Impact Of Closure Of Industries On Workers

Kanvi Gupta, Amity Law School, Amity University, Lucknow Campus

INTRODUCTION

Government is taking several initiatives to curb and reduce unemployment in the country and when the incidents of closing of industry occurs then unemployment rate increases and all such schemes are more burdened, poverty is increased and also the economic balance gets disturbed.

After the closure of industry workers face mental and economic disturbance. It is not necessary and easy for workers to get employment again with respect to the skills which they possess and kind of work in which they are comfortable in doing. In the economy where unemployment rate is too high and frequent lay-offs occur it is difficult to get the secure job again. The economic crisis is faced by them along with their family. Their family suffers from lack of basic necessities, education, health facilities and etc. The local ecosystem around the company also gets disturbed. The local suppliers and peddlers who get their business from company and its employers also suffer.

Government takes due care while granting the permission to any industry for its closure. Labour Laws in India also contains provisions regarding closure of firm and the procedure regarding it required. Many firms were closed in past few years specially during Covid-19 which had left many workers unemployed.