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Aditya Mudgal (Lawyer)     10 October 2008

Certified Standing Orders

Dear all,


This is with regard to the transfer of ownership of a factory and the effect on the Standing Orders displayed in the factory. In the case of change in ownership, where most of the employees and processes are retained by the new owners, if the SOs are under the previous owners name in the Register, will the new owners have to repeat the entire procedure under Section 5-7 of the IE (SO) Act, 1946 or will an intimation to the Dy Comm (Certifying Authority)(which has not been replied to by the CAuth. in over a year) be sufficient. Also, in the interim period, will the workers be bound by the so displayed SOs or can they argue in an enquiry under the SOs that they were not bound by the SOs which were in the name of the previous owners. Have their been any cases with similar situations?


Thank You


 2 Replies

H. S. Thukral (Lawyer)     11 October 2008

Transfer of ownership of an undertaking is governed by section 25FF of the Industrial Dispoutes Act which says that if the employees are transferred to new undertaking the terms of employment shall not be less favourable to them. It implies tht their service conditions shall remain same. Standing Orders which describe main service conditions of employees therefore shall remain unchanged. The SO's otherewise can not be changed arbitrarily.

pawan sharma (exe.)     17 August 2012

Dear all,

              i have not any query , but i want to inform you that my name is pawan sharma .i have done LL.B, MBA(HR) , MSW. and now  working  since last two years as senior executive (Statutory Compliances Management ) in consulting company namely MYND Solutions (P) Limited . and deputed at chandigarh. but now i willing to change. if anybody know any concerned position in chandigarh-panchkula. pls inform me.



Pawan Sharma


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