Laws Relating to Premature Retirement and Resignation

This lucid commentary on the law relating to premature retirement, as applicable in India, has now been updated with a Supplement upto 2016.

Topics covered include: Various modes of retirement, role of the State as employer, Compulsory retirement and the disputed issues relating to it, compulsory retirement under service rules and that under conduct rules, etc. The Appendices include the various voluntary retirement schemes for the Government employees and those of the Public Sector.

Table of Cases

Overview

Introduction

The State and its Instrumentalities as Employer

Employer-employee relationship

Resignation and Voluntary Retirement

Voluntary Retirement and Voluntary Retirement Scheme

Compulsory Retirement

Generally

Concept of Compulsory (Premature) Retirement

Compulsory Retirement (under Service Rules) vis-a-vis Compulsory Retirement under Conduct Rules and Superannuation

The Rules

Absolute Power to appropriate authority: Whether unfettered

Compulsory retirement - the general principles of law

Ingredients of Compulsory Retirement

Ban on Reappointment

Judicial Review

Generally

Constitutionality of the provision

Competent Authority

Applicability

Qualifying Service/Age

Effective date

Procedures and instructions

Compulsory retirement-whether punishment

Conditions under which Compulsory Retirement cannot be ordered

Principles of Natural Justice - whether applicable

Opportunity to be Heard

Speaking Order

Judicial Review

Grounds for interference by Court

Voluntary Retirement

Scope

Voluntary Retirement and Resignation

Voluntary Retirement and Superannuation

Eligibility

On completing thirty years of qualifying service

On completing twenty years of qualifying service

Exceptions and restrictions on eligibility

Notice period

Rationale of Notice Period

Duration of Notice Period

Curtailment of Notice Period

Acceptance of application for Voluntary Retirement

Refusal of request

Effective date

Withdrawal of offer for Voluntary Retirement

Voluntary Retirement Schemes

Background and distinction from normal Voluntary Retirement

Nature of the Voluntary Retirement Schemes

Provisions and eligibility

Validity of Voluntary Retirement Schemes

Right of management to accept or reject VRS application: Whether unfettered

Communication of acceptance: Whether required

Withdrawal of VRS application: Permissibility

Effective Date

Grounds for withdrawal

Back Wages

Annulment of the VR Scheme: Permissibility

Successive VR Schemes with different packages: Whether discriminatory?

Effect of accepting the benefits on withdrawal

Failure of the employer to pay ex gratia

VRS and Pay Revision.

Ex gratia - Liability to pay income tax

Scheme of the Reserve Bank of India

Resignation

What constitutes Resignation: the ingredients

Resignation to be unconditional and voluntary

Suspension and resignation

Competent authority

Kinds of resignation

Notice period

Acceptance of resignation and communication thereof

Communication of acceptance, when necessary

Refusal of resignation

When a resignation takes effect (Effective Date)

Withdrawal of resignation.

Before acceptance

After acceptance but before relief

After relief (after it became effective)

Effects of resignation

Appendices

Rules for Compulsory Retirement

Voluntary Retirement Rules

Government of India Rules for Resignation

Special Voluntary Retirement Scheme (For Surplus Central Government Employees)

VRS for Public Sector Undertakings

VRS - 2003 for Bokaro Steel Limited.

National Insurance Company Ltd.

Optional Early Retirement Scheme for Reserve Bank of India

Voluntary Retirement Scheme for Banks

State Bank of India Voluntary Retirement Scheme (SBI VRS)

Punjab National Bank Voluntary Retirement

Scheme-2000

Subject Index