(1) Where the State Government is satisfied that for the purpose of securing uniformity in the scales of remuneration and the other terms and conditions of service applicable to the employees who are absorbed by the Authority under section 22, it is necessary so to do, or that, in the interest of the Authority, a reduction in the remuneration payable, or a revision of the other terms and conditions of service applicable, to employees or any class of employees is called for, the State Government may, notwithstanding anything contained in section 22 or other provisions of this Act or in the Industrial Disputes Act, 1947 (14 of 1947), or in any other law for the time being in force, or in any award, settlement or agreement for the time being in force, alter (whether by way of reduction or otherwise) the remuneration and the other terms and conditions of service to such extent and in such manner as it think fit; and if the alteration is not acceptable to any employee, the Authority may terminate his employment by giving compensation equivalent to three months’ remuneration unless the contract of service with such employee provides for a shorter notice of termination.
Explanation.- The compensation payable to an employee under this section shall be in addition to, and shall not affect, any pension, gratuity, provident fund money or any other benefit to which the employee may be entitled under his contract of service.
(2) Notwithstanding anything contained in sub-section (1), the remuneration payable to any employee absorbed by the Authority under section 22, shall not be altered under that sub-section to his disadvantage, so as to be less than the remuneration paid or payable to him on the 1 January 1975 plus the increments earned by him during the period from the said date to the appointed day.