Section 378N - Provisions in respect of officers and other employees of inter-State co-operative society

Transfer of service continuity: employees retain prior terms on transformation, with opt out deemed resignation and no compensation entitlement.

Officers and employees (excluding directors, Chairman and Managing Director) of an inter State co operative society who were in service immediately before transformation into a Producer Company become officers or employees of the Producer Company on the same tenure, remuneration, terms, obligations and benefits; those who opt out are deemed to have resigned. Transfer of services does not entitle staff to compensation under labour or other laws. Retirees retain entitlements, provident and gratuity trusts continue to function and prior tax exemptions remain applicable, while persons managing the society are barred from claiming compensation for loss of office or premature termination.