Analysis of the Concepts, Pre-requisites

A Navi Mumbai garment unit loses its biggest buyer. Over one month it sends some workers home for a few days with no work, lets a batch of others go for good, and finally announces that the whole unit will shut. Three different things have happened, and Indian labour law gives each a different name and a different price. The syllabus calls this the analysis of the concepts and their pre-requisites: what exactly are lay-off, retrenchment and closure, and what must an employer do first?

In two minutes

Lay-off is a temporary failure to give work to a worker on the muster roll, retrenchment is termination of a worker’s service for any reason other than punishment (with listed exceptions), and closure is the permanent shutting of a place of employment; each carries pre-requisites of notice and compensation under Chapter IX of the Industrial Relations Code 2020, and larger factories, mines and plantations face a permission regime under Chapter X.

The rest of this chapter

The full explanation, the cheat sheet, every previous-year question at every mark weight, the quiz and the answer skeletons are part of Labour Law and Industrial Relations – I on LexBlox Semester. Sign in to unlock the subject, or read Module 1 of Legal Language and Writing free.