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Union of India - Section

Section 37 in The Khadi And Village Industries Commission Employees (Pension) Regulations, 1984

37. Compensation pension.

(1)If an employee of commission is selected for discharge owing to the abolition of his permanent post, he shall, unless he is appointed to another post the conditions of which are deemed by the authority competent to discharge him to be at least equal to those of his own, have the options:
(a)' of taking compensation pension to which he may be entitled for the service he had rendered, or
(b)of accepting another appointment on such pay as may be offered and continuing to count his previous service for pension.
(2)
(a)Notice of at least 3 months shall be given to an employee in permanent employment before his service are dispensed with on the abolition of his permanent post.
(b)Where notice of at least 3 months is not given and the employee has not been provided with other employment on the date on which his services are dispensed with, the authority competent to dispense with his services may sanction the payment of a sum not exceeding the pay and allowances for the period by which the notice actually given to him falls short of 3 months.
(c)No compensation pension shall be payable for the period in respect of which he receives pay and allowances in view of notice.
(3)In case an employee of the Commission is granted pay and allowances for the period by which the notice given to him falls short of 3 months and he is re-employed before the expiry of the period for which he has received pay and allowances, he shall refund the pay and allowances so received for the period following his re-employment.
(4)If an employee of the Commission who is entitled to compensation pension accepts instead another appointment under the Commission and sub-sequently becomes entitled to receive pension of any class, the amount of such pension shall not be less than the compensation pension which he could have claimed if he had not accepted the appointment.