Section 14: Continuity of existence of the employment relationship despite change in ownership

1) In the case of a change in or transfer of ownership of any work or business or any part thereof of any employer or hand over of such a work or business to another person for its operation or creation of a new enterprise or business as a result of the merger of two or more enterprises or businesses, the employment relationship of the labour working in such an enterprise or business
the ownership of which has been so changed or transferred or which has been so handed over to the other person for its operation or in the enterprise or business which has been merged shall continue to exist.

2) For the purpose of sub-section (1), the employer who so undertakes the ownership or acquires the ownership by way of transfer or undertakes responsibility to operate the work or business or, in the case of a merger of businesses or enterprises, the new enterprise or business created from such merger or, in the case of the transfer of the ownership and liability of a project in accordance with the prevailing law relating to private investment in the building and operation of infrastructures, the enterprise undertaking such ownership and liability shall bear the liability under this Act or the rules framed under this Act or the collective agreement, if any, entered into.

Provided that if any agreement on interim management has been made between the previous employer, new employer and union of the concerned enterprise, the provisions of the agreement shall apply.