My company in Erode is closing down and not paying our dues, what legal protection do I have?

Detailed Legal Analysis

Closure of an establishment is regulated under Section 25-O of the Industrial Disputes Act, 1947, and the Tamil Nadu Rent Control Act 1960 rules framed by your state. An employer intending to close down in Erode must give 60 days' notice if employing 50 to 99 workers, or 90 days if employing 100 or more, to the appropriate government.

The Madras High Court has held that closure without prior permission where required is illegal, and workers are entitled to reinstatement or compensation. Each workman is entitled to retrenchment compensation of 15 days' wages per year of service, along with notice pay and all statutory dues.

The government may investigate and either grant or refuse permission for closure based on reasons given. Affected workmen can raise an industrial dispute before the Labour Court challenging the closure.