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Saturday, October 3, 1998

Employers' body flays court order on voluntary retirement 

Our Corporate Bureau  
MUMBAI, OCT 2: The Twin City Industrial Employers' Association has flayed the recent judgments of the Mumbai high court making it mandatory for employers to serve a notice of change before announcing a voluntary retirement scheme, or shifting of an industrial activity.

Reacting to the order, the Blue Star management has filed an appeal before the division bench of the court.

At a seminar organised on the subject, several labour lawyers stated their views on the order. Well-known labour lawyer JP Cama said the judgment would lead to disastrous consequences for the industry, as the only safety valve for potentially sick companies who want to cut their size to survive in the highly competitive environment has been blocked. The high court's decision, according to Cama, would result in the closure of more companies and may lead to their winding up before the high court to circumvent the clumsy laws.

As per the order, the management has to give 21 days' notice before implementing a voluntary retirement orimplementing a closure under section 9(A) of the Industrial Disputes Act.

Another well-known lawyer Anand Grover felt the slow working of the courts had affected the justice-delivery system. In America, a certified true copy of the court's judgment is available immediately after it is pronounced. In India, the copy is not available for months on end.

The point reiterated by speakers at the seminar was that the labour laws and the government policy in Maharashtra should be oriented in such a manner so as to stop the flight of industries from the state. This, according to many employers, would prevent the growing industrial sickness, promote industrial growth and generate more employment opportunities.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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