Transfer of employees

The Bobbili and Seethanagaram (Acquisition and Transfer of Sugar Undertakings) Act, 1986

General198625 sections

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Statutory text

(1) Save as otherwise provided in this section, every person (other than a director of a Company in whom the ownership, management or control of the sugar undertakings was vested immediately before the appointed day or of a subsidiary company of such company, or a relative as defined in section 6 of the Companies Act, 1956, or of a proprietor, or partner or lessee of the undertakings), who was employed exclusively in connection with the Sugar undertakings immediately before the appointed day shall on and from the appointed day, become an employee of the Corporation and shall hold his office or service therein by the same tenure, at the same remuneration, and upon the same terms and conditions and with the same rights and privileges as to pension, gratuity and other matters, as he would have held the same on the appointed day if the sugar undertakings had not been transferred to and vested in the Corporation, and shall continue to do so until his employment in the Corporation is terminated or until his remuneration or other terms and conditions of service are revised or altered by the Corporation under or in pursuance of any law or in accordance with any provision which for the time being governs his service : Provided that no appointment made or promotion, increments in salary, pension, allowance or any other benefit, granted to any person before the date of taking over the management of the Sugar undertakings by the Corporation which in the opinion of the Corporation would not ordinarily have been made admissible under the terms and conditions of service in force prior to the said date, shall have effect or be payable or claimable from the Corporation or from any provident, pension or other fund or from any authority administering the fund, unless the Government have, by general or special order, confirmed the appointment promotion or increment or have directed the continued grant of the pension, allowance or other benefit, as the case may be.
(2) Notwithstanding anything in sub-section (1), but subject to any express agreement to the contrary, any person referred to therein other than a workman as defined in the Industrial Disputes Act, 1947, who becomes an employee of the Corporation shall be liable to be transferred from the Sugar undertakings in which he was employed immediately before the appointed day to any other undertaking or establishment belonging to the Corporation at the same remuneration and on the same terms and conditions as govern him immediately before transfer.
(3) If any question arises as to whether any person was exclusively employed in connection with the sugar undertakings immediately before the appointed day, it shall be decided by the prescribed authority. (4)
- (a) For the persons who, immediately before the appointed day, were trustees of any pension, provident, gratuity or other like fund constituted for the employees referred to in sub-section (1), other than trustees nominated by or under any law, there shall be substituted as trustees such person as the Government may, by general or special order, specify.
- (b) Where the sugar undertakings have established a provident fund, superannuation, welfare or other fund for the benefit of the persons, employed in the Sugar undertakings the moneys relatable to the employees whose service have been transferred by or under this section to the Corporation shall, out of the moneys standing on the appointed day to the credit of such provident fund, superannuation, welfare or other fund, stand transferred to and vest in the Corporation.
- (c) The moneys which stand transferred under clause
- (b) to the Corporation shall be dealt with by the Corporation in such manner as may be prescribed.
(5) Notwithstanding anything contained in the Industrial Disputes Act, 1947, or in any other law for the time being in force, the transfer of services of any employee to the Corporation under sub-section
(1) shall not entitle any such employee to any compensation under that Act or such other law, and no such claim shall be entertained by any Court, Tribunal or authority.
(6) Where the Government are satisfied that for purposes of securing uniformity, in the scales of remuneration and other terms and conditions of service applicable to persons employed in connection with the Sugar undertakings vested in the Corporation the interest of the Corporation or for the development of the Sugar Industry in the State, a reduction in remuneration payable or a revision of the other terms and conditions of service applicable to employees or any class of them is called for, the Government, notwithstanding anything in this section or in the Industrial Disputes Act, 1947, or any other law for the time being in force or any award, settlement, or agreement for the time being in force, may at any time within a period of three years from the appointed day, alter (whether by way of reduction or otherwise) the remuneration and the other terms and conditions of service to such extent and in such manner as they think fit, and if the alteration is not acceptable to any employee, the Corporation may terminate his employment by giving him compensation equivalent to three months, remuneration unless the contract of service with such employee provide for a shorter notice of termination. Explanation-I :—The compensation payable to an employee under this sub-section shall be in addition to, and shall not effect, any pension, gratuity provident fund or any other benefits to which the employee may be entitled under the contract of service. Explanation-II :—The expression "Contract of Service" means the contract as subsisting between the employee and the Corporation immediately before termination.
(7) For the purpose of adjudicating upon the fairness or reasonableness of the provisions of any standing orders under the Industrial Employment (Standing Orders) Act, 1946, or the fairness and reasonableness of wages and other allowances, leave with wages, holidays, bonus, profit sharing, provident fund, gratuity, customary concessions and privileges, rationalisation, retrenchment or any other matter under the relevant law relating thereto, the accounts, profits, losses and other circumstances of or pertaining to the undertaking belonging to the Corporation in which a workman or other employee is for the time being employed shall alone be considered and not the accounts, profits, losses and other circumstances of the sugar undertakings vested by virtue of this Act in corporation or any other undertaking otherwise acquired by it.
(8) Where at any time after the appointed day, the Corporation promotes any subsidiary company and transfers one or more sugar undertakings which by virtue of this Act have vested in the Corporation to such Company, the services of such of the Employees of the Corporation as the Corporation declares to have been employed in connection with that or those undertakings (excepting such of them as elect otherwise within such time as may be prescribed) shall stand transferred to that subsidiary company and every such employee shall become the employee of such company at the same remuneration, upon the same terms as to pension, gratuity and other matters as would have been admissible to him if the undertaking had not been transferred to the subsidiary company, and shall continue to do so until his remuneration or other terms and conditions of service are revised or altered by the Company under or in pursuance of any law or in according with any provision which for the time being governs his service, and the provision of sub-section
(5) shall, mutatis mutandis apply in relation to such transfer of service.

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