Sample Questions – Labour & Industrial Disputes

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Q1. How the workers get retired in private sector? What is the age? What are the dues if any the worker is entitled? On what grounds premature retirement can be effected?

A. In a Private Sector normally the workers get retired at the age of 58 years. Retirement age and all that normally depend upon the standing orders of the company. It depends upon company standing order as to what Provident Fund Gratuity etc., is to be given after retirement. Normally after retirement Provident Fund is given in addition to that gratuity and pension also is given if you have opted for pension. As regard the pre-mature retirement is concerned, in the company’s rules it is always prescribed as to how many years of service one can apply for pre-mature retirement. After premature retirement also you get the same dues and as in the case of a normal retirement. But of course the amount of pensionary benefit is lessor, if premature retirement is obtained. There are no specific requirement of getting pre-mature retirement of a company.

Q2. Nationalised Bank Employees Pension Regulations provide for voluntary retirement on completion of 20 years of service with effect from 01.11.93 whereas the Regulations were notified on 29.09.95. These Regulations inter alia provide for prior permission in respect of Officer employees before taking up private employment. What shall be the status of those officer employees who sought voluntary retirement between 01.11.93 & 29.09.95 under the Regulations but the concerned bank did not accept his request as the relevant Regulations had not come into force by then. Consequently the concerned officer resigned which request was accepted by the Bank. Thereafter the employee took up private employment. When the Pension Regulations came into force the employee requested for post facto confirmation of his employment and also requested for sanction of pension. The Bank sanctioned pension treating his resignation as voluntary retirement. Subsequently the Bank cancelled the pension on the plea that as he had not taken prior permission before taking up employment, as the Bank while sanctioning pension had omitted to notice that his request for permission submitted about 17 months back was pending with the Bank. What defence is available to this employee?

A. The defence in this case can be that firstly, the blanket condition of non-employment without mentioning time period for permission is against Public Policy and the condition in this regard is illegal. Secondly, the employee had applied for permission for employment which was not decided and the Bank is therefore stopped from pleading the ground of non permission. Further pension cannot be cancelled specially when the Bank itself withheld the decision of permission of employment for 17 months.

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