Chapter V-B of the Industrial Disputes Act, 1947, lays down special provisions relating to lay-off, retrenchment, and closure that are applicable to larger industrial establishments (those with one hundred or more workmen, a number that can be changed by notification).
Section 25M of this chapter is titled "Prohibition of lay-off.
" It mandates that employers in these establishments cannot lay-off their workmen without obtaining prior permission from the appropriate government or specified authority.
This requirement of prior permission acts as a prohibition on unilateral lay-offs.