AIBE XIX 2024 Set A Question 79

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Question 79 of 100 AIBE XIX 2024 Set A

XYZ Textiles Ltd., a manufacturing company, recently terminated 04 workers without providing any compensation. The termination wasbecauseof themisconduct onthepart ofthe workers. The company issued a show cause notice and the disciplinary enquiry was also conducted against them. On the basis of the recommendations of the committee the services of these employees were terminated. The workers claimed the retrenchment compensation which was rejected by the management. Aggrieved by the rejection the workers have filed a complaint in the Labour Court under the provisions of the Industrial Disputes Act, 1947. Based on the above problem, select the correct answer.

A The termination does not amount to retrenchment, hence no compensation. Official answer
B The termination amounts to lay-off, hence compensation will be awarded.
C The termination amounts to retrenchment, hence compensation will be awarded.
D The termination violated the provisions under the Industrial Disputes Act, 1947, hence the compensation will be awarded.