KSLU Solved Question Papers
Labour Law I
Previous Year Question Paper with Solution
B.Com. LL.B. (Five Years) · Sem 5
2023 Mar (70 marks) Examination
munotes.in
Mumbai
B.Com. LL.B. (Five Years) Sem 5 Labour Law I 2023 Mar (70 marks) Question Paper with Solutions
First published on munotes.in on 2 November 2026.
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The question paper reproduced here is the paper as set by Karnataka State Law University at the 2023 Mar (70 marks) examination.
Contents
The questions below are the paper as Karnataka State Law University set it at the 2023 Mar (70 marks) examination, in the order it was set.
MarksPage
MarksPage
The Paper as Set
The questions in this volume are the questions asked at the 2023 Mar (70 marks) examination, reproduced as Karnataka State Law University set them, in the order it set them. Long reading passages are shortened to their first and last lines and our summary; the original paper prints them in full. Only the answers are ours. See the original question paper.
Total marks 70 · 12 questions answered
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Solve the paper first, under exam conditions and against the clock. Then read the answers here and mark your own. Reading a solution before attempting the question feels productive and teaches very little, because recognising an answer is not the same as being able to write one.
Q1Define "retrenchment" and explain the procedures for retrenchment under Industrial Disputes Act, 1947.[10]
Answer
For full marks, cover: the definition of retrenchment in section 2(oo) and its exclusions; the narrow and the wide readings (Hariprasad Shukla, Sundara Money, Punjab Land Development, Santosh Gupta); continuous service (section 25B); the conditions precedent in section 25F; last come, first go (section 25G); re-employment (section 25H); prior permission in larger establishments (section 25N); the effect of breach; the position under the Industrial Relations Code 2020; a conclusion.
Meaning of retrenchment: section 2(oo)
In ordinary speech, retrenchment means discharging surplus staff. Section 2(oo) of the Industrial Disputes Act 1947 is much wider. It means "the termination by the employer of the service of a workman for any reason whatsoever, otherwise than as a punishment inflicted by way of disciplinary action".
The definition then excludes four cases.
- Voluntary retirement of the workman.
- Retirement on reaching the age of superannuation, where the contract of employment so provides.
- Termination by non-renewal of a contract of employment on its expiry, or under a stipulation in the contract (clause (bb), added in 1984).
- Termination on the ground of continued ill-health.
So retrenchment has three elements: termination by the employer, for any reason, other than as a punishment for misconduct.
From the narrow reading to the wide one
Hariprasad Shivshankar Shukla v. A.D. Divelkar, AIR 1957 SC 121. Two businesses closed down completely and all their workmen lost their jobs. The Supreme Court held this was not retrenchment as then defined. It read retrenchment as discharge of surplus labour in a continuing business. A genuine closure was a different thing.
State Bank of India v. N. Sundara Money, (1976) 1 SCC 822. A workman was appointed for a fixed period, and his service ended automatically when it expired. The Supreme Court gave full weight to the words "for any reason whatsoever". The automatic ending was a termination by the employer and so a retrenchment. As section 25F was not complied with, the termination was invalid.
Santosh Gupta v. State Bank of Patiala, (1980) 3 SCC 340. A bank employee who had worked 240 days was discharged because she failed a test required for confirmation. The Supreme Court held that this too was retrenchment. Without compliance with section 25F the discharge was invalid, and she was reinstated.
Punjab Land Development and Reclamation Corporation Ltd. v. Presiding Officer, Labour Court, (1990) 3 SCC 682. A Constitution Bench settled the question. Retrenchment is not confined to discharge of surplus labour. It covers termination for any reason whatsoever, except the cases the definition itself excludes.
Continuous service: section 25B
The protection of section 25F goes to a workman in "continuous service for not less than one year". Section 25B gives a working rule. A workman who has actually worked 240 days in the twelve months before termination is treated as in continuous service for one year. For work below ground in a mine the figure is 190 days.
Conditions precedent: section 25F
Section 25F says that no such workman shall be retrenched until three conditions are met.
- Notice. One month's notice in writing stating the reasons, and the period has expired, or wages for the notice period paid in lieu.
- Compensation. At the time of retrenchment, payment of fifteen days' average pay for every completed year of continuous service. A part of a year above six months counts as a year.
- Notice to the Government. Notice in the prescribed manner to the appropriate Government or the notified authority.
Conditions 1 and 2 are conditions precedent. A retrenchment without them is invalid, and the workman is usually entitled to reinstatement. Condition 3 is not. In Bombay Union of Journalists v. State of Bombay, AIR 1964 SC 1617, the Supreme Court held that notice to the Government under clause (c) is not a condition precedent to a valid retrenchment.
Procedure and re-employment: sections 25G and 25H
Under section 25G the employer must ordinarily retrench the workman who joined last in the category ("last come, first go"). He may depart from this only for reasons recorded in writing. Under section 25H, when the employer later takes on new staff, retrenched workmen must be offered re-employment and given preference.
Larger establishments: section 25N
Chapter VB applies to factories, mines and plantations with one hundred or more workmen. There, under section 25N, retrenchment needs three months' notice or pay in lieu and the prior permission of the appropriate Government. Without permission, the retrenchment is void.
| Requirement | Section | Rule |
|---|---|---|
| Continuous service | 25B | 240 days in twelve months |
| Notice | 25F(a) | one month, or wages in lieu |
| Compensation | 25F(b) | fifteen days' pay a year |
| Order of retrenchment | 25G | last come, first go |
| Re-employment | 25H | preference to retrenched workmen |
| Larger units | 25N | prior permission, three months' notice |
Where the law stands now
The 1947 Act was repealed on 21 November 2025 by the Industrial Relations Code 2020. Retrenchment is now defined in section 2(zh), which also excludes the end of fixed term employment. Sections 70 to 72 repeat the old conditions and procedure, and section 79 requires permission only where three hundred or more workers are employed. Section 83 adds a worker re-skilling fund, to which the employer pays fifteen days' last drawn wages for each retrenched worker.
Conclusion. Retrenchment under section 2(oo) is any termination by the employer, for any reason, other than punishment for misconduct and the four listed exclusions. Since Sundara Money and Punjab Land Development it is not limited to surplus staff. A workman with one year's continuous service cannot be retrenched without notice, compensation and notice to the Government under section 25F. A retrenchment in breach is invalid.
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