Where the ownership or management of an establishment is transferred, whether by agreement or by operation of law, from the employer in relation to that establishment to a new employer, every worker who has been in continuous service for not less than one year in that establishment immediately before such transfer shall be entitled to notice and compensation in accordance with the provisions of section 70 as if the worker had been retrenched:
Provided that nothing in this section shall apply to a worker in any case where there has been a change of employers by reason of the transfer, if---
(a) the service of the worker has not been interrupted by such transfer;
(b) the terms and conditions of service applicable to the worker after such transfer are not in any way less favourable to the worker than those applicable to them immediately before the transfer; and
(c) the new employer is, under the terms of such transfer or otherwise, legally liable to pay to the worker, in the event of his retrenchment, compensation on the basis that his service has been continuous and has not been interrupted by the transfer.
Provided that nothing in this section shall apply to a worker in any case where there has been a change of employers by reason of the transfer, if---
(a) the service of the worker has not been interrupted by such transfer;
(b) the terms and conditions of service applicable to the worker after such transfer are not in any way less favourable to the worker than those applicable to them immediately before the transfer; and
(c) the new employer is, under the terms of such transfer or otherwise, legally liable to pay to the worker, 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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More sections of this act
Section 1 · Short title, extent and commencement.Section 2 · Definitions.Section 3 · Works Committee.Section 4 · Grievance Redressal Committee.Section 5 · Registrar of Trade Unions.Section 6 · Criteria for registration.Section 7 · Provisions to be contained in constitution or rules of Trade Union.Section 8 · Application for registration, alteration of name and procedure thereof.India Code, Government of India. Text fetched 24 Oct 2026. Check the linked official text and subsequent notifications when applying a provision.