LAY-OFF, RETRENCHMENT AND CLOSURECentral
Section 65 of The Industrial Relations Code, 2020
- (1)Sections 67 to 69 (both inclusive) shall not apply to industrial establishments to which Chapter X applies; or
- (a)to industrial establishments in which less than fifty workers on an average per working day have been employed in the preceding calendar month; or
- (b)to industrial establishments which are of a seasonal character or in which work is performed intermittently.
- (2)If a question arises whether an industrial establishment is of a seasonal character or whether work is performed therein only intermittently, the decision of the appropriate Government thereon shall be final. Explanation.--- In this section and in sections 67, 68 and 69, industrial establishment shall mean a---
- (i)factory as defined in clause (m) of section 2 of the Factories Act, 1948 (63 of 1948); or
- (ii)mine as defined in clause (j) of sub-section (1) of section 2 of the Mines Act, 1952 (35 of 1952); or
- (iii)plantation as defined in clause (f) of section 2 of the Plantations Labour Act, 1951 (69 of 1951).
Summary
- Sections 67, 68, and 69 (regarding lay-offs) do not apply to very large businesses covered by Chapter X.
- Seasonal businesses or those where work happens only at intervals are exempt.
- If there is an argument about whether a business is "seasonal," the government's decision is final.
- For these sections, an "industrial establishment" is defined specifically as a factory, mine, or plantation.
Practical examples
1An apple packing house only operates for three months a year. The government rules it is a seasonal establishment, so the lay-off compensation rules in Section 67 do not apply.
2A small furniture workshop has only 15 employees. Because it has fewer than 50 workers, it is not required to follow the lay-off compensation rules in sections 67 to 69.
FAQ
1. Who decides if a factory is "seasonal"?
The appropriate Government makes that decision, and it is final.
Test yourself
Q1.Under Section 65 of The Industrial Relations Code, 2020, what is the minimum worker threshold for sections 67 to 69 to apply?
Q2.Under Section 65 of The Industrial Relations Code, 2020, which of these is NOT included in the definition of an "industrial establishment"?
Q3.Under Section 65 of The Industrial Relations Code, 2020, whose decision is final regarding whether a business is seasonal?
Q4.Under Section 65 of The Industrial Relations Code, 2020, why would Section 67 NOT apply to a factory with 500 employees?