All India Bank Employees' Association: "Prabhat Nivas"

ALL INDIA BANK EMPLOYEES' ASSOCIATION
Central Office: PRABHAT NIVAS Regn. No.2037

Singapore Plaza, 164, Linghi Chetty Street, Chennai-600001
Phone: 2535 1522, Fax: 4500 2191, 2535 8853 Web: www.aibea.in
e mail ~ [email protected] & [email protected]
CIRCULAR LETTER NO.27/167/2015/62 31-12-2015

TO ALL OFFICE BEARERS, STATE FEDERATIONS,
ALL INDIA BANKWISE ORGANISATIONS
Dear Comrades,
Reg: Payment of superannuation benefits (Pension) to employees

inflicted with punishment of Removed from Service/
Compulsorily Retired /Discharged from service.
Units are ware that AIBEA 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.

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.

otherwise under the Rules 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. Later, IBA clarified that such
employees may be granted compassionate allowance but not pension. We
have been pursuing this issue consistently as Pension Regulations cannot
overstep the provisions of Bipartite Settlement. However, IBA and
Government were negative on this issue. We followed up the matter during
the recent 10th bipartite negotiations also.
In the meantime, there have been court cases and litigations on this issue in
Tribunals, High Court and finally in the Supreme Court which held that
pension is payable to such employees. But the IBA/managements went for
a Review but Supreme Court confirmed their clear stand that pension is
payable to such employees who are given the punishment of removal from
service under Clause 6(b).
Accordingly, vide IBA Circular No. 1004 dated 30-6-2005, IBA clarified to the
Banks that Banks may implement the judgement and consider grant of
pension to such employees. However, the cases of awardstaff employees
who had been given punishment of compulsory retirement and Discharge
from service were not being granted pension. We followed up the matter
repeatedly and demanded that all employees covered by Clause 6 (b) (c)
and (d) are eligible for superannuation benefits as per Bipartite Settlement
dated 10-4-2002.
IBA Circular: We are now happy to inform our units that IBA has issued
their Circular No. 1852 dated 23-12-2015 informing the Banks 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.
All our units are requested to take note of these guidelines of IBA and take
up the case of employees who are denied of superannuation benefits.
With greetings,
Yours Comradely
C.H. VENKATACHALAM
GENERAL SECRETARY
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 Honble 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 Honble
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

All India Bank Employees' Association: "Prabhat Nivas"

Uploaded by

All India Bank Employees' Association: "Prabhat Nivas"

Uploaded by

ALL INDIA BANK EMPLOYEES' ASSOCIATION

Central Office: PRABHAT NIVAS Regn. No.2037

CIRCULAR LETTER NO.27/167/2015/62 31-12-2015

Reg: Payment of superannuation benefits (Pension) to employees

Units are ware that AIBEA signed an exclusive Settlement on 10-4-2002

6 (b) be removed from service with superannuation benefits i.e.

6 (c) be compulsorily retired with superannuation benefits i.e.

6 (d) be discharged from service with superannuation benefits i.e.

Chief Executives of Member banks which are parties to Bipartite

Special Leave Petition No. 17054/2009 before the Honble Supreme

We refer to our Circular No. CIR/HR&IR/KU/MI/1004 dated 30.6.2015

We have been receiving queries from member banks seeking clarifications as

You might also like