Chapter V: STRIKES AND
LOCK-OUTS
``` | Section 25O(8): ```
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Procedure for closing down an undertaking.
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1*[25-O. Procedure for closing down an undertaking
(8) Where an undertaking is permitted to be closed down under sub-
section (2) or where permission for closure is deemed to be granted
under sub-section (3), every workman who is employed in that undertaking
immediately before the date of application for permission under this
section, shall be entitled to receive compensation which shall be
equivalent to three months[2] average pay for every completed year of
continuous service or any part thereof in excess of six months.]
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1.Subs. by Act 46 of 1982, s. 14 (w.e.f. 21.8.1984).
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2.Amended by Jharkhand Act No.22,2017, Notification no:L.G.-04/2016-127/LEG.Dated 14/11/2017
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178F
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Chapter V: STRIKES AND
LOCK-OUTS
``` | Section 25O(2): ```
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Procedure for closing down an undertaking.
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1*[25-O. Procedure for closing down an undertaking
(2) Where an application for permission has been made under sub-
section (1), the appropriate Government, after making such enquiry as it
thinks fit and after giving a reasonable opportunity of being heard to the
employer, the workmen and the persons interested in such closure may,
having regard to the genuineness and adequacy of the reasons stated by
the employer, the interests of the general public and all other relevant
factors, by order and for reasons to be recorded in writing, grant or
refused to grant such permission and a copy of such order shall be
communicated to the employer and the workman.
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Chapter V: STRIKES AND
LOCK-OUTS
``` | Section 25O(7): ```
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Procedure for closing down an undertaking.
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1*[25-O. Procedure for closing down an undertaking
(7) Notwithstanding anything contained in the foregoing
provisions of this section, 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 the 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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Chapter V: STRIKES AND
LOCK-OUTS
``` | Section 25O: ```
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Procedure for closing down an undertaking.
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1*[25-O. Procedure for closing down an undertaking
25O.
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Procedure for closing down an undertaking.
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1*[25-O. Procedure for closing down an undertaking.- (1) An
employer who intends to close down an undertaking of an industrial
establishment to which this Chapter applies shall, in the prescribed manner,
apply, for prior permission at least ninety days before the date on which
the intended closure is to become effective, to the appropriate
Government, stating clearly the reasons for the intended closure of the
undertaking and a copy of such application shall also be served
simultaneously on the representatives of the workmen in the prescribed manner:
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Provided that nothing in this sub-section shall apply to an
undertaking set up for the construction of buildings, bridges, roads, canals,
dams or for other construction work.
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Source: India Code