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Question

What is not required for termination of employees under the Industrial Disputes Act, 1947 ?

This question was previously asked in
UGC NET 2015 Paper 1 Question Paper (27-Dec-2015)
The correct answer is

Seek prior consent of the employees

Option 2 — Seek prior consent of the employees is correct.

Chapter V-B of the Industrial Disputes Act, 1947 lays down the procedure an employer must follow to retrench or terminate workmen. The statute never requires the employer to obtain the affected workers’ agreement; termination is a management prerogative, subject only to legal safeguards.

The genuine statutory requirements are:

RequirementProvision
Prior approval / permission of the appropriate GovernmentNeeded in large establishments (100+ workers) under Sec. 25-N / 25-O
Notice and consultationNotice to the worker and to the Government is mandatory
Retrenchment compensation15 days’ average pay for every completed year of service (Sec. 25-F)

Why the other options are wrong: Government approval, consultation/notice and compensation are all expressly built into the Act. Only the employees’ prior consent is not needed — if it were, no lawful retrenchment could ever occur.

Takeaway: The ID Act protects workmen through approval, notice and compensation, not through their consent.

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