Section 11 in Anglo-French Textiles Limited (Acquisition and Transfer of Textile Undertaking) Act, 1986
11. Employment of certain employee.
(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 textile undertaking, are in the opinion of the Corporation necessary having regard to the requirements of the units of the Corporation formed as a result of reorganization and 'reconstruction of the textile 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 with the same rights and privileges as to pension, gratuity and Other matters as would have been admissible to hint if the rights in relation to such textile undertaking had not been transferred to, and vested in the Corporation, and continue to do so unless an 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:Provided that notwithstanding anything contained in the Payment of Wages Act, 1936 (Central Act 4 of 1936) and the Payment of Gratuity Act, 1972 (Central Act 39 of 1972) -(a)the Government or the Corporation shall not be liable to any person who has become an employee of the Corporation under this sub-section for payment of any gratuity or any arrears of wages for the period commencing from the day on which the textile undertaking in which he was employed was closed and ending on the day on which he becomes an employee of the Corporation, irrespective of whether such closure was in accordance with the provisions of the Industrial Disputes Act, 1947 (Central Act 14 of 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 this sub-section, shall not entitle such person to payment of any gratuity.(2)Where services of a person who is not a workman within the meaning of the Industrial Disputes Act, 1947 (Central Act 14 of 1947), and who has been, immediately before the appointed day, employed in the textile undertaking, are in opinion of the Corporation necessary having regard to the requirement of the units of the Corporation formed as a result of .reorganisation and reconstruction of the textile undertaking by the Corporation, 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 owner 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 as per the provisions of the Payment of Gratuity Act, 1972 and compensation for retrenchment or closure, as the case may be, if he is a workman within the meaning of the Industrial Disputes Act, 1947 in accordance with the provisions of that Act; and(ii)payment of gratuity if he is not such 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 that the liability for payment of gratuity and compensation for retrenchment under clause (a) is that of the owner, such liability shall be discharged by the Government or the Corporation, according to the order of priorities mentioned in the Second Schedule and on discharge of such liability by the Government or the Corporation, the owner 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 textile 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 Government or the Corporation under sub-section (4) of section 7, enforce his claim against the owner of the textile undertaking but not against the Government or the Corporation.Explanation. - In this section, the expression "designated date" means such date as the Government may, in relation to the textile undertaking by notification designate.Chapter - V Commissioner of Payments
