CLAT 2024 Passage 3 by Career Leaders | Dec 7, 2023 | 0 comments Section 25-N of the Industrial Disputes Act, 1947 prescribes the conditions precedent to retrenchment of workmen. Section 25-O provides for the procedure for closing an undertaking of an industrial establishment. Under Section 25-N of the Act before retrenchment of workman can be affected two conditions must be fulfilled namely (a) the workman has been given three months’ notice in writing indicating the reasons for retrenchment or paid in lieu of such notice, wages for the said period; and (b) the prior permission of the appropriate Government has been obtained by the employer upon an application having been made. Sub-section (3) of Section 25-N vests power in the State Government to grant or refuse permission to retrench an employee. Section 25-O enjoins an employer, who intends to close an undertaking to apply for prior permission at least ninety days before the date on which the intended closure is to become effective, setting out the reasons for the intended closure and simultaneously serve a copy of such application on the representatives of the workmen in the prescribed manner. Sub-section (9) of Section 25-O provides that where an undertaking is permitted to be closed or permission for closure is deemed to be granted, every workman, who is employed in that undertaking immediately before the date of application for permission under the said section, shall be entitled to receive compensation which shall be equivalent to fifteen days’ average pay for every completed year of continuous service or any part thereof in excess of six months. Evidently, both Section 25-N and 25-O are couched in a mandatory form. They give effect to the public policy of preventing the exploitation of labour by commanding the employer to follow the defined process for retrenchment of an individual or group of employees or for closure of the establishment as such. [Extracted with edits from the decision of the Bombay High Court in Esselworld Leisure Pvt. Ltd.v. Syam Kashinath Koli, 2023 SCC OnLine Bom 2102, decided on September 29, 2023]. 1. A workman shall be deemed to have rendered continuous service of one year under the Industrial Disputes Act, if Workman has worked under the same employer for Not less than 180 days. Workman has worked under the same employer for Not less than 240 days. Workman has worked under the same employer for Not less than 300 days. Workman has worked under the same employer for Not less than 120 days. None 2. Consider the given statements. I. Onus to prove continuous service for prescribed number of days lies on the workman.II. The period of continuous service need not be in the same service or same type of service.III. Worked for not less than the prescribed period does not include paid holidays.Choose the correct answer from the code given below: II and III are correct and I is incorrect Only I is correct, II and III are incorrect. I and II are correct, III is incorrect. II is correct, I and III are incorrect. None 3. Section 25N is applicable to which of the following industrial establishment(s)? Both (b) and (c). Industrial establishment of a seasonal character. Industrial Establishment where not less than 100 workmen were employed on an average per working day for the preceding twelve months. Industrial Establishment where not less than 50 workmen were employed on an average per working day for the preceding twelve months. None 4. What are the conditions for refusal of application of retrenchment by the appropriate government under section 25(3)? The reasons for refusing the permission must be recorded in writing. All of the above. The reasons for retrenchment must be genuine and adequate. The workmen and the employer must be given a reasonable opportunity of being heard. None 5. Consider the given statements. I. Application for closure shall be deemed to have been granted, if the appropriate government does not communicate the order granting or refusing permission within 30 days from the date of the application.II. Section 25-O makes it mandatory for the employer, who intends to close down an undertaking to apply for prior permission at least ninety days before the date on which the intended closure is to become effective, setting out the reasons for the intended closure and to simultaneously serve a copy of such application on the representatives of the workmen in the prescribed mannerIII. Section 25-O is not applicable to an undertaking engaged in Construction of buildings, bridges, roads, canals, dams or for other construction work. Choose the correct answer from the code given below: Only I is correct, II and III are incorrect. I and II are correct, III is incorrect II is correct, I and III are incorrect. II and III are correct and I is incorrect. None Submit a Comment Cancel replyYour email address will not be published. Required fields are marked *Comment * Name * Email * Website Save my name, email, and website in this browser for the next time I comment.
