If a business is sold and the employees transfer to the new owner, what happens to their employment terms? Do they get to keep their old benefits and seniority, or does the new owner set new terms? For example, would their salary, retirement plan, or promotion opportunities change?

Under Indian law, when a business is sold, the employees’ employment terms generally transfer to the new owner. The new owner must continue the existing employment terms, including salary, benefits, and seniority, unless there’s a specific agreement with the employees or allowed by law. The new owner can, however, modify these terms after the transfer if it’s a “genuine” change in the nature of the business.