Contractual Engagement By Psu In Managerial Category

makhan dutt
Is there any limited period to engage a person in a contractual basis by a PSU in a managerial position, or can they continue renewing the contract as long as they want?
makhan dutt
If a person is engaged by PSU on a contractual basis in a managerial position initially for one year and later continued for eight years by renewing the contract, after completion of eight years, if the company stops renewing the contract, can he claim further extension and be eligible for gratuity?
makhan dutt
Advertised for engagement on a contract for one year. Later, the same contract was renewed with an artificial break of 5 to 15 days, and two years without a break, enhancing the contract remuneration.
Nishant Thekkethil
Even if a person is employed on a contract basis, they will be eligible for Gratuity if they continuously work for more than five years (without any break in service). However, if any artificial breaks occur in renewing the contract and there is no continuous service, they cannot claim Gratuity.

Seeking opinions from seniors too.

Regards,
Nishant
makhan dutt
Can a managerial position contract employee claim regularization of the job after 10 years of contractual service?

---
makhan dutt
Is it unfair practice to keep a managerial position employee on a fixed-term contract by renewing the contract for a long time?

---
Is it unfair to continuously renew a managerial position employee's fixed-term contract for an extended period?
nathrao
Makhan Dutt, it is unfair labor practice to keep renewing contracts for a long time. However, permanency for employees comes with financial liabilities that may exceed the costs incurred for contract workers.

Thank you.
makhan dutt
Long-term contract engagement in a managerial position leading to job regularization in a PSU - is it possible or not?
sushilkluthra@gmail.com
Since it is a PSU, it must have framed recruitment rules for the post. It is governed by Article 14 of the Constitution of India. To continue a person on a contractual basis when rules for regular appointment are in force is not permissible in view of Asha v State of MP. It will be contrary to the Uma Devi decision too.

Thanks,
Sushil
makhan dutt
If management wants to keep the contractual managerial employee on a permanent role, can they relax the age limit for that person in an open advertisement?
sushilkluthra@gmail.com
Relaxation of age for a person is arbitrary. Relaxation is done for a class only, and that too when rules prescribe. Otherwise, many persons of the relaxed age would have also applied in pursuance of the advertisement. It amounts to fraud in appointments if relaxation of an individual person is done in PSU.

Thanks,
Sushil
makhan dutt
Can management regularize the job of a long-term engaged contractual managerial-level person in PSU?
sushilkluthra@gmail.com
Management cannot regularize the job of a long-term engaged contractual managerial-level person in PSU. In fact, contractual appointments are done for the short term when rules are being finalized, or no eligible person is available to meet the contingency. As stated earlier, to continue a person on a contractual basis when rules for regular appointments are in force is not permissible in view of Asha v State of MP. It will be contrary to the Uma Devi decision as well and will violate Article 14 of the Constitution of India.

Thanks,

Sushil
makhan dutt
Can management formulate a policy to absorb long-term contractual engagement for managerial position employees?
sushilkluthra@gmail.com
Any policy, rule, or law that is contrary to Article 14 of the Constitution is void. Thus, no such policy to absorb long-term contractual engagement can be implemented by PSU.

Thanks,
Sushil
makhan dutt
Some government of India enterprises have provisions for contractual employees (e.g., Rites India Ltd) to be absorbed into permanent roles. Therefore, other government enterprises can also consider adopting this policy.
sushilkluthra@gmail.com
It is settled that once the contractual employment is sought through a specific advertisement for contractual appointments, the contractual employees cannot seek regularization. Otherwise, this would amount to fraud on the common citizens of this country. The common citizens are candidates who would not have applied for appointments to the contractual posts and instead waited for advertisements for permanent posts of an employer. Thus, when the matter of PSUs like RITES India Ltd. is taken to court, such a policy will be quashed in terms of the following decision of the Delhi High Court relying upon the Umadevi decision:

Delhi High Court

Dharmendra Prasad Singh & Ors. vs. The Chairman, State Bank of India & ... on 9 February 2015

In my opinion, I need not go into the arguments urged on behalf of both parties as to whether petitioners fall within the policy dated 20.7.2010 and as qualified by the letter dated 18.8.2010. If I allow the reliefs claimed by the petitioners, then the effect will be that contractual employees will be regularized as permanent employees of the respondent no.1, which is a State under Article 12 of the Constitution of India. This is wholly impermissible under the ratio of Umadevi's case. Even if we assume that petitioners are fully covered under the policy dated 20.7.2010 and as clarified by the letter dated 18.8.2010, which is disputed by respondent no.1, I am of the clear opinion that the reliefs cannot be granted to the petitioners. The policy of respondent no.1 dated 20.7.2010 itself is unsustainable and grossly illegal as it goes against the judgment in the case of Umadevi & Ors. This aspect will be explained later. At this stage, I would like to refer to a recent judgment in a bunch of cases with the lead case being Radhey Shyam and Ors. vs. GNCT of Delhi and Ors. in W.P.(C) No. 471/2015 decided on 22.1.2015. The connected case decided with the bunch of cases is the case of Som Dutt and Ors. vs. GNCT of Delhi and Ors. in W.P.(C) No. 474/2015. In the case of Radhey Shyam, I have held that contractual employees cannot seek regularization in view of the judgment of the Supreme Court in the case of Umadevi & Ors. While dealing with the facts in the case of Som Dutt and Ors., I have deliberated on whether contractual employees, employed through a regular selection process but only as contractual appointees, can be regularized. I have held that once the contractual employment is sought through a specific advertisement for contractual appointments, the contractual employees cannot seek regularization. This would amount to fraud on the common citizens of this country. This is stated in paras 14 and 15 of the judgment in Radhey Shyam's and Som Dutt's cases and the paras read as follows:

"14. Petitioners in this case seek appointment as Lab Technicians/Lab Assistants. In the present case, the relief of their regularization cannot be granted. If petitioners are specifically appointed for a contractual period in terms of the advertisement, which required only contractual employment for 11 months, then, if the petitioners are regularized only because they were appointed against sanctioned posts, it would be a violation of the ratio of the Constitution Bench judgment in the case of Umadevi. If the petitioners are directed to be regularized merely because there existed sanctioned posts, although the advertisement and appointments were only and specifically for 11 months, then injustice would be caused to dozens or hundreds of other persons who would not have applied to the posts. This is because the posts are contractual posts only for 11 months, and such persons, being ordinary citizens, would seek appointment with other employers offering permanent posts. If this Court allows regularization of the petitioners, merely because petitioners were appointed against sanctioned posts, the spirit of the ratio of Umadevi's case would be violated. In such cases, the authorities of the State instead of making regular appointments to sanctioned posts, will advertise and make contractual appointments to sanctioned posts for specified periods, thereby playing a fraud upon the general public. Regularization cannot be granted only because petitioners were appointed against sanctioned posts, once the advertisement and appointments were only for a limited period of just 11 months.

15. It is not the ratio of Umadevi's case that contractual employees must be regularized only because there are vacant sanctioned posts to which they were appointed for a limited contractual period of mere 11 months. Umadevi requires that appointments must be as per the regular recruitment process and rules, which will require advertisement for appointments as permanent posts. This is because, in terms of the ratio of Umadevi's case, the Delhi State Services Selection Board (DSSSB), which appoints employees for respondent no.2, has already issued a circular that there should not be appointments to regular posts except in accordance with the law and the process specified in the regular recruitment rules."

In view of the above, I do not find any merit in the petition because this Court cannot grant regularization to contractual employees in violation of the Constitution Bench judgment of the Supreme Court in the case of Umadevi & Ors.

Thanks,

Sushil
tajsateesh
Hello Makhan Dutt,

With due regards and appreciation to the issue you have raised, can you please put all the facts of the case on the table in a single shot? You surely have a situation that you are referring to, but the way you keep raising new points in reply to the answers to the earlier ones by the members only drags the issue. I don't think you will get the actionable solution you are looking for. The best approach is to explain the actual situation rather than raising queries in bits and pieces; that would benefit you far better.

Regards,
TS
makhan dutt
One of my friends was working in a PSU on a contract basis in a managerial position for the last eight years. Initially, for one year, then extended for 3 years (6 months duration in each extension for 6 times), after that two years (one-year period for 2 times), and again 2 years (6 months period for 4 times). Now the company stopped renewing the contract, and he has become jobless. Also, he has crossed the age limit for a PSU job.

Thank you for submitting your text for review. I have corrected the spelling, grammar, and formatting errors. If you need further assistance, feel free to ask.
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute