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Industrial Disputes Act

Section:25-FFA :Closure Of An Undertaking (< 100 Employees)

Obligation : To communication the intention of closure of an undertaking to the appropriate Government.

Type:Trigger Frequency: Quarterly

Action to be taken:
Where less than 50 workmen are employed or have been employed on an average per working day in the preceding 12 month, in case of intention of closure of the undertaking, serve notice on the appropriate government at least 60 days before the date on which intended closure is to become effective, stating clearly, the reasons for closure. This does not apply to an undertaking set up for construction of buildings, roads, bridges, canals, dams or for other construction work.

Audit Requirement:
Has the intention of closure been communicated to the appropriate Government 60 days before the date on which intended closure is to become effective ?

Supporting Documents:
Copy Of Notice Of Closure

Related Triggers:
Closure Of An Undertaking/Establishment
Closure Of Any Part of A Factory
Number of Workers In The Establishment
Temporary Closure or Reopening Of An Establishment

Related Keywords:
Closure
Dispute, Industrial Dispute


Related Sections:
Industrial Disputes Act, 1947
Chapter:Lay-off and Retrenchment| 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 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
(i) less than fifty workman were employed, or
(ii) less than fifty workmen were employed on an average per working day in the preceding twelve moths,
(b) an undertaking set up for the construction of buildings, bridges, roads, canals, dams or for other construction work of project.
(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.