03/07/2025
Confederation of Newspapers and News Agencies to Struggle for Stricter Safety and Security Laws for Employees
The Confederation of Newspapers and News Agencies employees, in a meeting held at Udaipur (Rajasthan) on 29 June 2025, have decided to campaign for the enactment of legislation ensuring the safety and security of employees in the media industry. The question of whether a change in an organisation's ownership can lead to mass employee retrenchment is a crucial concern for employees. Under Indian law, the process is closely regulated, primarily by the Industrial Disputes Act, 1947, and subject to judicial review. However, in the case of PTI, India’s premier news agency, the management retrenched nearly three hundred employees without proper government approval and without settling employee dues.
Meanwhile, a similar issue has arisen at another news agency, UNI, where the new management, the owners of the Statesman, has taken control. It must be noted that Statesman is itself a financially struggling newspaper, but it is eyeing the land owned by UNI, valued at hundreds of crores. The management has also dismissed old employees without paying their dues. Similar incidents have occurred at Hindustan Times and Sahara Newspapers, where workers have been left stranded. Due to the lax enforcement of retrenchment laws, workers are suffering, and regrettably, the government remains a silent spectator.
At the core of this issue lies Section 25FF of the Industrial Disputes Act, 1947. This provision states that upon transfer of ownership or management of an undertaking, every 'workman' who has been in continuous service for at least one year is entitled to notice and compensation as if they have been retrenched. This involves a one-month notice (or pay in lieu) and retrenchment compensation equal to fifteen days' average pay for each completed year of continuous service.
The Consent Conundrum
A significant point of legal debate has been whether employee consent is mandatory for their transfer to the new management. Rulings of the Courts emphasise that employees cannot be regarded as chattel and that their consent is essential, but in some of them it has been held that if the conditions of the proviso to Section 25FF are satisfied, a formal consent may not be necessary for the transfer of 'workmen'. For employees not classified as 'workmen' (such as managerial or administrative staff), their employment contracts primarily govern their rights and the need for consent for transfer.
Bulk Retrenchment: Not an Unrestricted Power
Even if a new owner decides against retaining the existing workforce and opts for retrenchment, it is not a straightforward process, especially for a large group of employees. The following legal principles and procedures apply:
"Last In, First Out" Principle: In cases of retrenching workmen within a specific category, Section 25G of the Industrial Disputes Act mandates following the "last in, first out" rule. Prior Government Permission for Larger Establishments: For industries employing 100 or more workers externally (the new threshold in the Labour Code is 300, which is yet to be implemented), Section 25N of the Act demands prior approval from the appropriate government before retrenching any workmen. The government will assess whether the reasons for retrenchment are genuine and adequate, considering the interests of the workers and other relevant factors. Applying for bulk retrenchment under these circumstances undergoes rigorous scrutiny, yet most managements have bypassed this requirement.
Bona Fide Reasons: Any retrenchment, whether individual or collective, must be for honest reasons. But who cares for the plight of the workers?
Due to these industry conditions, the confederation has decided to launch a nationwide campaign. This decision was approved by the confederation leadership, consisting of President Shri Ras Bihari, General Secretary Shri MS Yadav, and Vice President Shri Anil Gupta. Representatives from other organisations, such as the IFWJ, including Shri Hemant Tiwari and Parmanand Pandey, as well as from UNI (Shri ML Joshi), PTI (Shri Bhuwan Chaube), and the Indian Express (Shri CS Naidu), attended the meeting. The specific dates will be confirmed at a future meeting in New Delhi.
Parmanand Pandey
Secretary General: IFWJ