Section 25H of Industrial Disputes Act 1947 - Re-employment of Retrenched Workmen

Section 25H of the Industrial Disputes Act, 1947 protected retrenched workmen when their former employer later proposed to employ persons again. The employer was required, in the prescribed manner, to give eligible retrenched workmen an opportunity to offer themselves for re-employment, and those who offered themselves were entitled to preference over other persons.

Historical legal scope: This article explains Section 25H under the legal position applicable before the Bharatiya Sakshya Adhiniyam, 2023 came into force on 1 July 2024. That enactment concerns evidence law and did not itself amend Section 25H. The Industrial Relations Code, 2020 was subsequently brought into force from 21 November 2025; current and transitional disputes must therefore be examined under the law, repeal and savings provisions, rules and notifications applicable to their dates.

What is Section 25H?

Section 25H was titled "Re-employment of retrenched workmen." It applied where workmen had been retrenched and the employer later proposed to take persons into employment. The provision created a preferential opportunity for retrenched workmen who satisfied the statutory requirements.

Section 25H - Statutory rule

Where workmen had been retrenched and the employer proposed to take persons into employment, the employer was required, in the manner prescribed, to give the retrenched workmen who were citizens of India an opportunity to offer themselves for re-employment.

Retrenched workmen who offered themselves for re-employment were to have preference over other persons.

When did the right under Section 25H arise?

The provision operated after retrenchment when the same employer proposed fresh employment. Its focus was not payment of retrenchment compensation but a later opportunity for preferential re-employment. The prescribed procedure governing notice and response also had to be considered under the rules applicable to the establishment and jurisdiction.

Preference does not mean automatic reinstatement

Section 25H gave qualifying retrenched workmen an opportunity to offer themselves for re-employment and preference over other persons when the employer proposed to employ persons. The statutory language should therefore be distinguished from an order of reinstatement following adjudication of an industrial dispute.

Meaning of retrenchment

The meaning of "retrenchment" was governed by Section 2(oo) of the Industrial Disputes Act, subject to the statutory text, exclusions and amendments applicable to the relevant period and jurisdiction. Whether Section 25H was attracted therefore depended first on whether the earlier termination legally constituted retrenchment.

Relationship with Sections 25F and 25G

Section 25F dealt with conditions precedent to retrenchment, including notice or wages in lieu, compensation and prescribed Government notice. Section 25G dealt with the ordinary procedure for selecting a workman for retrenchment within a category. Section 25H addressed the later stage when the employer proposed to employ persons again.

Practical requirements to examine

Whether the earlier termination was retrenchment within the applicable statutory definition.
Whether the employer later proposed to take persons into employment.
Whether the retrenched workman fell within the class protected by the applicable text of Section 25H.
Whether the prescribed opportunity for re-employment was given.
Whether the retrenched workman offered himself or herself for re-employment.
Whether preference was accorded before other persons were employed.
Whether Central or State rules, amendments, settlements, awards or standing orders affected the procedure.

Andhra Pradesh State amendment

The uploaded historical text records the Andhra Pradesh amendment by Andhra Pradesh Act No. 32 of 1987. It renumbered Section 25H as sub-section (1) and inserted a sub-section (2) providing that, where a closed unit is reopened, workmen who were on the roll of the unit immediately before closure were to be given an opportunity to offer themselves for re-employment in the manner provided in sub-section (1).

The same State amendment also inserted Section 25HH concerning reinstatement in service by an award of a Labour Court or Tribunal. Under the historical text reproduced on this page, a workman reinstated by such an award was deemed to be in service from the date specified in the award, whether or not earlier reinstated by the employer, and wages were recoverable in the manner provided in Section 33C.

West Bengal State amendment

The uploaded historical text records a similar West Bengal amendment by West Bengal Act No. 57 of 1980. Section 25H was renumbered as sub-section (1), with a new sub-section (2) extending an opportunity for re-employment to workmen who were on the roll of a closed unit immediately before its closure when the unit was reopened.

The West Bengal amendment also inserted Section 25HH concerning reinstatement of a workman by an award of a Labour Court or Tribunal, including deemed continuity from the date specified in the award and recovery of wages in the manner provided by Section 33C.

State-law caution: State amendments may differ in territorial application, subsequent amendment, repeal or saving. The applicable State legislation and notifications should be verified for the date and establishment involved.

Related provisions

Section 25H formed part of Chapter V-A. Related provisions included Section 25FF on transfer of undertakings, Section 25FFA on notice of intended closure, Section 25FFF on closure compensation, Section 25G on procedure for retrenchment and Section 25J on the effect of inconsistent laws.

Official legal resources

For authoritative statutory material, use the India Code portal and the Ministry of Labour and Employment. Current labour-code notifications and rules should also be checked where the dispute concerns a period after commencement of the Industrial Relations Code, 2020.