Section 75(1) in THE INDUSTRIAL RELATIONS CODE, 2020
(1)Where an establishment is closed down for any reason whatsoever, every worker who has been in continuous service for not less than one year in that undertaking immediately before such closure shall, subject to the provisions of sub-section (2), be entitled to notice and compensation in accordance with the provisions of section 70, as if the worker had been retrenched:Provided that where the undertaking is closed down on account of unavoidable circumstances beyond the control of the employer, the compensation to be paid to the worker under clause (b) of section 70, shall not exceed his average pay for three months.Explanation. - 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.
