PALAKKAD: Varun Beverages Ltd, the franchisee of the Pepsi unit in Kanjikode, has served the final notice on the employees stating that it is permanently closing down the factory on Wednesday. In a letter to the secretary of the Department of Labour and Skills, Varun Beverages stated that the notice on closing down the factory was first issued to the state government and trade unions of permanent workers on September 22, 2020.
The reasons for the closure were also duly stated in the prescribed form. The letter stated that the labour department had convened meetings in which the company had given explanations. As all statutory requirements have been duly complied with, the period of 60 days from September 22 when the notice was served on the labour department has expired on November 21, said the notice.
The state government, however, has neither communicated its approval or refusal of permission for closure as sought within the statutory time frame of 60 days. Therefore, as per Section 25-O (3) of the Industrial Disputes (Amendment) Act, 1947, the permission for closure of the undertaking, as sought, is deemed to have been granted on the expiry of the 60-day period.
The unit will be closed down permanently on Wednesday, the letter said. The company also stated that every staffer who was employed in the undertaking before the date of application for permission (September 22) shall be paid a compensation equivalent to 15 days’ average pay for every completed year of continuous service or any part in excess of six months as required.
CITU state committee member SB Raju said the Pepsi unit (Varun Beverages) was the first casualty of the amendments made to the labour laws by the Centre. He said the unit had issued a notice of closure as soon as the new amendments were passed by Parliament. As per the amendments, no approval for closure is required after the statutory period is over.