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Industrial Disputes Act

Lay-off and Retrenchment

Section 25-FF: Compensation to workmen in case of transfer of undertakings

Where the ownership or management of an undertaking is transferred, whether by agreement or by operation of law, from the employer in relation to that undertaking to a new employer in relation to that undertaking to a new employer, every workman who has been in continuous service for not less than one year in that undertaking immediately before such transfer shall be entitled to notice and compensation in accordance with the provisions of Section 25-F, as if the workman had been retrenched :

Provided that nothing in this section shall apply to a workman in any case where there has been a change of employers by reason of the transfer, if -

(a) the service of the workman has not been interrupted by such transfer ;
(b) the terms and conditions of service applicable to the workman after such transfer not in any way less favorable to the workman than those applicable to him immediately before the transfer ; and
(c) the new employer is, under the terms of such transfer or otherwise, legally liable to pay to the workman, in the event of his retrenchment, compensation on the basis that his service has been continuous and has not be interrupted by the transfer.

Related Keywords

Retrenchment

Startup of a New Establishment or Factory

Transfer of Undertaking

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