Saturday, March 17, 2018

Pension option to Compulsorily retired employees

IBA has sent advice to member banks to offer pension option to the compulsorily retired employees in terms of the settlement of 2010.
IBA has sought legal opinion from a law firm whose services are engaged as  retainer ,which is reproduced below
 “Having considered the decisions rendered by the Hon'ble 
High Courts of Andhra Pradesh,Madras, Madhya Pradesh,
 Punjab & Haryana, Patna which have ruled in favour of the 
employees/officers who were compulsorily retired by way of 
punishment on the ground that they are covered by the Joint 
Note as well as decision of the Hon'ble Delhi High Court which
 has taken a contrary view on the technical ground and the
 fact that SLPs preferred against the judgments of the High 
Courts which had ruled in favour of the employees were 
dismissed, though such dismissal cannot be considered as 
law laid down by the SC, we are of the considered view that
 the banks are bound to give 2nd option to all the employees/
 officers who were compulsorily retired and who fall within the
 ambit of the Joint Note to exercise 2nd option for the following
 reasons: -
> The Joint Note does not distinguish between voluntary retirement, superannuation, premature retirement, compulsory retirement. Even the employees/ officers who are compulsorily retired by way of punishment are eligible for pension under the pension regulations. Banks being "State" within the ambit of Article 12 of the Constitution of India should act in a fair and reasonable manner and should not restrict it only those who demand it. Such stand, if any, adopted by the banks may invite strictures from the Courts. "




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