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.
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 workman | Minimum actual work in preceding 12 calendar months |
|---|---|
| Workman employed below ground in a mine | 190 days |
| Any other workman | 240 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 workman | Minimum actual work in preceding 6 calendar months |
|---|---|
| Workman employed below ground in a mine | 95 days |
| Any other workman | 120 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 period | Statutory basis |
|---|---|
| Lay-off under an agreement, applicable standing orders, the Industrial Disputes Act or another applicable law | Explanation (i) |
| Leave with full wages earned in previous years | Explanation (ii) |
| Absence due to temporary disablement caused by an accident arising out of and in the course of employment | Explanation (iii) |
| Maternity leave in the case of a female workman, subject to the statutory limit stated in Section 25B | Explanation (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.