Professional Documents
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Service Law Notes
Service Law Notes
MEANING:
severance of the relationship of the employer
May be as a punishment through dismissal, removal or compulsory retirement or may
be as termination simply.
Based on the presumption that the relationship between the employer and the
employee has been validly brought into existence. i.e appointment of the employee
was legal and valid and not illegal and void.
Termination of permanent employees is possible only after observing the principles of
fairness. Cannot be arbitrary.
Moti Ram Deka v. General Manager, North Eastern Frontier Railways AIR
1964 SC 600:
1. If a person who holds a permanent post has a right to continue in the
service.
2. If for any reason his right is invaded and he is asked to leave his
service as a form of penalty, it amounts to removal from service and
attracts the protection of Art. 311.
Principles of fairness, to be employed, differ with different forms of termination.
No termination can take place without reason. Such reason must be express, objective,
relevant, and fairly and independently arrived by the authority.
Termination (punitive) to be valid must be preceded by an opportunity of
representation to the employee.
Must always be governed by the rules.
Rules may prescribe for approval of the order of termination by another authority, in
such a case, the approval of the termination must be on application of mind by the
approving authority on the objective and justifiable reasons based on due
consideration of the facts and evidence on record.
TYPES:
1. Termination simpliciter: termination of services for reasons other than misconduct
2. Punishment through Dismissal, Removal, or Compulsory Retirement: termination
of services for Misconduct.
EFFECT:
On Probation:
On service:
punitive.
It may be in the form of dismissal: the employee cannot be re-employed and the
employee loses the retiral benefits;
removal: the employee loses retiral benefits but can be re-employed;
compulsory retirement: the employee doesn’t lose any retiral benefit.
Punitive termination in one of the three forms may be on proven misconduct.
JUDICIAL REMEDY:
Judicial review is available on both forms of termination.
However, limited in the following ways:
Termination simpliciter: Judicial review only in case of arbitrary or mala fide
exercise of power. Thus, appealable on grounds of procedural impropriety,
illegality.
Punitive termination through Dismissal, removal, or Compulsory retirement:
Judicial review available on grounds of Illegality, procedural, failure of Natural
justice, irrationality, proportionality.
COMPULSORY /PREMATURE RETIREIMENT
When an employee is directed by the employer to retire before the stipulated date of
retirement
terms and conditions of service, whether embodied in statutory rules or otherwise,
provide for an age of retirement or superannuation
The term "compulsory retirement" in service law means where an employee has been
directed that his services are no longer required before he reaches the normal age of
retirement by the rules.
In other words, premature end of the relationship of master and servant before the
servant reaches the prescribed age of retirement or superannuation.
BAN ON REAPPOINTMENT
Supreme Court in P. Radhakrishna Naidu v. Government held that Rules or
administrative instructions may legitimately provide for a ban on reappointment in public
service of a public servant who has been prematurely retired.
The rules (or administrative instructions) confer power of premature retirement must
provide:
specific age on attaining which, or,
that the employee must have rendered a specific period of service before which such
power could be exercised
Basis of the rule
Both these requirements are the essential attributes of public service i.e security of
tenure.
For efficient administration it is necessary that public servants should enjoy a sense of
security of tenure and that the termination of service of a public servant under a rule
which does not lay down a reasonably long period of service leads to removal under
Art. 31 1(2).
Attaining specific age: The rules relating to premature retirement must fix the age for
premature retirement in contrast to the normal age of retirement
Specified period of service: If the rule relating to premature retirement does not specify
an age as when the power of premature retirement is to be exercised, then it must provide
a specified period of service on the completion of which the order can be made
CONDITIONS PRECEDENT
The conditions precedent for exercise of the power of premature retirement for a valid
exercise of the power. The conditions precedent are:
Formation of opinion that it is in the public interest to order premature retirement.
The concerned employee has completed the stipulated period of qualifying service or
has attained the stipulated age.
The formation of the opinion that it was in public interest to prematurely retire an
employee must be based on relevant materials
Materials must have nexus with public interest: Public interest is the guiding factor in
considering whether the power of premature retirement should be exercised or not. It
would be formation of opinion must be based on that materials, have reasonable nexus
with public interest.
Efficiency of the employee — documentary proof
The Courts will not interfere with the exercise of the power if the opinion has been
formed bonafide and on the basis of materials available on record.
If, however, the opinion is founded on material which does not justify such opinion
then the exercise would be bad and the order for preretirement has to be struck down
However, once the employer on the basis of materials on record decided that the
punishment of compulsory retirement was too harsh, it could not (on same materials)
later contend that the punishment was appropriate.
JUDICIAL REVIEW
There is limited scope and grounds of judicial review of an order of premature retirement
Grounds for interference: Judicial review of premature compulsory retirement would be
permissible
if it is either arbitrary or malafide or based on no evidence.
court will interfere if it is satisfied that the order was not made in public interest
The order was made arbitrarily
If there has been a contravention of the rules
The order is based on irælevant ntaterials
Non-formation of the requisite opinion.
If there has been non-application of mind.
The order was made malafide or in abuse of power.
if the decision of the competent authority is vitiated by bias
If the order is made by way of punishment
If the order is made by an authority not competent to do so
If the employee concerned is under order of suspension.
This means that in the civil suit, the holder of the civil post would have to challenge the decision of
the Tribunal and his cause of action would be based on the infirmity in the decision of the Tribunal.
PIL is a litigation initiated in the interest of the public. It connotes that a case which is filed by a
private person for vindicating his own personal rights, whether constitutional or otherwise, cannot
be subject matter of a PIL.
In Balco Employee v. UOI, the Court was of the view that the PIL was not meant to be a weapon
to challenge the financial or economic decisions which are taken by a government in exercise of
their administrative power.
The Court summarized the legal principles in Gurpal Singh v. state of Punjab, to having recourse
to PIL in service matters. The Court has to be satisfied about
the credentials of the applicant;
the prima facie correctness or nature of information given by him;
the information being not vague and indefinite.
The information should show gravity and seriousness involved
Avoid mischievous petitions to assail, for oblique motives: In such case, the court has to be
extremely careful to see that under the guise of redressing a public grievance, it does not
encroach upon the sphere reserved by the Constitution to the executive and the legislature.
Hari Bansh Lal v. Sahodar Prasad Mahto: The Court has gone to the extent in absolute terms
that PIL is not maintainable in-service matters.
Dr. Duryodhan Sahu v. Jitendra Kumar Mishra: Tribunals constituted under Administrative
Tribunals Act had no jurisdiction to entertain a PIL.
VOLUNTARY RETIREMENT
The effective date of voluntary retirement is the day when the Government accepts such application
and not from the date of communication of acceptance.3
JUDICIAL REVIEW
Judicial review of a VRS under Article 226 is maintainable inter alia on the grounds: (i) The employer
is an authority under the State. (ii) The action of such authorities should pass the tests of Article 14.
(iii) Right of employee to continue in employment under Article 21 could not be 61 taken away except
in accordance with law
SUPERANNUATION
DISCHARGE BY RETIREMENT
Service conditions provide a terminal point when the tenure of employment comes to a compulsory
end. This is referred to as retirement or superannuation. The employer may, however, grant extension
of service in its discretion.
MEANING OF SUPERANNUATION
Superannuation means discharge from a post on account of age—the act of retiring a person on a
pension
Where the appointment is contractual and the contract incorporates a rule relatino to retirement as
conditions of service, e.g., upto 60 years, then such an appointed ern_ ployee is entitled to serve upto
the age of sixty.
This retirement is compulsory retirement in the true sense because there is no option on the part of the
employee or emploxer to continue the employee's service even after attaining the age of
superannuation. A person retires automatically on the day he completes the age of superannuation and
therefore the question of application of principles of natural justice are not applicable
3 MATTER OF POLICY
The fixation of the age of retirement is essentially a matter „18 of executive policy17 largely
dependent on the "felt need of the administration and when the policy is questioned, its justification
will be tested in Indian conditions and neither the American nor the English notions or norms for
fixing retirement age would be relevant
DIFFERENT RETIREMENT AGE FOR DIFFERENT CATEGORIES OF STAFF—
WHETHER DISCRIMINATORY
It is now well settled that it is permissible to have different retirement 27 ages for difthe ferent classes
or categories of the staff in the same organisation. In Nagaraj, supreme Court perceived the
unreasonableness of the concept of a uniform age Of retirement all over India. Even the prescription
of the qtge of superannuation in respect of a single person vis-a-vis others has been upheld. But
differential treatment of 31male and female employees for retirement age has been held to be
unconstitutional.
DATE OF BIRTH
Union of India v. Harnam Singh: A Government servant, after entry into service, acquires the right to
continue in service till the age of retirement, as fixed by the State in exercise of its powers regulating
conditions of service, unless the services are dispersed with on other grounds contained in the relevant
service rules after following the procedure prescribed therein. The date of birth entered in the service
records of a civil servant is, thus of utmost importance for the reason that the right to continue in
service stands decided by its entry in the service record. A Government servant who has declared his
age at the initial stage of the employment, is of course, not precluded from making a request later on
for correcting his age. It is open to a civil servant to claim correction of his date of birth, if he is in
possession of irrefutable proof relating to his date of birth as different from the one earlier recorded
and even if there is no period of limitation prescribed for seeking correction of date of birth, the
Government servant must do so without any unreasonable delay
A challenge to the date of birth as recorded in the service book, made on the eve of retirement should
not normally be entertained and the onus lies on the employee concerned to prove by irrefutable
evidence his plea of error in the service book
In the controversy relating to date of birth, it is the service record which has primacy and
superannuation etc. will be determined on the basis of the service record and not on what the
employee claims to be his date of birth, unless the service record is first corrected in conformity with
the appropriate procedure
POWER OF EXTENSION
The rules or administrative instructions may provide for extension of service of an employee after
reaching the age of superannuation. It is not necessary that such a power of extension has to be
conferred by statute. On the settled principle that where the field is not covered by statutory
provisions the executive can always exercise its administrative powers, the provision for extension
may be included in administrative instructions. Further, it is always open to the authorities to enter
into a contract with an employee who attains the age of superannuation whereby his services are ex
tended for a further period provided of course there are good reasons for entering into such a contract
consistent with public interest and exigencies of administration.
2 EFFECT OF EXTENSION
When an officer has been given extension, he cannot be removed within the extended period without
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COMMENTS ON LEAVE
1. Extension of Leave
There is power to extend the leave which must be exercise on reasonable grounds and refusal should
also be on reasonable grounds.
KINDS OF LEAVE
1. Earned leave:
An employee can earn leave. For example, Rule 4 Of the All India Services (Leave)
Rules, says that leave shall be earned by duty only.
Earned leave can be carry forward.
The leave so carry-forward plus the credit for the half year is not to exceed the maximum
limit of 240 days.
2. Half-pay leave:
is a leave which is granted on medical certificate or on private affairs.
It is different from the concept of earned leave
Generally service rules provide that a public servant shall be entitled to half pay leave for
20 days in respect of each completed year of service.
No such leave shall be granted to a Government servant who is not a permanent employee
or quasi-permanent employee unless the authority competent to leave has reasons to
believe that the servant will return to duty.
3. Commuted leave: Commuted leave can be granted on ground of sickness of a member of the
family though not economically dependent on the civil servant
4. Extraordinary Leave
Extraordinary leave may be granted to a government servant (other than a military
officer) in special circumstances: -
a) when no other leave is admissible;
b) when other leave is admissible, but the Government servant applies in writing for
the grant of extraordinary leave.
c) The rules normally specify time-limits for which such extraordinary leave may be
granted. Although under special circumstances such leave requested and granted
on medical grounds
5. Sick leave
Sick leave can be granted only on production of a medical certificate from registered
medical practitioner.'
6. Maternity leave
A female Government servant may be granted maternity leave for a period of 90 days
from the date of its commencement.
During such period should be entiled to salary equal to the pay
Maternity leave shall not be debited from the leave account and could be combined with
leave of any other kind.
7. Study leave
The rules may provide for the granting of study leave to a Government servant with due
regard to the exigencies of public service to enable him to undergo in or out of India, a
special course of study consisting of higher studies or specialised in a professional or
technical subject having a direct and close connection with sphere of his duty
Study leave is not debited against the leave account and may combined with other kinds
of leave.
The rules for study leave should have nexus with the performance of duties of theclass of
employees concerned.
During study leave the public servant is normally allowed to draw equal pay drawn
immediately before proceeding on such leave.
If government servant resigns or retires from service within a period of 3 years after
return to duty, he shall be required to refund the actual amount of leave salary and other
allowances in connection with the course of study
8. Leave preparatory to retirement
EXTRA COMMENT
1. Revocation Of Leave
Leave may be revoked and the public servant may be recalled to duty before expiry of his
leave.
such recall to duty shall be treated as compulsory in all cases.
2. Holidays And Leave
The rules may provide as to when holidays may be combined with leave.
Similarly, when his leave expires immediately following a holiday or series of holidays he
shall be permitted to return to his station on the day following such holiday or series of
holidays.
The rules also generally provide
a) if holidays are prefixed to leave, pay and allowances take effect from the day
after the holidays; and
b) if holidays are suffixed to leave, pay and allowances takes effect from the day on
which the leave would have ended.
3. Return Not At Employees Discretion
Return from leave is not at the discretion of the employee.
When leave is granted to employee then employer has to make administrative
arrangements including e.g. engaging others by deputation etc. to discharge function so in
order to avoid administrative inconvenience, the rules generally provide that a public
servant on leave shall not return to duty before the expiry of the period of leave
4. Overstayal After Expiry
Every leave has a commencement date and a termination date.
Unless extended, an employee who remains absent after the end of the leave has to meet
with certain penal consequences.
5. Overstayal/unauthorised absence
Overstayal means continuation of the position immediately before the end of the leave.
In other words, a public servant overstays when after the end of the leave he continues to
stay away from work without the sanction of the competent authority.
It amounts to unauthorised absence and could amount to misconduct or breach of
discipline.
6. Consequence of overstaying leave
The immediate consequence of overstayal is that the employee will not be entitled to
leave salary.
Unauthorised absence by reason of overstayal could amount to misconduct and could
even be a circumstance for removal.
9. Leave salary
Leave necessarily means that the public servant is absent from his duty yet such absence
being authorised the right of the employee to receive remuneration during the period of
leave.
10. Amount of leave salary
The amount of leave salary varies with the different kinds of leave.
The rules generally provide that in the case of earned leave, the employee will be entitled
to leave salary equal to the pay
in the case of half pay leave, the entitlement would be half the amount receivable on
earned leave;
In the case of extra ordinary leave, the employee is not entitled to any leave salary.
BREAK IN SERVICE
MEANING
Unauthorized absence in certain circumstances amount to break in service
The rule, however, provides that such unauthorised absence shall not be considered as interruption
or break in service for the limited purpose of lease travel concession, quasi-permanency and
eligibility for appearing in a departmental examination, for which a minimum period of
continuous service is required, if the Competent Authority so decides.
Although the rules generally do not lay down in express terms "interruption", it has been held that
absence from duty without leave does not necessarily mean break in service of the employee
whose leave has been refused.
NATURAL JUSTICE
Since a break in service has serious civil consequences, an order to such cannot be passed
without giving a reasonable opportunity to the employee.