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Business Environment and Law-Industrial Disputes Act, 1947

Retrenchment [Sec.2 (Oo)] - Industrial Disputes Act, 1947

   Posted On :  15.05.2018 03:07 am

The term as used in the Industrial Disputes Act means the termination by the employer of the service of a workman for any reason whatsoever otherwise than as a punishment inflicted by way of disciplinary action.

Retrenchment [Sec.2 (Oo)]
 
 
The term as used in the Industrial Disputes Act means the termination by the employer of the service of a workman for any reason whatsoever otherwise than as a punishment inflicted by way of disciplinary action. Thus, the discharge of a workman on the ground that he did not pass the test, which would have enabled him to be confirmed, was ‘Retrenchment’ [Santosh Gupta Vs State Bank of Patiala, AIR (1980) SC 687.

‘Retrenchment’ does not, however, include-
 
1. Voluntary retirement of a workman; or
 
2. Retirement of the workman on reaching the age of superannuation, if the contract of employment between the employer and workman contains a stipulation in the behalf; or
 
3. Termination of the service of a workman on the ground of continued ill health.

 

Tags : Business Environment and Law-Industrial Disputes Act, 1947
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