ANDHRA PRADESH STATE ROAD TRANSPORT CORPORATION

                                                                               

Office of the Managing Director,

Bus Bhavan, Hyderabad-624.

No.P2/785(1)/2010-PO.IV

 

CIRCULAR NO. PD-36/2010, DATED  07 .07.2010

 

Sub: SUITS – Fixation of pay of employees on reinstatement in pursuance of award of Labour Courts - Further Instructions Issued - Reg.

Ref: 1. Circular No.PD-67/1981-82, dt.18.12.1982.

        2. Circular No.PD-19/92, dated 08.09.1992.

        3. Circular No.PD-91/1999, dt.30.09.1999.

        4. Circular No.PD-74/2000, dt.15.12.2000.

* * *

           

            Instructions were issued through Circular 1st cited in regard to fixation of pay of the employees reinstated in pursuance of awards of the Labour Courts and in regard to other attendant benefits.  It was specified that in a case where an employee is directed to be reinstated with continuity of service and attendant benefits, but without back wages, the salary of the employee shall be re-fixed by giving notional increments.  He shall not be paid back wages for the period when he was not on duty.

 

            Instructions were also issued through Circular 2nd cited that when an employee is reinstated into service with continuity of service only, the last pay drawn by the employee has to be fixed at the appropriate stage in the revised pay scales without adding any notional increments for the period out of service.   In cases where the Labour Courts directed reinstatement with continuity of service only, the employees after reinstatement have filed Writ Petitions seeking fixation of pay by adding notional increments for the period out of service.  The Hon’ble High Court in several writ petitions directed that when once an employee is directed to be reinstated into service with continuity of service, his pay on reinstatement has to be fixed duly adding notional increments for the period out of service, irrespective of the fact whether the Labour Court in its Award directed to relief of attendant benefits or not.

 

             In view of the above judgments, instructions were issued through Circular 3rd cited that in case where an employee is directed to be reinstated with continuity of service, the pay of the employee shall be re-fixed by giving notional increments for the period out of service. However, the benefit of revised fixations shall be given only from the date of reinstatement.  It was also stipulated therein that the Circulars issued earlier are modified to the extent indicated above. 

 

            The Corporation filed S.L.P.No.10155/2000 against the judgment of Division Bench of High Court in Writ Appeal No.1855/99 directing to grant notional increments, the Hon’ble Supreme Court by its order dt.10.11.2000, while granting leave has ordered stay of the operation of the judgment of High Court pending disposal of the appeal.

 

            In view of the leave granted by the Hon’ble Supreme Court and in view of the stay of the judgment of High Court during the pendency of the appeal before the Supreme Court, instructions were issued through Circular 4th cited to keep the Circular No.PD-91/99, dt.30.09.1999 in abeyance until further orders.  It was also stipulated therein that the matter will be reviewed after the appeal is finally disposed off by the Hon’ble Supreme Court.

 

            In view of allowing Civil Appeal No.6362/2000 arising from SLP No.10155/2000, the following instructions are issued.

 

1.       The Circular No.PD-91/1999, dated 30.09.1999, which was kept in abeyance vide Circular No.PD-74/2000, dated 15.12.2000, is hereby CANCELLED.

 

2.       when an employee is reinstated into service in pursuance of an Award of Labour Court with continuity of service with specific direction that the employee is entitled to all consequential benefits/all attendant benefits/with notional increments for the period out of service, the pay of the employee shall be fixed immediately on reinstatement at appropriate stage either in the existing scale or revised scale, as the case may be, duly allowing the notional increments for the period out of service.  However, the difference of wages due to fixation of pay shall be paid only from the date of reinstatement into service.

 

3.       When an employee is reinstated into service with continuity of service only, the last pay drawn by the employee shall be continued in the existing scale or re-fixed at the appropriate stage in the Revised Scales of Pay, if any, as the case may be, without adding any notional increments for the period out of service.

 

            All the Unit Officers are advised to follow the above instructions scrupulously and arrange for fixation of pay of the employees reinstated into service in pursuance of the Awards of Labour Courts.

 

Sd/- B.PRASADA RAO

VICE CHAIRMAN &

MANAGING DIRECTOR

To

All Officers of the Corporation

// ATTESTED //

Dy. CHIEF PERSONNEL MANAGER (IR&W)

 

Copy to:  Sr.RAO/AG: RTC Branch, Mushirabad, Hyderabad.

Copy to:  Secretary to Chairman/PS to VC & MD.

Copy to:  Dy.CAO (TA&INS)

Copy to:  PRO/HO for translation into Telugu.

Copy to:  PO(Trg.)/HO, for inclusion in monthly index of Circulars (4 copies).

Copy to: General Secretary, APSRTC National Mazdoor Union, 20/1, Vigyanpuri,

               Vidyanagar, Hyderabad.

Copy to: General Secretary, APSRTC Employees' Union, Satyanarayanareddy Marg,

               Azamabad, Hyderabad.

Copy to: General Secretary, APSRTC S&WF (State Office), Nanduri Prasada Rao

               Bhavan, 1-7-130/5, Risala Khursheed Jahi, Zamistanpur, Hyderabad-20.

Copy to: General Secretary, APSRTC Class-II Supervisors Association, Flat No.102,

               H.No.16-1-30/A/36, Star Balasai Nest, Lokayukhta Colony, Saidabad,

               Hyderabad-500 059.

Copy to: General Secretary, APSRTC Security Staff Welfare Association, Hyderabad.         

Copy to: Notice Board & Incharge Record Room.