1|PageIntroduction The Industrial Disputes Act, 1947 as originally enacted made no provision for the payment of 'lay-off' or 'retrenchment' compensation to the laid-off or retrenched workmen. In the absence of statutory provisions for paying compensation, the authorities had taken into consideration various factors in determining the amount of compensation. Therefore there were no uniform rule that can be said to have observed by the adjudicating bodies. In 1953, a huge stock had accumulated in textile industries. Textile mills were in a mood to close one or more shifts. The closure must have resulted in retrenchment or laying-off a large number of textile employees causing great unrest in the whole of the textile industry. In order to overcome the situation the President of India promulgated the Industrial Disputes (Amendment) Ordinance, 1953 to take effect form 24th October, 1953. The Ordinance made provision for payment of compensation for lay-off or retrenchment. The said ordinance was repealed and replaced by the Industrial Disputes (Amendment) Act, 1953 on 23rd December, 1953. Sections 25-A to 25-J were added by this Amending Act of 1953. The Supreme Court in Hariprasad Shiv Shanker Shukla v. A.D. Divakar AIR 1957 SC 121, held that retrenchment means the discharge or surplus labour or staff by the employer for any reason whatsoever, otherwise than on a punishment inflicted by way of disciplinary action, and it has no application where the services of all workmen have been terminated by the employer on a real and bona fide closure or business or where the services of all workmen have been terminated by the employer on the business or undertaking being taken over by another employer. The effect of the Supreme Court's pronouncement was that the Act was again amended on 6th June, 1961 and two new Sections 25-FF and 25-FFF were added. By this amendment provision was made for compensation for retrenchment of workmen on transfer of a business or on closing down of an industrial concern. These two sub-sections have again been amended in 1964. These amendments in 1964. These amendments have curtailed the common law rights of the employer and he has now been burdened to pay compensation in cases of lay-off, retrenchment and bona fide transfer or closure of the undertaking. P. who is willing to employ. "the failure. Employees' Insurance Corporation AIR 1956 Bom 336. Far from laying off of an employee being a right. Ltd. Mazdoor Union v. refusal or inability of an employer". S. Labour Commissioner. in definition of lay-off there is no indication whatever that it should continue for a particular period of time. the accumulation of stock. AIR 1957 Bom. natural calamity. or iii.) . any other connected reasons. The very essence of lay-off is that it is temporary stoppage and that within a reasonable period of time the employer expects that. Veiyra v.. In Central India Spinning. power or raw materials. The duration of lay-off should not be for a period longer than the period of emergency. 4) The workman must not have been retrenched. 2) Any such failure or refusal to employ a workman may be on account of:i. or iv. it is really an obligation. or ii. Further. 3) A workman who is so deprived of employment must be such whose name is borne on the muster rolls of his industrial establishment.P. shortage of coal. It is not a right but an obligation imposed on the employer for the benefit of the workmen (M.E. These words make it clear that the unemployment has to be on account of a cause which is independent of any action or inaction on the part of the workmen themselves. Satate Industrial Court (1959) I LLJ 468 (Bom). or v. Indore and others (2002) I LLJ 791 (M.2|Page Lay-off According to Section 2(kkk) salient features of lay-off are as following: 1) An employer. Nagpur v. C. Weaving and Manufacturing Co. the business or industry would continue and his employees who have been laid-off will be restored to their full rights as employees. the Bombay High Court held that the key to the definition is to be found in the words.A. Fernandes and another. the breakdown of machinery. Ahmedabad v.A. 100). The employer-employee relationship does not come to an end but is merely suspended during the period of emergency. Other cases: Nutan Mills Ltd. fails or refuses or is unable to provide employment for reasons beyond his control. Meaning of Lay-off "Lay-off" means putting aside workmen temporarily. Labour Courts Orissa. 2) The termination may be for any reason whatsoever. Sugar Mills Ltd. or c) termination of the service of a workman on the ground of continued ill-health. contract of employment. Union of India 1969 Lab IC 1282 (Orissa) Surjit Kantha v. Cases: State Bank v. continued ill-health. Union of India AIR (1970) Assam 131 Hindustan Steel Ltd. v. A. & G. but that a portion of the staff of labour force is discharged as surplusage (Piparaich Sugar Mills Ltd. Shambhu Nath AIR (1978) SC 8 Malkhan Singh v. State of Orissa 1970 Lab IC 345 (Orissa) D. Marcopollo and Co.C. P. N. 3) But the termination should not be as a measure of punishment by way of disciplinary action. Section 2(oo) which defines the term "retrenchment" may be analysed as follows: 1) Retrenchment means the termination by the employer of the service of a workman. v. Money.3|Page Retrenchment Retrenchment connotes it is ordinary acceptation that the business itself is being continued. v.D.R. AIR (1976) SC 1111 Hindustan Steel v. Mills v. AIR 1957 SC 121). Ram Kishan & others 1996 I LLj 870 (SC) Termination of service. Diwekar. Their Employees' Union AIR (1956) SC 1012 D. . Manked 1969 Lab IC 21 (Guj) Duryodhan Naik v. It means disharge of surplus labour or staff by the employer for any reason whatsoever (Harprasad Shiv Shanker v.S. Voluntary Retirement Scheme. (Private) Ltd. or bb) termination of the service of a workman as a result of the non-renewal of the contract of employment between the employer and the workman concerned on its expiry or of such contract being terminated under a stipulation in that behalf contained therein. Union of India 1981 II LLJ 174 Morinda Co-op. v. The following are not retrenchment: a) voluntary retirement of a workman. voluntary resignation are important points discussed whether they are included in the exception to retrenchment under Section 2(oo) or not. AIR (1977) SC 31 State of Gujarat v. contract of employment under clause (bb). The order of termination must be actuated with a motive of economy. AIR 1957 SC 95). Piparaich Sugar Mills Unsion. or b) retirement of a workman on reaching the age of superannuation if the contract of employment between the employer and the workman concerned contains stipulation in that behalf. and therefore no compensation for lay-off can be claimed (Tinkori Oil Mills Mazdoor Congress v. and b) to industrial establishments which are of a seasonal character or in which work is performed only intermittently. All Kerala Cashewnut Factory Workers' Federation. if on any day more than 50 persons were employed but on an average during the preceding calendar month less than 50 persons are employed. provisions of Sections 25-C to 25-E would not apply. Sub-section (1) exempts such establishments where on an average less than fifty workmen have been employed. Where it is contested that less than 50 persons were employed in any industrial establishment. Thus where the exemption under Section 25-A applies. 'Intermittent' means not continuous but falling after certain gaps or intervals. and the exercise of this function by the Government is of a quasi-judicial nature because it has to give decision in a dispute between the two parties. Sections 25-C to 25-E inclusive shall not apply to industrial establishments to which Chapter V-b applies or. The two expressions "seasonal character" and "intermittent" are not defined in the Act but they are not synonymous. . The decision has normally to be given after giving both the parties reasonable opportunity to represent their case. Tinkori Sadhu Khan and Sons. Therefore. v. II FJR 197 LAT). the period with reference to which the number of employees is to be determined is the calendar month preceding the point of time when the statutory right under Section 25-C arose (Kohinoor Saw Mills Co. This sub-section comes into play in case of any disputed claim to a right or any dispute about the liability thereof. The decision must be based on considerations relevant to the dispute. 'Seasonal' implies dependance on nature over which niether the employer nor the employee in the establishment has any control. although the dispute need not be an 'industrial dispute' within the meaning of Section 2(k) of this Act. Application of Sections 25-C to 25-E According to sub-section (1) of this Section. State of madras. Section 25-A(2) This sub-section provides that "if a question arises whether an industrial establishment is of a seasonal character or whether work is performed therein intermittently the decision of the appropriate Government thereon shall be final. 1957 II LLJ 210 Mad). & others v. The appropriate Government has jurisdiction to decide any such dispute. 1960 I LLJ 103 Ker).4|Page Section 25-A.a) to industrial establishments in which less than fifty workmen on an average per working day have been employed in the preceding calendar month. the workmen are not entitled to lay-off compensation and the Tribunal has no right to grant relief on fanciful notions of social justice ( South India Corp. and 2) Such workman has actually worked for not less thana) Ninety-five days in the case of his being employed below ground in a mine. The award was also affirmed by the High Court.5|Page Section 25-B This section of the Act defines continuous service. . These interruptions may be on account of: 1) 2) 3) 4) 5) 6) sickness. Ltd. respondent who was a daily wager was terminated from service. and 2) he actually worked for not less thana) One hundred and ninety days in the case of a workman employed below ground in a mine. In case of second category of cases even though the service is interrupted it shall be deemed to be continuous unless it has been terminated. for instance. It is also provided that any interruption on certain accounts shall not be considered an interruption and the service shall still be deemed to be continuous. In case of a person taking part in an illegal strike. As provided by clause (b) of sub-section (2) these conditions are:1) The workman has been in employment for a period of six calendar months. Sub-section (2) of this Section defines continuous service for a period of one year or a period of six months. In Surendranagar Panchayat and another v. The following conditions must be fulfilled by a workman to entitle him for a continuous service of six months. or authorised leave. 1958 I LLJ 28 Bom). if1) he has been in employment for 12 calendar months. New India Rayon Mills Co. or an accident. Sub-section (1) provides that taking part in a strike which is not illegal is not an interruption. if or that period his service is uninterrupted. and b) Two hundred and forty days in any other case. A workman shall be said to be in continuous service for a period. The Labour Court held termination as illegal as it was without notice or payment in lieu thereof as well as it ignored his seniority. or a cessation of work which is not due to any fault on the part of the workmen. by an order of dismissal for taking part in an illegal strike (Jairam Sonu Shogale v. or a strike which is not illegal. and b) One hundred and twenty days in any other case. The definition of 'continuous service' as given in this section is applicable to this Chapter only. an employee may be dismissed on that account the service shall be deemed to be continuous service. Clause (a) of sub-section (2) provides that a workman shall be deemed to have been in continuous service for a year. Jethabai Pitambarbhai (2006) I LLJ 268 (SC). or a lock-out. no compensation shall be payable in respect of any period of the lay-off after the expiry of the 45 days provided that there is an agreement between the workman and the employer to this effect. The above rule is subject to the following limitations: 1) If during any period of 12 months a workman is laid-off for more that 45 days. are fulfilled a workman whether laid-off continuously or intermittently. Every Workman who has been laid-off is required to present himself for work at the establishment on each working day at the appointed time.6|Page Section 25-C. Duty of an employer to maintain muster rolls of workmen This Section imposes a duty upon the employer to maintain a muster roll for the purposes of this Chapter. The compensation payable shall be for all days during which he is laid-off. Right of workmen laid-off for compensation This Section entitles a workman to get compensation from the employer for the period he is laidoff. When the employer is unable to provide work to his workmen for reasons beyond his control. Section 25-D. When an employer decides to retrench a workman he must comply with the requirements of Section 25-F of the Act. 2) Where a workman is laid-off for a period of 45 days during a period of 12 months. The amount of compensation payable shall be equal to 50% of the total of the basic wages and dearness allowance that would have been payable to him had he not been so laid-off. except for such weekly holidays as may intervene. Before a workman may claim lay-off compensation he must fulfill the following conditions: 1) his name must be borne on the muster rolls of an industrial establishment. The duty imposed upon the employer by this section is also mandatory and non-compliance will debar the employer to take advantage of Section 25-E (ii) of the Act. Any lay-off compensation paid to the workman during the preceding 12 months may be set off against the compensation payable for retrenchment. 3) the workman must not be a badli or a casual workman. the employer has a right to retrench such workman at any time after the expiry of 45 days of lay-off. he owes a duty to pay lay-off compensation to such workmen. Thus compensation is payable for a maximum period of 45 days during a period of 12 months and for a period longer than 45 days of there is no agreement to the contrary between employer and workman. He shall make entry in the muster rolls maintained by the employer. 2) he must have completed at least one year's continuous service (what he is continuous service is defined in Section 25-B). . shall be paid compensation. A workman who does not so present himself and sign the muster rolls shall not be entitled to claim lay-off compensation. The employer shall also provide for making of entries in the muster rolls by workmen who may present themselves for work at the appointed time during normal working hours. If the above requirements. Bharat Electronics Ltd. 2.7|Page Section 25-E. Conditions precedent to retrenchment of workmen It lays down the requirements for a valid retrenchment. Industrial Tribunal. Clause (ii) requires a workman to present himself for work at the establishment daily. the workman must be paid in lieu of such notice wages for the period of notice. Section 25-F. 3. II LLJ 319 Kerala). Workmen not entitled to compensation in certain cases Section 25-E provides that a laid-off workman shall not be entitled to compensation:1. . these conditions apply in case of retrenchment of an employee who has been in continuous service for not less than one year (Mohan Lal v. if he does not present himself for work at the establishment at the appointed time during normal working hours at least once a day. if he refuses to accept alternative employment provided that such alternative employment is offered: a) in the same establishment or in any other establishment belonging to the same employer situated in the same town or village or situated within the radius if five miles from the establishment to which he belongs. But his absence does not disentitle him to reinstatement after the lay-off is over. compensation. Clause (iii) says that the employer is exonerated from his liability to pay compensation where layoff is due to strike or slowing down of production on the part of the workmen in another part of the establishment (Lone Tree Estate v. c) Notice in the prescribed manner is served on the appropriate Government or such authority as may be specified by the appropriate Government by notification is the Official Gazette. However. b) The workman has been paid. 1981. and b) if in the opinion of the employer. 1962. equivalent to fifteen days' average pay for every completed year of continuous service or any part thereof in excess of six months. if he does not he cannot claim lay-off compensation. II LLJ 70 SC). and c) if the wages which would normally have been paid to the workmen in his previous employment are offered for the alternative employment also. The section prescribes three conditions for a valid retrenchment. if the lay-off is due to strike or slowing down of production on the part of workmen in another part of the same establishment. the alternative employment does not call for any special skill or previous experience and can be done by the laid-off workman. namely:a) The workman should be given one month's notice in writing indicating the reasons of retrenchment. retrenchment should be effected after the expiry of the period of notice. at the time of retrenchment. If no such notice is given. State of Bombay v. 1985 I LLJ 74 Patna). Hospital Mazdoor Sabha. Mills v. The requirement of paying compensation is a mandatory pre-condition for retrenchment of a workman. To entitle a workman to compensation under this section the following conditions must be simultaneously complied with. AIR 1978 SC 88. If pre-requisites for a valid retrenchment have not been complied with. 2) the undertaking in question must be an industry within the meaning of Section 2(j) and the workman should be a workman within the meaning of Section 2(s). Bharat Electronics Ltd.8|Page Provisions relating to notice of retrenchment are contained in Rule 76 of the Industrial Disputes (Central) Rules. Termination of service of a workman for any reason other than those excepted in Section 2(oo) amounts to retrenchment. 1967 II LLJ 637 Kerala). and 3) the workman must have put in a continuous service of not less than one year in that undertaking immediately before the transfer of ownership or management of the undertaking. The proviso to Section 25-FF lays down that a workman shall not be entitled to benefits under this section in case of change of employers by reason of the transfer of:1) the service of the workman has not been interrupted by the transfer.C. Shambhu Nath. & G. Compensation to workmen in case of transfer of undertakings Section 25-FF provides that in case of transfer of ownership or management of an undertaking from one employer to another every workman:a) shall before such transfer be entitled to notice. 1981 II LLJ 70 SC) and if he was not paid all the benefits including salary he shall be entitled to recover the same as arrears (Deshraj Sood v. its non-compliance will render a retrenchment invalid (D. the workman has a right to reinstatement with continuity of service and right to wages for such period. therefore. namely: 1) a transfer of ownership. and . or management of undertaking from one employer to another either (i) by agreement or (ii) by operation of law. Industrial Tribunal and others. and b) shall also be entitled to compensation in accordance with the provisions of Sections 25-F as if the workman to compensation had been retrenched. the workman would be entitled to a declaration that the workman continued to be in service with all consequential benefits (Mohan Lal v. If retrenchment is proved unlawful. Therefore.. the termination of service would be void ab initio. 2) 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. 1960 I LLJ 251 SC) and would attract the penalty under Section 31(2) of the Act (Melby D'Cruz v. 1957. Section 25-FF. Travancore Mineral Ltd. But in case of any departure from the establishment principle of retrenchment. 4) The workman should belong to a particular category of workmen in the industrial establishment. Reference to Section 26 is made only for the purpose of calculating the amount of compensation payable to workmen (Ankapalla Co-operative Agricultural and Industrial Society v. the employees become entitled to notice and compensation. namely:1) by an agreement to the contrary between the workman and the employer. The procedural protection provided under this section can be claimed by a workman on the fulfillment of the following conditions. For the application of Section 25-G all the above five conditions must be simultaneously complied with. . the reasons therefore must be recorded by the employer. Section 25-G. and 2) for any other reasons to be recorded by the employer. Thus. legally liable to pay to the workman.9|Page 3) the new employer is under the terms of such transfer or otherwise. This principle has been incorporated in Section 25-G of the Act. and provisions of Section 25-F are also attracted because the transfer results in the retrenchment of employees. Any provision in the standing orders to the above effect shall be deemed to be agreement for the purposes of this section. of any departure from the above principle is possible in two cases. Its Workmen 1962 II LLJ 621 SC). namely:1) The workman must be a workman within the meaning of Section 2(s) of the Act. Procedure for retrenchment The well recognised principle of retrenchment in industrial law is 'first come last go' and 'last come first go'. and 5) There should be no agreement contrary to the principle of 'last come first go' between the employer and workman. The use of the word "ordinarily" connotes that the above procedure can be departed from where circumstances specially applicable to the industry in question so demand. In case of transfer of ownership or management not covered by the proviso to this section. If these conditions are fulfilled. compensation on the basis that his service has been continuous and has not been interrupted by the transfer. For the application of Section 25-FF it is necessary that the ownership or management of an undertaking must have been transferred from one employer to another. It is noteworthy that the above principle has to be applied with respect to different categories of workmen employed in an industrial establishment and not to the whole of the establishment. 2) The workman should be an Indian citizen. in the event of his retrenchment. 3) The workman should be employed in an establishment which is an industry within the meaning of Section 2(j) of the Act. the principle of 'last come first go' shall be ordinarily adhered to by the employer. section (1) for reasons of fire. within a period of thirty days from the date of commencement of such lay.off by his employer except 1[with the prior permission of the appropriate Government or such authority as may be specified by that Government by notification in the Official Gazette (hereinafter in this section referred to as the specified authority). Re-employment of retrenched workmen This section of the Act is based on known principle that when a workman has been retrenched by employer on the ground of surplus staff. flood or excess of inflammable gas or explosion. in relation to such establishment. the interests of the workmen and all other relevant factors. the workmen concerned and the persons interested in such lay. In order to claim preference in employment under this section a workman must satisfy the following conditions: 1) 2) 3) 4) he should have been retrenched prior to re-employment. he should have been retrenched from the same category of service in the industrial establishment in which the re-employment is proposed.off. have been laid.off is due to shortage of power or to natural calamity. such workman should first be given an opportunity to join service whenever an occasion to employ another hand arises. Where an application for permission under sub. obtained on an application made in this behalf. Section 25-M.off under sub. This section imposes a statutory obligation on the employer to give opportunity to the retrenched employees to offer themselves for re-employment. and in the case of a mine.off. having regard to the genuineness and adequacy of the reasons for such lay.section (3) has been made. to the appropriate Government or the specified authority for permission to continue the lay.off. grant or refuse to grant such permission and a copy of such order shall be communicated to the employer and the workmen. flood. he should be a citizen of India. he should offer himself for re-employment in response to the notice by the employer. Only a 'retrenched' workman can claim benefit under Section 25-H. after making such enquiry as it thinks fit and after giving a reasonable opportunity of being heard to the employer. by order and for reasons to be recorded in writing. being a mine. excess of inflammable gas or explosion]. Prohibition of lay-off (1) No workman (other than a badli workman or a casual workman) whose name is borne on the muster rolls of an industrial establishment to which this Chapter applies shall be laid.off and a copy of such application shall also be served simultaneously on the workmen concerned in the prescribed manner. unless such lay. Where the workman (other than badli workmen or casual workmen) of an industrial establishment.section (1) or sub. the employer.off. shall. When notice is given to a workman and he fails to offer himself for re-employment. apply. he will be disentitled from claiming the benefit under this section. the appropriate Government or the specified authority.10 | P a g e Section 25-H. A dismissed. in the prescribed manner. may.section (1) shall be made by the employer in the prescribed manner stating clearly the reasons for the intended lay. An application for permission under sub. discharged or a superannuated workman has no claim for preferential re-employment. such lay-off is due also to fire. (2) (3) (4) . or.section. it is necessary so to do.-. to a Tribunal for adjudication: Provided that where a reference has been made to a Tribunal under this sub. a workman shall not be deemed to be laid. and (b) the prior permission of the appropriate Government or such authority as may be specified by that Government by notification in the Official Gazette (hereafter in this section referred to as the specified authority) has been obtained on an application made in this behalf. situate in the same town or village.off or in any other establishment belonging to the same employer. subject to the provisions of sub. who has been in continuous service for not less than one year under an employer shall be retrenched by that employer until.off. be final and binding on all the parties concerned and shall remain in force for one year from the date of such order. Explanation.11 | P a g e (5) Where an application for permission under sub. the permission applied for shall be deemed to have been granted on the expiration of the said period of sixty days. cause it to be referred. direct that the provisions of sub. Conditions precedent to retrenchment of workmen (1) No workman employed in any industrial establishment to which this Chapter applies.section (1).off has been refused. or situate within such distance from the establishment to which he belongs that the transfer will not involve undue hardship to the workman having regard to the facts and circumstances of his case.section (3) is made within the period specified therein. the appropriate Government may. An order of the appropriate Government or the specified authority granting or refusing to grant permission shall. as the case may be. such lay. sub. The appropriate Government or the specified authority may. review its order granting or refusing to grant permission under sub.] The provisions of section 25C (other than the second proviso thereto) shall apply to cases of layoff referred to in this section. or the workman has been paid in lieu of such notice.section (1) is made. (a) the workman has been given three months' notice in writing indicating the reasons for retrenchment and the period of notice has expired.off shall be deemed to be illegal from the date on which the workmen had been laid. Notwithstanding anything contained in the foregoing provisions of this section. by order. it shall pass an award within a period of thirty days from the date of such reference. Where no application for permission under sub.section (4) or refer the matter or. provided that the wages which would normally have been paid to the workman are offered for the alternative appointment also. (6) (7) (8) (9) (10) Section 25-N.For the purposes of this section.section (7).section (3) shall not apply in relation to such establishment for such period as may be specified in the order.off by an employer if such employer offers any alternative employment (which in the opinion of the employer does not call for any special skill or previous experience and can be done by the workman) in the same establishment from which he has been laid. or where no application for permission under sub. as the case may be.section (1) or sub. either on its own motion or on the application made by the employer or any workman.section (3) has been made and the appropriate Government or the specified authority 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. or where the permission for any lay.off and the workmen shall be entitled to all the benefits under any law for the time being in force as if they had not been laid.section (1) shall be made by the employer in the prescribed manner stating clearly the reasons for the intended retrenchment and a copy of such (2) . An application for permission under sub. if it is satisfied that owing to such exceptional circumstances as accident in the establishment or death of the employer or the like. wages for the period of the notice. review its order granting or refusing to grant permission under sub. the appropriate Government or the specified authority.section (6). the workmen concerned and the persons interested in such retrenchment.section (1) is made.12 | P a g e application shall also be served simultaneously on the workmen concerned in the prescribed manner. such retrenchment shall be deemed to be illegal from the date on which the notice of retrenchment was given to the workman and the workman shall be entitled to all the benefits under any law for the time being in force as if no notice had been given to him. after making such enquiry as it thinks fit and after giving a reasonable opportunity of being heard to the employer. having regard to the genuineness and adequacy of the reasons stated by the employer. An order of the appropriate Government or the specified authority granting or refusing to grant permission shall. Notwithstanding anything contained in the foregoing provisions of this section. if it is satisfied that owing to such exceptional circumstances as accident in the establishment or death of the employer or the like.section (4). Where an application for permission has been made under sub. by order. direct that the provisions of sub. 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 (3) (4) (5) (6) (7) (8) (9) Section 25-Q. the interests of the workmen and all other relevant factors.section (3) or refer the matter or. or with fine which may extend to one thousand rupees.section (1) shall not apply in relation to such establishment for such period as may be specified in the order.section (1) and the appropriate Government or the specified authority 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. subject to the provisions of sub. may. as the case may be. or where the permission for any retrenchment has been refused. every workman who is employed in that establishment immediately before the date of application for permission under this section shall be entitled to receive. by order and for reasons to be recorded in writing. grant or refuse to grant such permission and a copy of such order shall be communicated to the employer and the workmen. to a Tribunal for adjudication: Provided that where a reference has been made to a Tribunal under this sub. it is necessary so to do. Penalty for lay-off and retrenchment without previous permission Any employer who contravenes the provisions of Section 25-M or Section 25-N shall be punishable with imprisonment for a term which may extend to one month. either on its own motion or on the application made by the employer or any workman.section (1) has been made. Where no application for permission under sub. cause it to be referred. be final and binding on all the parties concerned and shall remain in force for one year from the date of such order. . the appropriate Government may. Where permission for retrenchment has been granted under sub. The appropriate Government or the specified authority may. or with both.section.section (3) or where permission for retrenchment is deemed to be granted under sub. the permission applied for shall be deemed to have been granted on the expiration of the said period of sixty days. Where an application for permission under sub. it shall pass an award within a period of thirty days from the date of such reference. at the time of retrenchment. Misra's Labour and Industrial Laws (26th Edition) .N.13 | P a g e Bibliography S.