Dear All, We have a office at Mumbai, as a restructuring process we are clousing our office at Mumbai. Can any one will guide me regarding closure formalities under the said Act. Regards Rajesh
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hi dear
when ever there is any change a notice has to be given to the Inspector of Shops
e.g. Punjab Shops & Comercial Establishments Act 1958 , Sec.13 (5) provides that employer shall within 15 days of closure of his establishment to notify to the prescribed authority in writing accordingly , and authority on being satisfied shall remove the name of the establishment from the Register of Establishment and cancel the registration certicate.
so better go throughthe provisions of particular State Act and Rules.
Provisions of ID Act have nothing to do with the closure of establisment registered under shops and commercial establishment act.
RLDhingra , Advocate and Labour Law Consultant, 09818309937
Dear Mr. Sharma,
What is the strength of the workmen in the office at Mumbai? In case it is below 100, then you have to follow the provisions of Industrial disputes act you have to give the notice 60 days prior to closing down to the Govt of the intention to close down the undertaking. Which is the activity of the office? If it is having less than 50 workmen or is engaged in construction of bridges, dams, canals or other construction work or project, then this will not be necessary. Closure compensation as per section 25FFF will have to be paid which is 15 days salary for every completed year of service plus 1 months notice pay. General and individual notice will have to be given. In addition, gratuity if applicable and earned salary and leave wages as also pro rata bonus will have to be paid. Since the office is in Mumbai and MRTU PULP Act is applicable, it is advisable to file individual caveats in Labour and Industrial Courts to avoid any ex parte orders.
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