Employment of certain employees.

(1) Where services of a person who is a workman within the meaning of the Industrial Disputes Act, 1947, and who has been, immediately before the appointed day, employed in the undertaking, are, in the opinion of the Corporation necessary having regard to requirements of the units restructured as a result of re-organisation of the undertaking, he shall become, from the date of his apointment by the Corporation, an employee of the Corporation and shall hold office or service in the Corporation with the same rights and privileges as to pension, gratuity and other matters as would have been admissible to him if the rights in relation to the undertaking had not been transferred to, and vested in, the Corporation and continue to do so unless and until his employment in such Corporation is duly terminated or until his remuneration and terms and conditions of employment are duly altered by the Corporation. (2) Where services of a person who is not a workman within the meaning of the Industrial Disputes Act, 1947, and who has been immediately before the appointed day, employed in the undertking, are, in the opinion of the Corporation necessary having regard to the requirements of the units or offices of the Corporation restructured as a result of re-organisation of the undertaking, he shall become, from the date of his appointment by the Corporation, an employee of the Corporation and shall hold office or service in the Corporation on such terms and conditions of employment as may be determined by the Corporation. (3) (a) The services of every person employed by the proprietor before the appointed day shall stand terminated— (i) on the designated date if such person is not employed before that date by the Corporation under sub-section (1) or (2), and (ii) on the date of his appointment if such person is employed before the designated date by the Corporation under sub-section (1) or (2). (b) A person whose services stand terminated under sub-clause (i) of clause (a) shall not be entitled to claim employment in the Corporation as of right. (4) (a) Every person whose services stand terminated under sub-clause (i) of clause (a) of sub-section (3) shall be entitled to— (i) payment of gratuity and of compensation for retrenchment or closure in accordance with the provisions of the Payment of Gratuity Act, 1972 and the Industrial Desputes Act, 1947 if he is a workman within the meaning of the latter Act, and (ii) payment of gratuity if he is not such a workman : Provided that, no person whose services are terminated on his superannuation on or before the designated date, shall be entitled to payment of compensation for retrenchment. (b) Notwithstanding anything contained in Chapter VI and notwithstanding that the liability for payment of gratuity and compensation for retrenchment or closure under clause (a) is that of the proprietors such liability shall be discharged by the State Government or the Corporation, according to the order of priorities mentioned in the Schedule and on discharge of such liability by the State Government or the Corporation the proprietors shall stand discharged to the extent of the liability so discharged. (5) Where,— (a) the services of any person employed before the appointed day in the undertaking are terminated.— (i) under the terms of any contract or service or otherwise, or (ii) under sub-section (3), and (b) such person is entitled to any arrears of salary or wages or any payment for any leave not availed of or other payment not being payment by way of gratuity or compensation for retrenchment, such person may, except to the extent such liability of payment has been discharged by the State Government or the Corporation under the proviso to section 7, enforce his claim against the proprietors of the undertaking but not against the State Government or the Corporation : Provided that, notwithstanding anything contained in the Industrial Disputes Act, 1947, the Payment of Wages Act, 1936, and the Payment of Gratuity Act, 1972,–– (a) the State Government or the Corporation shall not be liable,— (i) to any person who has become an employee of the Corporation under sub-section (1) for payment of gratuity or any arrears of wages, or (ii) to any person whose services stand terminated under sub-clause (i) of clause (a) of sub-section (3) for payment of gratuity or any arrears of wages or compensation for retrenchment or closure, for the period commencing from the day on which the undertaking was closed and ending on the day on which such person becomes an employee of the Corporation or, as the case may be, on which his services stand terminated irrespective of whether such closure was in accordance with the provisions of the Industrial Disputes Act, 1947 or not ; (b) the termination of services of a person under sub-clause (ii) of clause (a) of sub-section (3) on his becoming an employee of the Corporation under sub-section (1) shall not entitle such person to payment of any gratuity. Explanation.––In this Chapter–– (a) the expression “Corporation” includes “ new Government company ” ; and (b) the expression “ designated date ’’ means such date as the State Government may, by notification in the Official Gazette, designate.