Compliance Requirements under the Rules in Accordance with the Code

1. Right of workers laid-off for compensation, etc in U.P. (Section 67)

Whenever a worker (other than badli/casual) who has completed at least 1year of continuous service under an employer is laid-off, he shall be paid for all days laid-off, compensation which shall be equal to 50% of basic wages and D.A. that would have been payable to him, had he not been so laid-off

1. 1. Applicable on industrial establishments employing 50 or more but less than 300 workmen on an average per working day in the preceding 12 months, excluding those of seasonal or intermittent nature. Weekly holidays are not counted as laid-off days.
   2. If, during 12 months, a worker is laid off for more than 45 days, no compensation is payable beyond the first 45 days if an agreement exists between employer and worker.
   3. Employer may retrench a worker after 45 days of lay-off, and any compensation paid for lay-off during the preceding 12 months may be set off against retrenchment compensation.
   4. No compensation is payable if: i) the worker does not present himself for work at the appointed time during normal hours at least once a day, or ii) the lay-off is due to a strike or go-slow by workers in another part of the establishment.

2. Maintain muster rolls of workers in U.P. (Section 68, 81)

It shall be the duty of every employer to maintain a muster roll, and to provide for making of entries therein by workers who may present themselves for work at the establishment at the appointed time during normal working hours.

1. 1. Applicable on Industrial Establishment employing 50 or more workmen on an average per working day for preceding 12 months & are not of seasonal nature/intermittent work
   2. It shall be the duty of every employer to maintain a muster roll, and to provide for making of entries therein by workers who may present themselves for work at the establishment at the appointed time during normal working hours

3. Order in which retrenchment shall be made in U.P. (Section 71)

Where any worker who is to be retrenched belongs to a particular category of workers in establishment, then, in absence of any agreement between employer and worker, employer shall ordinarily retrench worker who was the last person to be employed in that category

1. 1. If the employer retrenched otherwise, any other worker, he can do so after recording his reasons for the same.
   2. Provisions apply to a worker who is a citizen of India

4. Compensation to workers in case of transfer of establishment in U.P. (Section 73)
   Where ownership of establishment is transferred, by agreement or by operation of law to a new employer, every worker who has been in continuous service for not less than a year immediately before transfer shall be entitled to notice and compensation as per Section 70 as if he had been retrenched.
   Nothing in this section shall apply to a worker in any case where there has been a change of employers by reason of the transfer, if—

(a) the service of the worker has not been interrupted by such transfer;

(b) the terms and conditions of service applicable to the worker after such transfer are not in any way less favourable to the worker than those applicable to them immediately before the transfer and

(c) the new employer is, under the terms of such transfer or otherwise, legally liable to pay to the worker, in the event of his retrenchment, compensation on the basis that his service has been continuous and has not been interrupted by the transfer

5. Compensation to workmen in case of closing down of undertaking in U.P. (Section 75)

Where an establishment is closed down for any reason, every worker who has been in continuous service for not less than one year in that undertaking immediately before such closure shall be entitled to notice and compensation as per Section 70, as if the worker had been retrenched

1. 1. Where undertaking is closed down on account of unavoidable circumstances beyond control of employer, the compensation to be paid to the worker under Section 70 (b), shall not exceed his average pay for three months.
   2. An industrial establishment which is closed down by reason merely of—

(i) financial difficulties (including financial losses); or

(ii) accumulation of un-disposed stocks; or

(iii) the expiry of the period of the lease or license granted to it; or

(iv) in case where the undertaking is engaged in mining operations, exhaustion of the minerals in the area in which operations are carried on, shall not be deemed to be closed down on account of unavoidable circumstances beyond the control of the employer within the meaning of the proviso to this sub-section.

For related provisions w.r.t mining operations/ undertaking set-up for the construction of buildings, bridges, roads, canals, dams or other construction work, reference to be made to Section 75(2) to (4)

6. Form XXXII: Notice Requirement for Retrenchment of Workers with One Year Continuous Service (Section 70(c) | Rule 50)

If any employer desires to retrench any worker employed in his industrial establishment who has been in continuous service for not less than one year under him then, such employer shall give notice of such retrenchment, at least thirty days before he intends to do so, in Form-XXXII to the State Government, Labour Commissioner, concerned Regional Additional/Deputy Labour Commissioner and concerned workers manually or electronically and by registered post or speed post

7. Re-employment Opportunity for Retrenched Workers in Case of Vacancy (Section 72 | Rule 51)
   If a vacancy arises and any worker was retrenched within the past year, the employer must offer re-employment to such Indian citizens at least 30 days prior via post or email (if available). If willing, these workers must be given preference over others for the vacancy.
   Where any worker is retrenched and the employer proposes to take into his employment any person within one year of such retrenchment, he shall, in such manner as may be prescribed, give an opportunity to the retrenched workers who are citizens of India to offer themselves for re-employment and such retrenched workers who offer themselves for re-employment shall have preference over other persons.
8. Form XXXII: Notice of intention to close down any undertaking in U.P. (Section 74 | Rule 52)

An employer must give 60 days’ notice to the State Government and a copy thereof to the concerned Deputy Labour Commissioner, by e-mail or registered post or speed post before closing an undertaking, stating reasons. This does not apply to establishments with under 50 workers on any day in past 12 months or those engaged in construction of buildings, roads, bridges, canals, dams, or similar projects or where the Govt. orders for some intermittent period that provisions will not apply due to exceptional circumstances like death of employer/accident in the undertaking