Section-78 Prohibition of lay-off.

(1) An employer can't lay off a worker unless they get permission from the government.
Exceptions are for temporary workers or casual workers, or if the lay-off is due to specific
reasons like a power shortage, natural disasters, fire, flood, inflammable gas, or explosion in a
mine.

(2) The employer must apply for permission electronically or as prescribed, explaining the
reasons for the lay-off. Workers must be informed simultaneously.

(3) In the case of a lay-off due to fire, flood, or other specified reasons in a mine, the employer
must apply to the government within 30 days to continue the lay-off.

(4) The appropriate government, after an inquiry and giving a chance for all parties to be heard,
may grant or refuse permission based on various factors.

(5) If the appropriate government doesn't respond within 60 days, permission is deemed granted.

(6) The appropriate government's decision is final and remains valid for a year.

(7) The appropriate government can review its decision or refer the matter to a tribunal upon
request or its own motion. The tribunal must issue a decision within 30 days.

(8) If no application for permission is made, or if permission is refused, the lay-off is considered
illegal, and workers are entitled to benefits as if they hadn't been laid off.

(9) In exceptional circumstances like accidents or the death of the employer, the government can
temporarily exempt an establishment from these rules.

(10) Section 67's provisions, except the second proviso, also apply to lay-offs mentioned in this
section
Section- 79 Conditions precedent to retrenchment of workers to which Chapter X applies.

(1) An employer can't retrench a worker who has worked for at least one year without:

(a) Giving a three-month notice or paying wages in lieu of notice.

(b) Obtaining prior permission from the appropriate government.

(2) The employer must apply for permission electronically or as prescribed, stating the reasons
for retrenchment, and share a copy with the affected workers.

(3) The appropriate government, after an inquiry and hearing all parties, can grant or refuse
permission based on the employer's reasons, worker interests, and other relevant factors.

(4) If the appropriate government doesn't respond within 60 days, permission is deemed granted.

(5) The appropriate government's decision is final and remains valid for a year.

(6) The appropriate government can review its decision or refer the matter to a tribunal upon
request or its own motion. The tribunal must issue a decision within 30 days.

(7) If no permission is sought or if permission is refused, the retrenchment is deemed illegal, and
workers are entitled to benefits as if no notice was given.

(8) In exceptional circumstances like accidents or the death of the employer, the government can
temporarily exempt an establishment from these rules.

(9) If permission is granted, every worker employed before the application date is entitled to
compensation at the time of retrenchment. The compensation is equivalent to fifteen days'
average pay for each completed year of service or part thereof exceeding six months, as specified
by the government.
Section- 80 Procedure for closing down an industrial establishment.

(1) If an employer plans to close an industrial establishment, they must apply for permission
from the government at least ninety days before the intended closure. The application should
state the reasons, and a copy must be given to the workers' representatives. This rule doesn't
apply to construction projects like buildings, bridges, roads, canals, dams, or other construction
work.

(2) After receiving the application, the government will conduct an inquiry, hear all parties
involved, and then decide whether to grant or refuse permission based on the reasons provided
by the employer, the interests of the public, and other relevant factors.

(3) If the government doesn't respond within sixty days, permission is considered granted.

(4) The government's decision is final and remains valid for one year.

(5) The government can review its decision or refer the matter to a tribunal upon request or its
own motion. The tribunal must issue a decision within thirty days.

(6) If no application is made or if permission is refused, the closure is deemed illegal from the
date of closure, and workers are entitled to benefits as if the closure never happened.

(7) In exceptional circumstances like accidents or the death of the employer, the government can
exempt an establishment from these rules for a specified period.

(8) If permission is granted, workers employed before the application date are entitled to receive
compensation. The compensation is equivalent to fifteen days' average pay for each completed
year of service or part thereof exceeding six months, as specified by the government.

Section-85 Powers of officer of A.G to impose penalty in certain cases.

(1) The appropriate government can appoint an officer, not below the rank of Under Secretary to
the Government of India or an equivalent officer in the State Government, to conduct an inquiry
for imposing penalties under certain sections of the law (sections 86 and 89).

(2) During the inquiry, the appointed officer has the authority to call and compel the attendance
of anyone familiar with the case to provide evidence or produce relevant documents. If, after the
inquiry, the officer is convinced that an individual has violated the specified sections, they can
impose a penalty according to the provisions.

(3) If the person subject to the penalty fails to pay it within ninety days of receiving the order, he
shall be punishable with fine. The fine can range from a minimum of fifty thousand rupees to a
maximum of two lakh rupees.
Section- 86 Penalties

1. Violation of Sections 78, 79, 80:

 Fine: Not less than one lakh rupees, up to ten lakh rupees.

 Repeat Offence: Fine not less than five lakh rupees, up to twenty lakh rupees, or
imprisonment up to six months, or both.

2. Violation of Sections 67, 70, 73, 75:

 Fine: Not less than fifty thousand rupees, up to two lakh rupees.

 Repeat Offence: Fine not less than one lakh rupees, up to five lakh rupees, or
imprisonment up to six months, or both.

3. Unfair Labour Practices:

 Fine: Not less than ten thousand rupees, up to two lakh rupees.

 Repeat Offence: Fine not less than fifty thousand rupees, up to five lakh rupees, or
imprisonment up to three months, or both.

4. Trade Union Defaults:

 Fine: Not less than one thousand rupees, up to ten thousand rupees.

 Additional daily penalty for continuing default.

5. False Entries or Deceptive Documents:

 Fine: Not less than two thousand rupees, up to twenty thousand rupees.

6. Misleading Trade Union Documents:

 Fine: Not less than five thousand rupees, up to twenty thousand rupees.

7. Non-compliance with Standing Orders:

 Fine: Not less than fifty thousand rupees, up to two lakh rupees.

 Additional daily fine for continuing offences.

8. Breach of Certified Standing Orders:

 Fine: Not less than one lakh rupees, up to two lakh rupees.

 Repeat Offence: Fine not less than two lakh rupees, up to four lakh rupees, or
imprisonment up to three months, or both.
 9. Illegal Strikes by Workers:

 Fine: Not less than one thousand rupees, up to ten thousand rupees, or
imprisonment up to one month, or both.

10. Illegal Lock-outs by Employers:

 Fine: Not less than fifty thousand rupees, up to one lakh rupees, or imprisonment
up to one month, or both.

11. Instigating Illegal Strikes or Lock-outs:

 Fine: Not less than ten thousand rupees, up to fifty thousand rupees, or
imprisonment up to one month, or both.

12. Supporting Illegal Strikes or Lock-outs:

 Fine: Not less than ten thousand rupees, up to fifty thousand rupees, or
imprisonment up to one month, or both.

13. Breach of Settlement or Award Terms:

 Fine: Not less than twenty thousand rupees, up to two lakh rupees, or
imprisonment up to three months, or both.

 Additional daily fine for continuing offences.

14. Wilful Disclosure of Confidential Information:

 Fine: Up to twenty thousand rupees, or imprisonment up to one month, or both.

15. Other Violations under the Code:

 Fine: Up to one lakh rupees.

Section- 44 Industrial Tribunal

1. Setting up Industrial Tribunals: The government can create Industrial Tribunals

through an official notification. These tribunals are responsible for resolving industrial
disputes and other tasks assigned to them under the law. The Central Government's
tribunal also handles matters specified in the Employees' Provident Funds and
Miscellaneous Provisions Act, 1952.
2. Composition of the Tribunal: Every Industrial Tribunal consists of two members
appointed by the app. government. One is a Judicial Member, and the other is an
Administrative Member.

3. Tribunal Bench: A bench of the Tribunal can have either a Judicial Member and an
Administrative Member or just one of them, depending on the case.

4. Qualifications and Rules for Members: The qualifications, recruitment process, terms
of service, salaries, and other conditions for the Judicial and Administrative Members
appointed by the Central Government follow rules outlined in the Finance Act, 2017.
However, someone below the rank of Joint Secretary in the government is not eligible to
be an Administrative Member.

5. Terms of State Government Tribunal Members: For members appointed by a State

Government, their terms, salaries, and other conditions are determined by rules set by the
State Government.

6. Stability of Terms: Once appointed, the terms, salaries, and conditions of service for
Tribunal members appointed by a State Government cannot be changed to their
disadvantage.

7. Tribunal's Jurisdiction: The Tribunal, which includes a Judicial and an Administrative

Member, deals with specific cases related to standing orders, worker dismissals, strikes,
lockouts, retrenchments, closures, and trade union disputes. Other cases are handled by a
bench with either a Judicial or an Administrative Member.

8. Presiding Officer: In a Tribunal with both members, the Judicial Member presides over
the proceedings.

9. Filling Vacancies: If a vacancy occurs in a Tribunal or National industrial tribunal, it is

filled according to prescribed procedures, and proceedings continue from where the
vacancy occurred.

10. Support Staff: The app. government can provide necessary staff to assist the Tribunal in
its functions, in consultation with the Judicial Member of the Tribunal.
Section- 46 National industrial tribunal

1. Formation of National Industrial Tribunals: The Central Government can establish

National Industrial Tribunals through an official notification. These tribunals are meant to
handle industrial disputes that the Central Government considers nationally important or
ones that involve multiple states.

2. Composition of the Tribunal: A National Industrial Tribunal is made up of two

members appointed by the Central Government. One is a Judicial Member (typically a
former High Court Judge), and the other is an Administrative Member (usually someone
who held a high-ranking government position).

3. Qualifications for Members:

 The Judicial Member must have been a Judge of a High Court.

 The Administrative Member should have served as Secretary to the Government

of India or in an equivalent role in the Central or State Government, with
sufficient experience in labor-related matters.

4. Presiding Officer: The Judicial Member is the presiding officer of the National
Industrial Tribunal.

5. Selection Process and Terms: The process of selecting Judicial and Administrative
Members, along with their salaries, allowances, and other terms of service, will be
determined by regulations.

6. Government Support: The Central Government can appoint necessary officers and
staff, in consultation with the Judicial Member, to ensure the smooth functioning of the
National Industrial Tribunal.
Section- 49 procedure and power of arbitrator, conciliation officer, tribunal and national
tribunal

1. Procedure Followed: Anyone handling an industrial dispute, like an arbitrator or a

tribunal, can decide on the procedure to be followed, as long as it follows the rules
outlined in this Code.

2. Entry for Inquiry: A conciliation officer or someone authorized by a tribunal or NIT

can enter the premises of a workplace related to a dispute or any apprehension of dispute,
after giving proper notice, to investigate the issue.

3. Powers of Conciliation Officer and Tribunals: Conciliation officers, tribunals, and

industrial tribunals have powers similar to a civil court. This includes enforcing
attendance, examining people under oath, obtaining documents, issuing commissions for
witness examination, and handling other matters specified in the rules. Any inquiry or
investigation by these bodies is considered a judicial proceeding.

4. Enforcement by Conciliation Officer: Conciliation officers can ensure people attend for
examination or inspect relevant documents. They have the authority similar to a civil
court for enforcing attendance and document production.

5. Appointment of Assessors: The government can appoint individuals with special

knowledge as assessors or experts to assist tribunals in their proceedings.

6. Public Servant Status: Conciliation officers and tribunal members are considered public
servants under the law.

7. Costs and Incidental Expenses: The tribunal has the discretion to decide costs and
expenses related to proceedings. It can determine who pays, how much, and under what
conditions. The costs can be recovered as land revenue.

8. Status as Civil Court: Every tribunal is considered a civil court for specific purposes
under the law.

9. Execution of Awards, Orders, or Settlements: Any decision or agreement made by a

tribunal must be executed following the procedure for civil court orders and decrees. The
tribunal is treated as a civil court for this purpose.