—Contributed by Deepak Miglani

Section 25 F of Industrial Dispute Act, ” No workman employed in any industry who has been in continuous service for not less than one year under an employer shall be retrenched by that employer until-

(a) The workman has been given one month’s notice in writing indicating the reasons for retrenchment and the period of notice has expired, or the workman has been paid in lieu of such notice, wages for the period of the notice:

(b) The workman has been paid, at the time of retrenchment, compensation which shall be equivalent to fifteen days average pay for every completed year of continuous service or any part thereof in excess of six months; and

(c) Notice in the prescribed manner is served on the appropriate Government or such authority as may be specified by the appropriate Government by notification in the Official Gazette.”

The conditions in clauses (a) &(b) of section 25 F of Industrial Disputes Act are categorically imperative and those conditions must be fully complied with before effecting retrenchment or the termination. The sole object of giving a month’s notice in writing or payment of wages for the period of notice in lieu of the notice as well as the compensation determined in accordance with clause (b) is that the workman will not be forced on the street on termination of his service. Such an object would be frustrated if adjustment of the dues is permitted. The employer can not adjust the dues from retrenchment compensation. It is there fore, not permissible for employer to make adjustment of money due from employee towards compensation and wages for period of notice which are two preconditions provided in section 25F (a) & (b) of the Industrial Dispute Act.