Condition Precedent for Retrenchment

Under Section 25-F of the Industrial Disputes Act, no workman employed in any industry who has been in continuous service for not less than one year can be retrenched until the following conditions are met:

1. Notice: The workman must be given one month’s notice in writing indicating the reasons for retrenchment, or paid wages in lieu of such notice.

2. Compensation: The workman must be paid, at the time of retrenchment, compensation equivalent to 15 days' average pay for every completed year of continuous service or any part thereof in excess of six months.

3. Notice to Government: Notice in the prescribed manner must be served on the appropriate Government or specified authority.