Section 25M of IDA : Section 25M: Prohibition Of Lay-Off
IDA
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Explanation using Example
Imagine a manufacturing company in Rajasthan, 'ABC Industries', which has been experiencing a significant downturn in sales due to an economic recession. The company has a large workforce and is looking to reduce its operational costs by laying off some of its permanent workers. However, under Section 25M of The Industrial Disputes Act, 1947, the company cannot lay off any of its workmen (except badli or casual workers) without obtaining prior permission from the State Government.
The management of ABC Industries decides to comply with the law and prepares an application stating the reasons for the intended lay-off, which primarily includes the reduction in orders and the company's ...
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