THESE SLIDES ARE PREPARED AFTER READING BOOKS AND LISTENING TO YOUTUBE CHANNELS. HOPE THIS WILL BE USEFUL FOR STUDENTS IN LEGAL STUDIES.

1. SAIVARDHAN K
2ND SEM 3 YEAR LLB
BENGALURU,KARNATAKA
CLOSURE AND TRANSFER OF
UNDERTAKING WITH REFERENCE
TO STATUTORY DEFINITIONS AND
JUDICIAL DECISIONS

2. Compensation to Workman in case of Undertakings
* Ownership/Management of undertaking
OLD EMPLOYER NEW EMPLOYER – NOTICE & COMPENSATION – WORKMAN
( 1 YEAR )
Conditions for workman to claim compensation
- By Agreement or Operation of Law
- Undertaking in Industry within Meaning of Section 2(j)
- Continuous of Service of workman – 1 Year

3. Some cases, Where No Compensation Arises :
i) No Interruption in service of workman
ii) Terms and Conditions – If the new one compares
favourably with old ones.
iii) Legal obligation – Pay to workman – Subsequent
Retrenchment Compensation.
NOTE:-
COMPENSATION CAN BE CLAIMED ONLY AGAINST OLD
EMPLOYER AND NOT THE NEW EMPLOYER.

4. SIXTY DAYS NOTICE TO BE GIVEN OF INTENTION TO CLOSE
DOWN ANY UNDERTAKING
1) 60 DAYS NOTICE – PRESCRIBED MANNER – CLEARLY STATED REASONS
APPROPRIATE GOVERNMENT
* Not applies – undertaking
<50 workmen <50 workmen employed
Avg. Pay per working day
12 Months
Undertaking :-
Construction of
buildings, Bridges,
roads, canals.

5. 2) The sub-section (1) is not applicable in following circumstances
Accidents in the undertaking or Death of employer
COMPENSATION TO WORKMEN IN CASE OF
CLOSING DOWN THE UNDERTAKING
- Involuntary Unemployment (iv) Engaged in Mining and
- Exceptions – exhaustion of Minerals.
(i) Financial Difficulty
(ii) Accumulation of undisposed stocks
(iii) Expired period of Lease/License granted.

6. CONSTITUTIONALITY OF SECTION 25FFF
• Classification – Neither arbitrary nor unreasonable – No
infringement of Article 14.
• Article 19(1)(g) – Certains Restrictions – General public.
Maruti Udyog vs Ram Lal and Others