Power to take over municipal services by the Government

(1) Notwithstanding anything contained in this Act, any other law inforce, rules made thereunder and contracts executed and orders made, the State Government if it thinks fit that it is expedient and necessary to do so, may, by notification in the Official Gazette, take over all or any class of employees working in a municipality, specified in the Schedule-II 2[or Schedule-IV.

1. (2) Where any class of employees are taken over under sub-section (1), such employees will become the employees of the State Government and shall be entitled to such remuneration and shall be governed by such rules and regulations as are applicable, to the employees of the State Government on equivalent post.
2. (3) Where any class of employees the taken over by the State Government under sub-section (1), they shall be merged with the employees of that Department of the Government to which the State Government may order: Provided that where such employees are so taken over from a municipality, the corresponding posts in the municipality shall be filled in by deputation out of cadre of the Government Department concerned and the expenditure on account of payment of salary and allowances etc., shall be born by the municipality concerned.
3. (4) Any service rendered by such class of employees under a municipality before taking over such service shall be deemed to be service 1. The word, sign and number “Schedule-III” inserted vide H.P. Act Number 14 of 2023. 2. The words, signs and number “or Schedule-IV” inserted vide H.P. Act Number 14 of 2023. rendered under the State Government: Provided that where any class of employees are taken over by the State Government under sub-section (1), the employees whose services have been taken over shall be governed by the pensionary regulations as made applicable to the Government employees, provided they exercise their option to surrender their contribution of Contributory Provident Fund alongwith interest thereon which amount will be deposited in their General Provident Fund Account in the Department concerned of the State Government, and the share of the municipality alongwith interest thereon shall be credited to the Consolidated Fund of the State of Himachal Pradesh.
4. (5) Nothing contained in sub-sections (1) to (4) shall apply to any employee, who, by notice in writing in that behalf to the State Government within a period of two months from the date of such taking over, intimates his option for not becoming an employee of the State Government, and where any employee gives such notice, his service under the municipality shall stand terminated with effect from such date of taking over, and he shall be entitled to compensation from the municipality, which shall be as follows:-
   • (a) in the case of a permanent employee, a sum equivalent to his salary (including allowances) for a period of three months or for the remaining period of his service, whichever is less;
   • (b) in the case of a temporary employee, a sum equivalent to his salary (including all allowances) for one month or for the remaining period of his service, whichever is less.