Termination or retrenchment of an employee calls for prior permission from government

A company is required to obtain permission from concerned State government prior to termination or retrenchment of any employee. This is to be done in pursuance of Industrial Disputes Act, 1947 and Standing Orders of the Company. It holds true for a Company employing 100 or more employees. However, Service industry companies are specifically exempted from fulfilling obligations in this respect.


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