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Service Lawyer: Service of employees on work-charged basis shall be counted for the pension; SC.

Supreme Court of India

Justice Arun Mishra, Justice S. Abdul Nazeer and Justice M. R Shah

The SC {PREM SINGH v. STATE OF UTTAR PRADESH & ORS.} holds that in view of reading down Rule 3(8) of the U.P. Retirement Benefits Rules, 1961, services rendered in the work-charged establishment shall be treated as qualifying service under the aforesaid rule for grant of pension. 

It was held that it was unfair on the part of the State Government and its officials to take work from the employees on the work-charged basis. They ought to have resorted to an appointment on regular basis. The taking of work on the work charged basis for long amounts to adopting the exploitative device. Later on, though their services have been regularized. However, the period spent by them in the work-charged establishment has not been counted towards the qualifying service. Thus, they have not only been deprived of their due emoluments during the period they served on less salary in work charged establishment but have also been deprived of counting of the period for pensionary benefits as if no services had been rendered by them. The State has been benefitted by the services rendered by them in the heydays of their life on less salary in work charged establishment.

It was held that as it would be unjust, illegal and impermissible to make aforesaid classification to make the Rule 3(8) valid and non discriminatory, the SC read down the provisions of Rule 3(8) and hold that services rendered even prior to regularisation in the capacity of work-charged employees, contingency paid fund employees or non-pensionable establishment shall also be counted towards the qualifying service even if such service is not preceded by temporary or regular appointment in a pensionable establishment. 

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