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Conditions Precedent to Retrenchment of Workmen - The Second National Labour Commission Report

By Joydeep Narayan Choudhuri

Published In

Lab Ic 2004

This instrument of retrenchment gives discretion to employers to decide the strength of the labour force they want to utilize in their industry and reduce the strength of their labour force if needed to increase the viability of their industry. However, the Legislature has not given employers an unfettered discretion in retrenching workmen. It has imposed reasonable restriction and conditions on this freedom in order to protect the workman from indiscriminate action by the employer resulting in unjustified unemployment of the workman. The Legislature has provided protection to workmen in case of retrenchment in the form of the certain provisions enacted in Chapter VA and VB of the Industrial Disputes Act, 1947. Two of these provisions - Section 25F of Chapter VA and Section 25N Chapter VB - prescribe certain conditions, which need to be fulfilled precedent to retrenchment. Sections 25F and 25 N allow an employer to retrench a worker on fulfiling certain conditions precedent ....

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