A Look At Layoff And Retrenchment Procedures In Light Of New Industrial Relations Code

The Industrial Disputes Act, 1947 has been the primary legislation to administer disputes between the employer and workmen and to provide safeguards for workmen. Like Chapter VA of the Industrial Disputes Act, 1947, Chapter IX in the Industrial Relations Code mentions at the outset under S. 65 that the provisions of that chapter pertaining to layoff, retrenchment and closure are not applicable to an industrial establishment having less than fifty workmen or an establishment having a seasonal/intermittent character. To determine whether an establishment is of seasonal character, the decision of appropriate government will be final, according to both S. 25A of Industrial Disputes Act, 1947 and S.65 of the Industrial Relations Code, 2020. Furthermore, if an establishment has between 50 – 300 workmen, then no permission from appropriate government is required as chapter VA of Industrial Disputes Act, 1947 and Chapter IX of Industrial Relations Code do not mention any conditions precedent to layoff of workers. Although a notice is required to be served on the appropriate government regarding retrenchment as per S. 25K of Industrial Disputes Act, 1947 and S.70 of the Industrial Relations Code.