Section 5 of The Tyre Corporation of India Limited (Disinvestment of Ownership) Act, 2007
- (1)Every officer or other employee of the company, except the Chairman and Directors, serving in its employment immediately before the disinvestment of the company under this Act, shall continue in office or service after such disinvestment, on same terms and conditions as would have been admissible to him if there had been no such disinvestment and shall continue to do so until the expiry of the period of three years from the date of disinvestments.
- (2)Where an officer or other employee of the company opts under sub-section (1) not to be in the employment or service of the company, such officer or other employee shall be deemed to have resigned.
Summary
- Officers and employees who work for the company right before disinvestment will keep their jobs after the disinvestment.
- The Chairman and the Directors of the company are excluded from this job protection.
- Protected employees will continue on the exact same terms and conditions of service they had before.
- This job protection is guaranteed for a period of three years starting from the date of disinvestment.
- If an employee chooses (opts) not to continue working under these terms, they are legally considered to have resigned.
Practical examples
FAQ
1. Who is excluded from the employment protection provided in Section 5?
The Chairman and the Directors of the company are excluded from this protection.
2. How long is the employment protection period for the remaining employees?
The protection lasts until the expiry of three years from the date of disinvestment.
3. What happens to the salary and working conditions of the employees who stay?
They remain on the same terms and conditions that would have been admissible to them if no disinvestment had occurred.
4. What happens if an employee decides they do not want to continue in the service after disinvestment?
They will be deemed (legally considered) to have resigned from their position.
Test yourself
Q1.Which roles are specifically excluded from job protection under Section 5?
Q2.For how long are protected employees guaranteed to continue on their pre-disinvestment terms?
Q3.Under Section 5, what happens if an officer or employee chooses not to stay with the company after disinvestment?
Q4.To whom must the employee have been providing service "immediately before the disinvestment" to qualify for protection?
Q5.What terms of service apply to the protected employees after disinvestment?