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CS Executive · Setting Up of Business, Industrial and Labour Laws · Corporate Entities - Companies

While an investigation into Pioneer Foods Ltd under section 210 is in progress, the company proposes to dismiss an employee, Anita Rao. What must Pioneer Foods do?

Pioneer Foods must obtain the Tribunal's approval of the proposed dismissal. If the Tribunal sends no approval within thirty days of the application, the company may then take the proposed action. If the Tribunal objects, the company may appeal to the Appellate Tribunal within thirty days.

  1. ADismiss her at once, as management decisions are unaffected by investigation
  2. BObtain approval of the Tribunal for the proposed action; it may proceed only if no approval is received within thirty days of applyingCorrect
  3. CObtain approval of the Central Government before dismissing her
  4. DInform the inspector by post and then proceed after seven days

Explanation

Section 218 protects employees during an investigation. The company must obtain the Tribunal's approval of the proposed action. If it does not receive approval within thirty days of making the application, then and only then may it take the action. The Central Government is not the approving authority here.

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