---
kind: "section"
citation: "5 C.F.R. § 316.701"
title: "5"
number: "316.701"
heading: "Public or private enterprise taken over by Government."
url: "https://uscodex.org/cfr/5/316.701"
---

# §316.701. Public or private enterprise taken over by Government.

- (a) When the Office, or an agency acting under an agreement with the Office, finds that the Federal Government has taken over a public or private enterprise, or an identifiable unit thereof, and that a position has thereby been brought into the competitive service, the agency may retain the incumbent of the position.
- (b)
  - (1) When an agency retains an employee under [paragraph (a)](#a) of this section in a position which it determines to be a continuing one, the agency gives the employee a status quo appointment and shall decide on a timely basis whether it will convert that individual's employment to career or career-conditional under [§ 315.701](/cfr/5/315.701.md) of this chapter.
  - (2) When an agency decides not to effect conversion under [§ 315.701](/cfr/5/315.701.md) of this chapter, or the employee fails to qualify for conversion, the agency, in its discretion, may retain the employee as a status quo employee.
- (c) An agency may retain an employee under [paragraph (a)](#a) of this section in a position that it determines is noncontinuing under a temporary appointment. That appointment may be made for a period not to exceed 1 year and will be subject to the time limits set out in [§ 316.402](/cfr/5/316.402.md).

## Notes

### Amendments

[44 FR 55133, Sept. 25, 1979, as amended at 60 FR 39101, Aug. 1, 1995; 63 FR 63784, Nov. 17, 1998]

### Authority

Authority: 5 U.S.C. 3301, 3302, 3316. E.O. 10577, 19 FR 7521, 3 CFR, 1954-1958 Comp., p. 218; E.O. 14284, 90 FR 17729. 5 CFR 2.2(c).

### Source

Source: 33 FR 12423, Sept. 4, 1968, unless otherwise noted.

### Amendments

[44 FR 55133, Sept. 25, 1979, as amended at 60 FR 39101, Aug. 1, 1995; 63 FR 63784, Nov. 17, 1998]