IREC Rule No.1003: Gratuity May Be Paid To A Temporary Railway Servant

1003.  A Gratuity May Be Paid To A Temporary Railway Servant:- 

(a)   On discharge from service arising directly or indirectly from a reduction of establishment; or

(b)   On retirement on account of permanent incapacity due to bodily or mental infirmity.

Railway Board’s Orders:

(1)   These orders do not apply to those temporary engineers who were recruited up to 19.10.1955 and are governed by the following provisions: –

(i)       Temporary engineers should subscribe to the State Railway Provident Fund on completion of one year’s continuous service, the amounts of subscription, the contribution by Government and other conditions for such subscription and contribution, etc. being the same as those laid down in the State Railway Provident Fund Rules. In case the employee quits service for any reason, whatsoever, before the completion of 5 years service, Government contribution and the interest thereon will not be payable but in such cases gratuity at half a month’s Pay for each completed year of service will be payable if the employee retires :

(a)   On account of permanent incapacity due to bodily or mental infirmity; or

(b)   On abolition of appointment due to a reduction of establishment; and

(ii)      A special contribution will be payable in addition to the Government’s contribution payable under (i) above if the service of the employee exceeds a continuous period of 12 years; this will be subject to the usual condition governing the grant of special contribution to a Gazetted officer in permanent employ.

[Authority: No.E47RC/1C1, 24.02.1950, 30.03.1950, No.E54RC2/14, 19.10.1955]

2.  Grant of gratuity at the rate of a half a month’s pay for each completed year of service is normally admissible to temporary railway servants discharged from service; provided that they have been recruited under the normal recruitment rules and that their discharge has been due to the reduction of establishment and not due to cessation of isolated temporary posts. This concession does not cover staff recruited otherwise on construction projects where the cessation of currency of sanction to temporary posts on completion of different phases of work cannot strictly be held to be ‘Reduction Of Establishment’. It has, however, been decided that the benefits of granting gratuity in the cases of staff employed on projects or a group of works or constructions; should be viewed sympathetically so long as they are not cases of persons engaged for brief periods on projects or elsewhere, who are discharged on cessation of currency of isolated temporary posts. All cases of expected retrenchment of staff where it is proposed to grant gratuity, should be referred to the Railway Board for sanction.

 [Authority: No.F(S)56-CPC/44, 13.09.1955]