Where an undertaking engaged in mining operation is closed down by reason merely of exhaustion of th...........

Industrial Relation and labour law Dispute Resolution

Where an undertaking engaged in mining operation is closed down by reason merely of exhaustion of the minerals in that area, no workman shall be entitled to any notice or compensation if:

The employer provides the workmen alterative employment with effect from date of closure.

On the same terms & conditions of service as were applicable.

The service of workman has not interrupted by the alternative employment.

All the above.

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Explanation:

Section 25FFF in The Industrial Disputes Act, 1947
25FFF. Compensation to workmen in case of closing down of undertakings.-
(1) Where an undertaking is closed down for any reason whatsoever, every workman who has been in continuous service for not less than one year in that undertaking immediately before such closure shall, subject to the provisions of sub- section (2), be entitled to notice and compensation in accordance with the provisions of section 25F, as if the workman had been retrenched: Provided that where the undertaking is closed down on account of unavoidable circumstances beyond the control of the employer, the compensation to be paid to the workman under clause (b) of section 25F shall not exceed his average pay for three months. 1 Explanation.-- An undertaking which is closed down by reason merely of--
(i) financial difficulties (including financial losses); or
(ii) accumulation of undisposed of stocks; or
(iii) the expiry of the period of the lease or licence granted to it; or
(iv) in a case where the undertaking is engaged in mining operations, exhaustion of the minerals in the area in which such operations are carried on; shall not be deemed to be closed down on account of unavoidable circumstances beyond the control of the employer within the meaning of the proviso to this sub- section.]