Section 25B of the Industrial Disputes Act 1947 - Definition of Continuous Service

Section 25B defined "continuous service" for Chapter V-A of the Industrial Disputes Act, 1947. It covered uninterrupted service as well as specified interruptions, and created statutory deeming rules based on days actually worked during the relevant preceding twelve-month or six-month period.

Legal position covered: This article explains the Industrial Disputes Act, 1947 position applicable before 1 July 2024, when the Bharatiya Sakshya Adhiniyam, 2023 came into force. The Bharatiya Sakshya Adhiniyam is an evidence law and did not itself amend Section 25B.

What is continuous service under Section 25B?

Section 25B operated for the purposes of Chapter V-A, which dealt with lay-off and retrenchment. The provision used two connected tests. First, Section 25B(1) recognised actual uninterrupted service while protecting specified interruptions. Second, Section 25B(2) created a deeming rule where the workman did not satisfy the uninterrupted-service test for one year or six months.

Section 25B(1) - Uninterrupted service

A workman is treated as being in continuous service for a period when the service is uninterrupted. The statutory concept also includes service interrupted because of sickness, authorised leave, accident, a strike which is not illegal, a lock-out, or a cessation of work not due to any fault of the workman.

Section 25B(2) - Deemed continuous service

If the workman is not in continuous service within Section 25B(1) for one year or six months, the Act provides alternative day-count tests for deeming continuous service under the employer.

One-year continuous service test

Category of workmanMinimum actual work in preceding 12 calendar months
Workman employed below ground in a mine190 days
Any other workman240 days

Under Section 25B(2)(a), the calculation is made with reference to the twelve calendar months preceding the relevant date. For a workman other than one employed below ground in a mine, the statutory threshold is 240 days. For a workman employed below ground in a mine, it is 190 days.

Six-month continuous service test

Category of workmanMinimum actual work in preceding 6 calendar months
Workman employed below ground in a mine95 days
Any other workman120 days

Section 25B(2)(b) similarly provided a deeming rule for six months. The relevant thresholds were 95 days for a workman employed below ground in a mine and 120 days in any other case.

Days included as days actually worked

The Explanation to Section 25B expanded the statutory count of days actually worked. It included specified days even though the workman might not have physically performed work on those days.

Included periodStatutory basis
Lay-off under an agreement, applicable standing orders, the Industrial Disputes Act or another applicable lawExplanation (i)
Leave with full wages earned in previous yearsExplanation (ii)
Absence due to temporary disablement caused by an accident arising out of and in the course of employmentExplanation (iii)
Maternity leave in the case of a female workman, subject to the statutory limit stated in Section 25BExplanation (iv)

240 days does not replace Section 25B(1)

The 240-day rule is part of the deeming provision in Section 25B(2)(a)(ii). Section 25B(1) separately recognises uninterrupted service, including the interruptions expressly protected by that clause. The provision should therefore be read as a whole rather than treating 240 days as the only possible test of continuous service.

Why Section 25B matters for retrenchment

Section 25F imposed conditions precedent to retrenchment of a workman who had been in continuous service for not less than one year under an employer. Section 25B supplied the statutory meaning of continuous service used when applying that protection.

Connection with lay-off compensation

Section 25C dealt with compensation for eligible laid-off workmen who satisfied the continuous-service requirement stated in that provision. Section 25B therefore also had practical importance in determining entitlement under the lay-off provisions of Chapter V-A.

Section 25A and the scope of lay-off provisions

Section 25A determined the application of Sections 25C to 25E to specified industrial establishments. It should be considered together with Section 25B when a claim concerns lay-off compensation or related Chapter V-A rights.

Important points when calculating continuous service

The relevant date must first be identified. The applicable preceding twelve-calendar-month or six-calendar-month period can then be calculated. Attendance, muster rolls, wage records, leave records, lay-off records and other employment material may become relevant to determining the number of qualifying days. Applicable State amendments should also be checked because State legislation may modify the central Industrial Disputes Act for matters within its operation.

Meaning of workman

For the pre-1 July 2024 Industrial Disputes Act framework, "workman" was defined in Section 2(s). In broad terms, it covered persons employed in an industry to perform manual, unskilled, skilled, technical, operational, clerical or supervisory work for hire or reward, subject to the inclusions and exclusions specified in the statutory definition. Whether a person qualified as a workman depended on the statutory test and the actual nature of the duties performed.

Official statutory source

The official text of Section 25B and the connected provisions of Chapter V-A should be checked through the Ministry of Labour and Employment or India Code for the version applicable to the relevant date. State amendments, notifications and binding judicial decisions should also be verified where relevant.

This article is a general legal reference to the statutory position before 1 July 2024. The calculation of continuous service in an individual dispute depends on the applicable law, relevant date and evidence concerning the employment period.