Regularisation of Temporary Employees is illegal

LIC provisional hands cannot be absorbed

In a claim for regularisation of temporary employees in LIC in a case ( Ranbir Singh vs S.K. Roy, Chairman, LIC ) spanning four decades, the Supreme Court (SC) categorically said,

“A public employer such as LIC cannot be directed to carry out a mass absorption of over 11,000 workers on such flawed premises without following a recruitment process which is consistent with the principles of equality of opportunity governed by Articles 14 and 16 of the Constitution. Such an absorption would provide the very back-door entry, which negates the principle of equal opportunity and fairness in public employment, which has been specifically decried by this Court in Secretary, State of Karnataka v Umadevi“, which was a constitutional bench decision in 2006.

Monetary compensation can be given instead

The SC came to the conclusion that the claims of those workers who are duly found upon verification to meet the threshold conditions of eligibility should be resolved by the award of monetary compensation in lieu of absorption, and in full and final settlement of all claims and demands.

The SC directed a fresh verification of the claims of workers who claim to have been employed for at least 70 days in Class IV posts over a period of three years or 85 days in Class III posts over a period of two years shall be carried out.

The task of verification shall be carried out by a Committee consisting of: (a) Mr Justice P K S Baghel, former Judge of the Allahabad High Court; and (b) Shri Rajiv Sharma, former District Judge and member of the UP Higher Judicial Service.

The quantum of compensation

The court added that all persons, found to be eligible on the norm shall be entitled to compensation computed at the rate of Rs 50,000 for every year of service or part thereof.

The payment of compensation at the rate shall be in lieu of reinstatement, and in full and final settlement of all claims and demands of the workers in lieu of regularisation or absorption.

Settle everything in three months

The payment of compensation in lieu of reinstatement shall be effected by LIC within a period of three months from the date of receipt of the report of verification by the Committee.

Additional reading

  1. Temporary Employees cannot be made Permanent