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CS Executive · Capital Market and Securities Laws · Securities and Exchange Board of India

Ravi was an employee of the existing Securities and Exchange Board immediately before the statutory Board was established. He does not exercise any option to leave. Under Section 10, which is correct?

Ravi continues in the Board on the same tenure and service terms he had earlier. Under Section 10(2), absorption into the Board's regular service gives him no right to compensation under the Industrial Disputes Act, 1947 or any other law.

  1. AHe must be re-appointed by the Board on fresh terms and is entitled to retrenchment compensation
  2. BHe holds office in the Board on the same tenure and terms as before, and absorption gives no compensation claim under the Industrial Disputes Act, 1947 or other lawCorrect
  3. CHe ceases to be an employee on the establishment date unless the Central Government retains him
  4. DHe continues only for one year, after which the Board may fix new terms

Explanation

Section 10(1)(g) provides that such an employee holds office by the same tenure and on the same terms as to remuneration, leave, provident fund and retirement benefits. Section 10(2) says absorption into regular service does not entitle him to compensation under the Industrial Disputes Act, 1947 or other law. The option claiming compensation therefore fails.

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