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Labour Laws Gujarat Ministry of Labour and Employment Industrial Disputes Act, 1947

Gujarat issues Industrial Disputes (Gujarat Amendment) Ordinance, 2020

01-Jul-2020 | Gujarat Ordinance No. 5 of 2020

Industrial Disputes (Gujarat Amendment) Ordinance, 2020 ("Amendment") has made following amendments in the Industrial Disputes Act, 1947 in its application in State of Gujarat:
1. Provisions of Chapter VB of Industrial Disputes Act, 1947, which pertains to 'Special Provisions Relating to Lay-Off, Retrenchment and Closure in Certain Establishments', will now be applicable to industrial establishments, excluding seasonal establishments or where work is performed intermittently, upon employing 300 or more workers.
2. A new sub-section 1A has been inserted after Section 25K(1), empowering State Government of Gujarat to apply the provisions of Chapter VB even to establishments employing between 100 to 300 workers by issuing notification in the Official Gazette.
3. For such establishments, no worker can be retrenched without a written notice of 3 months indicating reasons for retrenchment and expiry of such notice period. The provision to give wages in lieu of notice has been deleted.
4. Compensation of an amount equivalent to last 3 months' average pay must be provided to a retrenched workman or a workman whose employment is terminated due to closure of establishment, in addition to the compensation mentioned in Section 25N(9) and Section 25O(8) respectively.

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