Section 25U of Industrial Disputes Act 1947 - Penalty for Committing Unfair Labour Practices

Insertion of new Chapter V-D in XIV of 1947

3. In the principal Act, after Chapter V-C, the following

Chapter shall be inserted, namely:-

"CHAPTER V-D

25V. Special provisions for Special Economic Zone.-(1) The

provisions of Chapters V-A and V-B shall apply to an industrial

establishment to which Chapter V-D applies.

(2) The provisions of this Chapter shall apply to an

industrial establishment set up in the Special Economic Zone

declared as such by the Government of India.

25W. Definitions of continuous service.-For the purposes of

this Chapter:-

(1) a workman shall be said to be in continuous service for a

period if he is, for that period, - in uninterrupted service,

including service which may be interrupted on account of

sickness or authorised leave or an accident or a strike, which

is not illegal, or a lock-out or a cessation of work which is

not due to any fault on the part of the workman;

(2) where a workman is not in continuous service, within the

meaning of clause (1) for a period of one year or six months, he

shall be deemed to be in continuous service under an employer:-

(a) for a period of one year, if the workman, during a period

of twelve calendar months preceding the date with reference to

which calculation is to be made, has actually worked under the

employer for not less than-

(i) one hundred and ninety days in the case of a workman

employed below ground in a mine; and

(ii) two hundred and forty days, in any other case;

(b) for a period of six months, if the workman, during a

period of six calendar months preceding the date with reference

to which calculation is to be made, has actually worked under

the employer for not less than-

(i) ninety-five days, in case of a workman employed below

ground in a mine; and

(ii) one hundred and twenty days, in any other case.

Explanation.-For the purposes of clause (2), the number of

days on which a workman has actually worked under an employer

shall include the days on which-

(i) he has been laid off under an agreement or as permitted

by standing orders made under the Industrial Employment

(Standing Orders) Act, 1946 (20 of 1946) or under this Act or

under any other law applicable to the industrial establishment;

(ii) he has been on leave with full wages, earned in the

previous year;

(iii) he has been absent due to temporary disablement caused

by accident arising out of and in the course of his employment;

and

(iv) in the case of a female, she has been on maternity

leave; so however, that the total period of such maternity leave

does not exceed twelve weeks.

25X. Right of workmen laid off for compensation.-Whenever a

workman (other than a badli workman or a casual workman) whose

name is borne on the muster rolls of an industrial establishment

and who has completed not less than one year of continuous

service under an employer is laid off, whether continuously or

intermittently, he shall be paid by the employer for all days

during which he is so laid off, except for such weekly holidays

as may intervene, compensation which shall be equal to fifty per

cent, of the total of the basic wages and dearness allowance

that would have been payable to him had he not been so laid off:

Provided that if during any period of twelve months, a

workman is so laid off for more than forty-five days, no such

compensation shall be payable in respect of any period of the

lay off after the expiry of the first forty-five days:

Provided further that it shall be lawful for the employer in

any case falling within the foregoing proviso to terminate the

workman in accordance with the provisions contained in section

25ZA at any time after the expiry of the first forty-five days

of the lay-off, and when he does so, any compensation paid to

the workman for having been laid off during the preceding twelve

months may be set off against the compensation payable for

termination.

Explanation.-"Badli workman" means a workman who is employed

in an industrial establishment in the place of another workman

whose name is borne on the muster rolls of the establishment,

but shall cease to be regarded as such for the purposes of this

section, if he has completed one year of continuous service in

the establishment.

25Y. Duty of employer to maintain muster rolls of

workmen.-Notwithstanding that workmen in any industrial

establishment have been laid off, it shall be the duty of every

employer to maintain for the purposes of this Chapter a muster

roll, and to provide for the making of entries therein by

workmen who may present themselves for work at the establishment

at the appointed time during normal working hours.

25Z. Workman not entitled to compensation in certain

cases.-No compensation shall be paid to a workman who has been

laid off-

(i) if he refuses to accept any alternative employment in the

same establishment from which he has been laid off, or in any

other establishment belonging to the same employer situate in

the same town or village or situate within a radius of five

miles from the establishment to which he belongs, if, in the

opinion of the employer, such alternative employment does not

call for any special skill or previous experience and can be

done by the workman, provided that the wages which would

normally have been paid to the workman are offered for the

alternative employment also;

(ii) if he does not present himself for work at the

establishment at the appointed time during normal working hours

at least once a day;

(iii) if such laying off is due to strike or slowing down of

production on the part of workmen in another part of the

establishment.

25ZA. Conditions for termination of workman.-(1) No workman

employed in any industry who has been in conditions continuous

service for not less than one year under an employer shall be

for terminated (otherwise than as a punishment inflicted by way

of disciplinary termination action) by that employer until-

(a) the workman has been given one month's notice in writing

and the period of notice has expired, or the workman has been

offered in lieu of such notice, wages for the period of the

notice;

(b) the workman has been paid compensation equivalent to

forty-five days salary for every completed year of continuous

service in such manner as may be prescribed.

(2) Where the workman has been insured through insurance

policy by the employer for the social security to receive the

compensation in the case of termination, equivalent to

forty-five days salary for every completed year of continuous

service, the employer, instead of making payment of

compensation under clause (b) of sub-section (1), shall forward

all the necessary documents of such workman to the Insurance

Company within fifteen days after termination.

25ZB. Compensation to workman in case of Transfer of

undertaking.- Where the ownership or management of an

undertaking is transferred, whether by agreement or by operation

of law, from the employer in relation to that undertaking to a

new employer, every workman who has been in continuous service

for not less than one year in that undertaking immediately

before such transfer shall be entitled to notice and

compensation in accordance with the provisions of section 25ZA,

as if the workman had been terminated:

Provided that nothing in this section shall apply

to a workman in any case where there has been a

change of employers by reason of the transfer, if-

(a) the service of the workman has not been

interrupted by such transfer;

(b) 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; and

(c) the new employer is, under the terms of such transfer or

otherwise, legally liable to pay to the workman, in the event of

his termination, compensation on the basis that his service has

been continuous and has not been interrupted by the transfer.

25ZC. Sixty days notice to be given of intention to close

down any undertaking.-An employer who intends to close down an

undertaking, shall serve at least sixty days before the date on

which the intended closure is to become effective, a notice, in

the manner as may be prescribed, on the State Government stating

clearly the reasons for the intended closure of the undertaking.

25ZD. Compensation to workman in case of closing down of

undertaking- Where an undertaking is closed down for any reason

whatsoever, every workman who has been in continuous service for

not less than one year in that undertaking immediately before

such closure shall be entitled to compensation in accordance

with the provisions of section 25ZA, as if the workman had been

terminated." � Gujarat Act 12 of 2004.