My company in Kolkata is closing down and not paying our dues, what legal protection do I have?
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Below is a comprehensive legal analysis based on Indian law for your question.
Closure of an establishment is regulated under Section 25-O of the Industrial Disputes Act, 1947, and the West Bengal Premises Tenancy Act 1997 rules framed by your state. An employer intending to close down in Kolkata must give 60 days' notice if employing 50 to 99 workers, or 90 days if employing 100 or more, to the appropriate government. The Calcutta 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.
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