Can Banks Deny Retirement Benefits After Dismissal? Let's Discuss Fairness and Justice

Dismissal and Forfeiture of Past Services in the Banking Industry

Dismissal from services forfeits the entire past services, and hence gratuity is not eligible as per the service regulations in the Banking Industry. After dismissal, there is no service thereafter, and it is understandable. How can a dismissal forfeit the past services? Till the date of dismissal, whatever retirement benefits are eligible, like pension, gratuity, leave salary, etc., how can the banks refuse an employee by stating that the dismissal renders the past services as null and void?

After 30 or 40 years of meritorious service, if any employee is dismissed for any reason, how can he and his family be denied his past service benefits? If there is any financial loss to anyone or to the bank, to that extent, monetary benefits may be deducted. Whatever may be the reason, stopping all the retirement benefits is not natural justice.

In a recent Supreme Court judgment, it is clearly stated that dismissal on moral grounds is not a valid reason for the denial of gratuity. I hope for the same reason, other retirement benefits should also not be denied. Kindly discuss.

Dismissal and Its Implications

"Dismissal" of an employee from any service, whether industrial or otherwise, is stigmatic in nature because it is the unilateral termination of the contract of employment by the employer due to any proven serious misconduct. Particularly in government employment, whether it is related to sovereign functions or not, the degree of sincerity, righteous conduct, and the use of discretion expected from an employee is very high compared to their counterparts elsewhere. Therefore, the service rules typically forbid the granting of terminal benefits such as gratuity and pension to dismissed employees.

Meritorious Service and Misconduct

Meritorious service essentially implies the consistency of blemishlessness throughout an employee's entire career. Therefore, long meritorious service cannot absolve any serious misconduct committed towards the end of one's career, except in cases where leniency may be considered. Furthermore, in any bank, irrespective of its sectorial classification, integrity is a fundamental quality expected of its employees regardless of their position. If an employee becomes inefficient or lacks integrity, their continued service would be detrimental to both the organization and society.

Gratuity and Moral Standards

It is important to remember that gratuity is a lump-sum award given upon the termination of employment for exemplary service only. The standards of morality vary from one situation to another.

Regards

When nothing on the integrity of an employee is mentioned in the dismissal order during the course of the banking business, i.e., lending in agriculture and other allied activities, and in the charges they have clearly mentioned as procedural lapses on the part of the employee, can the said employee be denied the gratuity.

When nothing on the integrity of an employee is mentioned in the dismissal order during the course of the banking business, i.e., lending in agriculture and other allied activities, and in the charges, they have clearly mentioned procedural lapses on the part of the employee, can the said employee be denied the gratuity.