WORKMEN OF SUBONG TEA ESTATE vs THE OUTGOING MANAGEMENT OF SUBONGTEA ESTATE & ANOTHER

The Supreme Court held that retrenchment under Section 25F of the Industrial Disputes Act, 1947 requires compliance with three conditions: one month's notice, payment of compensation, and notice to the appropriate government. The Court found that the retrenchment of eight employees was invalid as it was executed by the vendor who was no longer the employer post-transfer, and thus did not meet the statutory requirements. The Tribunal's ruling was overturned, and the retrenched employees were entitled to reinstatement rather than mere compensation.