BROCHURE On EMPLOYMENT AFTER RETIREMENT
BROCHURE On EMPLOYMENT AFTER RETIREMENT
BROCHURE On EMPLOYMENT AFTER RETIREMENT
ON
POST RETIREMENT COMMERCIAL EMPLOYMENT
GOVERNMENT OF INDIA
MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES & PENSIONS
DEPARTMENT OF PERSONNEL & TRAINING
1988
Index
Chapter Subject
I Introduction
II Commercial Employment-Definition
Types of employment not treated as Commercial employment.
Commercial employment
Appendices
I. Application form
II Rule 10 of CCS (Prension) Rules 1972
III Department of Personnel & Training
OM No. 27012/24/85-Estt(A) dated 19.8.86
IV Check list
V Register to be maintained by administrative Ministries
VI Register to be maintained by Department of Personnel & Training
OFFICE-MEMORANDUMS PERTAINING TO COMMERCIAL EMPLOYMENT
AND LETTERS
Procedure for dealing with applications submitted by Central Civil
1 Pensioners for undertaking commercial employment within 2 years of
retirement.
Procedure for grant of permission to the pensioners for commercial
2
employment after retirement
3 Letter from Secretary DoP&T to all 25 Secretaries to the Govt. of India
CHAPTER - I
INTRODUCTION
In order to remove any impression among the public that a retired officer
manages to secure a post retirement commercial employment as quid-pro-quo
for favours shown by them while in service and to dispel apprehensions that
high-placed Government servants, who accept employment after retirement,
may, by virtue of their past standing be in a position to exercise undue influence
on Government servants in service, Government considered whether, and if so,
to what extent should any restrictions be placed on a member of the service
seeking post-retirement commercial employment. The details of Rules framed
and instructions issued in this regard are given in following chapters.
This brochure seeks to compile relevant rules and instructions in one place and
does not amend, modify or delete any provisions existing on the date of
publication.
CHAPTER - II
(f) Work involving liaison/contact with the offices or officers of the Government.
Note:- Employment under a cooperative society includes the holding of any office
whether elective or otherwise such as that of President, Chairman, Manager,
Secretary, Treasurer and the like by whatever name called in such societies.
Note: If Government is holding 51% share capital of a firm, corporation etc. the
same shall be treated as wholly or substantially owned or controlled by
Government.
(ii) The nature of, and the emoluments from, commercial employment taken up
by the pensioner concerned and
CHAPTER - III
Consideration of application
Cases of Central Civil Services Group ‘A’ officers, who drew a salary of less than
Rs. 5900/- per month in the revised scale (Rs. 2500/- in the pre-revised scale)
could be decided by the administrative Ministries/Departments themselves in
accordance with the prescribed procedure after obtaining the orders of the
Minister in charge. However, if the officer before his retirement from service held
a post other than the post of Deputy Secretary to Government of India
appointment to which required the approval of the Appointments Committee of
the Cabinet, the case will have to be submitted to the Prime Minister for orders.
Applications submitted by a retired officer, who at the time of his retirement was
drawing pay of Rs. 5900/- and above in the revised scale, is required to be
considered by a Committee of Ministers consisting of Minister in charge of the
Ministry/Department concerned and the Minister of State in the Ministry of
Personnel, Public Grievances and Pensions, before submitting to the Prime
Minister for orders. For this purpose the administrative Ministry/Department
should refer the case to the Deptt. of Personnel & Training after obtaining the
approval of the Minister in charge. The orders passed by the Minister of State in
the Ministry of Personnel, Public Grievances and Pensions will be conveyed to
the administrative Ministry/Department, who will submit the case to the Prime
Minister for orders. If the Committee of Ministers do no recommend the grant of
permission, the case need not be submitted to Prime Minister.
The following factors shall be taken into account while granting or refusing
permission to take up commercial employment:-
(a) The nature of the employment proposed to be taken and the antecedents of
the employer.
(b) Whether the duties of the pensioner in the employment which he proposes to
take up, might be such as to bring him into conflict with the Govt.
(c) Whether the pensioners, while in service, had any such dealings with the
employer under whom he proposes to seek employment as it might afford a
reasonable basis for the suspicion that such pensioners had shown favour to
such employer.
(d) Whether the duties of the commercial employment proposed involve liaison or
contact work with Govt. departments.
(e) Whether his commercial duties will be such as that his previous official
position or knowledge or experience under Govt. could be used to give the
proposed employer an unfair advantage.
Note: 1. Reference to any other "relevant factor" would cover matters which may
be in the knowledge of the administrative Ministry but are not covered by the
criteria mentioned above as well as methods on which specific instructions may
be issued by the Department of Personnel & Training from time to time
supplementing the prescribed criteria.
CHAPTER IV
A Pensioner retired from Indian Revenue service or retired from a Group A post
under the Department of Revenue in the Ministry of Finance is not allowed to set
up practice before the expiry of two years from the date of retirement in the
following circumstances:-
(i) In any area which was within the local limit of his jurisdiction during the last
three years immediately before his retirement.
(ii) In areas other than to those referred to above without the previous sanction of
the Govt.
[ Rule 11 quoted above has been struck down by the CAT on 31.12.86 in R.
Kapur vs. UOI. Union of India has filed an SLP in the Supreme Court and the
same is pending, For the time being the rule is not operated].
CHAPTER V
CHAPTER VI
Employment under a Govt. outside India or in an International Organisation
of which India is not a member
Appendix –1
Duration
Name of the Ministry/Deptt./office Post held
From To
4. Post held at the time of retirement
And period for which held ________________________
6. Pensionary benefits:
Pension expected/sanctioned
(commutation, if any, should be mentioned Gratuity, if any
9. Declaration:
(i) the employment which I propose to take up will not bring me into conflict with
the Govt.]
(ii) My commercial duties will not be such that my previous official position or
knowledge or experience under Govt. could be used to give my proposed
employed an unfair advantage.
(iii) My commercial duties will not involve liaison or contact with the Govt.
Departments.
Date :
Appendix –II
(2) Subject to the provisions of sub-rule (3), the Government may, by order in
writing on the application made under sub-rule (1) by a pensioner, grant subject
to such conditions, if any, as it may deem necessary, permission , or refuse, for
reasons to be recorded in the order, permission to such pensioner to take up the
commercial employment specified in the application.
(3) In granting or refusing permission under sub-rule (2) to a pensioner for taking
up commercial employment, the Government shall have regard to the following
factors, namely:-
(a) the nature of the employment proposed to be taken up and the antecedents
of the employer;
(b) whether his duties in the employment which he proposes to take up might be
such as to bring him into conflict with Government;
(c) whether the pensioner while in service had any such dealing with the
employer under whom he proposes to seek employment as it might afford a
reasonable basis for the suspicion that such pensioner had shown favours to
such employer;
(d) whether the duties of the commercial employment proposed involve liaison or
contact work with Government departments;
(e) whether his commercial duties will be such that his previous official position or
knowledge or experience under Government could be used to give the proposed
employer an unfair advantage;
(4) where within a period of ninety days of the date of receipt of an application
under sub-rule (3) the Government does not refuse to grant the permission
applied for or does not communicate the refusal to the applicant, the Government
shall be deemed to have granted the permission applied for;
(5) where the Government grants the permission applied for subject to any
conditions or refuses such permission, the applicant may, within thirty days of the
receipt of the order of the Government to that effect, make a representation
against any such condition or refusal and the Government may make such
orders thereon as it deems fit:
Provided that no order other than an order cancelling such condition or granting
such permission without any conditions shall be made under this sub-rule without
giving the pensioner making the representation an opportunity to show cause
against the order proposed to be made.
(6) If any pensioner takes up any commercial employment at any time before the
expiry of two years from the date of his retirement without the prior permission of
the Government or commits a breach of any condition subject to which
permission to take up any commercial employment has been granted to him
under this rule, it shall be competent for the Government to declare by order in
writing and for reasons to be recorded therein that he shall not be entitled to the
whole or such part of the pension and for such periods as may be specified in the
order:
Provided that no such order shall be made without giving the pensioner
concerned an opportunity of showing cause against such declaration:
Provided further that in making any order under this sub-rule, the Government
shall have regard to the following factors, namely:-
ii. the nature of, and the emoluments from, the commercial employment taken up
by the pensioner concerned; and
(7) Every order passed by the Government under this rule shall be
communicated to the pensioner concerned.
(A) has no professional qualifications and the matters in respect of which the
practice is to be set up or is carried on are relatable to his official knowledge or
experience, or
(B) has professional qualification but the matters in respect of which such
practice is to be set up or such as are likely to give his clients an unfair
advantage by reasons of his previous official position, or
(C) has to undertake work involving liaison or contract with the offices or officers
of the Government.
Explanation: For the purpose of this clause, the expression "employment under a
cooperative society" includes the holding of any office, whether elective or
otherwise such as that of President, Chairman, Manager, Secretary, Treasurer
and the like by whatever name called in such society.
Appendix-III
No. 27012/24/85-Estt(A)
Government of India
Ministry of Personnel, PG & Pensions
Department of Personnel & Training
OFFICE MEMORANDUM
(i) A liberal view may be taken in considering request for permission to take up
specific job under specific employers, as distinct from request to set up
consultancy practice, provided, however, the application satisfies the criteria laid
down in rule 10 (3) of the CCS(Pension ) Rule, 1972.
(a) The retired officer shall not accept any consultancy from nor deal in any other
manner with the Ministries/Departments in which he was employed or any
organization with which he had official contact while in service under the
Government.
(b) The retired officer shall not take up consultancy work on behalf of or with any
company/ firm/individual in respect of any contract or proposed contract with the
Ministries/ Departments in which he was employed or any undertaking or body
under the control of the said Ministries/ Departments in which he was employed.
(c) That the conditions imposed in granting permission shall remain operative for
a period of two years from he date retirement.
(iii) A retired officer who had held posts is Authorities, Boards, Tribunals etc.
involving the discharge of judicial or quasi-judicial functions shall not be given
permission to set up any practice which will require appearance before the
Authority, Board, Tribunal etc. having jurisdiction over the areas which were
under the jurisdiction of the retired officer during his service.
(iv) The cases of retired officers of Indian Revenue Service and other officers
retiring from the Ministry of Finance, Department of Revenue, will be decided by
the Ministry of Finance under rule 11 of the CCS(Pension) Rules, 1972.
However, before a final decision is taken by the Ministry of Finance, Department
of Revenue, a reference shall be made to Department of Personnel & Training so
that a view could also be taken with reference to the criteria prescribed under
Rule 10of CCS (Pension) Rules, 1972 and a composite decision communicated
to the applicant. Such a reference will however be necessary only in the cases of
officers retiring from the posts in the Senior Management Level (Joint Secretary
and above), as is the practice in regard to cases falling within the purview of rule
10 of CCS(Pension) Rules, 1972.
(v) If any officer submits his application for permission for post-retirement
commercial employment, before his retirement, such application shall not be
entertained. The applicant should be advised to apply a fresh after his retirement.
2. Ministry of Finance, etc. are requested to make a careful note of the above
guidelines for their guidance and compliance.
Appendix IV
Check-List
…………
Criteria Comments
The nature of the employment proposed to be taken up and the
(a)antecedent of the employer (If the firm concerned was black listed
by Government, this should be clearly indicated)
Are his duties in the employment which He proposes to take up
(b)
such as might bring him Into conflict with Govt.
Did the pensioner while in service have Any such dealing with the
employer under Whom he proposes to seek employment as might
(c)
afford a reasonable basis for the suspicion that such pensioner had
shown favours to such employer?
Do the duties of the commercial employment Proposed involve
(d)
liaison or contact work with Government Departments?
Will his commercial duties be such that His previous official position
(e)or knowledge or experience under Government could be used to
give the proposed employer unfair advantage.
(f) Any other relevant factor?
(4) Has the case been examined from the vigilance angle?
Name
Designation
Office Address.
Appendix V
S.No. Name of Date Date Date of receipt in Date of Date of Date of File
applicant of Ist when Ministry/Department sending return final No
receipt 60 to from reply to
in days DP&AR DP&AR applicant
Govt. from
Ist
receipt
expire
1 2 3 4 5 6 7 8 9
Appendix VI
SNo Name of Name of Nature of Date Date of Date of return Whether File
applicant sponsoring commercial when receipt in to sponsoring permission No
Ministry/ employment 60 DP&AR Ministry/ granted or
Department days Department refused
from Ist
receipt
in
Govt.
expire
1 2 3 4 5 6 7 8 9
No. 27012/4/97-Estt(A)
GOVERNMENT OF INDIA
OFFICE - MEMORANDUM
The undersigned is directed to say that in terms of Rule 10 of the Central Civil
Services (Pension) Rules, 1972, if a pensioner, who, immediately before
retirement was a member of Central Service Group ‘A’, proposes to undertake
commercial employment within 2 years of retirement, he is required to obtain the
previous sanction of the Government. The procedure for dealing with applications
submitted by Central Services Pensioners for permission to accept employment
was prescribed in this Department’s OM No. 27012/24/88-Estt(A), dated
29.3.1989.
(i) The applications of pensioners, who immediately before retirement held the
post in the rank of Secretary to the Govt. of India, or, equivalent, and above, and
were drawing pay in the pay scale of Rs. 26000/- fixed or above, would be
considered by the Group of Ministers consisting of the Minister of State
(Personnel) and the Minister-in-charge of the Ministry/Department concerned.
The applications will be finally decided by the Prime Minister. If, however, the
Group of Ministers unanimously agree not to grant permission, the case need not
be submitted to the Prime Minister.
(ii) The applications of pensioners, who immediately before retirement, held the
post in the rank of Joint Secretary to the Govt. of India, and were drawing pay of
Rs. 18400/- p.m., or more, in the pay scale of Rs. 18400-22400, or equivalent,
and above, but below the rank of Secretary to the Govt. of India, would be
considered by the Group of Ministers consisting of Minister of State (Personnel)
and the Minister-in-charge of the concerned Ministry/Department. In the event of
disagreement between the Group of Ministers, the case shall be submitted to the
Prime Minister for orders.
(iii) The applications of pensioners, who immediately before retirement held the
post below the rank of Joint Secretary to the Govt. of India, would be disposed of
by the Ministry/Department concerned after obtaining the orders of the Minister-
in-charge.
3. The Ministry of Finance etc. are requested to bring the above revised
procedure to the notice of all concerned.
Sd/-
(S.C. Sharma)
Under Secretary to the Govt. of India.
To
All Ministries/Departments of the Govt. of India.
No. 27012/5/2000-Estt(A)
GOVERNMENT OF INDIA
MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES & PENSIONS
DEPARTMENT OF PERSONNEL AND TRAINING
OFFICE - MEMORANDUM
Subject: Procedure for grant of permission to the Pensioners for
commercial employment after retirement.
The undersigned is directed to say that rule-10 of the CCS (Pension) Rules, 1972
which regulates the post retirement commercial employment of retired Group ‘A’
officers, has been amended by this Department vide Notification [File No.
27012/5/2000-Estt(A)], dated 30th January, 2002, published vide GSR 75(E), in
the Gazette of India (Extraordinary) in its part II, Section 3, Sub Section (i), on Ist
February, 2002. The Notification came into force on the date of its publication in
the Gazette of India. The copy of the printed Gazette Notification is attached
herewith.
2. Hence, all the requests for post retirement commercial employment received
on or after Ist February, 2002, shall be governed by the amended provision. In
the light of amended provision contained in the Notification referred to above, the
following instruction is issued for information and guidance as well as its
compliance by various Ministries/Departments of the Govt. of India:-
In rule-10 of the Central Civil Services (Pension) Rules, 1972, the sub-rule 4
which provides deemed approval of the Govt. in the cases of failure of sending
intimation about the Government’s rejection of the request of the pensioner for
commercial employment within the period of ninety days (90 days), has been
deleted/omitted.
Ministry of Finance, etc. are requested to note these instructions carefully for
their guidance and compliance.
Sd/-
(SAHADEO RAM)
Deputy Secretary to the Govt. of India.
To
All Ministries/Departments of the Govt. of India.