 the industrial disputes (amendment) bill, 1957[as introducbd in lok sabra) (as introduced in lok sabra)  a billfurther to amend the industrial disptlte$ aot, 1947 be it enacted by parliament in the eighth year of the republic of india as follows:-1 (1) this act may be called the industrial disputes (amend- short title ment) act, 1957 and commencement 5 (2) section 2 shall be deemed to have come into force on the 10th day of march, 1957, and section 3 on the 1st day of december, 1956 of 15147 2 in section 2 of the industrial disputes act, 1947, (hereinafter amendment referred to as the principal act), for clause (r), the following clause of section z 10 shall be substituted, namely:-"(r) 'tribunel' means an industrial tribunal constituted under section 7a and includes an ,industrial tribunal constituted before the 10th day of march, 1957, urlder this act;" 3 for section 25ff of the principal act, the following sections substitution is shall be substituted, namely:-ti~n~~~r =: tion zsff "25ff where the ownership or management of an under- compensataking is transferred, whether by agreement or by operation of tion t~ work- men in case law, from the employer in relation to that undertakmg to a ot ranster new employer every workman who has been in continuous ser- ~f undertak  '  •• vice for not less than one year in that undertaking nnmediately logs 20 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 5 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 10 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 is his service has been continuous and has not been interrupted by the transfer 25fff (1) where en undertaking is closed down for any reason whatsoever, every workman who has been in continuous service for not less than one year in that undertaking immedia- 20 tely before such closure shall, subject to the provisions of subsection (2), be entitled to notice and compensation in accordance with the provisions of section 25f, as if the workman had been retrenched: provided that where the undertaking is closed down on 25 account of unavoidable circumstances beyond the control of the employer, the compensation to be paid to the workman under clause (b) of section 25f shall not exceed his average pay for three months explanation-an undertaking which is closed down by 30 reason merely of financial losses or accumulation of undisposed of • tocks shall not be deemed to' have been closed down on account of unavoidable circumstances beyond the control of the employer within the meaning of the proviso to this sub-section (2) where any undertaking set-up for the construction of 35 buildings, bridges, roads, canals, dams or other construction works is closed down on aceount of the completion of the work within two years from the date on which the undertaking had been set-up, no workman employed therein shall be entitled to any compensation under clause (b) of section 25f, but if the construction work is not so completed within two years, he shall be entitled to notice and compensation under that section for every completed year of service or any part thereof in excess of six months, excluding therefrom the first two years of his' service in that undertaking" 4 the industrial disputes (amendment) ordinance, 1957 is repeal of hereby repealed ordinance 4 of i9s7 - -  statement of objects and reasons- in a judgment delivered on the 27th november, 1956, the supreme court held that no retrenchment compensation was payable under section 25f of the industrial disputes act, 1947, to workmen whose services were terminated by an employer on a real and bona fide closure of business, or when termination occurred as a result of transfer of ownership from one employer to another since then, a number of under1lakings have closed down or put up notices of closure for one reason or another this has led and is likely to lead to a large number of workmen being rendered unemployed without any compensation in order to meet the situation which was causing har~- -c ship to workmen, it was considered necessary to take immediate action and the industrial disputes (amendment) ordinance, 1957 (4 of 1957), was promulgated with retrospective effect from 1st december, 1956 2 the ordinance provides that compensation would be payable to workmen whose services are terminated on account of the transfer or closure of undertakings in the case of transfer of an undertaking, however, if the workman is re-employed on terms and conditions which are not less favourable to him, he will not be entitled to any compensation this was the position which existed prior to the decision of the supreme court in the case of closure· of business on accoun't of circumstances beyond the control of the employer, the maximum compensation payable to workmen has been limited to his average pay for three months if the undertaking is engaged in any construction work and it is closed down within two years on account of the completion of its work, no compensation would be payable to workmen employed therein 3 this bill seeks to replace the ordinance by an act of parliament opportunity has been taken to amend the definition of "tribunal" as inserted by the industrial disputes (amendment and miscellaneous provisions) act, 1956 (36 of 1956) the amendment is merely formal and clarificatory g l nanda new di:lm; the 10th may, 1957  annexuredcfiditiodi extrac'l's nom the industrial disputes act, 1947 no 14 of 1947 - - - - 2 in this act, unless there is anything repugnant h the subject or context,-- - - - (,) "tribunal" means an industrial tribunal constituted under section 7a; - - - - special pro-25ff notwithstanding anything contained in section 25f, no v,iliod rell- workman shall be entitled to compensation under that section by tldg to workmen employ- reason merely of the fact that there has been a change bf employers cd!d under- in any case where the ownership or management of the undertaking ~!~:'are in which he is employed is transferred, whether by agreement or by transferred operation of law, from one employer to another: provided that-(a) the service of the workman lies not been interrupted by reason of the transfer; (b) the tenns 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 employer to whom the ownership or management of the undertaking is so transferred is, under the terms of the 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 glpnd-ls iii shift-2 m of law  lok sabhaa bill further to amend the industrial disputes act, 1947 (shn' gulzarilal nanda, minister of labour & employment and planning) 