Bihar promulgates Industrial Disputes (Bihar Amendment) Ordinance, 2020; industrial establishments to employ at least 300 workmen for special provisions relating to lay-off, retrenchment and closure to apply

The Government of Bihar, has promulgated the Industrial Disputes (Bihar Amendment) Ordinance, 2020 (“Ordinance”) with a view to provide impetus to industrial and economic activities and offer new opportunities for Industrial investment in the State.

With the promulgation of the Ordinance, the following amendment has been brought about to the Industrial Disputes Act, 1947 in the State, with immediate effect since 2nd July, 2020.

 

Previous Position Amended Position Implication
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.

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 three hundred workmen

were employed on an average per working day for the preceding twelve months.

The special provisions, relating to lay-off, retrenchment and closure provided in Section 25 K were applicable to industrial establishments employing not less than hundred workmen on an average per working day in the preceding year. The provisions do not apply to industrial establishments which bear a seasonal character or where work is performed intermittently.

 

These provisions impose restrictions on the employers’ right to retrench workmen.

 

This threshold of one hundred workmen has been increased to three hundred workmen. Now, the special provisions relating to lay-offs, retrenchment and closure will be applicable to an industrial establishment who fulfils the following:

 

1. The establishment is not of a seasonal character;

 

2. The establishment is not such where work is performed only intermittently; and

 

3. The establishment where at least three hundred workmen were employed on an average per working day, for the preceding twelve months.

 

 

Source: Government of Bihar

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