The present company in the process of merger there should be a Board of Director’s resolution / Share holders or Executive Board, besides all terms and conditions, there should be one condition, with regard to the service continuity of employees and the earlier liability on gratuity and other terminal benefits.
Once the merger is over, the new taken over company, has to issue individual letter to all employees on their service continuity and terminal benefits. Some time employee’s are given option to continue in the present employer on different service conditions / salary structure, or opt for voluntary retirement (Golden Hand Shake) if they are not acceptable to the new service conditions.
If the new company doesn’t come forward / follow the above procedure, the option available to the workmen is to raise an Industrial Dispute under ID Act for the liability on previous service conditions/ continuity of service, and settle their claim/ issue by a settlement under section 12(3) of the Act