Does IDA apply to companies under Punjab Shops and Commercial Act?

Does the Industrial Disputes Act (IDA) apply to companies registered under Section 13 of the Punjab Shops and Commercial Establishment Act, 1958 in cases of illegal termination? How will disputes be handled under this Act if not? Are there any relevant cases or sections that mention the applicability of the IDA to Section 13 of the Punjab Shops and Commercial Establishment Act, 1958 for termination of employees considered as workmen?

2 Answers
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A M Iktear Uddin (Anik)
Advocate A M Iktear Uddin (anik) Answered: 06 Feb 2025

The Industrial Disputes Act (IDA), 1947 applies to "workmen" as defined under Section 2(s) of the Act, regardless of whether the company is registered under the Punjab Shops and Commercial Establishments Act, 1958. If an employee qualifies as a "workman," termination disputes can be addressed under IDA provisions, including Section 25F for retrenchment protection. If IDA does not apply, disputes will be handled under the Punjab Shops and Commercial Establishments Act through the appropriate labor authorities or civil courts. Relevant case laws may vary, but courts have upheld IDA applicability based on job roles rather than establishment type.

Admin
Advocate By LEAD INDIA Answered: 29 Jan 2025

Sir, the Industrial Disputes Act (IDA) applies to employees classified as "workmen." If an employee in a company under Section 13 of the Punjab Shops and Commercial Establishment Act, 1958 is considered a "workman," IDA provisions may apply for illegal termination. If not, disputes will be handled under the Punjab Shops and Commercial Establishment Act through the Labour Commissioner or Labour Court. It’s recommended to consult a legal expert for case-specific guidance. For further legal assistance contact us on our helpline number.
 

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