Section 5 of The Indian Institutes of Information Technology (Public-private Partnership) Act, 2017
On and from the date of commencement of this Act,---
- (a)any reference to any existing Institute in any contract or other instrument shall be deemed to be reference to the corresponding Institute mentioned in column (5) of the Schedule;
- (b)all properties, movable and immovable, belonging to every existing Institute shall vest in the corresponding Institute mentioned in column (5) of the Schedule;
- (c)all rights, debts and other liabilities of every existing Institute shall be transferred to, and be the rights and liabilities of, the corresponding Institute mentioned in column (5) of the Schedule;
- (d)every person employed by any existing Institute, immediately before such commencement, shall hold his office or service in the corresponding Institute mentioned in column (5) of the Schedule, with the same tenure, at the same remuneration and upon the same terms and conditions and with the same rights and privileges as to pension, leave, gratuity, provident fund and other matters as he would have held the same if this Act had not been enacted and shall continue to do so unless and until his employment is terminated or until such tenure, remuneration and the terms and conditions are duly altered by the Statutes: Provided that if the alteration so made is not acceptable to such employee, his employment may be terminated by the Institute in accordance with the terms of the contract with the employee or, if no provision is made therein in this behalf, on payment to him by the Institute of compensation equivalent to three months' remuneration in the case of permanent employees and one month's remuneration in case of other employees: Provided further that any reference, by whatever form of words, to the Director, Registrar and other officers of any existing Institute, in any law for the time being in force, or in any instrument or other document, shall be deemed to be reference to the Director, Registrar and other officers of the corresponding Institute mentioned in column (5) of the Schedule;
- (e)every person pursuing, before the commencement of this Act, any academic or research course in any existing Institute, shall be deemed to have migrated and registered with the corresponding Institute mentioned in column (5) of the Schedule, on such commencement at the same level of course in the Institute from which such person migrated;
- (f)all suits and other legal proceedings instituted or which could have been instituted by or against an existing Institute, immediately before the commencement of this Act, shall be continued or instituted by or against the corresponding Institute mentioned in column (5) of the Schedule.
Summary
- This section manages the transition from the old existing institutes to the newly incorporated legal bodies.
- All properties, rights, debts, and legal liabilities of the old institute automatically transfer to the new institute.
- Current employees keep their jobs, pay, pensions, and benefits exactly as they were before the law passed.
- The new institute can alter employee terms later, but if an employee refuses the changes, they can leave with a severance payment of three months' pay for permanent staff and one month for others.
- Current students are automatically migrated to the new institute and keep their current academic standing.
- Any ongoing lawsuits involving the old institute will continue with the new institute stepping into its place.
Practical examples
FAQ
1. Do current employees have to sign new contracts or take a pay cut?
No, their jobs, pay, and benefits continue exactly as before unless the institute formally alters the rules later.
2. What happens if an employee hates the new rules the institute makes?
Their employment can be terminated, but they must be paid compensation (three months' pay if permanent, one month if temporary).
3. Do current students have to re-apply to the new corporate institute?
No, they are deemed to have migrated and registered automatically at the same course level.
Test yourself
Q1.Under Section 5 of The Indian Institutes of Information Technology (Public-private Partnership) Act, 2017, what compensation must a permanent employee receive if their employment is terminated because they do not accept altered employment terms?
Q2.Under Section 5 of The Indian Institutes of Information Technology (Public-private Partnership) Act, 2017, what happens to lawsuits that were filed against the old institute before this law began?
Q3.Under Section 5 of The Indian Institutes of Information Technology (Public-private Partnership) Act, 2017, how does the incorporation affect the academic standing of existing students?
Q4.Under Section 5 of The Indian Institutes of Information Technology (Public-private Partnership) Act, 2017, what compensation must an employee who is NOT permanent receive if they are terminated for refusing altered employment terms?