IBA circular on Pension for CRS/Removal/Discharged Employees!

IBA circular on Pension for CRS/Removal/Discharged Employees!

HR & INDUSTRIAL RLATIONS

No. HR&IR/CIR/2015-16/MI/1852

December 23, 2015

Chief Executives of Member banks which are parties to Bipartite Settlement dated 10.4.2002.

Dear Sir,

Special Leave Petition No. 17054/2009 before the Hon’ble Supreme Court – Bank of Baroda vs. S.K. Kool – Supreme Court decision dated 11.12.13 against the Bank – Review Petition (C) No. 2344/2014 & (2) SLP No. 11443/2014 Bank of Baroda vs. G. Sukla before the Supreme Court.

We refer to our Circular No. CIR/HR&IR/KU/MI/1004 dated 30.6.2015 regarding treatment of cases in which an employee who is imposed with punishment of “removed with superannuation benefits” under Clause 6(b) of the Bipartite Settlement dated 10.4.2002/27.5.2002 on “Disciplinary Action & Procedure therefor for Workmen” in view of the above captioned Hon’ble Supreme Court Judgement. Member banks were advised to consider implementation of the said judgement in such cases.

We have been receiving queries from member banks seeking clarifications as to whether the award staff employees who are imposed with punishment of “compulsorily retired” (6c) and “discharged from service” (6d) are also covered under the above judgement.

We have examined the matter and are of the view that employees imoposed with punishment of “removal”, “compulsory retirement” and “Discharge” as per Clause 6 (b) (c) and (d) of Settlement dated 10.4.2002 are to be considered with superannuation benefits, i.e. Pension and/or PF and Gratuity as would be due otherwise under the Rules or Regulations.

Yours faithfully,

       Sd/-

K. Unnikrishnan

Deputy Chief Executive

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Backround Information:

UFBU signed an exclusive Settlement on 10-4-2002 containing the provisions on Disciplinary Action and Procedure thereof.  Under this Settlement, for proved Gross Misconduct, the following punishments have been prescribed under Clause 6.

• 6 (b) be removed from service with superannuation benefits i.e. Pension and / or Provident Fund and Gratuity as would be due otherwise under the Rules or Regulations prevailing at the relevant time and without disqualification from future employment; or

• 6 (c) be compulsorily retired with superannuation benefits i.e. Pension and / or Provident Fund and Gratuity as would be due otherwise under the Rules or Regulations prevailing at the relevant time and without disqualification from future employment; or

• 6 (d) be discharged from service with superannuation benefits i.e. Pension and / or Provident Fund and Gratuity as would be due otherwise under the Rules or Regulations prevailing at the relevant time and without disqualification from future employment; or

However, under the plea that Pension Regulations does not contain the above similar provisions, employees who were inflicted with the above punishments were being denied pension.