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Factory Closure - CiteHR

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Vinayrk123
Hi everybody, I would like to which are the statutory and regulatory bodies that needs to be informed if i am planning to close the Factory in the month of December.
As i know I have to inform to Factories Inspectorate. Apart from these which are the other statutory and regulatory bodies i have to intimate.

From India, Mumbai
Vijay Kumar HR Trainee
21

Hi Vinay, Just wanted a clarity.. whether its a temporary closure or permanent closure?
From India, Bangalore
Vijay Kumar HR Trainee
21

Dear Vinay

Intimation has to be given to factory inspector & Joint Director of Health & Safety with filled in prescribed forms containing details as to the number of employees, muster roll, reason of closure, type of closure etc. Also give intimation to ESI & PF office. Notification for Closure depends on the employee strength in the organization as per below mentioned

CLOSURE

An employer who intends to close down an Industrial undertaking wherein 50 workmen or more but less than 100 are employed or were employed during the preceding 12 months has to serve a notice to the Government in "Form Q" atleast 60 days before the date of intended closure stating the reasons for the proposed closure as laid down under Section 25 FFA of the Industrial Disputes Act, 1947.

In respect of an Industrial undertaking employing 100 or more workmen on an average in the preceding 12 months, the employer has to obtain prior approval of the Government at least 90 days before the date of intended closure by giving an application in Form QA to Secretary to Government (Labour) as stipulated under Section 25(O)(1) of the Industrial Disputes Act, 1947. A copy of the application shall be served simultaneously on the representatives of the workmen also.

The Government shall grant such approval, if it is satisfied with regard to the 'genuineness and adequacy of the reasons' stated for closure , the interests of the general public and all other relevant factors. The Government will communicate the Order within 60- days from the date of application for closure by the employer.

From India, Bangalore
Vinayrk123
Thanks Vijay for the response. It is a permanent closure wherein existing company shall close. All the workers are on Contract basis. On roll employees shall be moved to its another Group company. On roll employees on an average for year 2015 is 25.
From India, Mumbai
MR.SEETARAMA MOGER
8

Dear Vinay,
Please ref. below details and it may fruitful in this regards.
Procedure for the closure of Factory
1. Intimation to concern factory inspector before 90 days of close.
2. Update of Closing the factory.
3. Update of number of Worker in factory.
4. Period of Closer.
5. Type of closer.
6. Submission of form-32( Rule 127(3)1.
7. Surrender copy of Service Tax, Sales Tax, EPF Registration,
ESIC Registration and other Registration copy.
Transfer the employees to other unite without affecting their position and scale
of payment and same inform the same to Factory inspector through directly or through letter.
If establishment closed the permanent ; need to pay 15 Days salary to worker and
same inform the same to Factory inspector through directly or through letter.

From India, Hyderabad
yrshirke
25

Dear Vinay ,
Addition to Statutory Obligation it is advisable to info this Agencies also .
1.Labour Commissioner under whose Jurisdiction Falls
2.Electricity Authority for minimum Charges during period .
3.Pollution Control Board Air & Water
4. Water Supply Organisation.
5.Local police Station for Safety .
6.Fire Dept.
These are suggested toavoid future unfor seen liability &Cases .
Regards

From India, Mumbai
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