Defined under Section 2(cc) of the Industrial Disputes Act, "Closure" means the permanent closing down of a place of employment or part thereof.
Distinction: Unlike a "Lock-out" (which is temporary) or "Lay-off" (where the business continues but work is halted), closure is a final termination of the business unit.
Procedure: Employers must generally provide 60 days' notice to the government before closing an undertaking (Section 25-FFA) and pay compensation to workmen equivalent to retrenchment compensation.
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