Railways (Existing Officers and Servants) Act, 1926

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Gratuities to certain officers and servants of the amalgamated company.

2.—(1) Every officer and every servant of the amalgamated company who if he had not become such officer or servant would have been entitled to a gratuity under the first paragraph of the Third Schedule to the Principal Act shall, if his services are dispensed with by the amalgamated company within seven years after the passing of the Principal Act and whether before or after the passing of this Act on account of his services having become unnecessary in consequence of changes of administration due directly to the amalgamation and absorption of companies effected by or under the Principal Act and not shown by the amalgamated company to have been caused by decrease of traffic, reduction of renewal or maintenance work, introduction of improved methods of working (other than methods which would not have been feasible for the amalgamating or absorbed company by which the officer or servant was formerly employed), or other economic cause, be entitled to be paid by the amalgamated company a gratuity calculated on the basis of one-sixth of the amount of his annual salary and emoluments for every completed year of his service.

(2) If any dispute or question shall arise between the amalgamated company and any officer or servant of the amalgamated company on any matter arising under this section, such officer or servant may appeal to the standing arbitrator or board of arbitrators mentioned in paragraph (8) of the Third Schedule to the Principal Act and that paragraph shall apply to any such appeal in like manner as it applies to the appeals mentioned therein.

(3) In this section the word “service” does not include any period of service as a trade apprentice with any amalgamating or absorbed company.

(4) For the purposes of this section the annual salary and emoluments of an officer or servant shall be calculated at the rate of the salary or emoluments of which he is in receipt immediately before his services are dispensed with and his service shall include his service with the amalgamating or absorbed company of which he was formerly an officer or servant as well as his service with the amalgamated company.

(5) In this section references to officers of the amalgamated company and references to servants of the amalgamated company respectively include officers of the amalgamated company and servants of the amalgamated company who have before the passing of this Act ceased to be in the service of the amalgamated company as well as such officers and servants who are still in the service of the amalgamated company at the passing of this Act.

(6) In this section the expression “the first paragraph of the Third Schedule to the Principal Act” means the paragraph at the beginning of that Schedule which commences with the words “Every person who” and ends with the words “completed year of his service.”