Section 25K of Industrial Disputes Act 1947 - Application of Chapter V-B

Section 25K determined which industrial establishments were covered by Chapter V-B of the Industrial Disputes Act, 1947. Under the Central provision applicable in the period covered by this article, Chapter V-B applied to specified non-seasonal industrial establishments employing not less than 100 workmen on an average per working day during the preceding twelve months.

Historical legal scope: This article explains Section 25K under the legal position applicable before the Bharatiya Sakshya Adhiniyam, 2023 came into force on 1 July 2024. The Bharatiya Sakshya Adhiniyam concerns evidence law and did not itself amend Section 25K. State amendments could prescribe different thresholds or special rules, so the law applicable to the State, establishment and relevant date must be checked.

What is Section 25K?

Section 25K was titled "Application of Chapter V-B." Chapter V-B contained special provisions relating to lay-off, retrenchment and closure in industrial establishments falling within its statutory scope.

Section 25K(1): Chapter V-B applied to an industrial establishment, other than an establishment of a seasonal character or one in which work was performed only intermittently, where not less than 100 workmen were employed on an average per working day for the preceding twelve months.

Section 25K(2): If a question arose whether an industrial establishment was of a seasonal character or whether work was performed only intermittently, the decision of the appropriate Government on that question was final.

100-workmen threshold under the Central provision

The Central text used a threshold of not less than 100 workmen, calculated on the basis of the average number employed per working day during the preceding twelve months. The threshold was therefore not framed merely by reference to the number of workmen present on a single selected day.

Because State amendments could alter the threshold or extend particular Chapter V-B provisions, the applicable State law had to be examined before deciding whether Chapter V-B governed an establishment.

Seasonal and intermittent establishments

Section 25K(1) excluded an establishment of a seasonal character and an establishment in which work was performed only intermittently from the ordinary Central application rule. Under Section 25K(2), where a dispute arose about either characteristic, the appropriate Government was empowered to decide the question, and the statutory text declared its decision final.

Meaning of industrial establishment for Chapter V-B

Section 25L contained definitions specifically relevant to Chapter V-B. The expression "industrial establishment" for that Chapter was defined by reference to specified establishments, including a factory as defined in the Factories Act, 1948, a mine as defined in the Mines Act, 1952 and a plantation as defined in the Plantations Labour Act, 1951, subject to the statutory text applicable at the relevant time.

Why Chapter V-B applicability mattered

Once Chapter V-B applied, its special statutory controls became relevant. These included Section 25M on lay-off, Section 25N on retrenchment and Section 25O on closure. Chapter V-B also contained related penalty and application provisions.

Karnataka State amendment

The uploaded historical text records Karnataka Act No. 5 of 1988 inserting Section 25K(1A). Notwithstanding sub-section (1), the State Government could, by notification in the Official Gazette, apply Section 25O and Section 25R, insofar as Section 25R related to contravention of Section 25O(1) or (2), to a seasonal or intermittently working industrial establishment in which not less than 100 workmen were employed on an average per working day during the preceding twelve months.

Maharashtra State amendment

The uploaded historical text records Maharashtra Act No. 3 of 1982 inserting Section 25K(1A). Without prejudice to sub-section (1), the appropriate Government could by Official Gazette notification apply Section 25O and the relevant part of Section 25R to a non-seasonal, non-intermittent industrial establishment employing a notified number of workmen. The historical text specifies that the notified number could be less than 300 but not less than 100 workmen, calculated on the average per working day for the preceding twelve months.

Orissa State amendment

The uploaded historical text records Orissa Act No. 6 of 1983 substituting 100 workmen for the earlier reference to 300 workmen in Section 25K(1). The State-specific position should be read with later amendments and the law applicable to the relevant date.

Rajasthan State amendment

The uploaded historical text records Rajasthan Act No. 8 of 1984 inserting Section 25K(1A). It empowered the State Government, where satisfied that maintenance of industrial peace or prevention of victimisation of workmen so required, to apply Chapter V-B by Official Gazette notification to a non-seasonal, non-intermittent industrial establishment employing a specified number of workmen below 300 but not below 100, calculated on the average per working day for the preceding twelve months.

West Bengal State amendment

The uploaded historical text records West Bengal Act No. 57 of 1980 substituting 50 workmen for the reference to 300 workmen in Section 25K(1). Accordingly, the State-specific threshold reflected in that historical amendment differed materially from the Central threshold.

State-law caution: The amendments above reproduce the substance retained in the source page. State amendments, later legislation, notifications, judicial decisions and repeal or savings provisions can affect their operation. The applicable State source should be verified for the relevant date before relying on a threshold or special extension.

Practical checklist for Section 25K

Identify whether the undertaking fell within the Chapter V-B definition of industrial establishment.
Determine the average number of workmen employed per working day during the preceding twelve months.
Check whether the establishment was seasonal or work was performed only intermittently.
Check whether the appropriate Government had made a relevant decision under Section 25K(2).
Verify the applicable State amendment and any notification changing or extending the Chapter V-B threshold or coverage.
If Chapter V-B applied, examine Sections 25M, 25N and 25O and the related penalty provisions.

Related Chapter V-B provisions

Section 25L contained definitions for Chapter V-B. Section 25M regulated lay-off, Section 25N imposed conditions precedent to retrenchment, and Section 25O regulated closure. Section 25Q and Section 25R contained related penalties, while Section 25S applied specified Chapter V-A provisions to establishments governed by Chapter V-B.

Official legal resources

For authoritative Central legislation, consult the India Code portal. Labour legislation, rules and notifications may also be checked through the Ministry of Labour and Employment. State amendments and notifications should be checked from the competent State Government or State Gazette source.