Q.79
Labour & Industrial Laws Medium Definition-Based
Bare Act Industrial Disputes Act, 1947 · Section 2(oo)

XYZ Textiles Ltd. terminated 4 workers for misconduct without compensation. Under ID Act, select the correct answer.

The termination does not amount to retrenchment, hence no compensation Answer
B The termination amounts to lay-off, hence compensation will be awarded
C The termination amounts to retrenchment, hence compensation will be awarded
D The termination violated the ID Act, hence compensation will be awarded
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Explanation & Strategy

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Section 2(oo) explicitly excludes termination for disciplinary reasons (misconduct) from the definition of 'retrenchment'. Since the workers were terminated for misconduct — which is a disciplinary action, not economic or operational — it does not qualify as retrenchment. Therefore, the retrenchment compensation provisions under Section 25F do not apply. This is a frequently tested distinction: retrenchment = economic termination; misconduct dismissal = disciplinary termination.

The text reads: Section 2(oo) ID Act: 'Retrenchment' means termination of service for any reason whatsoever, EXCEPT: (a) punishment for misconduct, (b) voluntary retirement, (c) non-renewal of expired contract, (d) retirement at superannuation age.
At a Glance
Subject Labour & Industrial Laws
Difficulty Medium
Act Industrial Disputes Act, 1947
Section Section 2(oo)
Answer (A) Definition-Based
Paper AIBE XIX — December 2024
Progress in Paper
Q.79 100 questions

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