State Act
Section 10. Absorption of employees
10- (1) Subject to the provisions of sub-section (2) every person who has been, immediately before the appointed day, a regular employee of the Nigam,- (a) shall on and from the appointed day, be deemed to be on deputation with the State Government on the same terms and conditions, (b) on the vesting of the Undertaking in the Corporation under section 5, shall become an employees of the Corporation on and from the date of such vesting, and shall hold office or service under the Corporation. on the same terms and conditions and with the same rights and privileges as to retirement benefits and other matters as would have been applicable to him immediately before such vesting, till his employment under the Corporation, is duly terminated or until his remuneration and other conditions of service are duly altered by the Corporation, not to his disadvantage. (2) A person referred to in sub-section (1) may, within three months from the date of vesting of the Undertaking in the Corporation, communicate to the Corporation his option not to be absorbed in the service of the Corporation failing which he shall be deemed to have opted for absorption in the service of the Corporation. (3) The services of an employee who opts against absorption shall stand terminated and he shall without prejudice to his claim to any leave, pension, provident fund or gratuity which he would have been entitled to, be entitled to, receive as compensation from the Corporation, an amount equal to,--- (a) three months salary, if he was a permanent employee, (b) one month's salary, if he was a temporary employee. Explanation: For the purposes of this sub-section, the term 'salary' includes dearness allowance; personal pay and special pay, if any. (4) Any person who was serving the Nigam on deputation from the Board or any other organization immediately before the vesting of the Undertaking in the State Government shall on such vesting be deemed to be on deputation with the State Government on the same terms and conditions until he is reverted to his parent organization. (5) Any person who was serving the State Government on deputation under the provisions of sub-section (4) immediately before the vesting of the Undertaking in the Corporation, shall on such vesting be deemed to be on deputation with the Corporation on the same terms arid conditions until he is reverted to his parent organization or absorbed in the service of the Corporation. (6) Notwithstanding anything contained in the Industrial Dispute Act, 1947, or in any other law for the time being in force, the transfer of the services of any employee of the Nigam to the Corporation shall not entitle him to any compensation under this Act or under any other law for the time being in force and no such claim shall be entertained by any court, tribunal or other authority.