Jharkhand Government issues Industrial Disputes (Jharkhand Amendment) Act, 2016

Jharkhand Government issues Industrial Disputes (Jharkhand Amendment) Act, 2016

January 2, 2018 Industries, Jharkhand, LAB 0

The Government of Jharkhand, has issued the Industrial Disputes (Jharkhand Amendment) Act, 2016 (“amendment”) dated 14th November, 2017, thereby amending the Industrial Disputes Act, 1947 in its application to

the State of Jharkhand (“Principal Act”). The amendment was published in the official gazette on 28th December, 2017.

Some of the key highlights of the amendment are as follows:

Pre-amendment

 

Post- amendment Implication
 

25F. Conditions precedent to retrenchment of workmen.-

 

No workman employed in any industry who has been in continuous service for not less than one year under an employer shall be retrenched by that employer until—

 

(a) the workman has been given one month’s notice in writing indicating the reasons for retrenchment and the period of notice has expired, or the workman has been paid in lieu of such notice, wages for the period of the notice:

 

 

 

25F. Conditions precedent to retrenchment of workmen.-

 

No workman employed in any industry who has been in continuous service for not less than one year under an employer shall be retrenched by that employer until—

 

(a) the workman has been given one month’s notice in writing indicating the reasons for retrenchment and the period of notice has expired, or the workman has been paid in lieu of such notice, wages for the period of the notice:

 

Provided that in such industrial establishments where more than fifty workmen have been employed on an average per working day in preceding twelve months , the workman has been given forty five days’ notice in writing indicating the reasons for retrenchment and the period of notice has expired.

 

 

 

 

 

In establishments where more than 50 workmen have been employed on an average per working day in the preceding 12 months, the notice for such retrenchment shall be provided 45 days in advance.

.

25F. Conditions precedent to retrenchment of workmen.-

 

No workman employed in any industry who has been in continuous service for not less than one year under an employer shall be retrenched by that employer until—

 

(b) the workman has been paid, at the time of retrenchment, compensation which shall be equivalent to fifteen days’ average pay 2*[for every completed year of continuous service] or any part thereof in excess of six months; and

25F. Conditions precedent to retrenchment of workmen.-

 

No workman employed in any industry who has been in continuous service for not less than one year under an employer shall be retrenched by that employer until—

 

(b) the workman has been paid, at the time of retrenchment, compensation which shall be equivalent to fifteen days’ average pay [for every completed year of continuous service] or any part thereof in excess of six months; and

 

Provided that in such industrial establishments where more than fifty and less than three hundred workmen have been employed on an average per working day in preceding twelve months, the workman shall be paid at the time of retrenchment, compensation which shall be equivalent to forty five days average pay for every completed year of continuous service or any part thereof in excess of six months.

 

 

 

 

Post amendment, in case of industrial establishments having more than 50 and less than 300 employees on an average per working day in preceding 12 months, the retrenched worker has to be paid an amount equal to 45 days average pay for every completed year of continuous service or any part in excess of six months.

 

 

25K. Application of Chapter VB.

 

(1) The provisions of this Chapter shall apply to an industrial establishment (not being an establishment of a seasonal character or in which work is performed only intermittently) in which not less than [one hundred] workmen were employed on an average per working day for the preceding twelve months.

 

(2) If a question arises whether an industrial establishment is of a seasonal character or whether work is performed therein only intermittently, the decision of the appropriate Government thereon shall be final.

25K. Application of Chapter VB.-

 

(1) The provisions of this Chapter shall apply to an industrial establishment (not being an establishment of a seasonal character or in which work is performed only intermittently) in which not less than three hundred workmen were employed on an average per working day for the preceding twelve months.

 

(2) Without prejudice to the provisions of sub-section (1), the State Government may, if satisfied that maintenance of industrial peace or prevention of victimization of workmen so requires by notification in the Official Gazette apply the provisions of this Chapter to an industrial establishment (not being an establishment of a seasonal character or in which work is performed only intermittently) in which such number of workmen which may be less than three hundred but not less than one hundred as

may be specified in the notification were employed on an average per working day for

the preceding twelve months.

 

(3) If a question arises whether an industrial establishment is of a seasonal character or

whether work is performed, therein only intermittently the decision of the appropriate Government thereon shall be final.

 

The amendment has substituted Section 25K of the Principal Act.

 

As per the amendment, the special provisions relating to lay-off, retrenchment and closure in certain establishments as provided under Chapter VB of the Principal Act will be applicable to an enterprise in which at least 300 employees were employed on an average per working day for the preceding 12 months.

 

Prior to this, these special provisions were applicable on an industrial establishment in which at least 100 workmen were employed on an average per working day for the preceding 12 months.

 

The amendment empowers the State Government of Jharkhand to extend the provisions of Chapter VB to also those industrial establishments (which is not of a seasonal character or in which work is performed only intermittently) having less than 300 workmen but not less than 100 on an average per working day for the preceding 12 months, if it deems fit by notification on the ground of  maintenance of industrial peace or prevention of victimization of workmen,.

 

Prior to this, the Principal Act did not provide for a provision extending such powers to the State Government.

For further reference please refer to the amendment attached.

Source: Jharkhand E-Gazette

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