Industrial Disputes Act, 1947
25FF. 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, 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 25F, 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 are 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 been interrupted by the transfer.]