Explanation:

Notice/Notice Poy and Compensation In case of closure of an undertaking wherein atleast 50 workmen are employed, or were employed on an average per working day in the preceding 12 months, every employee who has been in continuous service for atleast one year, shall be

(a)served by the employer, atleast one month's notice of intended closure or paid wages for the notice-period; and

(b) paid compensation equal to 15 days average pay for every completed year of continuous service or any part thereof in excess of 6 months (as provided for in case of 'retrenchment').

However, an undertaking engaged in the construction of buildings, bridges, roads, canals, dams, etc. which is closed down on account of the completion of work within two years from the date on which it was set-up, shall not be required to pay any compensation on such closure. But if the construction work is not so completed within two years, the workmen employed in the undertaking shall be entitled to notice and compensation for every completed year of continuous service or any part thereof in excess of six months