Manu Bhai (Manager - HR) 18 September 2013

Closure of a factory in maharashtra

Dear Sir,

What are the formalities for closing a factory having 70 permanent workmen and 40 staff & executives. Management wants to permanently close this unit and clear legal dues of all employees. Kindly advise what formalities remains under Factories Act & ID Act.

Regards,

Manish

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1 Replies

sushil (Sr. Clerk) 21 September 2013

Dear Friend,

You have to approach 'Regional Labour Commissioner' for the closure of your unit. You are not required to apply u/s. 25N Or O of Industrial Dispute Act as number of employees under 100. You have to submit application for the closure of your factory unit and mentioned total numbers of workers working in your factory and also the nature of business and other sites of business all over India. After 60 days of submission of application for closure if there is no reply from RLC then you are liable to close factory or unit.

Regards

Sushil Padwal