Section 74: Sixty days’ notice to be given of intention to close down any undertaking
Reviewed by Finin2min Editorial Desk · Last reviewed 8 September 2026
Section 74 — Sets the statutory notice requirement for sixty days’ notice to be given of intention to close down any undertaking, including the relevant trigger, recipient and timing conditions. Key operative text: (1) An employer who intends to close down an undertaking shall serve, at least sixty days before the date on which the intended closure is to become effective, a notice, in such manner as may be prescribed, on the appropriate…
All provisions were brought into force from 21 November 2025 under S.O. 5320(E); use the current India Code consolidation because the Code also reflects the 2026 amendment/transition framework.
Provision / India Code ↗ · Official Act PDF ↗ · 2026 Central Rules ↗
2-minute answer
Section 74: Sixty days’ notice to be given of intention to close down any undertaking should be read as an operative legal provision, not just a heading. Use the statutory text, effective-date/amendment status, connected rules/forms and the factual checklist below before applying it.
What this page answers
- Finin2min analysis — what the section actually does
- Operative clauses
- Provisos, explanations & qualifications
- Thresholds and timelines in the text
- Actors expressly appearing in the text
Practical checklist
- Read the operative text and amendment/effective-date status first.
- Map the provision to connected rules, forms, notifications and exceptions.
- Apply the provision to the actual facts rather than relying on the section heading alone.
- Keep the document trail that proves dates, amounts, approvals and compliance steps.
Official sources
Related Finin2min guidance
Finin2min analysis — what the section actually does
Operative clauses
- (1) An employer who intends to close down an undertaking shall serve, at least sixty days before the date on which the intended closure is to become effective, a notice, in such manner as may be prescribed, on the appropriate Government stating clearly the reasons for the intended closure of the undertaking:
- Provided that nothing in this section shall apply to— (i) an industrial establishment in which less than fifty workers are employed or were employed on any day in the preceding twelve months;
- (2) Notwithstanding anything contained in sub-section (1), the appropriate Government may, if it is satisfied that owing to such exceptional circumstances as accident in the undertaking or death of the employer or an extraordinary situation such as natural calamities or the like, it is necessary so to do, by order, direct that the provisions of sub-section (1) shall not apply in relation to such undertaking for…
Provisos, explanations & qualifications
- Provided that nothing in this section shall apply to— (i) an industrial establishment in which less than fifty workers are employed or were employed on any day in the preceding twelve months; (ii) an industrial establishment set up for the construction of buildings, bridges, roads, canals, dams or for other construction work or project.
Thresholds and timelines in the text
- Sixty days’ notice to be given of intention to close down any undertaking.—(1) An employer who intends to close down an undertaking shall serve, at least sixty days before the date on which the intended closure is to become effective, a notice, in such manner as may be prescribed, on the appropriate Government stating clearly the reasons for the intended…
- Provided that nothing in this section shall apply to— (i) an industrial establishment in which less than fifty workers are employed or were employed on any day in the preceding twelve months;
Actors expressly appearing in the text
Employer, Worker, Appropriate Government
Full statutory text — Section 74
74. Sixty days’ notice to be given of intention to close down any undertaking.—(1) An employer
who intends to close down an undertaking shall serve, at least sixty days before the date on which the
intended closure is to become effective, a notice, in such manner as may be prescribed, on the
appropriate Government stating clearly the reasons for the intended closure of the undertaking:
Provided that nothing in this section shall apply to—
(i) an industrial establishment in which less than fifty workers are employed or were employed
on any day in the preceding twelve months;
(ii) an industrial establishment set up for the construction of buildings, bridges, roads, canals,
dams or for other construction work or project.
(2) Notwithstanding anything contained in sub-section (1), the appropriate Government may, if it is
satisfied that owing to such exceptional circumstances as accident in the undertaking or death of the
employer or an extraordinary situation such as natural calamities or the like, it is necessary so to do, by
order, direct that the provisions of sub-section (1) shall not apply in relation to such undertaking for
such period, as may be specified in the order.How to apply this provision
- Primary statutory test — (1) An employer who intends to close down an undertaking shall serve, at least sixty days before the date on which the intended closure is to become effective, a notice, in such manner as may be prescribed, on the appropriate Government stating clearly the reasons for the intended closure of the undertaking:
- Additional operative limb — Provided that nothing in this section shall apply to— (i) an industrial establishment in which less than fifty workers are employed or were employed on any day in the preceding twelve months;
- Qualification / exception to test — Provided that nothing in this section shall apply to— (i) an industrial establishment in which less than fifty workers are employed or were employed on any day in the preceding twelve months; (ii) an industrial establishment set up for the construction of buildings, bridges, roads, canals, dams or for other construction work or project.
- Numerical or timing control — Sixty days’ notice to be given of intention to close down any undertaking.—(1) An employer who intends to close down an undertaking shall serve, at least sixty days before the date on which the intended closure is to become effective, a notice, in such manner as may be prescribed, on the appropriate Government stating clearly the reasons for the intended…
- Central Rule mapping — 29. Read the mapped provision together with this text rather than treating the concordance as a substitute for it.
- Evidence file — retain facts and records proving the role/status of: Employer, Worker, Appropriate Government.
Rules, forms and cross-references
Direct 2026 Central Rule mapping
Forms mapped
No prescribed form is directly mapped in the current concordance.
Other sections cited in this text
Related Labour Hub resources
A direct concordance is not exhaustive. Central/State jurisdiction, schemes, authority appointments, saved instruments and later notifications may change the practical route without changing the section wording.
Worked example
Suppose an industrial establishment reaches a step governed by sixty days’ notice to be given of intention to close down any undertaking. HR/IR should create a dated file showing coverage, the competent authority/union status, required notice or application, service proof and the result. One operative text point to test is: “Sixty days’ notice to be given of intention to close down any undertaking.—(1) An employer who intends to close down an undertaking shall serve, at least sixty days before the date on which the intended closure is to become effective, a notice, in such manner as may be prescribed” Also test the express qualification/proviso before concluding the result. Read the mapped Central Rule(s) 29.
Illustration only; it is not statutory text or a substitute for applying the actual facts, jurisdiction, current rule/scheme and official instrument.
Q&A — Section 74
What does Section 74 of the Industrial Relations Code cover?
Section 74 — Sets the statutory notice requirement for sixty days’ notice to be given of intention to close down any undertaking, including the relevant trigger, recipient and timing conditions. Key operative text: (1) An employer who intends to close down an undertaking shall serve, at least sixty days before the date on which the intended closure is to become effective, a notice, in such manner as may be prescribed, on the appropriate…
What is the main legal requirement or power in Section 74?
The first operative clause identified from the official text is: “(1) An employer who intends to close down an undertaking shall serve, at least sixty days before the date on which the intended closure is to become effective, a notice, in such manner as may be prescribed, on the appropriate Government stating clearly the reasons for the intended closure of the undertaking:” Read it with the remaining subsections and any proviso below.
Does Section 74 contain a proviso or explanation?
Yes. A qualification extracted from the official text is: “Provided that nothing in this section shall apply to— (i) an industrial establishment in which less than fifty workers are employed or were employed on any day in the preceding twelve months; (ii) an industrial establishment set up for the construction of buildings, bridges, roads, canals, dams or for other construction work or project.”
What time limit, percentage or amount appears in Section 74?
The provision contains this numerical/time expression: “Sixty days’ notice to be given of intention to close down any undertaking.—(1) An employer who intends to close down an undertaking shall serve, at least sixty days before the date on which the intended closure is to become effective, a notice, in such manner as may be prescribed, on the appropriate Government stating clearly the reasons for the intended…” Apply it only in the clause and context in which it appears.
Which 2026 Central Rules are linked to Section 74?
The current concordance maps Section 74 to Central Rule(s) 29.
Is Section 74 currently operative?
All provisions were brought into force from 21 November 2025 under S.O. 5320(E); use the current India Code consolidation because the Code also reflects the 2026 amendment/transition framework.
Source & verification trail
Act: Industrial Relations Code, 2020 — official India Code PDF ↗
Central Rules: Industrial Relations (Central) Rules, 2026 — G.S.R. 342(E), 8 May 2026 ↗
Official library: Ministry of Labour & Employment — Labour Codes ↗
Source check: 20 August 2026. Individual professional interpretation should be re-reviewed when the section, rules, notification, scheme, State overlay or controlling judgment changes.