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CS Professional · Labour Laws and Practice · Law of Industrial Relations

Gupta Steels, an industrial establishment covered by the lay-off prohibition, wishes to lay off permanent muster-roll workers because of a raw material shortage (not power shortage or natural calamity). It applies to the appropriate Government on 1 March and receives no order by 30 April (61 days later). What is the legal position?

Permission is deemed granted as applied for. When the appropriate Government does not communicate an order granting or refusing permission within sixty days of the application, the Code treats the permission as granted on expiry of that period, and the application is deemed disposed of accordingly.

  1. AThe application is deemed refused because no order was communicated
  2. BThe permission is deemed granted as applied for after sixty daysCorrect
  3. CThe employer must wait until the Tribunal decides the matter
  4. DThe employer may lay off only after paying retrenchment compensation

Explanation

If the appropriate Government does not communicate an order granting or refusing permission within sixty days of the application, the permission applied for is deemed granted as applied for on expiry of that period. Silence therefore does not amount to refusal. Since 61 days have passed, the permission is deemed granted.

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