Any state employee who left or leaves to enter the armed forces of the United States shall be reinstated after such service in the armed forces, provided he makes application therefor within 60 days after his discharge from such service. In the event that any such state employee is discharged from the armed forces of the United States because of physical disability which requires a period greater than 60 days but not longer than one year in which to recuperate to an extent which will render him physically qualified to resume his former state duties, upon application in writing to that effect (substantiated by a certificate from a medical physician), filed with the appointing or employing authority of such person within a period of 60 days following discharge from the armed forces, the limiting period of 60 days specified in N.H. Rev. Stat. § 112:7 and 8 shall be extended to a period of not more than one year. No person shall be entitled to reinstatement in the event of his dishonorable discharge from such service in the armed forces of the United States. Under the provisions of this chapter any former employee of the state shall be entitled to all increases in compensation and to any within-department promotion or advantage which would have accrued to him had he continued in state service during the time of this service in the armed forces, provided, however, such employee shall have to his credit only the same number of days sick leave as had accrued to him at the time of his entry into the armed forces. If during the absence of such persons from the state service there has been any change in the organization of the department, board or commission, or other state agency in which the veteran was formerly employed, so that the position formerly held is no longer existent in fact, or if the position formerly held has become technically non-existent by reason of retitling, consolidation with another position or positions, or subdivision of responsibilities into other positions, the veteran shall, without undue delay, be entitled to appointment to a position in the reorganized department, board or commission, which shall in standing and status be equivalent to the position held by him prior to his entry into the armed forces of the United States and carrying compensation at no lesser rate. Provided that if a veteran shall be reinstated in a reorganized department, board or commission, as provided in the preceding sentence, said department, board or commission shall, upon such reinstatement, unless need and an appropriation for an additional employee exists, immediately decrease its personnel by the discharge of one of its other employees, it being the intention of the legislature that in such an event the reinstatement of the veteran shall not unnecessarily increase the number of employees of said department, board or commission.