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Section 25FF, Industrial Disputes Act 1947: Compensation to workmen in case of transfer of undertakings

Section 25FF (Compensation to workmen in case of transfer of undertakings) under the Chapter VA (Lay-off and Retrenchment) of the Industrial Disputes Act 1947

❝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 favourable 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.❞




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Notes:

The Industrial Disputes Act, 1947 has been amended several times since its enactment.
The latest amendments were by the Industrial Disputes (Amendment) Act, 2010 (24 of 2010) and the Finance Act, 2017 (7 of 2017).

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