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Business, Investing & Management | 46 Chapters
Author: S Srinivasan
The ambiguous state of our legal structure and its formats leave the common man with nograsp of the basics of the system in which he lives. Treatises and documents are boundless, but yet so vague and so verbose, that one has neitherthe time to read it nor to even glance it. Over the years it is greatly felt that a standing reference material which can help abankworker to be aware of this rights as bank employee is necessary. Hence this effort on ....
Chapter 1
(Paragraph 4.126 Desai Award and Paragraph 64 Sastry Award).
(Paragraph 4.127 Desai Award and Paragraph 67 Sastry Award).
CLASSIFICATION OF WORKMEN
i. who has been appointed for a limited period for work which is of an essentially temporary nature; or
ii. who is employed temporarily as an additional workman in connection with a temporary increase in work of a permanent nature; and includes an employee other than a permanent employee who is appointed in a temporary vacancy caused by the absence of a particular permanent employee.
i. who has been appointed for a limited period for work which is of an essentially temporary nature; or
ii. who is employed temporarily as an additional workman in connection with a temporary increase in work of a permanent nature; and includes an employee other than a permanent employee who is appointed in a temporary vacancy caused by the absence of a particular permanent employee.
NOTE:
It is also envisaged in para 20.8 of Bipartite Settlement dated 19.10.66 (CI 18.8 of our settlement dt. 14.12.66) that “such temporary workman may also be appointed to fill a permanent vacancy provided that such temporary appointment shall not exceed a period of 3 months during which the bank shall make arrangements for filling up the vacancy permanently. If such temporary workmen is eventually selected for filling up the vacancy then the period of such temporary employment will be taken into account as a part of his probationary period.
(CI 18.12 of our settlement 14.12.66)
Clause 20.12. of Bipartite Settlement dated 19.10.66: Other things being equal to temporary workman (other than godown keeper) will be given preference for filling permanent vacancies and if selected they may have to undergo probation.
Clause 20.4 of 19.10.66 and 498 of Sastry Award: (CI 18.4 of 14.12.66) (18.12. of 14.12.66)
For ordinary work no bank should employ part time workers except for pass book writing. All Banks will be free to employ part time clerks as pass book writers. Apart from such persons already in employment as on 19.10.66 in future only students and retired persons (but in any case, no person already in employment elsewhere) will be engaged by banks or this purpose. Their hours of work will not exceed 12 hours in a week.
Application of Awards and Settlements Categories of Workmen Who Are Covered Under the Awards &. Settlements.
To appreciate the scope and coverage of workmen in the banking industry, it would be in order to know the definition of ‘workmen’ under sec.2(s) of the Industrial Disputes Act, 1947. A workman as defined in sec.2(s) of Act, means any person (including an apprentice) employed in any industry to do any manual, unskilled, skilled, technical, operational, clerical or supervisory work for hire or reward, whether the terms of employment be express or implied, and for the purposes of any proceedings under this Act in relation to an industrial dispute, includes any such person who has been dismissed, discharged or retrenched in connection with, or as a consequence of, that dispute, or whose dismissal, discharge or retrenchment has led to that dispute, but does not include any such person.
a) Who is subject to the Air Force Act, 1950 (45 of 1950), • or the Army Act, 1950 (46 of 1950) or the Navy Act, 1957 (62 of 1957); or
b) Who is employed in the Police Service or as an officer or other employee or person; or
c) Who is employed mainly in a managerial or administrative capacity or
d) Who being employed in a supervisory capacity, draws wages exceeding one thousand six hundred rupees per mensm or exercises, either by the nature of the duties attached to the office or by reason of the powers vested in him, functions mainly of a managerial nature”.
Note:
It is evident that the law relating to the status of the temporary employee is well settled by the decision of Supreme Court. In the eyes of law, temporary employees ‘Workman’ under 1D Act for all purposes. Hence, they cannot be deprived any benefits whether settlement provides it or not.
It should be carefully noted that para 16.7 of Desai Award says that this award will apply only to employees who are workmen within the meaning of the said definition so long as they remain workman and they have been classified (vide para 23.15 of Desai Award) as:
a) Permanent employee:
b) Probationers;
c) Temporary employee;
d) Part time employee
Chapter 2
(XI BPS dated: 11-11-2020)
Pay Scales (Merger at 6352 Points |
Stagnation Increments – 9 |
|
Clerks |
17900 – 1000/3 – 20900 – 1230/3 – 24590 – 1490/4 – 30550 – 1730/7 – 42660 – 3270/1 – 45930 – 1990/1 – 47920 |
Clk: 9 – once in 2 yrs.@rs1990/-, maximumof Rs.65830 |
Sub-staff |
14500 – 500/4 – 16500 – 615/5 – 19575 – 740/4 – 22535 – 870/3 – 25145 – 1000/3 – 28145 |
SS: 9 – once in 2 yrs.@1000/- maaximumo f Rs.37145 |
Note:
a) Fitment in the new scales of pay shall be on a stage-to-stage basis.
b) There shall be no change in the dates of annual increments because of the fitment
c) In the case of Ex-servicemen category employees who have joined the Banks on and after 1-11-2017 up to the date of this Settlement, the fixation/fitment in the pay scales already given/eligible to be given under the 10th BPS shall be refixed as per the provisions of this settlement so that there will be no reduction on account of fitment in new pay scales.
d) All employees belonging to subordinate cadre shall be eligible for one extra increment for passing JAIIB and two increments for passing CAIIB examination w.e.f 1.11.2017
Note:
GRADUATION PAY/PROFESSIONAL QUALIFICATION PAY
For those workmen who hereafter reach or have already reached 20th stage of the scale and have got increments in consideration of educational qualification(s), Graduation Pay/Professional
Qualification Pay shall be payable as under:
ADDITIONAL INCREMENT TO SUB STAFF;
Cl 4 note (d) All employees belonging to sub-ordinate cadre shall be eligible for one extra increment for passing JAIIB and two increments for passing CAIIB examination w.e.f 1.11.2017
Note: Refer to Clause 11of 11BPS
GRADUATION PAY
Non-Subordinate employee who acquire graduation/post-graduation qualification from Universities/Open Universities which are recognised by the University Grant commission will be considered as, having acquired graduate qualification and would be eligible for being granted the two additional increments for graduation or graduation pay, as the case may be,as provided hereinabove subject however to the following conditions:
This provision shall take effect from the date of the 8 th BIPARTITE Settlement.
Note:
A provision tor release of increment for graduation or graduation pay to non-subordinate employees who acquire graduation/post-graduation qualifications from Universities/Open Universities has been incorporated in Clause 34 of the Settlement. Although this provision takes effect from the date of settlement, it has been agreed that cases of all non-subordinate employees who have acquired graduation/post-graduation qualification from Universities! Open Universities recognised by the University Grants Commission prior to the date of settlement may also be considered for release of increment for graduation or graduation pay, subject to the conditions as at (I) and (ii) of Clause 34 of the Bipartite Settlement.
CAIIB/CAIB INCREMENTS
(19TH AND 20TH STAGES OF PAY)
Ref No: EST/44/2005 -06
Date: 22.09.2005
In partial modification of Part II of clause 23 of the Bipartite Settlement dated 12th October 1970, a member of the non-subordinate cadre acquiring a’ Graduate/National Diploma In Commerce or a JAIIB/CAIIB (either or both parts) qualification/s at a time when he/she does not have the requisite number of increments in the scale to be earned as advance increments shall in the first instance be released increments for such qualification/s acquired to the extent available in the scale and in lieu of the remaining increments(s) not available for being so released as advance increments be granted/released the first instalment of Graduation Pay or PQP, as the case may be. Release of subsequent instalments of Graduation Pay or PQP shall be with reference to the date of release of Graduation Pay or PQP under this clause. Provided that in the case of an employee acquiring such qualifications after reaching the maximum of the scale of pay, he shall be granted from the date of acquiring such qualification the first instalment of Graduation Pay or PQP,as the case may be and the release of subsequent instalments of Graduation Pay or PQPshall be with reference to the date of release of Graduation Pay or PQP.under this clause. Provided further that in a case where the employee as on the date of this settlement, has already acquired any of the said qualifications and has not earned any increment or Graduation Pay Professional Qualification Pay on account of acquiring such qualification, he may be, with effect from 1st November 2002 or the date of acquiring any of the said qualifications, whichever is later, released increment/s or Graduation Pay/PQPas provided herein above (8 Bipartite Settlement)
For the sake of clarity and to distinguish it from Graduation Allowance, the increments/educational’ allowance now paid to the clerical staff for passing Part 1 or both Parts of CAIIB/CAIB shall be called Professional Qualifications Increments or Allowance as the case may be.
(Para 11 of Fifth Bi-Partite Settlement, dated 10.4.1989)
SET OF IBA’S CLARIFICATIONS/EXPLANATIONS ISSUED IMMEDIATELY AFTER AND WITH REFERENCE TO PROVISIONS IN 5th BIPARTITE SETTLEMENT, REGARDING PROFESSIONAL QUALIFICATION ALLOWANCE
For subordinate staff new provisions
All employees belonging to sub-ordinate cadre shall be eligible for one extra increment for passing JAIIB and two increments for passing CAIIB examination w.e.f 1.11.2017
List of universities approved by UGC IN INDIA for determining eligibility of graduation increment
(Recognised for Graduation/Post Graduation)
SEE ALSO
UGC Approved Universities 2020 | Private, Deemed, State & Central List
https://scoop.eduncle.com/ugc-approved-universities
List of UGC Approved Distance Education Courses & Universities 2019
https://www.shiksha.com/humanities-social-sciences/articles/ugc-approved-distance-education-courses-universities-blogId-13904
Chapter 3
In substitution of Clause 7 of Bipartite Settlement dated 25th May 2015 with effect from 1st November 2017, the Dearness Allowance shall be payable as per the following rates: -
1. Clerical and Subordinate Staff
0.07 % of ‘pay’ per slab of four points.
Note:
Dearness Allowance in the above manner shall be paid for every rise or fall of 4 points over 6352 points in the quarterly average of the All India Average Working-Class Consumer Price Index (General) Base 1960= I00.
a) It is clarified that there shall be no ceiling on Dearness Allowance.
b) Dearness Allowance shall be calculated and paid on the following components:
if any, payable under this settlement in respect of both clerical and subordinate staff.
c) All other existing provisions relating to Dearness Allowance Scheme shall remain unchanged.
2. DEFINITION OF ‘QUARTER’ AND TAKING OF QUARTERLY FIGURES OF DEARNESS Allowance
“For the purpose of calculating dearness allowance, ‘quarter’ shall mean the period of three months ending on the last day of March, June, September or December.” (Clause II (iii) of Bipartite Settlement dated 17.9.1984)
“Final index figures as published in the Gazette of India or the Indian Labour Journal, whichever is earlier shall be the index figures which shall be taken for the purpose of calculation of dearness allowance.” (Clause ii (iv) of the Bipartite Settlement dated 17.9.1984)
For the purpose of calculating the Dearness Allowance for any particular month, the quarterly average for the last quarter for which the final index figures are available on the 15th day of that month should be taken. Thus, if the DA for the month of August is to be calculated, the quarterly average for the last quarter for which final index figures are available on the 15th August should be taken. (Clause II (v) of Bipartite Settlement dated 17.9.1984)
Notes
KNOW HOW D.A. IS CALCULATED!
EXAMPLE: for D.A Feb 2012:
Average of Oct, Nov, Dec 2011 = (198+199+197) X 4.93 X 4.63/3
On conversion =Average O N D 2011= 4519.53
D.A already paid for Nov. 2011(i.e. average of Jul, Aug, Sep)
= 401 slabs = 401 X 4+2836 = 4440.00
(2836 is already merged point in 9th B,P)
Increase 4519.53 – 4440 = 79.53
Slabs = 79.53/4 = 19.88 = 19
(ONLY WHOLE NUMBERS ARE TAKEN. DECIMELS ADJUSTED IN THE NEXT MONTH)
HENCE INCREASE FOR Feb 2012 is 19x0.15=2.85% of (B.P+SPL.ALLOW.+PQP)
Toil D.A for Feb, Mar, Apr 2012=401+19=420 slabs=60.15%+2.85%=63%
DEFINITION OF SPECIAL PAY AND PAY
Definition of ‘Pay’
In reiteration of Clause 6 of the Bipartite Settlement dated 25th May 2015, ‘Pay’ shall be defined as under: ‘Pay’ components Eligible for
Basic Pay, Dearness Allowance, Stagnation increments, HRA, Provident Fund, Special Pay, Gratuity, Graduation Pay/Professional Qualification Pension, Pay New Pension Scheme,
Officiating Pay
Note:
The increment component of Fixed Personal Pay as given in column 2 of Schedule III shall rank for superannuation benefits.
‘Pay’ components Eligible for Basic Pay, Dearness Allowance, Stagnation increments,, Special Pay,Graduation Pay/PQP Officiating Pay Special Allowance, Transport Allowance
SPECIAL PAY
Chapter 4
In partial modification of Clause 5 of Bipartite Settlement dated 25th May 2015, both clerical and subordinate staff (including permanent part-time employees on scale wages) shall be eligible for nine stagnation increments w.e.f. 1st November 2017 at the rate and Frequency as stated herein under:
The clerical and subordinate staff including permanent part-time employees on scale wages on reaching the maximum in their respective scales of pay, shall draw nine stagnation increments at the rate of Rs. 1990/- and Rs. 1000/- respectively (pro rata in respect of permanent part-time employees) each due under this settlement, and at frequencies of 2 years, from the dates of reaching the maximum of their scales as aforesaid.
Provided further that a clerical/subordinate staff (including permanent part-time employees on scale wages) already in receipt of eight stagnation increments shall be eligible for the ninth stagnation increment from 1st November, 2017 or two years after receiving the eighth stagnation increment, whichever is later.
Provided further that the Stagnation increments received by the employees who are/were in service of the banks as on 1 November, 2017 as per periodicity hereinbefore would be readjusted from the date of reaching their maximum by also considering the Graduation/JAIIB/CAIIB Qualifications acquired thereafter, if any and employee shall be notionally eligible for stagnation increments w.e.f. 1.11.2017 in terms of this settlement as per the revised periodicity which will qualify for superannuation benefits. However, monetary benefit on account of such revised and readjusted stagnation increments shall be payable from 1st November, 2020 or the actual date of entitlement whichever is later.
NOTES:
STAGNATION INCREMENTS TO PART-TIME EMPLOYEES ON SCALE WAGES
We refer to the clarifications on the provisions of the Fifth Bipartite Settlement dated 10th April, 1989, circulated under cover of IBA circular NO.PD/CIR/76/90/937 dated 16th August, 1989, interalia clarifying that part-time employees are not eligible for stagnation incrernent/s as the same has not been provided in clause18.2 of the said Settlement.
At the Negotiating Committee meeting held at IBA on 11th January, 1992, it was represented by the workmen’s Unions that part-time employees on scale wages, may also be considered for stagnation increment/s notwithstanding the provisions contained in Clause 18.2 of the Settlement as it mainly concerns a small section of the subordinate staff category.
The Chairman IBA agreed to the request of the Unions and it was decided to take a liberal interpretation of the clause and allow stagnation increment/s to part-time employees on scale wages also. The Banks may release such stagnation increment/s to the employees from the date when the same was due to them.
Stagnation increments for Clerical
Basic Pay |
Existing as per 10th Bipartite |
Revised as per 11th Bipartite |
20th Stage (Maximum) |
31540 (Maximum) (3 years) |
47920 (Maximum)(2 years) |
Stagnation 1 |
32850 (3 years) |
49910 (2 years) |
Stagnation 2 |
34160 (3 years) |
51900 (2 years) |
Stagnation 3 |
35470 (3 years) |
53890 (2 years) |
Stagnation 4 |
36780 (3 years) |
55880 (2 years) |
Stagnation 5 |
38090 (2 years) |
57870 (2 years) |
Stagnation 6 |
39400 (2 years) |
59860 (2 years) |
Stagnation 7 |
40710 (2 years) |
61850 (2 years) |
Stagnation 8 |
42020 (Additional) |
63840 (2 years) |
Stagnation 9 |
xxxxxx |
65830 (Additional) |
Refixation of Stagnation increment for clerical due to reduction in Frequency
Monetary benefit on account of such revised and readjusted stagnation increment/s shall be payable from
1st November, 2020. For retirees, it will qualify for superannuation benefits as per the revised periodicity.
FOR ADDITIONAL 9TH STAGNATION INCREMENT WITH ARREARS
(WITHOUT REFIXATION)
Additional (9th Stagnation increment in 11th Bipartite)
8th Stagnation increment of 10th Bipartite from |
Eligible for 9th Stagnation increment from |
May 2015 to Nov 2015 |
November 2017 |
Dec 2015 |
December 2017 |
Jan 2016 |
Jan 2018 |
Feb 2016 |
Feb 2018 |
Mar 2016 |
Mar 2018 |
Apr 2016 |
Apr 2018 |
May 2016 to Nov 2018 |
May 2018 to Nov 2020 respectively |
Salary arrears shall be payable from the eligible date and for retirees in addition to the arrears till their date of retirement, they will also get all superannuation benefits like Gratuity, Leave encashment, Commutation, Pension.
INCREMENTS
The date of increment of an employee shall be given effect from the first day of the month in which it falls due. This is with effect from 1-9-83.
The date of retirement of an employee shall take effect on the last day of the month in, which he completes such age, this is with effect from 1-9-83.
Staff Annual Increment: Sub staff promotees:
a) after reaching maximum basic pay or
b) after the l st, 2nd, 3rd, 4th or 5th stagnation increments shall draw their annual increment/s on the anniversary date of promotions subject to deferment or stoppage. (Settlement dated 15/12/1987
a) after reaching maximum basic pay or
b) after the l st, 2nd, 3rd, 4th or 5th stagnation increments shall draw their annual increment/s on the anniversary date of promotions subject to deferment or stoppage. (Settlement dated 15/12/1987
Deferment for Annual Increment
Note:
(CL 2 of the Bipartite Settlement dated 8th September 1983 on “Other Issues” superseding CL.4.11 of the First Bipartite Settlement dated 19th October 1966).
2. Postponement and Stoppage:
Increment/Graduation Increments/Stagnation Increments:
Release of increments for the period under suspension upon reinstatement (PD/CIR/76/B/7376 of IBA)
In terms of the provisions of the First Bipartite Settlement, if upon conclusion of the enquiry it is decided to take no action against the suspended employee, then he shall be deemed to be on duty and shall be entitled to full wages, allowances and all other privileges for the period of suspension. If some punishment other than dismissal is inflicted, the whole or part of the period of suspension, may at the discretion of the Management be treated as on duty with the right to a corresponding portion of wages, allowances, etc.
The union representatives have been contending that non release of notional increments for the period of suspension tantamounts to double punishment. Further, they contend that the disciplinary authority imposes punishment depending upon the gravity of the issue etc., and the question of increment/s withheld so to say, during the period of suspension is never gone into by the disciplinary authority.
On a suggestion from the Chairman, IBA, the Personal Committee of the Association at its meeting held on 31/3/1992 had a relook into this matter and decide as under:
The disciplinary authority should invariably specify while passing orders regarding the punishment as to whether the increment/s for the period of suspension are to be released or withheld. If the order is silent in this regard then it should be construed that lncrernent/s fallen due during the period of suspension are to be released from the date the suspension is lifted”.
Notes
Pursuant to the above decision many banks have made enquiries with IBA whether past cases have to be reopened and fixation of pay done accordingly/the personnel committee of the association at its meeting held on 20-5-93 decided as under
“penalties awarded on or after 13-6-92(date of issue of IBA circular No. PD/CIR/76/B/M/376) should be interpreted in terms of clarifications given be the personnel committee. Decisions taken on past cases (penalties awarded prior to 13,June,1992) as per the prevalent practice in the respective banks should not be opened, for practical considerations. (IBA Cir.PD/CIR/76/B/M/384 dated 11-6-93)
Effect of revision in pay scales on computation of subsistence allowances in the case of workmen employees. (CO 7(f)/74 dt.1998-99 Dt: 22.9.98)
Reference is invited to our Circular Memo No.7(f) 56 of 1995 -96 dated 1.9.95 wherein vide point No.7 we had advised branches that for those who had been suspended prior to.11.92, there would be no change in the subsistence allowance arising out of the salary revision, and accordingly, no arrears will be payable unless the period of suspension is treated as ‘on duty’. It was based on the decision given earlier by IBA on 5.10.89. IBA, on a review of the above decision, has now advised that the workmen employees under suspension will be eligible to be paid subsistence allowance reckoning the revised scales of pay on account of salary revision even if the date of suspension is prior to the effective date of salary revision which will be in line with the decision of Madhya Pradesh and Haryana High Courts relating to payment of subsistence allowance to workmen employees in banks. As such, cases of workmen employees who are now under suspension and in whose case salary revision has taken place, subsequent to their suspension, may be reviewed in view of the above decision and be paid arrears of subsistence allowance.
It is to be noted that arrears will be payable only in the case of workmen employees who have been suspended prior to 1.11.92 (effective date of salary revision under VI th Bipartite Settlement) and are still under as on 11.8.98.
However, there shall be no change as regards subsistence allowance payable to employees/officers under suspension.
In partial modification of our circular Memo No.7(f) 5’6 1995-96 dated 1.9.95, we give below the operational instructions.
Operational Instructions:
Reckoning of annual increments during the period of suspension for calculating subsistence allowance to workmen employees.(EST 17/98/99 dt. 4.4.98, IR Dept.)
Reference is invited to our Circular Memo 7(f) 163 ofl980 dated 20.9.80 and permanent circular Ref.No.EST/192/88 dated 21.01.1988 wherein CO had advised branches that if he normal date of annual increments of a suspended award staff member falls during the period of his/her suspension, then the annual increment should NOT be reckoned for the purpose of calculation of his subsistence allowance from that date. It was based on the decision given earlier by IBA on 5.2.87. IBA, on a review of the above decision, has now advised that banks are to reckon the increments which fall during the Period of suspension for calculation of subsistence allowance to ward staff keeping in view the specific provisions of Awards/Bipartite Settlements. In partial modification of our Permanent circular Ref.EST/)92/88 dated 21.1.1988, we give below the operational instructions as per the present decision of IBA.
Operational Instructions
All other instructions given in Permanent circular Ref.No.192/98 dated 21.1.98 remain unchanged.
Note: Read also chapter on Disciplinary Proceedings under the Head “Subsistence Allowance”.
Effect of rigor of punishment on release of Stagnation - Increment(s) to workmen
(Personnel Department CIR/PD/76/B/M/1242 December 28, 2006)
In terms of the Bipartite Settlement, the Clerical subordinate staff on reaching the maximum of respective scales of pay shall be eligible for six stagnation increments at the rate of Rs. 560/- and Rs. 270/- each under the Settlement and at frequencies of 3 years and 2 years respectively from the date of reaching the maximum of their respective scales.
One of the penalties that can be imposed on a workman found guilty of gross misconduct is bringing him down to a lower stage in the scale of pay upto a maximum of two stages (clause 6(e) of the Bipartite Settlement dated 10.04.2002).
Whether or not the above penalty imposed on a workman, who has reached the top of the scale, will affect the date of release of stagnation increment(s) to him, was examined by the Personnel Committee of the Association in its meeting held on 9th August, 2006. The Committee deliberated on the issue and was of the view that the penalty which is awarded to a workman for proven gross misconduct should have some rigor when in fact increments can be stopped with cumulative effect. The Committee decided that the penalty as in clause 6(e) of the Bipartite Settlement dt. 10.4.2002 should be more rigor us than clause 6(f) and therefore would affect release of future stagnation increments. In effect, the release of stagnation increments will be delayed by the period spent by the employee at a stage below maximum
IMPORTANT NOTES:
* Non-payment of subsistence allowance will vitiate the enquiry?
Non-payment of subsistence allowance, apart from inviting penal action against the employer for breach of settlement or Act, would make the enquiry defective. For non-payment of subsistence allowance the employee may not attend the enquiry, and the exparte enquiry in the given situation would be bad in law.
To get the answer of the said question of Sastri Award in unmistakable terms, states that if three adverse remarks have been registered against the employee after proper enquiry, it may be taken as prima facie case for “stopping the increment as the next year”. The Award, therefore, countenances a stoppage of increments falling in future after the employee has been found guilty and not before that. Pendency of disciplinary enquiry, it cannot be said that the employee is guilty of misconduct or gross inefficiency, much less proved misconduct, as required under Sastry Award for stoppage of increment.
(The Workman of State Bank of India and Secretary Vs. Treasurer of the S.B.I., Madras-1, The Industrial Tribunal LLJ1985, Vol-II P.239).
* Whether Increment could be stopped with retrospective effect?
“The increment that could be stopped by way of punishment could only be that increment which could be falling due after the employee was found guilty in a proper departmental enquiry. Pendency of proceedings would not entitle the management to withhold payment of increment to an employee retrospective, if found guilty. (Workman of State Bank of India v. State Bank of India, Madras and other 1985(66) - FJR- P.332 (Madras High Court)
* What would be the impact of suspension on salary revision?
If the date of suspension is prior to the date of salary revision, there will be no change in the Subsistence Allowance arising out of the salary revision and accordingly no arrears will be payable unless the period of suspension is treated as on duty. If, however the date of suspension is subsequent to the date from which the salary revision is effective, the concerned employee will be given the salary revision on the due date and his Subsistence Allowance will be fixed as per his revised salary. The arrears of salary and Subsistence Allowance shall be paid to him accordingly..
However, Bank management should not be confused and they should not misunderstand the last line of Para 85 of the Sastry Award that they have been given the power to withhold the past increments, It only speaks that the order withholding the increment should mention as to whether it will have the effect of postponing future increments also, that is to say, whether it will have cumulative effect.
What is the import of the expression “will have cumulative effect”?
It means postponement of future increments. In other words, the increment which is stopped is lost permanently. Exactly, therefore when there is an order for stoppage of one increment, the employee would be entitled to draw his next Increment not on the day when It falls due one year after. That is Mechanism of implementation and the net effect is that the employee will cover the span if it is 20 years, by 21 years. Thus, he IS to swim in the grade one year more.
Note:
When a punishment of stoppage on increment is imposed on an employee with cumulative effect, say 2 increments the same would have the effect of postponing 2 increments in the said scales of pay. However, It would not be in order beyond a particular Basic Pay before the maximum scale is reached.
“” Whether the management of a bank can stop or withhold increments ALREADY EARNED as a measure of punishment on account of proved or admitted misconduct?
As a matter of fact, the management has no right to withhold the increment which has fallen due, as a measure of punishment. What they are authorised to do is to stop increment which will fall due in future.
If the management is allowed to withhold increment already earned by an employee, it would imply authorising the management to withhold increment retrospectively by way of punishment because Para 85 of the Sastry Award does not clothe the management with such power. The earlier decision of single judge (S.B.1. v LT. Madras, FLR 1977 (35) P.273) wherein it was held that “once the employee is found guilty of misconduct as to from what date the increment has to be withheld is entirely within the discretion of the management. The said decision is altered and considered as bad law, vide decision of Division Bench of Madras High Court in case of The Workmen of the State Bank of India v. Secretary and Treasurer of the State Bank of India and The Industrial Tribunal, Madras supra.
“” Whether there is scope for general withholding of Increments during any particular year arising out of exceptional circumstances?
In terms of Para 86 of the Sastry Award, annual increments for any particular year may be stopped at the discretion of the bank if the ratio of its gross profit to the working funds during the previous year is less than 75 percent of the average of similar ratios for the four years immediately preceding that previous year provided, however, that -
“” What shall be the date of sanction of increments for passing CAIIB Examination?
Increments for educational qualifications are to be granted from the dates on which the results are announced.
“” Whether a pass in M.A. Examination with Hindi of Tirupati University without obtaining B.A. degree of any recognised university would be considered equivalent to graduation for the-purpose of grant of two increments?
It is being treated as equivalent to graduation for the purpose of grant of two increments in tune With the Central Government’s letter no.6/1/64/EST dated 19.4.1964, it is now considered by IBA Vide 8 BPS.
DEFERMENT OF INCREMENTS AND REDUCTION IN SCALES OF PAY
ILLUSTRATIONS
(B)
Penalty: Reduction in Pay by two stages in the time scale for a period of Two Years with further directions As in Sub-regulation (f)
Date of Penalty: 01.02.2004
Under the four possibilities as in Regulations 4 (f), the Basic Pay movement of the officer during the currency of the penalty would be as follows:
Case 1: (officer earns increment during the period of punishment – without cumulative effect:)
Date |
Basic Pay in the Normal course |
Basic Pay after penalty |
1.09.2003 |
12350 |
12350 |
1.02.2004 |
12350 |
11410 |
1.09.2004 |
12820 |
11880 |
1.09.2005 |
13320 |
12350 |
1.02.2006 |
13320 |
13320 (Reduced Basic Pay Restored) |
1.09.2006 |
13820 |
13820 |
It should be noted that the reduction of pay by two stages is constant throughout the punishment period; on the expiry of the period of punishment the officer’s pay will be restored to the stage in the time scale which he would have reached in the normal course but for the implementation of punishment is similar to that in Regulation 4 (e)
Case 2: employee/officer earns increment during the period of punishment – with cumulative effect)
Date |
Basic Pay in the Normal course |
Basic Pay after penalty |
1.09.2003 |
12350 |
12350 |
1.02.2004 |
12350 |
11410 |
1.09.2004 |
12820 |
11880 |
1.09.2005 |
13320 |
12350 |
1.02.2006 |
13320 |
12350 |
1.09.2006 |
13820 |
12820 |
The reduction of pay by two stages is constant throughout the punishment period and will have the effect even after the period of punishment is over, since it is to have cumulative effect. Employee/officer will not earn increment during the period of punishment –without cumulative effect:
Date |
Basic Pay in the Normal course |
Basic Pay after penalty |
1.09.2003 |
12350 |
12350 |
1.02.2004 |
12350 |
11410 |
1.09.2004 |
12820 |
11410 |
1.09.2005 |
13320 |
11410 |
1.02.2006 |
13320 |
13320 |
1.09.2006 |
13820 |
13820 |
The employee/officer would continue to draw the reduced pay of Rs. 11410/- throughout the period of punishment and on the expiry of the punishment period his pay will be fixed at the stage in the time scale which he would reach but for the punishment as it has been ordered that the period of reduction will not have effect of postponing his future increments.
Case 4: employee/officer will not earn increment during the period of punishment –with cumulative effect):
Date |
Basic Pay in the Normal course |
Basic Pay after penalty |
1.09.2003 |
12350 |
12350 |
1.02.2004 |
12350 |
11410 |
1.09.2004 |
12820 |
11410 |
1.09.2005 |
13320 |
11410 |
1.02.2006 |
13320 |
12350 |
1.09.2006 |
13820 |
12820 |
On the expiry of the period of punishment i.e. on 01.02.2006 the pay will be restored to the same stage in the time scale from which he was reduced i.e. Rs 12350/-the period from 1.092003. to 31.01.2004 during which he drew the Basic pay of Rs 12350/- will be taken in to account for determining the date of his next increment and he will draw his next increment to the stage of Rs 12820/- from 1.09.2006 (i.e.) two years will be ignored in arriving the date of next increment
Business, Investing & Management | 46 Chapters
Author: S Srinivasan
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