Section 12 of The Swadeshi Cotton Mills Company Limited (Acquisition and Transfer of Undertakings) Act, 1986
Continuance of employees of the textile undertakings.
- (1)Every person who has been, immediately before the appointed day, employed by the Company in relation to a textile undertaking, shall become, on and from the appointed day, an employee of the National Textile Corporation and shall hold office or service in that Corporation with the same rights and privileges as to pension, gratuity and other like matters as would have been admissible to him if the rights in relation to such textile undertaking had not been transferred to, and vested in, the National Textile Corporation, and shall continue to do so unless and until his employment in that Corporation is duly terminated or until his remuneration, terms and conditions of employment are duly altered by that Corporation.
- (2)Notwithstanding anything contained in the Industrial Disputes Act, 1947 (14 of 1974), or in any other law for the time being in force, the transfer of the services of any officer or other person employed in a textile undertaking to the National Textile Corporation shall not entitle such officer or other employee to any compensation under this Act or any other law for the time being in force and no such claim shall be entertained by any court, tribunal or other authority.
Summary
- Every person employed by the Company at a textile mill right before the appointed day automatically becomes an employee of the National Textile Corporation on that day.
- These transferred employees keep their exact same rights regarding pensions, gratuities, and other benefits.
- The employment continues under the same terms until the Corporation officially changes their pay or work conditions, or ends their employment.
- Transferring to the new Corporation does not give the employee any right to claim special compensation for the job change.
- No court or tribunal is allowed to award compensation to an employee for this transfer, despite any other laws like the Industrial Disputes Act, 1947.
Practical examples
FAQ
1. Do I need to sign a new contract to keep my job?
No, the transfer of your employment to the National Textile Corporation happens automatically on the appointed day.
2. Will I lose the pension I built up over the years?
No, you hold your position with the exact same rights and privileges for pension and gratuity as you would have if the mill had not been transferred.
3. Can the new management ever change my salary?
Yes, your current remuneration and terms continue until they are duly altered by the National Textile Corporation, or until your employment is terminated.
4. Am I entitled to a payout because my original company was taken over?
No, the law states you are not entitled to any compensation for the transfer of your services.
Test yourself
Q1.Under Section 12 of The Swadeshi Cotton Mills Company Limited (Acquisition and Transfer of Undertakings) Act, 1986, what happens to the specific terms and conditions of a worker's employment immediately after the appointed day?
Q2.Under Section 12 of The Swadeshi Cotton Mills Company Limited (Acquisition and Transfer of Undertakings) Act, 1986, a worker attempts to claim compensation for the transfer of their services citing the Industrial Disputes Act, 1947. How must a court respond?
Q3.Under Section 12 of The Swadeshi Cotton Mills Company Limited (Acquisition and Transfer of Undertakings) Act, 1986, which specific benefits are explicitly listed as being preserved for the employees upon their transfer?
Q4.Under Section 12 of The Swadeshi Cotton Mills Company Limited (Acquisition and Transfer of Undertakings) Act, 1986, who takes over as the new employer for the workers immediately on the appointed day?