Looking at the settled judgement in I.P.C.L. Employee’s Association V/s. Indian Petrochemicals Corporation (2009 (1) LLN 616), it has been clarified now that no transfer of an employee can be affected from one employer to another without his/her consent. Where two undertakings are merged or amalgamated, transfer of employees should be affected by means of a tripartite agreement between the transferor company, the transferee company and the employees of the transferor company. The rule is also applicable to the government sector.
The employees may choose not to join the new company. But re-employment cannot be claimed as a matter of right and the transferee company is not bound to absorb all the employees of the transferred unit or undertaking. In either case, the employees will be entitled to receive retrenchment compensation.
Also Check: Other Legal Aspects
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