Chapter V-D Chapter V-D

Special provisions for Special Economic Zone

1. (1) The provisions of Chapters V-A and V-B shall not apply to an industrial establishment to which Chapter V-D applies.
2. (2) The provisions of this Chapter shall apply to an industrial establishment set up in the Special Economic Zone declared as such by the

Definitions of continuous service For the purposes of this Chapter, -

1. (1) a workman shall be said to be in continuous service for a period if he is, for that period, in uninterrupted service, including service which may be interrupted on account of sickness or authorised leave or an accident or a strike, which is not illegal, or a lock out or a cessation of work, which is not due to any fault on the part of the workman;
2. (2) where a workman is not in continuous service within the meaning of clause
3. (1) for a period of one year or six months, he shall be deemed to be in continuous service under an employer -
   • (a) for a period of one year, if the workman, during a period of twelve calendar months preceding the date with reference to which calculation is to be made, has actually worked under the employer for not less than,-
     • (i) one hundred and ninety days in the case of a workman employed below ground in a mine; and
     • (ii) two hundred and forty days, in any other case;
   • (b) for a period of six months, if the workman, during a period of six calendar months preceding the date with reference to which calculation is to be made, has actually worked under the employer for not less than -
     • (i) ninety-five days, in case of a workman employed below ground in a mine; and
     • (ii) one hundred and twenty days, in any other case.

Whenever a workman (other than a badli workman or a casual workman) whose name is borne on the muster rolls of an industrial establishment and who has completed not less than one year of continuous service under an employer is laid off, whether continuously or intermittently, he shall be paid by the employer for all days during which he is so laid off, except for such weekly holidays as may intervene, compensation which shall be equal to fifty per cent. of the total of the basic wages and dearness allowance that would have been payable to him had he not been so laid off: Provided that if during any period of twelve months, a workman is so laid off for more than forty-five days, no such compensation shall be payable in respect of any period of the lay off after the expiry of the first forty-five days: Provided further that it shall be lawful for the employer in any case falling with the foregoing proviso to terminate the workman in accordance with the provisions contained in section 25 ZA at any time after the expiry of the first forty-five days of the lay-off and when he does so, any compensation paid to the workman for having been laid off during the preceding twelve months may be set off against the compensation payable for termination.

Notwithstanding that workmen in any industrial establishment have been laid off, it shall be the duty of every employer to maintain for the purposes of this Chapter a muster roll, and to provide for the making of entries therein by workmen who may present themselves for work at the establishment at the appointed time during normal working hours.

No compensation shall be paid to a workman who has been laid off -

1. (i) if he refuses to accept any alternative employment in the same establishment from which he has been laid off, or in any other establishment belonging to the same employer situate in the same town or village or situate within a radius of five miles from the establishment to which he belongs, if, in the opinion of the employer, such alternative employment does not call for any special skill or previous experience and can be done by the workman, provided that the wages which would normally have been paid to the workman are offered for the alternative employment also;
2. (ii) if he does not present himself for work at the establishment at the appointed time during normal working hours at least once a day;
3. (iii) if such laying off is due to strike or slowing down of production on the part of workmen in another part of the establishment.

1. (1) NO workman employed in any industry who has been in continuous service for not less than one year under an employer shall be terminated (otherwise than as a punishment inflicted by way of disciplinary action) by that employer until -
   • (a) the workman has been given one month's notice in writing and the period of notice has expired, or the workman has been offered in lieu of such notice, wage for the period of the notice;
   • (b) the workman has been paid compensation equivalent to forty-five days salary for every completed year of continuous service in such manner as may be prescribed.
2. (2) Where the workman has been insured through insurance policy by the employer for the social security to receive the compensation in the case of termination, equivalent to forty-five days salary for every completed year of continuous service, the employer, instead of making payment of compensation under clause
   • (b) of sub-section (1), shall forward all the necessary documents of such workman to the Insurance Company within fifteen days after termination.

Where the ownership or management of an undertaking is transferred, whether by agreement or by operation of law, from the employer in relation to that undertaking to a new employer, every workman who has been in continuous service for not less than one year in that undertaking immediately before such transfer shall be entitled to notice and compensation in accordance with the provisions of section 25ZA, as if the workman had been terminated: Provided that nothing in this section shall apply to a workman in any case where there has been a change of employers by reason of the transfer, if-

1. (a) the service of the workman has not been interrupted by such transfer;
2. (b) the terms and conditions of service applicable to the workman after such transfer are not in any way less favourable to the workman than those applicable to him immediately before the transfer; and
3. (c) the new employer is, under the terms of such transfer or otherwise, legally liable to pay to the workman, in the event of his termination, compensation on the basis that his service has been continuous and has not been interrupted by the transfer.

An employer who intends to close down an undertaking, shall serve at least sixty days before the date on which the intended closure is to become effective, a notice, in the manner as may be prescribed, on the State

Compensation to workman in case of closing down of undertaking 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 be entitled to compensation in accordance with the provisions of section 25ZA, as if the workman had been terminated.".

4. Repeal and savings

1. (1) The Industrial Disputes (Gujarat Amendment) Ordinance, 2020 is hereby repealed.
2. (2) Notwithstanding such repeal, anything done or any action taken under the principal Act as amended by the said Ordinance, shall be deemed to have been done or taken under the principal Act as amended by this Act. 1. Short title and commencement
3. (1) This Act may be called the Industrial Disputes (Gujarat Amendment) Act, 2020.
4. (2) It shall be deemed to have come into force on the 3 rd July, 2020. 2. Amendment of section 25K of XIV of 1947 In the Industrial Disputes Act, 1947, in its application to the State of

Gujarat (hereinafter referred to as “the principal Act”), in section

25K,-

1. (i) in sub-section (1), for the words “one hundred”, the words “three hundred” shall be substituted;
2. (ii) after sub-section (1), the following sub-section shall be inserted, namely:- “(1A) Without prejudice to the provisions of sub-section (1), the State Government may, if satisfied that the maintenance of industrial peace or prevention of victimization of workmen so requires, by notification in the Official Gazette, apply the provision of this Chapter to an industrial establishment (not being an establishment of a seasonal character or in which work is performed only intermittently) in which such number of workmen which may be less than three hundred but not less than one hundred, as may be specified in the notification, were employed on an average per working day for the preceding twelve months.”. 3. Amendment of section 25N of XIV of 1947 In the principal Act, in section 25N,-
3. (i) in sub-section (1), in clause (a), the words “or the workman has been paid in lieu of such notice, wages for the period of the notice” shall be deleted;
4. (ii) in sub-section (9), the words “and an amount equivalent to his last three months average pay” shall be added at the end. 4. Amendment of section In the principal Act, in section 25-O, in sub-section (8), the words “and an amount equivalent to his last three months average pay” shall be added at the end. 5. Repeal and saving

1. (1) The Industrial Disputes (Gujarat Amendment) Ordinance, 2020 is hereby repealed.
2. (2) Notwithstanding such repeal, anything done or any action taken under the principal Act as amended by the said Ordinance, shall be deemed to have been done or taken under the principal Act as amended by this Act.