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1999 Supreme(SC) 297

SUPREME COURT OF INDIA
S.N.Phukan : S.R.Babu
Government Of Tamil Nadu
Versus
G.Mohamed Ameenudeen
Case No. : 810 of 1998
Date of Decision : 3/11/99

The court directed the government to frame a scheme for the absorption of retrenched project-based employees into government service or related organizations to prevent the loss of employment and priority in employment exchange queues.

Headnote:(A) Service Law - Absorption of retrenched employees - Project-based employees hired for decennial operations through employment agencies are retrenched upon completion of the project, resulting in loss of employment and loss of priority in the employment queue - It is appropriate for the government to frame a scheme to absorb such retrenched employees and others similarly placed in appropriate employments (Para 1).

(B) Scope of absorption - Government may consider recruitment in local authorities, quasi-governmental organisations or government companies (Para 1).

Facts of the case:
Employees were engaged for a decennial census operation through an employment exchange. Upon completion of the project, they were retrenched, leading to the loss of both their jobs and their standing in the employment exchange queue.

Findings of Court:
The court observed that such situations arise periodically and that in previous instances, employees performing similar roles had been absorbed into government service.

Issues: Whether the government should formulate a scheme to absorb retrenched project-based employees to mitigate the loss of employment and priority in employment queues.

Ratio Decidendi: The court held that given the nature of project-based employment and the subsequent loss of priority in employment exchanges, the government should frame a scheme to absorb such employees in government service, local authorities, quasi-governmental organisations, or government companies.

Result: Matter to be called after eight weeks.

Legal Category Hierarchy

  • administrative law
    • public employment
      • retrenchment and absorption (Para 1)

Table of Contents

1. Retrenchment of employees engaged for decennial census operations through Employment Exchange — loss of employment and queue position — seek for absorption. (Para 1 )

2. Contentions regarding the absorption of retrenched employees engaged for decennial census operations into government or quasi-governmental service. (Para 1 )

3. Retrenched census employees lose both employment and their position in the Employment Exchange queue; previous similar instances resulted in absorption into government service. (Para 1 )

4. Project-based employees retrenched after completion of duties should be considered for absorption to mitigate the loss of employment and Employment Exchange queue priority. (Para 1 )

5. Appellant directed to frame a scheme to absorb retrenched employees in appropriate government, local authority, quasi-governmental, or government company employments. (Para 1 )

6. Should employees retrenched after the completion of a project-based government operation be considered for absorption?

Yes, where retrenchment leads to the loss of both employment and the employee's position in the Employment Exchange queue, it is appropriate for the government to frame a scheme for absorption into appropriate government, quasi-governmental, or local authority employments. (Para 1 )

7. In what types of organizations can retrenched project employees be absorbed?

Retrenched employees may be recruited into government service, local authorities, quasi-governmental organizations, or government companies. (Para 1 )

8. What factors justify the creation of an absorption scheme for retrenched temporary employees?

Justification includes the fact that employees lose their priority in the Employment Exchange queue upon retrenchment and the existence of precedents where similarly placed employees were absorbed into government service. (Para 1 )

(1) WE have heard learned counsel on both sides for quite some time. Considering the nature of the matter we think it would be appropriate for the appellant to frame a scheme to absorb the respondents and other employees who have been retrenched who are similarly placed. Once in a decade census operation is carried out and those persons who have registered themselves in the Employment Exchange get jobs in the Census Department and when the project is over their employment come to an end and they are retrenched thereby losing both the employment and their position in the queue in the Employment Exchange. In these circumstances, it would be appropriate for the appellant to work to a scheme to absorb these employees in appropriate employments. Let such a scheme be worked out as we think that such a situation occasionally arise. On earlier occasions when such situations had arisen, those who had done similar jobs, had been absorbed in government service by the appellant. In doing so, the government may also bear in mind whether the employees can be recruited in the local authorities, quasi governmental organisations or government Companies.

(2) LET this matter be called after eight weeks.

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