Section 111(b) in The States Reorganisation Act, 1956
(b)the employer, in relation to the body corporate or the undertaking where the workman is transferred or re-employed, is by agreement or otherwise legally liable to pay to the workman, in the event of his retrenchment, compensation under section 25-F of the Industrial Disputes Act. 1947, on the basis that his service has been continuous and has not been interrupted by the transfer or re-employment.
