Govt's Policy of Appointment on Compassionate Ground

PARLIAMENT OF INDIA
RAJYA SABHA
DEPARTMENT RELATED PARLIAMENTARY STANDING COMMITTEE

ON PERSONNEL, PUBLIC GRIEVANCES, LAW AND JUSTICE

TWENTY THIRD REPORT

ON

GOVERNMENT’S POLICY OF APPOINTMENT ON
COMPASSIONATE GROUND

(PRESENTED TO THE RAJYA SABHA ON 7TH SEPTEMBER,2007)

(LAID ON THE TABLE OF THE LOK SABHA ON 7TH SEPTEMBER,2007)

RAJYA SABHA SECRETARIAT

NEW DELHI

SEPTEMBER 2007, BHADRAPAD, 1929 (SAKA)
C O N T E N T S



1. Composition of the Committee

2. Introduction

3. Report

4*. Relevant Minutes of the Meetings of the Committee

5*. Annexure

a. Scheme for Compassionate Appointment (1998) of the Department of Personnel and Training, Ministry of Personnel, Public Grievances and Pensions.

COMPOSITION OF THE COMMITTEE (2004-05)

(Constituted on 5th August, 2004)



1. Shri E.M. Sudarsana Natchiappan ¾ Chairman



RAJYA SABHA

2. Dr. Radhakant Nayak

3. Shri Balavant alias Bal Apte

4. Shri Ram Nath Kovind

5. Shri Ram Jethmalani

6. Dr. P.C. Alexander

7. Shri Tariq Anwar

8. Shri Raashid Alvi

9. Vacant

10. Vacant



LOK SABHA

11. Dr. Shafiqurrahman Barq

12. Smt. Bhavani Rajenthiran

13. Shri Chhatar Singh Darbar

14. Shri N.Y. Hanumanthappa

15. Shri Shailendra Kumar

16. Shri Dahyabhai V. Patel

17. Shri Brajesh Pathak

18. Shri Harin Pathak

19. Shri V. Radhakrishnan

20. Shri Vishwendra Singh

21. Shri Bhupendrasinh Solanki

22. Prof. Vijaya Kumar Malhotra

23. Kumari Mamata Banerjee

24. Shri S.K. Kharventhan

25. Shri Shriniwas D. Patil

26. Shri A.K. Moorthy

27. Shri Ramchandra Paswan

28. Vacant

29. Vacant

30. Vacant

31. Vacant

COMPOSITION OF THE COMMITTEE (2005-06)

(Constituted on 5th August, 2005)



1. Shri E.M. Sudarsana Natchiappan ¾ Chairman



RAJYA SABHA

2. Dr. Radhakant Nayak

3. Shri Tariq Anwar

4. Dr. P.C. Alexander

5. Dr. Abhishek Manu Singhvi

6. Shri Balavant alias Bal Apte

7. Shri Krishan Lal Balmiki

8. Shri Ram Jethmalani

9. Vacant

10. Vacant



LOK SABHA

11. Dr. Shafiqur Rahman Barq

12. Kumari Mamata Banerjee

13. Shri Chhattar Singh Darbar

14. Shri N.Y. Hanumanthappa

15. Shri S.K. Kharventhan

16. Shri Shailendra Kumar

17. Prof. Vijay Kumar Malhotra

18. Shri A.K. Moorthy

19. Shri Ram Chandra Paswan

20. Shri Dahyabhai Vallabhbhai Patel

21. Shri Brajesh Pathak

22. Shri Shriniwas Patil

23. Shri Harin Pathak

24. Shri Varkala Radhakrishnan

25. Smt. M.S.K. Bhavani Rajenthiran

26. Shri Vishvendra Singh

27. Shri Bhupendrasinh Solanki

28. Vacant

29. Vacant

30. Vacant

31. Vacant

COMPOSITION OF THE COMMITTEE (2006-07)

(Constituted on 5th August, 2006)



1. Dr. E.M. Sudarsana Natchiappan ¾ Chairman



RAJYA SABHA

2. Dr. Radhakant Nayak

3. Dr. Abhishek Manu Singhvi

4. Shri Balavant alias Bal Apte

5. Shri Virendra Bhatia

6. Shri Tariq Anwar

7. Shri Ram Jethmalani

8. Dr. P.C. Alexander

9. Shri Tarlochan Singh

10. Shri Suresh Bhardwaj



LOK SABHA

11. Dr. Shafiqur Rahman Barq

12. Shri Chhattar Singh Darbar

13. Shri N.Y. Hanumanthappa

14. Shri Shailendra Kumar

15. Dr. C. Krishnan

16. Shri Harin Pathak

17. Shri Dahyabhai Vallabhbhai Patel

18. Shri Varkala Radhakrishnan

19. Prof. M. Ramadass

20. Shri Vishvendra Singh

21. Shri Bhupendrasinh Solanki

22. Shri Raj Babbar

23. Shri S.K. Kharventhan

24. Shri A. Krishnaswamy

25. Shri Anirudh Prasad alias Sadhu Yadav

26. Shri N.S.V. Chitthan

27. Vacant

28. Vacant

29. Vacant

30. Vacant

31. Vacant

COMPOSITION OF THE COMMITTEE (2007-08)

(Constituted on 5th August, 2007)



1. Dr. E.M. Sudarsana Natchiappan ¾ Chairman



RAJYA SABHA

2. Dr. Radhakant Nayak

3. Dr. Abhishek Manu Singhvi

4. Shri Balavant alias Bal Apte

5. Shri Suresh Bhardwaj

6. Shri Virendra Bhatia

7. Shri Tariq Anwar

8. Shri Ram Jethmalani

9. Dr. P.C. Alexander

10. Shri Tarlochan Singh



LOK SABHA

11. Shri Raj Babbar

12. Dr. Shafiqur Rahman Barq

13. Shri N.S.V. Chitthan

14. Shri Chhattar Singh Darbar

15. Shri N.Y. Hanumanthappa

16. Shri S.K. Kharventhan

17. Shri A. Krishnaswamy

18. Dr. C. Krishnan

19. Shri Shailendra Kumar

20. Shri Harin Pathak

21. Shri Dahyabhai Vallabhbhai Patel

22. Shri Varkala Radhakrishnan

23. Prof. M. Ramadass

24. Shri Bhupendrasinh Solanki

25. Shri Vishvendra Singh

26. Shri Anirudh Prasad alias Sadhu Yadav

27. Vacant

28. Vacant

29. Vacant

30. Vacant

31. Vacant

SECRETARIAT

Shri Sham Sher Singh, Joint Secretary

Shri K.P. Singh, Joint Director

Smt. Sasilekha Nair, Deputy Director

Shri Vinoy Kumar Pathak, Assistant Director

INTRODUCTION



I, the Chairman of the Department Related Parliamentary Standing Committee on Personnel, Public Grievances, Law and Justice, having been authorised by the Committee, present its Twenty Third Report on the Government’s Policy of Appointment on Compassionate Ground. The Scheme for Compassionate Appointments is a social security scheme in a welfare state under which appointments can be made on compassionate grounds to dependent family members of a deceased employee dying in harness or who is retired on medical grounds leaving his family in penury. This scheme gives relief to the family of the deceased Government employee from financial destitution to it over the emergency.

2. The subject Policy of Appointment on Compassionate Ground was identified by the Committee as a part of consideration of subject “Administrative Reforms”.

3. Keeping in view the importance of the subject, the Committee visited Goa, Mumbai, Bangalore, Bhubaneshwar, Chennai, Hyderabad, Kochi, Port Blair, Kolkata Jaipur, Ahmedabad and Bhopal and held discussions with various authorities, organisations, individuals on “Government’s Policy of Appointment on compassionate grounds” in Public Sector Enterprises/ Undertakings/ Trusts and leading Banks.

4. The Committee held discussions on the subject with the Heads of 24 banks and 40 PSUs to gather information related to the subject and to be get acquaint with various policy, welfare measures being implemented under this scheme.

5. The Secretary, Ministry of Personnel Public Grievances and Pensions made a detailed presentation on the subject on 17th July 2007.

6. While considering the subject, the Committee took note of the following documents/information placed before it: —

(i) Background note on the subject, furnished by the Government;

(ii) Procedure and mechanism of monitoring the implementation thereof in Ministries/Departments/offices/Public Sector Enterprises/Public Sector Banks etc where it is applicable;

(iii) Replies to the questionnaire prepared by the Secretariat; and

(iv) Submissions by the banks/PSUs on the subject.

7. The Committee held-in house discussion on the subject on 29th August 2007 and adopted the Report on 6th September, 2007.

8. For the facility of reference and convenience, the observations and recommendations of the Committee have been printed in bold letters in the body of the Report.

NEW DELHI

6th September, 2007.
DR. E. M. SUDARSANA NATCHIAPPAN

Chairman

Committee on Personnel,

Public Grievances, Law and Justice









REPORT
INTRODUCTION

1. In 2004 the Department related Parliamentary Standing Committee on Personnel, Public Grievances, Law and Justice, after its bifurcation from Department related Parliamentary Standing Committee on Home Affairs, included the subject ‘Administrative Reforms’ from its parent Committee as a part of consideration of the subject, the Committee chose to make a report on the ‘Government’s Policy of Appointment on Compassionate Ground’ in the first instance. The Scheme for Compassionate Appointments is a social security scheme in a welfare State like ours under which appointments can be made on compassionate grounds to dependent family members of a deceased Government employee dying in harness or who is retired on medical grounds leaving his family in penury and without means of livelihood. This step of the Government gives relief to the family of the deceased from financial destitution to get over the emergency. The nomenclature of the scheme itself shows that under this scheme compassion is at the centre stage. It has been observed that particularly in the case of prolonged illness, the family in order to save their bread earner and beloved ones do whatever it can to save his/her life. They not only spend their entire savings but also incur heavy debts. Despite their best efforts the cruel hands of the destiny snatches their near and dear one. The only ray of hope thereafter is appointment of a dependent on compassionate ground. Even in some accidental cases also same thing happens. The Committee having the nomenclature of being the Public Grievance Committee received representations from the employees of different banks, PSUs and Government Departments on the issue of compassionate appointment apprising the Committee that the guideline issued from time to time by the Ministry and DoPT were not followed properly. The Committee, in this background, decided to examine policy’s compliance in the public sector banks/public sector undertakings along with Government Departments and make on the spot study of the Banks/PSUs etc.

1.1 A letter in this regard was written to the Secretary, Ministry of Personnel, PG and Pensions on 10th January 2006 to furnish the background note on the rules and guidelines followed in the cases of appointment on compassionate grounds, procedure and mechanism of monitoring the implementation thereof in Ministries/ Departments/offices/ Public Sector Enterprises etc where these are applicable etc. In response, the Ministry furnished the details of the scheme as under:

OBJECTIVE

2.0. The objective of the Scheme is to grant appointment on compassionate grounds to a dependent family member of a Government servant dying in harness or who is retired on medical grounds, thereby leaving his family in penury and without any means of livelihood, to relieve the family of the Government servant concerned from financial destitution and to help it get over the emergency.

TO WHOM APPLICABLE

2.1. To a dependent family member –

(A) of a Government servant who –

(a) dies while in service (including death by suicide); or

(b) is retired on medical grounds under Rule 2 of the CCS (Medical Examination) Rules 1957 or the corresponding provision in the Central Civil Service Regulations before attaining the age of 55 years (57 years for Group ‘D’ Government servants); or

(c) is retired on medical grounds under Rule 38 of the CCS(Pension) Rules, 1972 or the corresponding provision in the Central Civil Service Regulations before attaining the age of 55 years (57 years for Group ‘D’ Government servants); or

(B) of a member of the Armed Forces who –

(a) dies during service; or

(b) is killed in action; or

(c) is medically boarded out and is unfit for civil employment.

Note I "Dependent Family Member" means:

(a) spouse; or

(b) son (including adopted son); or

(c) daughter (including adopted daughter); or

(d) brother or sister in the case of unmarried Government servant or

(e) member of the Armed Forces referred to in (A) or (B) of this para,

who was wholly dependent on the Government servant/ member of the Armed Forces at the time of his death in harness or retirement on medical grounds, as the case may be.

Note II "Government servant" for the purpose of these instructions means a Government servant appointed on regular basis and not one working on daily wage or casual or apprentice or ad-hoc or contract or re-employment basis.

Note III "Confirmed work-charged staff" will also be covered by the term ‘Government servant’ mentioned in Note III above.

Note IV "Service" includes extension in service (but not re-employment) after attaining the normal age of retirement in a civil post.

Note V "Re-employment" does not include employment of ex-serviceman before the normal age of retirement in a civil post.

AUTHORITY COMPETENT TO MAKE COMPASSIONATE APPOINTMENT

(a) Joint Secretary incharge of administration in the Ministry/Department concerned.

(b) Head of the Department under the Supplementary Rule 2(10) in the case of attached and subordinate offices.

(c) Secretary in the Ministry/Department concerned in special types of cases.

POSTS TO WHICH SUCH APPOINTMENTS CAN BE MADE

Group ‘C’ or Group ‘D’ posts against the direct recruitment quota.

ELIGIBILITY

(a) The family is indigent and deserves immediate assistance for relief from financial destitution; and

(b) Applicant for compassionate appointment should be eligible and suitable for the post in all respects

under the provisions of the relevant Recruitment Rules.

A. EXEMPTIONS

Compassionate appointments are exempted from observance of the following requirements:-

(a) Recruitment procedure i.e. without the agency of the Staff Selection Commission or the Employment Exchange.

(b) Clearance from the Surplus Cell of the Department of Personnel and Training/Directorate General of Employment and Training.

(c) The ban orders on filling up of posts issued by the Ministry of Finance (Department of Expenditure).

B. RELAXATIONS

(a) Upper age limit could be relaxed wherever found to be necessary. The lower age limit should, however, in no case be relaxed below 18 years of age.

Note I Age eligibility shall be determined with reference to the date of application and not the date of appointment;

Note II Authority competent to take a final decision for making compassionate appointment in a case shall be competent to grant relaxation of upper age limit also for making such appointment.

(b) Secretary in the Ministry/Department concerned is competent to relax temporarily educational qualifications as prescribed in the relevant recruitment rules in the case of appointment at the lowest level e.g. Group ‘D’ or Lower Division Clerk post, in exceptional circumstances where the condition of the family is very hard provided there is no vacancy meant for compassionate appointment in a post for which the dependent family member in question is educationally qualified. Such relaxation will be permitted upto a period of two years beyond which no relaxation of educational qualifications will be admissible and the services of the person concerned, if still unqualified, are liable to be terminated.

Note In the case of an attached/subordinate office, the Secretary in the concerned administrative Ministry/Department shall be the competent authority for this purpose.

(c) In the matter of exemption from the requirement of passing the typing test those appointed on compassionate grounds to the post of Lower Division Clerk will be governed by the general orders issued in this regard:-

(i) by the CS Division of the Department of Personnel and Training if the post is included in the Central Secretariat Clerical Service; or

(ii) by the Establishment Division of the Department of Personnel and Training if the post is not included in the Central Secretariat Clerical Service.

(d) Where a widow is appointed on compassionate ground to a Group ‘D’ post, she will be exempted from the requirement of possessing the educational qualifications prescribed in the relevant rules provided the duties of the post can be satisfactorily performed by her without possessing such educational qualifications.

DETERMINATION/AVAILABILITY OF VACANCIES

(a) Appointment on compassionate grounds should be made only on regular basis and that too only if regular vacancies meant for that purpose are available.

(b) Compassionate appointments can be made upto a maximum of 5% of vacancies falling under direct recruitment quota in any Group ‘C’ or ‘D’ post. The appointing authority may hold back upto 5% of vacancies in the aforesaid categories to be filled by direct recruitment through Staff Selection Commission or otherwise so as to fill such vacancies by appointment on compassionate grounds. A person selected for appointment on compassionate grounds should be adjusted in the recruitment roster against the appropriate category viz SC/ST/ OBC/General depending upon the category to which he belongs. For example, if he belongs to SC category he will be adjusted against the SC reservation point, if he is ST/OBC he will be adjusted against ST/OBC point and if he belongs to General category he will be adjusted against the vacancy point meant for General category.

(c) While the ceiling of 5% for making compassionate appointment against regular vacancies should not be circumvented by making appointment of dependent family member of Government servant on casual/daily wage/ad-hoc/contract basis against regular vacancies, there is no bar to considering him for such appointment if he is eligible as per the normal rules/orders governing such appointments

(d) The ceiling of 5% of direct recruitment vacancies for making compassionate appointment should not be exceeded by utilising any other vacancy e.g. sports quota vacancy.

(e) Employment under the scheme is not confined to the Ministry/ Department/Office in which deceased/medically retired Government servant had been working. Such an appointment can be given anywhere under the Government of India depending upon availability of a suitable vacancy meant for the purpose of compassionate appointment.

(f) If sufficient vacancies are not available in any particular office to accommodate the persons in the waiting list for compassionate appointment, it is open to the administrative Ministry/Department/ Office to take up the matter with other Ministries/Departments/ Offices of the Government of India to provide at an early date appointment on compassionate grounds to those in the waiting list.

BELATED REQUESTS FOR COMPASSIONATE APPOINTMENT

(a) Ministries/Departments can consider requests for compassionate appointment even where the death or retirement on medical grounds of a Government servant took place long back, say five years or so. While considering such belated requests it should, however, be kept in view that the concept of compassionate appointment is largely related to the need for immediate assistance to the family of the Government servant in order to relieve it from economic distress. The very fact that the family has been able to manage somehow all these years should normally be taken as adequate proof that the family had some dependable means of subsistence. Therefore, examination of such cases would call for a great deal of circumspection. The decision to make appointment on compassionate grounds in such cases may, therefore, be taken only at the level of the Secretary of the Department/Ministry concerned.

(b) Whether a request for compassionate appointment is belated or not may be decided with reference to the date of death or retirement on medical ground of a Government servant and not the age of the applicant at the time of consideration.

WIDOW APPOINTED ON COMPASSIONATE GROUNDS GETTING REMARRIED

A widow appointed on compassionate grounds will be allowed to continue in service even after re-marriage.

WHERE THERE IS AN EARNING MEMBER

(a) In deserving cases even where there is already an earning member in the family, a dependent family member may be considered for compassionate appointment with prior approval of the Secretary of the Department/Ministry concerned who, before approving such appointment, will satisfy himself that grant of compassionate appointment is justified having regard to number of dependents, assets and liabilities left by the Government servant, income of the earning member as also his liabilities including the fact that the earning member is residing with the family of the Government servant and whether he should not be a source of support to other members of the family.

(b) In cases where any member of the family of the deceased or medically retired Government servant is already in employment and is not supporting the other members of the family of the Government servant, extreme caution has to be observed in ascertaining the economic distress of the members of the family of the Government servant so that the facility of appointment on compassionate ground is not circumvented and misused by putting forward the ground that the member of the family already employed is not supporting the family.

MISSING GOVERNMENT SERVANT

Cases of missing Government servants are also covered under the scheme for compassionate appointment subject to the following conditions:-

(a) A request to grant the benefit of compassionate appointment can be considered only after a lapse of at least 2 years from the date from which the Government servant has been missing, provided that:

(i) an FIR to this effect has been lodged with the Police,

(ii) the missing person is not traceable, and

(iii) the competent authority feels that the case is genuine;

(b) This benefit will not be applicable to the case of a Government servant:-

(i) who had less than two years to retire on the date from which he has been missing; or

(ii) who is suspected to have committed fraud, or suspected to have joined any terrorist organisation or suspected to have gone abroad.

(c) Compassionate appointment in the case of a missing Government servant also would not be a matter of right as in the case of others and it will be subject to fulfillment of all the conditions, including the availability of vacancy, laid down for such appointment under the scheme;

(d) While considering such a request, the results of the Police investigation should also be taken into account; and

(e) A decision on any such request for compassionate appointment should be taken only at the level of the Secretary of the Ministry/Department concerned.

PROCEDURE

(a) The proforma as prescribed can be used by Ministries/Departments/ Offices for ascertaining necessary information and processing the cases of compassionate appointment.

(b) The Welfare Officer in each Ministry/Department/Office should meet the members of the family of the Government servant in question immediately after his death to advise and assist them in getting appointment on compassionate grounds. The applicant should be called in person at the very first stage and advised in person about the requirements and formalities to be completed by him.

(c) An application for appointment on compassionate grounds should be considered in the light of the instructions issued from time to time by the Department of Personnel and Training (Establishment Division) on the subject by a committee of officers consisting of three officers – one Chairman and two Members – of the rank of Deputy Secretary/ Director in the Ministry/Department and officers of equivalent rank in the case of attached and subordinate offices. The Welfare Officer may also be made one of the Members/Chairman of the committee depending upon his rank. The committee may meet during the second week of every month to consider cases received during the previous month. The applicant may also be granted personal hearing by the committee, if necessary, for better appreciation of the facts of the case.

(d) Recommendation of the committee should be placed before the competent authority for a decision. If the competent authority disagrees with the committee’s recommendation, the case may be referred to the next higher authority for a decision.

UNDERTAKING

A person appointed on compassionate grounds under the scheme should give an undertaking in writing (as in Annexure) that he/she will maintain properly the other family members who were dependent on the Government servant/member of the Armed Forces in question and in case it is proved subsequently (at any time) that the family members are being neglected or are not being maintained properly by him/her, his/her appointment may be terminated forthwith.

REQUEST FOR CHANGE IN POST/PERSON

When a person has been appointed on compassionate grounds to a particular post, the set of circumstances, which led to such appointment, should be deemed to have ceased to exist. Therefore, --

(a) he/she should strive in his/her career like his/her colleagues for future advancement and any request for appointment to any higher post on considerations of compassion should invariably be rejected.

(b) an appointment made on compassionate grounds cannot be transferred to any other person and any request for the same on considerations of compassion should invariably be rejected.



SENIORITY

(a) The inter-se seniority of persons appointed on compassionate grounds may be fixed with reference to their date of appointment. Their interpolation with the direct recruits/promotees may also be made with reference to their dates of appointment without disturbing the inter-se seniority of direct recruits/promotees.

(b) Date of joining by a person appointed on compassionate grounds shall be treated as the date of his/her regular appointment.

GENERAL

(a) Appointments made on grounds of compassion should be done in such a way that persons appointed to the post do have the essential educational and technical qualifications and experience required for the post consistent with the requirement of maintenance of efficiency of administration.

(b) It is not the intention to restrict employment of a family member of the deceased or medically retired Group ‘D’ Government servant to a Group ‘D’ post only. As such, a family member of such Group ‘D’ Government servant can be appointed to a Group ‘C’ post for which he/she is educationally qualified, provided a vacancy in Group ‘C’ post exists for this purpose.

(c) The Scheme of compassionate appointments was conceived as far back as 1958. Since then a number of welfare measures have been introduced by the Government which have made a significant difference in the financial position of the families of the Government servants dying in harness/retired on medical grounds. An application for compassionate appointment should, however, not be rejected merely on the ground that the family of the Government servant has received the benefits under the various welfare schemes. While considering a request for appointment on compassionate ground a balanced and objective assessment of the financial condition of the family has to be made taking into account its assets and liabilities (including the benefits received under the various welfare schemes mentioned above) and all other relevant factors such as the presence of an earning member, size of the family, ages of the children and the essential needs of the family, etc.

(d) Compassionate appointment should not be denied or delayed merely on the ground that there is reorganisation in the Ministry/Department/ Office. It should be made available to the person concerned if there is a vacancy meant for compassionate appointment and he or she is found eligible and suitable under the scheme.

(e) Requests for compassionate appointment consequent on death or retirement on medical grounds of Group ‘D’ staff may be considered with greater sympathy by applying relaxed standards depending on the facts and circumstances of the case.

(f) Compassionate appointment will have precedence over absorption of surplus employees and regularisation of daily wage/casual workers with/without temporary status.

(g) Any request to increase the upper age-limit of 55 years for retirement on medical grounds prescribed in para 2(A) (b) and (c) above in respect of Group ‘A’/’B’/’C’ Government servants and to bring it at par with the upper age-limit of 57 years prescribed therein for Group ‘D’ Government servants on the ground that the age of retirement has recently (May, 1998) been raised from 58 years to 60 years for Group ‘A’/’B’/’C’ Government servants (which is at par with the age of retirement of 60 years applicable to Group ‘D’ Government servants) or on any other ground should invariably be rejected so as to ensure that the benefit of compassionate appointment available under the scheme is not misused by seeking retirement on medical grounds at the fag end of one’s career and also keeping in view the fact that the higher upper age-limit of 57 years has been prescribed therein for Group ‘D’ Government servants for the reason that they are low paid Government servants who get meagre invalid pension in comparison to others.

Guidelines/Policy laid down by Department of Personnel & Training

3.0. The Scheme for compassionate appointment has been operative for a long time. However, on the basis of a study Report on Welfare Measures for Central government Employees prepared by the Department of Administrative Reforms and Public Grievances in 1994- one Section of which was on “Employment on Compassionate Grounds”- as also keeping in view a number of important judgments delivered by the Supreme Court, the policy guidelines on compassionate appointment were reviewed and rationalized and a comprehensive Scheme on compassionate Appointment was issued by this Department vide O.M. dated 9th October, 1998, as amended from time to time.

3.1. Under the Scheme, a dependent family member of a deceased or medically retired Government employee is given appointment on compassionate grounds in order to enable the aggrieved family to tide over the financial crisis caused due to the death or untimely retirement on medical grounds of the sole earning member. The various features of the Scheme as also the eligibility criteria are contained in the consolidated instructions dated 9th October, 1998 as amended subsequently. Some of the salient features/criteria for grant of compassionate appointment under the Scheme are indicated below:-

(a) Compassionate appointment is to be given against direct recruitment vacancies in any Group ‘C’ and ‘D’ post (excluding technical post) in the office or department of the deceased employee, limited to a ceiling of 5% of total such vacancies (excluding technical post) arising in a recruitment year.

(b) The family of the deceased government employee is in an indigent condition and required immediate relief from financial destitution.

(c) The applicant for compassionate appointment should be eligible and suitable for the post in all respects under the provision of the relevant Recruitment Rules and no relaxation will be granted except in the matter of upper age limit and temporary relaxation of requisite minimum educational qualification, prescribed in the Scheme.

(d) The objective of the Scheme is to provide immediate assistance to the family of the government servant to enable the family to tide over the sudden crisis. Such appointment cannot be granted after lapse of a reasonable period. Hence, the Scheme provides that an application for compassionate appointment can be kept under consideration by the Department for a maximum period of 3 years, subject to yearly review of the case.

3.2. The ceiling of 5% of vacancies for making appointment on compassionate grounds contained in para 7 of the consolidated instruction dated 9.10.1998, was first introduced in 1995 through an O.M. dated 26.9.1995. Prior to issue of the O.M. dated 26.9.1995, the percentage of vacancies to be filled by compassionate appointment in a given year was being determined by deducting from 50% the percentage of vacancies actually utilized by appointment of candidate belonging to SC, ST, Physically handicapped and Ex-servicemen. However, after the introduction of reservation for OBCs to the extent of 27%, the total reservation for SC/ST and OBCs reached 49.5%. The Supreme Court has held in the Mandal Commission’s case that the over all reservation under Article 16(4) of the Constitution should not exceed 50% of the vacancies arising in a year. The Apex Court had further ruled that while clause (4) of Article 16 may not be held exhaustive of reservations, the Court had cautioned against the propensity to create further classes deserving special treatment, as too much of reservations will further reduce the vacancies available for free competition which will not be a reasonable thing to do.

3.3. In an important judgment delivered in Umesh Kumar Nagapal Vs. State of Haryana & Ors [JT 1994(3) S.C. 525], the Supreme Court has laid down a number of principles governing appointments on compassionate grounds. The Apex Court has held that as a rule, appointments in the public services should be made strictly on the basis of open invitation of applications and merit and compassionate appointment is an exception to this general rule.

3.4. Strictly speaking, compassionate appointment is not a reservation. Nevertheless, keeping in view the directions of the supreme Court in the above mentioned judgments, it was decided to provide for a quota of 5% of direct recruitment vacancies in Group ‘C’ and ‘D’ category of posts in a year for filling up by compassionate appointment. Further, on the analogy of horizontal reservation applicable to physically handicapped and ex-servicemen, it was provided that the appointees on compassionate grounds belonging to SC/ST, OBCs as also general categories would occupy the respective slots in the recruitment roster. Therefore, the limit of 5% of vacancies was felt reasonable. No relaxations were visualized under the Scheme on this aspect.

3.5. Recently pursuant to a demand of the Staff side raised in the national Council of JCM, a decision was taken to apply a relaxed formula for calculation of vacancies for compassionate appointment by which it was provided that 5% quota of vacancies shall now be calculated on the basis of gross DR vacancies in total Group C and D posts (excluding technical posts) arising in a year, prior to reduction of vacancies by the Screening committee under Annual Direct Recruitment Plan. However, compassionate appointment is to be actually made on the basis of vacancies in group C and D posts ultimately cleared under ADRP. DOPT O.M. dated 14th June, 2006 was issued containing this decision. Further, in order to give relief to small cadres/offices, which were unable to locate one vacancy under 5% quota in the preceding three years for the purpose of compassionate appointment, another policy Circular was issued on 9th October, 2006 allowing such small offices/cadres to club together the total DR vacancies in Group ‘C’ and ‘D’ posts (excluding technical posts) having arisen in the last three years and to calculate 5% on the basis of such grand total of vacancies, for making one compassionate appointment. Technical posts are also considered for compassionate appointment by separately calculating the 5% vacancies in relation to such posts.

3.6. Department of Personnel & Training’s role is confined to framing the policy guidelines on compassionate appointment applicable to Central Government Departments/Ministries. It is the responsibility of individual Department/ Office to implement such policy instructions.

3.7. So far as the various PSUs/Banks/Trusts etc. are concerned, it is stated that the Scheme on Compassionate Appointment administered by this Ministry is applicable to Central Government Ministries /Departments and as such, the Scheme does not directly apply to the Banks/PSUs/Trusts etc. Any Scheme on compassionate appointment, if operative in any of the PSUs/Banks/Trusts etc., the same will be governed under the Statute/Rules/Regulations of that Organisation.

IMPORTANT COURT JUDGEMENTS

4.0. In the course of its examination, the Committee also took note of leading judgments of Supreme Court of India which time to time interpreted the scheme and guidelines in respect of appointment on compassionate ground. Therefore, the rulings contained in the major judgements had also to be kept in view while considering cases of compassionate appointment. Some of such cases are enumerated below :-

(a) The Supreme Court in its judgement dated April 8, 1993 in the case of Auditor General of India and others vs. G. Ananta Rajeswara Rao [(1994) 1 SCC 192] has held that appointment on grounds of descent clearly violates Article 16(2) of the Constitution; but if the appointment is confined to the son or daughter or widow of the Government servant who died in harness and who needs immediate appointment on grounds of immediate need of assistance in the event of there being no other earning member in the family to supplement the loss of income from the bread winner to relieve the economic distress of the members of the family, it is unexceptionable.

(b) The Supreme Court’s judgement dated May 4, 1994 in the case of Umesh Kumar Nagpal vs. State of Haryana and others [JT 1994(3) S.C. 525] has laid down the following important principles in this regard:

(i) Only dependents of an employee dying in harness leaving his family in penury and without any means of livelihood can be appointed on compassionate ground.

(ii) The posts in Group ‘C’ and ‘D’ (formerly Class III and IV) are the lowest posts in non-manual and manual categories and hence they alone can be offered on compassionate grounds and no other post i.e. in the Group ‘A’ or Group ‘B’ category is expected or required to be given for this purpose as it is legally impermissible.

(iii) The whole object of granting compassionate appointment is to enable the family to tide over the sudden crisis and to relieve the family of the deceased from financial destitution and to help it get over the emergency.

(iv) Offering compassionate appointment as a matter of course irrespective of the financial condition of the family of the deceased or medically retired Government servant is legally impermissible.

(v) Neither the qualifications of the applicant (dependent family member) nor the post held by the deceased or medically retired Government servant is relevant. If the applicant finds it below his dignity to accept the post offered, he is free not to do so. The post is not offered to cater to his status but to see the family through the economic calamity.

(vi) Compassionate appointment cannot be granted after lapse of a reasonable period and it is not a vested right which can be exercised at any time in future.

(vii) Compassionate appointment cannot be offered by an individual functionary on an ad-hoc basis.

(c) The Supreme Court has held in its judgement dated February 28, 1995 in the case of the Life Insurance Corporation of India vs. Mrs Asha Ramchandra Ambekar and others [JT 1994(2) S.C. 183] that the High Courts and Administrative Tribunals can not give direction for appointment of a person on compassionate grounds but can merely direct consideration of the claim for such an appointment.

(d) The Supreme Court has ruled in the cases of Himachal Road Transport Corporation vs. Dinesh Kumar [JT 1996 (5) S.C. 319] on May 7, 1996 and Hindustan Aeronautics Limited vs. Smt A. Radhika Thirumalai [JT 1996 (9) S.C. 197] on October 9, 1996 that appointment on compassionate grounds can be made only if a vacancy is available for that purpose.

(e) The Supreme Court has held in its judgement in the case of State of Haryana and others vs. Rani Devi and others [JT 1996(6) S.C. 646] on July 15, 1996 that if the scheme regarding appointment on compassionate ground is extended to all sorts of casual, ad-hoc employees including those who are working as Apprentices, then such scheme cannot be justified on Constitutional grounds.

4.1. After going through the judgments cited above, the Committee has an inference that Supreme Court also upholds the relevance of the policy in the PSUs and Government Departments. The Committee acknowledges that the court in its judgments tried to ensure implementation of the policy in a logical manner. The Committee is however constrained to note that many of the PSUs/Banks construed the judgments otherwise and thereby restricted the implementation of the policy of appointment on compassionate ground. While interacting with PSUs and Banks, the Committee came across such arguments. The Committee feels that the judgments particularly the Nagpal case was very often misquoted and misrepresented as if the Supreme Court banned the appointment on compassionate ground.

Deliberation with PSBs and PSUs
5.0. This Committee visited Goa, Mumbai, Bangalore, Bhuhneshwar, Chennai, Hyderabad, Kochi, Port Blair, Kolkata, held discussions with various authorities, organisations, individuals on “Policy of Appointment on compassionate grounds” in Public Sector Enterprises/ Undertakings/ Trusts and leading Banks.

Public Sector Banks
5.1. The Committee met the managements of Reserve Bank of India and 23 Public Sector Banks to ascertain the implementation of the policy in the Banks. The Committee was apprised that the Public Sector Banks do not follow the policy as per DoPT guidelines. Instead, they follow a policy as approved by the Indian Banks Association and Ministry of Finance (Banking Division), which provide for payment of ex-gratia to the family of the deceased. The Committee had also sent the questionnaire to all the leading public sector banks so that the opinion of the banks can be sought on the subject. The Banks examined by the Committee are mentioned below:


S.No.
Name of the Bank
1.
State Bank of Mysore
2.
Vijaya Bank

3.
Canara Bank

4.
Bank of Baroda

5.
Bank of India

6.
Central Bank of India

7.
NABARD

8.
Dena Bank

9.
Union Bank of India

10.
Reserve Bank of India

11.
Indian Overseas Bank

12.
Indian Bank

13.
Andhra Bank

14.
State Bank of Hyderabad

15.
State Bank of Travancore

16.
State Bank of India

17.
UCO Bank

18.
United Bank of India

19.
Allahabad Bank

20.
State Bank of Bikaner and Jaipur

21.
State Bank of Saurashtra

22.
SIDBI

23.
IDBI

24.
State Bank of Indore




6.0. The Committee was apprised of the details of scheme as under:-

(a) Before December 2005, the scheme of compassionate appointment was existing in banks.

(b) Based on the Government guidelines, the IBA model scheme for payment of ex-gratia amount in lieu of compassionate appointment was implemented.

(c) Application for the payment of Ex-gratia amount to be submitted by the family of the deceased employee within six months from the death of the employee.

(d) Ex-gratia will be granted to the family of the employee if the monthly income of the family from all sources is less than 100% of the last drawn salary (net of taxes) of the employee to enable the family to maintain a decent standard of living.

IBA Scheme



(a) Employees dying in harness (other than due to injury while performing official duty)

(b) Employees dying due to injury sustained while performing official duty within or outside office (excluding travel from residence to place of work and back)

(c) Employees dying while performing official duty within or outside office premises due to dacoity, robbery/terrorist attack.

(d) Employees seeking pre-mature retirement due to incapacitation before reaching the age of 55 years.

v In the above cases, ex-gratia amount will be paid to the family of the employee if eligible and if requested for within six months from the date of the death of the employee.

v Ex-gratia may be granted to the family of the employee in the manner and subject to the ceilings specified below, if the monthly income of the family from all sources is less than 60% of the last drawn salary of the employee to enable the family to maintain a decent standard of living after the death of the sole bread winner.

v If the monthly income of the family arrived at is less than 60% of the last drawn gross salary of the employee, ex-gratia amount as under will be payable.

(e) The cadre-wise ceiling on ex-gratia amount payable will be as follows:-



Category
Minimum Amount
Maximum Amount

Officers
Rs. 4.00 lacs
Rs. 8.00 lacs

Clerical Staff
Rs. 3.00 lacs
Rs. 7.00 lacs

Subordinate Staff
Rs. 2.00 lacs
Rs. 6.00 lacs


(f) In October 2003, reviewing the entire scheme for appointment of dependants of deceased employees on compassionate grounds in public sector banks, Government of India advised IBA that the purpose of providing help to the family of deceased employees can be achieved by extending suitable financial assistance to the dependants. In so advising, Government of India was guided by the principle laid down by the Hon’ble Supreme Court in case of Umesh Kumar Nagpal. Government of India had then requested IBA to frame a model scheme for payment of ex-gratia in lieu of compassionate appointment. The model scheme as framed by IBA was approved by the Government of India and IBA advised the scheme to the public sector banks in July 2004 to enable their boards to adopt the same.

VIEWS OF THE UNIONS/ ASSOCIATIONS

6.0. After knowing the views of the management of various banks on both the issues, the Committee felt that the views of the representatives of the Associations/ Unions be also heard to know the problem from their point of view. All the Unions of the banks were unanimous that the policy of appointments on compassionate grounds in the banks needs to be revived. All the Unions have put forward certain suggestions:

· Atleast the widow of the deceased employee (if not the son or daughter) should be given the job in the Bank according to her qualification either in the clerical or subordinate cadre.

· If the wife of the deceased employee is aged or is otherwise not willing to take the job for her own reasons of health, age etc then at her option, financial compensation can be paid.

· This compensation should be adequate to take care of her and her children.

· This compensation amount can also be paid to her on monthly basis if she so desire.

· The erstwhile scheme of appointments of a family member in cases of death of employee while discharging official duties/dacoity/ robbery, etc should be restored.

6.1. The Committee during is meeting, with the Banks at Mumbai, Chennai, Hyderabad impress upon them to revise the scheme to accommodate the appointments on compassionate ground in the spirit of DoPT guidelines and directed them to submit before the Committee the revised scheme. The Committee desired that compassionate appointment, are required to be made at least in those cases where the employee dies while performing official duties as a result of dacoity, terrorist attack, violence, robbery etc.

6.2. The Committee during its visit to Jaipur, Ahmedabad, Mumbai and Bhopal held discussions with various Banks on the issue of ‘Policy of Appointment on Compassionate Grounds’. The representative of IBA apprised the Committee that the views expressed by the Committee in its previous study visits were discussed by the IBA and it was decided that IBA would submit the draft modified model scheme of compassionate appointments to the Government where in it was decided to revive Compassionate Appointments at least in those cases where the person died while performing official duties as a result of dacoity, terrorist attack, violence, robbery etc.

6.3. The proposed modified model scheme on Compassionate Appointments was submitted by IBA to the Government as under:

1. Indian Banks’ Association (IBA) had proposed modification of the Model Scheme.

2. The Govt. is of the view that payment of ex-gratia amount should only be in deserving cases and cannot be made into a universal rule in all cases of employees dying in harness. If any ex-gratia payment is made universal. It would become virtually a condition of service. Besides, the ex-gratia payment cannot be equal or nearly equal to the gross emoluments of deceased employee because, in that case, the result would be that while one person fills the post, the bank would be obliged to pay twice or nearly twice the emoluments attached to the post. Hence, payment of ex-gratia should also be subject to certain conditions that would ensure that the benefit is available only in deserving cases. The amount of benefit should also be such that. If invested, it will fetch the deceased’s family a reasonable income that will save them from penury.

3. The Ministry of Finance, Banking Division vide its letter dated June 19, 2007 has advised the Indian Banks’ Association that the existing scheme may be amended by dividing it into two parts, the first part relating to compassionate appointments, in exceptional cases and the second relating to ex-gratia payment as explained below.

(A) Compassionate Appointments in exceptional cases

Compassionate appointment to one among the next of kin may be confined to exceptional cases, where

(a) an employee dies while performing official duty as a result of violence, terrorism, robbery or dacoity;

(b) an employee dies within five years of his first appointment or before he reaches the age of thirty years, wherever is latter leaving a dependant spouse and/or minor children; and

(c) the appointment shall be made only in classes III and IV. A reasonable period of time after the death of the employee may be prescribed and eligible next of the kin should seek employment during that period. Since the model scheme was circulated by the IBA on 31.07.2004, this may be taken as the cut off date. All cases of death occurring after 31.07.2004, in the circumstances described above, may be dealt with according the new scheme.

(B) Ex-gratia payment

(a) ex-gratia payment may be made only to the family of an employee, who dies in harness or who seeks pre-mature retirement due to total incapacitation. The family shall be in indigent or penurious circumstances.

(b) The monthly income of the family may be calculated in accordance with the method suggested in the model scheme circulated by IBA. If the current income of the family does not exceed 60 percent of gross emoluments (net of taxes) of the deceased employee, the family with be entitled to a lump sum ex-gratia payment.

(c) Lump sum ex-gratia payment will be calculated at 60 percent of the gross emoluments net of taxes per month of the deceased employee (as last drawn) multiplied by the number of remaining months of service of the deceased employee had he/she retired in the normal course.

(d) The ceiling caps suggested in the model scheme of IBA, shall apply.

(e) The family of he deceased employee shall apply within 6 months of the death for ex-gratia payment and such application shall be disposed off within 3months after its receipt.

(f) All applications for ex-gratia payment pending as on 31.07.2004 shall be considered in accordance with the Scheme to be revised now.

(g) Any application that has been disposed off prior to 31.07.2004 and any order passed thereon shall not be reopened.

4. IBA has been advised that the existing scheme be revised suitably on the above lines and circulated to all PSBs for adoption, preferably by 31.08.2007, with the approval of their respective boards.

6.4. The Committee appreciates that the views expressed by the Committee in its previous study visits regarding revival of compassionate appointments in public sector banks atleast in those cases where the official died while performing official duty has resulted in modifying the model scheme of compassionate appointments in the public sector banks. The Committee, therefore, recommends that Government of India should accept this revised proposal of IBA and start ‘compassionate appointments’ in public sector banks with immediate effect. The Committee feels this act of the Government would certainly help the family of deceased Banks employee to tide over sudden crisis.
6.5. However the Committee strongly feels that the judgment given/ delivered by the Hon’ble Supreme Court in the Shri Umesh Kumar Nagpal Vs. State of Haryana and others doesn’t totally ban the employment on compassionate grounds rather it has been misquoted, misinterpreted and misunderstood that the Hon’ble Court has totally banned the compassionate employment’s. The Committee feels that Government should not put a blanket ban on providing compassionate appointment to the family members of the deceased employees in the public sector banks rather should find ways and means for giving employment under compassionate grounds in view of shrinking employment opportunities in the Banking Sector. The Committee, therefore, recommends that Government should not totally ban the appointments on compassionate grounds in the Banking Sector rather think of providing compassionate appointments to the family members of the deceased. For this the power to appoint on compassionate grounds may be conferred on the CMDs of public sector banks so as to enable them to give appointments to well deserved cases alone.

7.0. The Committee having the nomenclature of Personnel, Public Grievance Law and Justice Committee receives many public grievance cases on daily basis. In one such representation it was stated that an employee of the Central bank of India died and his son applied for a job on compassionate ground after a gap of two years. His application was rejected by the bank on the ground of late submission of application. The hapless son of the deceased Bank employee then submitted a representation to the Chairman of the Committee which was forwarded to the Banking Division for their comment. The Committee had visited Mumbai in July 2006 and held discussions with Central Bank of India. The Committee then referred to that case. The Committee wanted to know the reasons for not extending a helping hand to the deceased family and rejecting the application. Whether the bank had any responsibility towards the deceased family? Why the rules could not so interpreted so as to help the family? Whether any court judgment/ order has defined ‘a family in penury’ and ‘indigent condition’ etc.

7.1. In their reply the representatives of the Central Bank of India stated that the said application was rejected on two grounds i.e., (i) late submission and (ii) financial condition of the family was not indigent.

7.2. The Committee was not satisfied by the reply. The Committee feels that in the hour of crisis each and every member of the family stands together to support the family and try to overcome the problems that come their way and in this case, the bank instead of extending a helping hand quoted some rules and simply rejected the application. The Committee feels that such type of incidences are unwarranted, speaks volumes about the policy of a particular bank when our effort should be in the direction of building relationship of trust, help, loyalty etc. The Committee desires that in such cases a realistic and humanitarian view should be taken by the concerned authorities.

PUBLIC SECTOR UNDERTAKINGS (PSUs)

8.0. The Committee also held discussions with the representatives of Public Sector Undertakings and other organisations/Trusts etc. on the issue. In all, the Committee met 40 odd public sector undertakings and others on the issue. The following Public Sector Undertakings etc. were examined by the Committee :-

S.No.
Name of the Organisation

1.
Murmagao Port Trust
2.
Hindustan Petroleum Corporation Limited

3.
Bharat Petroleum Corporation Limited

4.
Indian Oil Corporation

5.
National Aluminium Company Limited

6.
ONGC

7.
Chennai Port Trust

8.
National Mineral Development Corporation

9.
Bharat Dynamics Limited

10.
Hindustan Latex Limited

11.
Hindustan Newsprint Limited

12.
Cochin Refineries Limited

13.
Cochin Port Trust

14.
Chennai Petroleum Corporation

15.
Madras Fertilizers Limited

16.
Nevyeli Lignite Corporation

17.
Coal India Limited

18.
IBP Company Limited

19.
MSTC Limited

20.
Tehri Hydro Development Corporation Limited

21.
Rajasthan Drugs and Pharmaceutical Limited

22.
National Seeds Corporation Limited

23.
Rajasthan Electronics and Instruments Limited

24.
Hindustan Salts Limited
25.
National Fertilizers Limited
26.
Sambhar Salts Limited
27.
GAIL (India) Limited
28.
MMTC Limited
29.
PEC Limited
30.
STC Limited
31.
Container Corporation Limited
32.
Nuclear Power Corporation Limited
33.
Cotton Corporation Limited
34.
Air India Limited
35.
Mumbai Railway Vikas Corporation
36.
LIC Limited
37.
New India Assurance Company Limited
38.
BHEL
39.
National Handloom Development Corporation
40.
Central Warehousing Corporation Limited

8.1. The Committee observes that the Public Sector Undertakings and other organisations/Trusts etc. examined by the Committee are having separate schemes for the benefit of their employees. Some of them were following the policy of making ex-gratia payment to the family of the deceased and some were continuing with the policy of appointment on compassionate grounds. The Public Sector Undertakings which are following the policy of appointment on compassionate grounds are GAIL (India) Limited, STC Limited, Container Corporation of India Limited, Bharat Dynamics Limited, Neyveli Lignite Corporation Limited, Cochin Port Trust, Bharat Petroleum, Chennai Port Trust, Chennai Petroleum Corporation etc.

8.2. Many of them have started following financial package schemes for the family member of the deceased employees. Some schemes were unique and could really help the deceased family.

8.3. Few such schemes are mentioned below:

8.4. In Gail (India) Limited a dependent of deceased employee will be eligible for consideration for appointment in the company against an available vacancy commensurate with his/her qualifications and experience. Priority will, however, be given to dependents of those employees who die as a result of an accident while on duty. This consideration will be admissible even if the name of such dependants is not sponsored by the Employment Exchange or if he/ she has not applied against any advertisement provided the applicant is otherwise eligible. It is however obligatory to notify such a vacancy to the Employment Exchange concerned indicating in the requisition that the vacancy in question is proposed to be filled by the dependant of the deceased employee and that nominations by the Employment Exchange are not required. Non-existence of an earning member in the family of the deceased employee will be an important criterion in this regard.

8.5. In MMTC Limited, they have introduced the ‘Employee Family Benefit Scheme’ in place of ‘Compassionate appointments’ from the year 1996. Prior to this, appointments on compassionate grounds were made in the company on discretionary basis. Owing to liberalization of the economy in 1991-92 14 out of 18 items canalized through the company was decanalized. Due to excessive manpower, embargo on fresh recruitment was imposed and Voluntary retirement scheme was introduced in the company for rationalization of the manpower. Thus, the company decided to introduce a scheme for the benefit of its employees. The scheme of ‘Employee Family Benefit Scheme’ ensures 50% of the last drawn Basic Pay + DA in case the length of service is 20 yrs or more and 40% of the last drawn Basic Pay + DA in case the length of service is less than 20 yrs subject to a maximum of Rs. 12,000/- pm is admissible to the dependent spouse/ children till the notional date of superannuation. The entire terminal benefits like PF, Gratuity, Group Insurance, Leave Encashment etc, unlike other PSUs are released to the spouse/ dependent children and in case of any hospitalization of the employee, the entire expenditure is borne by the company. As such there is no financial burden on the family.

8.6. In Chennai Petroleum Corporation, the company was having a very different and unique policy for the benefits of its employees. In case of death of any employee of the PSU, the company stands beside the family and offers full support. The company gives full salary to the family of the deceased till the date of his actual superannuation without making any cut so that the family survives the sudden crisis inspite of loss of bread earner of the family. Such type of schemes actually gives much needed support to the family after the death of the ‘Karta’ of the family. Hence an equitable compensation system was devised as under:-

SAMPLE FINANCIAL PACKAGE PAYABLE TO
DEPENDENTS OF DECEASED
Description
Workman in
Grade V
Officer in
Grade A
Officer in
Grade D

Pay Scale
8400-15300
12000-17500
17500-22300

Past service in years
17
17
17

Future notional service in years
18
18
18

Salary (BP/DA/SP/PP/SI)
16600
25950
34600

Encashment of EL (say 150 days)
83000
129750
173000

PF accumulation with interest
975283
1524614
2032819

Gratuity
350000
350000
350000

Employees Deposit Linked insurance
100000
100000
100000

Group Savings Linked insurance
110000
120000
125000

Personal Accident Insurance Claim
100000
100000
100000

Employees benefit fund
15000
15000
15000

Superannuaction benefits
665361
1040128
1386837

Total Amount payable
2398644
3379492
4282656

Interest earned per month @ 8% p.a.
15991
22530
28551

Add: EPS 1995 pension per month
2050
2050
2050

Total income per month to family
18041
24580
30601

Walver of House Building Advance (max.)
1000000
1200000
1400000

Medical Benefits for spouse & Children




Domiciliary Treatment
7000 p.a.
9000 p.a.
9000 p.a.

Special Diseases
15000 p.a.
15000 p.a.
15000 p.a.

Hospitalisation (Mediclaim Policy)/member
1.5 Lakhs p.a.
1.5 Lakhs p.a.
1.5 Lakhs p.a.


8.7. The Committee is of the opinion that the above mentioned sample financial package payable to dependents of deceased was a very good scheme, which caters to needs of the family of the deceased, and is worth to be mentioned in the report of the Committee. The Committee feels that such type of welfare schemes are the need of the hour when appointments on compassionate ground have been discontinued or offered very rarely in PSUs.

8.8. The Committee feels that though death of the ‘Karta’ of a family can never be compensated but family can be consoled by offering compassionate appointment or financial package to support the family. The Committee, therefore, recommends that the Government of India should positively think towards revival of the policy of appointments on compassionate ground in the PSUs and other organisations falling within its jurisdiction or the PSUs should introduce a unique scheme of ‘full salary till superannuation of the deceased employee’ uniformly so that the bereaved family could tide over the crisis created by the cruel hands of destiny.

8.9. The Committee took note of the views of Secretary, Ministry of Personnel, Public Grievances and Pensions regarding uniformity in policy in all the PSUs who stated that it was a matter on which the Department of Public Enterprises should be able to really respond better. He also stated that because many public sector undertakings either are under restructuring or are to be disinvested, only those PSUs, which are profit making and big public enterprises, have their own policies and that the Government did not really think that it should lay down any policy in this regard for the PSUs.

8.10. The Committee does not find the views of Secretary convincing and feels that the Ministry of Personnel is passing on its responsibility to Department of Public Enterprises (DPE). The Committee strongly feels that it is the policy of the Ministry of Personnel, Public Grievances and Pensions and it is obligatory for the Ministry to ensure its implementation in toto in not only all the Ministries/Departments of Government of India, but also in the organisations falling within their administrative control. The role of DPE in the case of PSUs and the Banking Division in the case of Banks is to regulate and implement the policy as laid down by the Ministry of Personnel, Public Grievances and Pensions. The Committee however acknowledges that the policy may vary keeping in view the specific nature of the organisations. What Committee proposes is the mechanism to monitor the policy at both levels i.e., at the level of DPE or Banking Division and also at the level of Ministry of Personnel.

GOVERNMENT DEPARTMENTS

9.0. The Secretary, Ministry of Personnel, Public Grievances and Pensions in his deposition before the Committee on 17th July 2007 stated that there was a need for Government employee to feel that his family would be looked after even after he was not there, and especially, if his family was in indigent condition. He informed the Committee that the policy, in whatever shape it exists today, operates primarily with the philosophy and view that the Government employees’ need to be taken care of. But with the increasing trend towards reducing the size of the Government, especially the number of employees, and, very strict adherence of the reservation rules and regulations through various enactment’s and orders of the courts, it has now become nearly impossible to increase the percentage from five percent, where it is pegged now.

9.1. The Committee was further informed by the Secretary that this percentage left very little scope in most of the Ministries to really help all the dependents of employees who pass away, in matters of giving employment. In every Ministry a large number of people are waiting for employment because there are simply no vacancies. Earlier, the calculation of the five percent vacancies was against the Direct Recruit quota to be filled up during the year. This Direct Recruit quota has shrunk because in 2001, the Government decided that the 66 percent, that is, 2/3rd of the Direct Recruit quota in every Ministry would be abolished and only 1/3rd vacancies would be filled up. So, if there are hundred vacancies, sixty-six will be abolished and only 33 or 34 vacancies will be filled up. And, this five percent used to be calculated of the thirty-four rather than of the entire hundred. The Ministry has now modified the rule. While the number of vacancies to be filled up will still be 34 but the number of vacancies for compassionate appointments will be calculated against the entire hundred. That way, a marginal increase in the number of vacancies has been achieved. But the problem still remains and the problem is quite acute. But in an effort to balance between the number of people that Government should have and the reservation requirements, the Government finds itself in a difficult position to really expand the scope of the compassionate employment.

9.2. The Committee has also come across certain representations wherein it has been mentioned that at the time of the death of the breadwinner the wife was uneducated/ not able to take up the job and the deceased has left small children’s where the 3 years criteria to fill up the said vacancy cannot be applied. The Committee feels that such type of situation can come in anybody’s life wherein the 3 year rule cannot be applied, hence such type of cases should be dealt with separately. The Committee recommends that if the Government really intends to help the family of the deceased employee then the Government should come forward with certain changes in its policy on appointments on compassionate ground like waiving of all outstanding loans, free health expenditure, free education to the children till they attain the age of majority, family pension, housing facilities etc for the family of the deceased.

9.3. The Committee finds that the Guidelines/ circulars issued in this regard by the Government of India are actually not adhered to in true spirit and in many cases some PSUs are not even aware of any such new guidelines etc. The Committee, therefore, recommends that the Guidelines/ circulars issued by the Government must be complied with and a feedback must be obtained from each of the administrative Ministries so that a cross check can be in place to see that the instructions issued are followed properly. The Committee also feels that the role of the administrative Ministries under which the particular PSU comes become all the more important and it should pass on each and every instruction issued by the Government of India to the PSUs and receive the confirmation from them and send the feedback to the Government of India. The Committee recommends that this is a continuous process and atleast yearly report must be sent to the Ministry of Personnel, Public Grievances and Pensions (Department of Personnel and Training) by the administrative Ministries to ensure whether the instructions issued by the Government are complied with and the Ministry of Personnel must also call for a report on this issue per annum.

9.4. The Committee also feels that if the Government’s effort is to help the family of the deceased employee then there must be a separate Cell in each of the Ministries or Departments which will cater to only compassionate appointment cases. The cell should send periodical information on number of vacancies, number of applications received, time taken to dispose of the cases, reasons for not disposing favorably etc to the head of the Department. The Committee, therefore, recommends that Government should come forward with certain new guidelines in addition to the one which is already in existence for the benefit of the employees like creation of a separate Cell, proper monitoring of its guidelines, gathering of information from the Ministries periodically, compliance report etc.

9.5. Finally, the Committee feels that in a welfare state like ours it is obligatory on the part of the Government to provide a social security net to the employees and appointments on compassionate ground is one such measure. It gives a sense of being part and parcel of the organisation amongst its employees who feels that in case of falling victim at the hands of cruel destiny the organisation will take care of their families. The umbrella of protection certainly boosts the morale of not only the employees but also their families. The Committee, therefore, recommends that the policy of compassionate appointments should continue in the Government, its PSUs, organisations, Trusts etc. as a measure of social security net and also consider offering the package on the lines of Chennai Petroleum corporation Ltd. so that the family of the deceased employee survives the sudden void and crisis created by the cruel destiny.

9.6. The Committee is perturbed to note that there is lack of uniformity in the rules/ standing orders/guidelines, formulated till date, by various organisations/Departments, which govern the policy of appointment on compassionate ground. It notes that lack of clarity/precision is a major handicap in implementing the scheme in its true letter and spirit. It is of the view that this has been the main reason for various conflicting judgments by the Courts. The Committee strongly feels that common standards eligibility criteria should be made applicable for such appointments. It is also of the view that recurrent judgments by the courts can be avoided if a uniform and transparent policy is envisaged in all the Organisations/Ministries/Departments. It is of the considered opinion that giving this policy statutory backing would rectify the anomalies which exist at present in this regard.

9.7. In view of the above, the Committee unanimously recommends that concrete steps should be taken to enact a comprehensive legislation which would govern the policy of appointment on compassionate ground. The Committee feels that such a legislation would render clarity to thePARLIAMENT OF INDIA
RAJYA SABHA
DEPARTMENT RELATED PARLIAMENTARY STANDING COMMITTEE

ON PERSONNEL, PUBLIC GRIEVANCES, LAW AND JUSTICE

TWENTY THIRD REPORT

ON

GOVERNMENT’S POLICY OF APPOINTMENT ON
COMPASSIONATE GROUND

(PRESENTED TO THE RAJYA SABHA ON 7TH SEPTEMBER,2007)

(LAID ON THE TABLE OF THE LOK SABHA ON 7TH SEPTEMBER,2007)

RAJYA SABHA SECRETARIAT

NEW DELHI

SEPTEMBER 2007, BHADRAPAD, 1929 (SAKA)
C O N T E N T S



1. Composition of the Committee

2. Introduction

3. Report

4*. Relevant Minutes of the Meetings of the Committee

5*. Annexure

a. Scheme for Compassionate Appointment (1998) of the Department of Personnel and Training, Ministry of Personnel, Public Grievances and Pensions.

COMPOSITION OF THE COMMITTEE (2004-05)

(Constituted on 5th August, 2004)



1. Shri E.M. Sudarsana Natchiappan ¾ Chairman



RAJYA SABHA

2. Dr. Radhakant Nayak

3. Shri Balavant alias Bal Apte

4. Shri Ram Nath Kovind

5. Shri Ram Jethmalani

6. Dr. P.C. Alexander

7. Shri Tariq Anwar

8. Shri Raashid Alvi

9. Vacant

10. Vacant



LOK SABHA

11. Dr. Shafiqurrahman Barq

12. Smt. Bhavani Rajenthiran

13. Shri Chhatar Singh Darbar

14. Shri N.Y. Hanumanthappa

15. Shri Shailendra Kumar

16. Shri Dahyabhai V. Patel

17. Shri Brajesh Pathak

18. Shri Harin Pathak

19. Shri V. Radhakrishnan

20. Shri Vishwendra Singh

21. Shri Bhupendrasinh Solanki

22. Prof. Vijaya Kumar Malhotra

23. Kumari Mamata Banerjee

24. Shri S.K. Kharventhan

25. Shri Shriniwas D. Patil

26. Shri A.K. Moorthy

27. Shri Ramchandra Paswan

28. Vacant

29. Vacant

30. Vacant

31. Vacant

COMPOSITION OF THE COMMITTEE (2005-06)

(Constituted on 5th August, 2005)



1. Shri E.M. Sudarsana Natchiappan ¾ Chairman



RAJYA SABHA

2. Dr. Radhakant Nayak

3. Shri Tariq Anwar

4. Dr. P.C. Alexander

5. Dr. Abhishek Manu Singhvi

6. Shri Balavant alias Bal Apte

7. Shri Krishan Lal Balmiki

8. Shri Ram Jethmalani

9. Vacant

10. Vacant



LOK SABHA

11. Dr. Shafiqur Rahman Barq

12. Kumari Mamata Banerjee

13. Shri Chhattar Singh Darbar

14. Shri N.Y. Hanumanthappa

15. Shri S.K. Kharventhan

16. Shri Shailendra Kumar

17. Prof. Vijay Kumar Malhotra

18. Shri A.K. Moorthy

19. Shri Ram Chandra Paswan

20. Shri Dahyabhai Vallabhbhai Patel

21. Shri Brajesh Pathak

22. Shri Shriniwas Patil

23. Shri Harin Pathak

24. Shri Varkala Radhakrishnan

25. Smt. M.S.K. Bhavani Rajenthiran

26. Shri Vishvendra Singh

27. Shri Bhupendrasinh Solanki

28. Vacant

29. Vacant

30. Vacant

31. Vacant

COMPOSITION OF THE COMMITTEE (2006-07)

(Constituted on 5th August, 2006)



1. Dr. E.M. Sudarsana Natchiappan ¾ Chairman



RAJYA SABHA

2. Dr. Radhakant Nayak

3. Dr. Abhishek Manu Singhvi

4. Shri Balavant alias Bal Apte

5. Shri Virendra Bhatia

6. Shri Tariq Anwar

7. Shri Ram Jethmalani

8. Dr. P.C. Alexander

9. Shri Tarlochan Singh

10. Shri Suresh Bhardwaj



LOK SABHA

11. Dr. Shafiqur Rahman Barq

12. Shri Chhattar Singh Darbar

13. Shri N.Y. Hanumanthappa

14. Shri Shailendra Kumar

15. Dr. C. Krishnan

16. Shri Harin Pathak

17. Shri Dahyabhai Vallabhbhai Patel

18. Shri Varkala Radhakrishnan

19. Prof. M. Ramadass

20. Shri Vishvendra Singh

21. Shri Bhupendrasinh Solanki

22. Shri Raj Babbar

23. Shri S.K. Kharventhan

24. Shri A. Krishnaswamy

25. Shri Anirudh Prasad alias Sadhu Yadav

26. Shri N.S.V. Chitthan

27. Vacant

28. Vacant

29. Vacant

30. Vacant

31. Vacant

COMPOSITION OF THE COMMITTEE (2007-08)

(Constituted on 5th August, 2007)



1. Dr. E.M. Sudarsana Natchiappan ¾ Chairman



RAJYA SABHA

2. Dr. Radhakant Nayak

3. Dr. Abhishek Manu Singhvi

4. Shri Balavant alias Bal Apte

5. Shri Suresh Bhardwaj

6. Shri Virendra Bhatia

7. Shri Tariq Anwar

8. Shri Ram Jethmalani

9. Dr. P.C. Alexander

10. Shri Tarlochan Singh



LOK SABHA

11. Shri Raj Babbar

12. Dr. Shafiqur Rahman Barq

13. Shri N.S.V. Chitthan

14. Shri Chhattar Singh Darbar

15. Shri N.Y. Hanumanthappa

16. Shri S.K. Kharventhan

17. Shri A. Krishnaswamy

18. Dr. C. Krishnan

19. Shri Shailendra Kumar

20. Shri Harin Pathak

21. Shri Dahyabhai Vallabhbhai Patel

22. Shri Varkala Radhakrishnan

23. Prof. M. Ramadass

24. Shri Bhupendrasinh Solanki

25. Shri Vishvendra Singh

26. Shri Anirudh Prasad alias Sadhu Yadav

27. Vacant

28. Vacant

29. Vacant

30. Vacant

31. Vacant

SECRETARIAT

Shri Sham Sher Singh, Joint Secretary

Shri K.P. Singh, Joint Director

Smt. Sasilekha Nair, Deputy Director

Shri Vinoy Kumar Pathak, Assistant Director

INTRODUCTION



I, the Chairman of the Department Related Parliamentary Standing Committee on Personnel, Public Grievances, Law and Justice, having been authorised by the Committee, present its Twenty Third Report on the Government’s Policy of Appointment on Compassionate Ground. The Scheme for Compassionate Appointments is a social security scheme in a welfare state under which appointments can be made on compassionate grounds to dependent family members of a deceased employee dying in harness or who is retired on medical grounds leaving his family in penury. This scheme gives relief to the family of the deceased Government employee from financial destitution to it over the emergency.

2. The subject Policy of Appointment on Compassionate Ground was identified by the Committee as a part of consideration of subject “Administrative Reforms”.

3. Keeping in view the importance of the subject, the Committee visited Goa, Mumbai, Bangalore, Bhubaneshwar, Chennai, Hyderabad, Kochi, Port Blair, Kolkata Jaipur, Ahmedabad and Bhopal and held discussions with various authorities, organisations, individuals on “Government’s Policy of Appointment on compassionate grounds” in Public Sector Enterprises/ Undertakings/ Trusts and leading Banks.

4. The Committee held discussions on the subject with the Heads of 24 banks and 40 PSUs to gather information related to the subject and to be get acquaint with various policy, welfare measures being implemented under this scheme.

5. The Secretary, Ministry of Personnel Public Grievances and Pensions made a detailed presentation on the subject on 17th July 2007.

6. While considering the subject, the Committee took note of the following documents/information placed before it: —

(i) Background note on the subject, furnished by the Government;

(ii) Procedure and mechanism of monitoring the implementation thereof in Ministries/Departments/offices/Public Sector Enterprises/Public Sector Banks etc where it is applicable;

(iii) Replies to the questionnaire prepared by the Secretariat; and

(iv) Submissions by the banks/PSUs on the subject.

7. The Committee held-in house discussion on the subject on 29th August 2007 and adopted the Report on 6th September, 2007.

8. For the facility of reference and convenience, the observations and recommendations of the Committee have been printed in bold letters in the body of the Report.

NEW DELHI

6th September, 2007.
DR. E. M. SUDARSANA NATCHIAPPAN

Chairman

Committee on Personnel,

Public Grievances, Law and Justice









REPORT
INTRODUCTION

1. In 2004 the Department related Parliamentary Standing Committee on Personnel, Public Grievances, Law and Justice, after its bifurcation from Department related Parliamentary Standing Committee on Home Affairs, included the subject ‘Administrative Reforms’ from its parent Committee as a part of consideration of the subject, the Committee chose to make a report on the ‘Government’s Policy of Appointment on Compassionate Ground’ in the first instance. The Scheme for Compassionate Appointments is a social security scheme in a welfare State like ours under which appointments can be made on compassionate grounds to dependent family members of a deceased Government employee dying in harness or who is retired on medical grounds leaving his family in penury and without means of livelihood. This step of the Government gives relief to the family of the deceased from financial destitution to get over the emergency. The nomenclature of the scheme itself shows that under this scheme compassion is at the centre stage. It has been observed that particularly in the case of prolonged illness, the family in order to save their bread earner and beloved ones do whatever it can to save his/her life. They not only spend their entire savings but also incur heavy debts. Despite their best efforts the cruel hands of the destiny snatches their near and dear one. The only ray of hope thereafter is appointment of a dependent on compassionate ground. Even in some accidental cases also same thing happens. The Committee having the nomenclature of being the Public Grievance Committee received representations from the employees of different banks, PSUs and Government Departments on the issue of compassionate appointment apprising the Committee that the guideline issued from time to time by the Ministry and DoPT were not followed properly. The Committee, in this background, decided to examine policy’s compliance in the public sector banks/public sector undertakings along with Government Departments and make on the spot study of the Banks/PSUs etc.

1.1 A letter in this regard was written to the Secretary, Ministry of Personnel, PG and Pensions on 10th January 2006 to furnish the background note on the rules and guidelines followed in the cases of appointment on compassionate grounds, procedure and mechanism of monitoring the implementation thereof in Ministries/ Departments/offices/ Public Sector Enterprises etc where these are applicable etc. In response, the Ministry furnished the details of the scheme as under:

OBJECTIVE

2.0. The objective of the Scheme is to grant appointment on compassionate grounds to a dependent family member of a Government servant dying in harness or who is retired on medical grounds, thereby leaving his family in penury and without any means of livelihood, to relieve the family of the Government servant concerned from financial destitution and to help it get over the emergency.

TO WHOM APPLICABLE

2.1. To a dependent family member –

(A) of a Government servant who –

(a) dies while in service (including death by suicide); or

(b) is retired on medical grounds under Rule 2 of the CCS (Medical Examination) Rules 1957 or the corresponding provision in the Central Civil Service Regulations before attaining the age of 55 years (57 years for Group ‘D’ Government servants); or

(c) is retired on medical grounds under Rule 38 of the CCS(Pension) Rules, 1972 or the corresponding provision in the Central Civil Service Regulations before attaining the age of 55 years (57 years for Group ‘D’ Government servants); or

(B) of a member of the Armed Forces who –

(a) dies during service; or

(b) is killed in action; or

(c) is medically boarded out and is unfit for civil employment.

Note I "Dependent Family Member" means:

(a) spouse; or

(b) son (including adopted son); or

(c) daughter (including adopted daughter); or

(d) brother or sister in the case of unmarried Government servant or

(e) member of the Armed Forces referred to in (A) or (B) of this para,

who was wholly dependent on the Government servant/ member of the Armed Forces at the time of his death in harness or retirement on medical grounds, as the case may be.

Note II "Government servant" for the purpose of these instructions means a Government servant appointed on regular basis and not one working on daily wage or casual or apprentice or ad-hoc or contract or re-employment basis.

Note III "Confirmed work-charged staff" will also be covered by the term ‘Government servant’ mentioned in Note III above.

Note IV "Service" includes extension in service (but not re-employment) after attaining the normal age of retirement in a civil post.

Note V "Re-employment" does not include employment of ex-serviceman before the normal age of retirement in a civil post.

AUTHORITY COMPETENT TO MAKE COMPASSIONATE APPOINTMENT

(a) Joint Secretary incharge of administration in the Ministry/Department concerned.

(b) Head of the Department under the Supplementary Rule 2(10) in the case of attached and subordinate offices.

(c) Secretary in the Ministry/Department concerned in special types of cases.

POSTS TO WHICH SUCH APPOINTMENTS CAN BE MADE

Group ‘C’ or Group ‘D’ posts against the direct recruitment quota.

ELIGIBILITY

(a) The family is indigent and deserves immediate assistance for relief from financial destitution; and

(b) Applicant for compassionate appointment should be eligible and suitable for the post in all respects

under the provisions of the relevant Recruitment Rules.

A. EXEMPTIONS

Compassionate appointments are exempted from observance of the following requirements:-

(a) Recruitment procedure i.e. without the agency of the Staff Selection Commission or the Employment Exchange.

(b) Clearance from the Surplus Cell of the Department of Personnel and Training/Directorate General of Employment and Training.

(c) The ban orders on filling up of posts issued by the Ministry of Finance (Department of Expenditure).

B. RELAXATIONS

(a) Upper age limit could be relaxed wherever found to be necessary. The lower age limit should, however, in no case be relaxed below 18 years of age.

Note I Age eligibility shall be determined with reference to the date of application and not the date of appointment;

Note II Authority competent to take a final decision for making compassionate appointment in a case shall be competent to grant relaxation of upper age limit also for making such appointment.

(b) Secretary in the Ministry/Department concerned is competent to relax temporarily educational qualifications as prescribed in the relevant recruitment rules in the case of appointment at the lowest level e.g. Group ‘D’ or Lower Division Clerk post, in exceptional circumstances where the condition of the family is very hard provided there is no vacancy meant for compassionate appointment in a post for which the dependent family member in question is educationally qualified. Such relaxation will be permitted upto a period of two years beyond which no relaxation of educational qualifications will be admissible and the services of the person concerned, if still unqualified, are liable to be terminated.

Note In the case of an attached/subordinate office, the Secretary in the concerned administrative Ministry/Department shall be the competent authority for this purpose.

(c) In the matter of exemption from the requirement of passing the typing test those appointed on compassionate grounds to the post of Lower Division Clerk will be governed by the general orders issued in this regard:-

(i) by the CS Division of the Department of Personnel and Training if the post is included in the Central Secretariat Clerical Service; or

(ii) by the Establishment Division of the Department of Personnel and Training if the post is not included in the Central Secretariat Clerical Service.

(d) Where a widow is appointed on compassionate ground to a Group ‘D’ post, she will be exempted from the requirement of possessing the educational qualifications prescribed in the relevant rules provided the duties of the post can be satisfactorily performed by her without possessing such educational qualifications.

DETERMINATION/AVAILABILITY OF VACANCIES

(a) Appointment on compassionate grounds should be made only on regular basis and that too only if regular vacancies meant for that purpose are available.

(b) Compassionate appointments can be made upto a maximum of 5% of vacancies falling under direct recruitment quota in any Group ‘C’ or ‘D’ post. The appointing authority may hold back upto 5% of vacancies in the aforesaid categories to be filled by direct recruitment through Staff Selection Commission or otherwise so as to fill such vacancies by appointment on compassionate grounds. A person selected for appointment on compassionate grounds should be adjusted in the recruitment roster against the appropriate category viz SC/ST/ OBC/General depending upon the category to which he belongs. For example, if he belongs to SC category he will be adjusted against the SC reservation point, if he is ST/OBC he will be adjusted against ST/OBC point and if he belongs to General category he will be adjusted against the vacancy point meant for General category.

(c) While the ceiling of 5% for making compassionate appointment against regular vacancies should not be circumvented by making appointment of dependent family member of Government servant on casual/daily wage/ad-hoc/contract basis against regular vacancies, there is no bar to considering him for such appointment if he is eligible as per the normal rules/orders governing such appointments

(d) The ceiling of 5% of direct recruitment vacancies for making compassionate appointment should not be exceeded by utilising any other vacancy e.g. sports quota vacancy.

(e) Employment under the scheme is not confined to the Ministry/ Department/Office in which deceased/medically retired Government servant had been working. Such an appointment can be given anywhere under the Government of India depending upon availability of a suitable vacancy meant for the purpose of compassionate appointment.

(f) If sufficient vacancies are not available in any particular office to accommodate the persons in the waiting list for compassionate appointment, it is open to the administrative Ministry/Department/ Office to take up the matter with other Ministries/Departments/ Offices of the Government of India to provide at an early date appointment on compassionate grounds to those in the waiting list.

BELATED REQUESTS FOR COMPASSIONATE APPOINTMENT

(a) Ministries/Departments can consider requests for compassionate appointment even where the death or retirement on medical grounds of a Government servant took place long back, say five years or so. While considering such belated requests it should, however, be kept in view that the concept of compassionate appointment is largely related to the need for immediate assistance to the family of the Government servant in order to relieve it from economic distress. The very fact that the family has been able to manage somehow all these years should normally be taken as adequate proof that the family had some dependable means of subsistence. Therefore, examination of such cases would call for a great deal of circumspection. The decision to make appointment on compassionate grounds in such cases may, therefore, be taken only at the level of the Secretary of the Department/Ministry concerned.

(b) Whether a request for compassionate appointment is belated or not may be decided with reference to the date of death or retirement on medical ground of a Government servant and not the age of the applicant at the time of consideration.

WIDOW APPOINTED ON COMPASSIONATE GROUNDS GETTING REMARRIED

A widow appointed on compassionate grounds will be allowed to continue in service even after re-marriage.

WHERE THERE IS AN EARNING MEMBER

(a) In deserving cases even where there is already an earning member in the family, a dependent family member may be considered for compassionate appointment with prior approval of the Secretary of the Department/Ministry concerned who, before approving such appointment, will satisfy himself that grant of compassionate appointment is justified having regard to number of dependents, assets and liabilities left by the Government servant, income of the earning member as also his liabilities including the fact that the earning member is residing with the family of the Government servant and whether he should not be a source of support to other members of the family.

(b) In cases where any member of the family of the deceased or medically retired Government servant is already in employment and is not supporting the other members of the family of the Government servant, extreme caution has to be observed in ascertaining the economic distress of the members of the family of the Government servant so that the facility of appointment on compassionate ground is not circumvented and misused by putting forward the ground that the member of the family already employed is not supporting the family.

MISSING GOVERNMENT SERVANT

Cases of missing Government servants are also covered under the scheme for compassionate appointment subject to the following conditions:-

(a) A request to grant the benefit of compassionate appointment can be considered only after a lapse of at least 2 years from the date from which the Government servant has been missing, provided that:

(i) an FIR to this effect has been lodged with the Police,

(ii) the missing person is not traceable, and

(iii) the competent authority feels that the case is genuine;

(b) This benefit will not be applicable to the case of a Government servant:-

(i) who had less than two years to retire on the date from which he has been missing; or

(ii) who is suspected to have committed fraud, or suspected to have joined any terrorist organisation or suspected to have gone abroad.

(c) Compassionate appointment in the case of a missing Government servant also would not be a matter of right as in the case of others and it will be subject to fulfillment of all the conditions, including the availability of vacancy, laid down for such appointment under the scheme;

(d) While considering such a request, the results of the Police investigation should also be taken into account; and

(e) A decision on any such request for compassionate appointment should be taken only at the level of the Secretary of the Ministry/Department concerned.

PROCEDURE

(a) The proforma as prescribed can be used by Ministries/Departments/ Offices for ascertaining necessary information and processing the cases of compassionate appointment.

(b) The Welfare Officer in each Ministry/Department/Office should meet the members of the family of the Government servant in question immediately after his death to advise and assist them in getting appointment on compassionate grounds. The applicant should be called in person at the very first stage and advised in person about the requirements and formalities to be completed by him.

(c) An application for appointment on compassionate grounds should be considered in the light of the instructions issued from time to time by the Department of Personnel and Training (Establishment Division) on the subject by a committee of officers consisting of three officers – one Chairman and two Members – of the rank of Deputy Secretary/ Director in the Ministry/Department and officers of equivalent rank in the case of attached and subordinate offices. The Welfare Officer may also be made one of the Members/Chairman of the committee depending upon his rank. The committee may meet during the second week of every month to consider cases received during the previous month. The applicant may also be granted personal hearing by the committee, if necessary, for better appreciation of the facts of the case.

(d) Recommendation of the committee should be placed before the competent authority for a decision. If the competent authority disagrees with the committee’s recommendation, the case may be referred to the next higher authority for a decision.

UNDERTAKING

A person appointed on compassionate grounds under the scheme should give an undertaking in writing (as in Annexure) that he/she will maintain properly the other family members who were dependent on the Government servant/member of the Armed Forces in question and in case it is proved subsequently (at any time) that the family members are being neglected or are not being maintained properly by him/her, his/her appointment may be terminated forthwith.

REQUEST FOR CHANGE IN POST/PERSON

When a person has been appointed on compassionate grounds to a particular post, the set of circumstances, which led to such appointment, should be deemed to have ceased to exist. Therefore, --

(a) he/she should strive in his/her career like his/her colleagues for future advancement and any request for appointment to any higher post on considerations of compassion should invariably be rejected.

(b) an appointment made on compassionate grounds cannot be transferred to any other person and any request for the same on considerations of compassion should invariably be rejected.



SENIORITY

(a) The inter-se seniority of persons appointed on compassionate grounds may be fixed with reference to their date of appointment. Their interpolation with the direct recruits/promotees may also be made with reference to their dates of appointment without disturbing the inter-se seniority of direct recruits/promotees.

(b) Date of joining by a person appointed on compassionate grounds shall be treated as the date of his/her regular appointment.

GENERAL

(a) Appointments made on grounds of compassion should be done in such a way that persons appointed to the post do have the essential educational and technical qualifications and experience required for the post consistent with the requirement of maintenance of efficiency of administration.

(b) It is not the intention to restrict employment of a family member of the deceased or medically retired Group ‘D’ Government servant to a Group ‘D’ post only. As such, a family member of such Group ‘D’ Government servant can be appointed to a Group ‘C’ post for which he/she is educationally qualified, provided a vacancy in Group ‘C’ post exists for this purpose.

(c) The Scheme of compassionate appointments was conceived as far back as 1958. Since then a number of welfare measures have been introduced by the Government which have made a significant difference in the financial position of the families of the Government servants dying in harness/retired on medical grounds. An application for compassionate appointment should, however, not be rejected merely on the ground that the family of the Government servant has received the benefits under the various welfare schemes. While considering a request for appointment on compassionate ground a balanced and objective assessment of the financial condition of the family has to be made taking into account its assets and liabilities (including the benefits received under the various welfare schemes mentioned above) and all other relevant factors such as the presence of an earning member, size of the family, ages of the children and the essential needs of the family, etc.

(d) Compassionate appointment should not be denied or delayed merely on the ground that there is reorganisation in the Ministry/Department/ Office. It should be made available to the person concerned if there is a vacancy meant for compassionate appointment and he or she is found eligible and suitable under the scheme.

(e) Requests for compassionate appointment consequent on death or retirement on medical grounds of Group ‘D’ staff may be considered with greater sympathy by applying relaxed standards depending on the facts and circumstances of the case.

(f) Compassionate appointment will have precedence over absorption of surplus employees and regularisation of daily wage/casual workers with/without temporary status.

(g) Any request to increase the upper age-limit of 55 years for retirement on medical grounds prescribed in para 2(A) (b) and (c) above in respect of Group ‘A’/’B’/’C’ Government servants and to bring it at par with the upper age-limit of 57 years prescribed therein for Group ‘D’ Government servants on the ground that the age of retirement has recently (May, 1998) been raised from 58 years to 60 years for Group ‘A’/’B’/’C’ Government servants (which is at par with the age of retirement of 60 years applicable to Group ‘D’ Government servants) or on any other ground should invariably be rejected so as to ensure that the benefit of compassionate appointment available under the scheme is not misused by seeking retirement on medical grounds at the fag end of one’s career and also keeping in view the fact that the higher upper age-limit of 57 years has been prescribed therein for Group ‘D’ Government servants for the reason that they are low paid Government servants who get meagre invalid pension in comparison to others.

Guidelines/Policy laid down by Department of Personnel & Training

3.0. The Scheme for compassionate appointment has been operative for a long time. However, on the basis of a study Report on Welfare Measures for Central government Employees prepared by the Department of Administrative Reforms and Public Grievances in 1994- one Section of which was on “Employment on Compassionate Grounds”- as also keeping in view a number of important judgments delivered by the Supreme Court, the policy guidelines on compassionate appointment were reviewed and rationalized and a comprehensive Scheme on compassionate Appointment was issued by this Department vide O.M. dated 9th October, 1998, as amended from time to time.

3.1. Under the Scheme, a dependent family member of a deceased or medically retired Government employee is given appointment on compassionate grounds in order to enable the aggrieved family to tide over the financial crisis caused due to the death or untimely retirement on medical grounds of the sole earning member. The various features of the Scheme as also the eligibility criteria are contained in the consolidated instructions dated 9th October, 1998 as amended subsequently. Some of the salient features/criteria for grant of compassionate appointment under the Scheme are indicated below:-

(a) Compassionate appointment is to be given against direct recruitment vacancies in any Group ‘C’ and ‘D’ post (excluding technical post) in the office or department of the deceased employee, limited to a ceiling of 5% of total such vacancies (excluding technical post) arising in a recruitment year.

(b) The family of the deceased government employee is in an indigent condition and required immediate relief from financial destitution.

(c) The applicant for compassionate appointment should be eligible and suitable for the post in all respects under the provision of the relevant Recruitment Rules and no relaxation will be granted except in the matter of upper age limit and temporary relaxation of requisite minimum educational qualification, prescribed in the Scheme.

(d) The objective of the Scheme is to provide immediate assistance to the family of the government servant to enable the family to tide over the sudden crisis. Such appointment cannot be granted after lapse of a reasonable period. Hence, the Scheme provides that an application for compassionate appointment can be kept under consideration by the Department for a maximum period of 3 years, subject to yearly review of the case.

3.2. The ceiling of 5% of vacancies for making appointment on compassionate grounds contained in para 7 of the consolidated instruction dated 9.10.1998, was first introduced in 1995 through an O.M. dated 26.9.1995. Prior to issue of the O.M. dated 26.9.1995, the percentage of vacancies to be filled by compassionate appointment in a given year was being determined by deducting from 50% the percentage of vacancies actually utilized by appointment of candidate belonging to SC, ST, Physically handicapped and Ex-servicemen. However, after the introduction of reservation for OBCs to the extent of 27%, the total reservation for SC/ST and OBCs reached 49.5%. The Supreme Court has held in the Mandal Commission’s case that the over all reservation under Article 16(4) of the Constitution should not exceed 50% of the vacancies arising in a year. The Apex Court had further ruled that while clause (4) of Article 16 may not be held exhaustive of reservations, the Court had cautioned against the propensity to create further classes deserving special treatment, as too much of reservations will further reduce the vacancies available for free competition which will not be a reasonable thing to do.

3.3. In an important judgment delivered in Umesh Kumar Nagapal Vs. State of Haryana & Ors [JT 1994(3) S.C. 525], the Supreme Court has laid down a number of principles governing appointments on compassionate grounds. The Apex Court has held that as a rule, appointments in the public services should be made strictly on the basis of open invitation of applications and merit and compassionate appointment is an exception to this general rule.

3.4. Strictly speaking, compassionate appointment is not a reservation. Nevertheless, keeping in view the directions of the supreme Court in the above mentioned judgments, it was decided to provide for a quota of 5% of direct recruitment vacancies in Group ‘C’ and ‘D’ category of posts in a year for filling up by compassionate appointment. Further, on the analogy of horizontal reservation applicable to physically handicapped and ex-servicemen, it was provided that the appointees on compassionate grounds belonging to SC/ST, OBCs as also general categories would occupy the respective slots in the recruitment roster. Therefore, the limit of 5% of vacancies was felt reasonable. No relaxations were visualized under the Scheme on this aspect.

3.5. Recently pursuant to a demand of the Staff side raised in the national Council of JCM, a decision was taken to apply a relaxed formula for calculation of vacancies for compassionate appointment by which it was provided that 5% quota of vacancies shall now be calculated on the basis of gross DR vacancies in total Group C and D posts (excluding technical posts) arising in a year, prior to reduction of vacancies by the Screening committee under Annual Direct Recruitment Plan. However, compassionate appointment is to be actually made on the basis of vacancies in group C and D posts ultimately cleared under ADRP. DOPT O.M. dated 14th June, 2006 was issued containing this decision. Further, in order to give relief to small cadres/offices, which were unable to locate one vacancy under 5% quota in the preceding three years for the purpose of compassionate appointment, another policy Circular was issued on 9th October, 2006 allowing such small offices/cadres to club together the total DR vacancies in Group ‘C’ and ‘D’ posts (excluding technical posts) having arisen in the last three years and to calculate 5% on the basis of such grand total of vacancies, for making one compassionate appointment. Technical posts are also considered for compassionate appointment by separately calculating the 5% vacancies in relation to such posts.

3.6. Department of Personnel & Training’s role is confined to framing the policy guidelines on compassionate appointment applicable to Central Government Departments/Ministries. It is the responsibility of individual Department/ Office to implement such policy instructions.

3.7. So far as the various PSUs/Banks/Trusts etc. are concerned, it is stated that the Scheme on Compassionate Appointment administered by this Ministry is applicable to Central Government Ministries /Departments and as such, the Scheme does not directly apply to the Banks/PSUs/Trusts etc. Any Scheme on compassionate appointment, if operative in any of the PSUs/Banks/Trusts etc., the same will be governed under the Statute/Rules/Regulations of that Organisation.

IMPORTANT COURT JUDGEMENTS

4.0. In the course of its examination, the Committee also took note of leading judgments of Supreme Court of India which time to time interpreted the scheme and guidelines in respect of appointment on compassionate ground. Therefore, the rulings contained in the major judgements had also to be kept in view while considering cases of compassionate appointment. Some of such cases are enumerated below :-

(a) The Supreme Court in its judgement dated April 8, 1993 in the case of Auditor General of India and others vs. G. Ananta Rajeswara Rao [(1994) 1 SCC 192] has held that appointment on grounds of descent clearly violates Article 16(2) of the Constitution; but if the appointment is confined to the son or daughter or widow of the Government servant who died in harness and who needs immediate appointment on grounds of immediate need of assistance in the event of there being no other earning member in the family to supplement the loss of income from the bread winner to relieve the economic distress of the members of the family, it is unexceptionable.

(b) The Supreme Court’s judgement dated May 4, 1994 in the case of Umesh Kumar Nagpal vs. State of Haryana and others [JT 1994(3) S.C. 525] has laid down the following important principles in this regard:

(i) Only dependents of an employee dying in harness leaving his family in penury and without any means of livelihood can be appointed on compassionate ground.

(ii) The posts in Group ‘C’ and ‘D’ (formerly Class III and IV) are the lowest posts in non-manual and manual categories and hence they alone can be offered on compassionate grounds and no other post i.e. in the Group ‘A’ or Group ‘B’ category is expected or required to be given for this purpose as it is legally impermissible.

(iii) The whole object of granting compassionate appointment is to enable the family to tide over the sudden crisis and to relieve the family of the deceased from financial destitution and to help it get over the emergency.

(iv) Offering compassionate appointment as a matter of course irrespective of the financial condition of the family of the deceased or medically retired Government servant is legally impermissible.

(v) Neither the qualifications of the applicant (dependent family member) nor the post held by the deceased or medically retired Government servant is relevant. If the applicant finds it below his dignity to accept the post offered, he is free not to do so. The post is not offered to cater to his status but to see the family through the economic calamity.

(vi) Compassionate appointment cannot be granted after lapse of a reasonable period and it is not a vested right which can be exercised at any time in future.

(vii) Compassionate appointment cannot be offered by an individual functionary on an ad-hoc basis.

(c) The Supreme Court has held in its judgement dated February 28, 1995 in the case of the Life Insurance Corporation of India vs. Mrs Asha Ramchandra Ambekar and others [JT 1994(2) S.C. 183] that the High Courts and Administrative Tribunals can not give direction for appointment of a person on compassionate grounds but can merely direct consideration of the claim for such an appointment.

(d) The Supreme Court has ruled in the cases of Himachal Road Transport Corporation vs. Dinesh Kumar [JT 1996 (5) S.C. 319] on May 7, 1996 and Hindustan Aeronautics Limited vs. Smt A. Radhika Thirumalai [JT 1996 (9) S.C. 197] on October 9, 1996 that appointment on compassionate grounds can be made only if a vacancy is available for that purpose.

(e) The Supreme Court has held in its judgement in the case of State of Haryana and others vs. Rani Devi and others [JT 1996(6) S.C. 646] on July 15, 1996 that if the scheme regarding appointment on compassionate ground is extended to all sorts of casual, ad-hoc employees including those who are working as Apprentices, then such scheme cannot be justified on Constitutional grounds.

4.1. After going through the judgments cited above, the Committee has an inference that Supreme Court also upholds the relevance of the policy in the PSUs and Government Departments. The Committee acknowledges that the court in its judgments tried to ensure implementation of the policy in a logical manner. The Committee is however constrained to note that many of the PSUs/Banks construed the judgments otherwise and thereby restricted the implementation of the policy of appointment on compassionate ground. While interacting with PSUs and Banks, the Committee came across such arguments. The Committee feels that the judgments particularly the Nagpal case was very often misquoted and misrepresented as if the Supreme Court banned the appointment on compassionate ground.

Deliberation with PSBs and PSUs
5.0. This Committee visited Goa, Mumbai, Bangalore, Bhuhneshwar, Chennai, Hyderabad, Kochi, Port Blair, Kolkata, held discussions with various authorities, organisations, individuals on “Policy of Appointment on compassionate grounds” in Public Sector Enterprises/ Undertakings/ Trusts and leading Banks.

Public Sector Banks
5.1. The Committee met the managements of Reserve Bank of India and 23 Public Sector Banks to ascertain the implementation of the policy in the Banks. The Committee was apprised that the Public Sector Banks do not follow the policy as per DoPT guidelines. Instead, they follow a policy as approved by the Indian Banks Association and Ministry of Finance (Banking Division), which provide for payment of ex-gratia to the family of the deceased. The Committee had also sent the questionnaire to all the leading public sector banks so that the opinion of the banks can be sought on the subject. The Banks examined by the Committee are mentioned below:


S.No.
Name of the Bank
1.
State Bank of Mysore
2.
Vijaya Bank

3.
Canara Bank

4.
Bank of Baroda

5.
Bank of India

6.
Central Bank of India

7.
NABARD

8.
Dena Bank

9.
Union Bank of India

10.
Reserve Bank of India

11.
Indian Overseas Bank

12.
Indian Bank

13.
Andhra Bank

14.
State Bank of Hyderabad

15.
State Bank of Travancore

16.
State Bank of India

17.
UCO Bank

18.
United Bank of India

19.
Allahabad Bank

20.
State Bank of Bikaner and Jaipur

21.
State Bank of Saurashtra

22.
SIDBI

23.
IDBI

24.
State Bank of Indore




6.0. The Committee was apprised of the details of scheme as under:-

(a) Before December 2005, the scheme of compassionate appointment was existing in banks.

(b) Based on the Government guidelines, the IBA model scheme for payment of ex-gratia amount in lieu of compassionate appointment was implemented.

(c) Application for the payment of Ex-gratia amount to be submitted by the family of the deceased employee within six months from the death of the employee.

(d) Ex-gratia will be granted to the family of the employee if the monthly income of the family from all sources is less than 100% of the last drawn salary (net of taxes) of the employee to enable the family to maintain a decent standard of living.

IBA Scheme



(a) Employees dying in harness (other than due to injury while performing official duty)

(b) Employees dying due to injury sustained while performing official duty within or outside office (excluding travel from residence to place of work and back)

(c) Employees dying while performing official duty within or outside office premises due to dacoity, robbery/terrorist attack.

(d) Employees seeking pre-mature retirement due to incapacitation before reaching the age of 55 years.

v In the above cases, ex-gratia amount will be paid to the family of the employee if eligible and if requested for within six months from the date of the death of the employee.

v Ex-gratia may be granted to the family of the employee in the manner and subject to the ceilings specified below, if the monthly income of the family from all sources is less than 60% of the last drawn salary of the employee to enable the family to maintain a decent standard of living after the death of the sole bread winner.

v If the monthly income of the family arrived at is less than 60% of the last drawn gross salary of the employee, ex-gratia amount as under will be payable.

(e) The cadre-wise ceiling on ex-gratia amount payable will be as follows:-



Category
Minimum Amount
Maximum Amount

Officers
Rs. 4.00 lacs
Rs. 8.00 lacs

Clerical Staff
Rs. 3.00 lacs
Rs. 7.00 lacs

Subordinate Staff
Rs. 2.00 lacs
Rs. 6.00 lacs


(f) In October 2003, reviewing the entire scheme for appointment of dependants of deceased employees on compassionate grounds in public sector banks, Government of India advised IBA that the purpose of providing help to the family of deceased employees can be achieved by extending suitable financial assistance to the dependants. In so advising, Government of India was guided by the principle laid down by the Hon’ble Supreme Court in case of Umesh Kumar Nagpal. Government of India had then requested IBA to frame a model scheme for payment of ex-gratia in lieu of compassionate appointment. The model scheme as framed by IBA was approved by the Government of India and IBA advised the scheme to the public sector banks in July 2004 to enable their boards to adopt the same.

VIEWS OF THE UNIONS/ ASSOCIATIONS

6.0. After knowing the views of the management of various banks on both the issues, the Committee felt that the views of the representatives of the Associations/ Unions be also heard to know the problem from their point of view. All the Unions of the banks were unanimous that the policy of appointments on compassionate grounds in the banks needs to be revived. All the Unions have put forward certain suggestions:

· Atleast the widow of the deceased employee (if not the son or daughter) should be given the job in the Bank according to her qualification either in the clerical or subordinate cadre.

· If the wife of the deceased employee is aged or is otherwise not willing to take the job for her own reasons of health, age etc then at her option, financial compensation can be paid.

· This compensation should be adequate to take care of her and her children.

· This compensation amount can also be paid to her on monthly basis if she so desire.

· The erstwhile scheme of appointments of a family member in cases of death of employee while discharging official duties/dacoity/ robbery, etc should be restored.

6.1. The Committee during is meeting, with the Banks at Mumbai, Chennai, Hyderabad impress upon them to revise the scheme to accommodate the appointments on compassionate ground in the spirit of DoPT guidelines and directed them to submit before the Committee the revised scheme. The Committee desired that compassionate appointment, are required to be made at least in those cases where the employee dies while performing official duties as a result of dacoity, terrorist attack, violence, robbery etc.

6.2. The Committee during its visit to Jaipur, Ahmedabad, Mumbai and Bhopal held discussions with various Banks on the issue of ‘Policy of Appointment on Compassionate Grounds’. The representative of IBA apprised the Committee that the views expressed by the Committee in its previous study visits were discussed by the IBA and it was decided that IBA would submit the draft modified model scheme of compassionate appointments to the Government where in it was decided to revive Compassionate Appointments at least in those cases where the person died while performing official duties as a result of dacoity, terrorist attack, violence, robbery etc.

6.3. The proposed modified model scheme on Compassionate Appointments was submitted by IBA to the Government as under:

1. Indian Banks’ Association (IBA) had proposed modification of the Model Scheme.

2. The Govt. is of the view that payment of ex-gratia amount should only be in deserving cases and cannot be made into a universal rule in all cases of employees dying in harness. If any ex-gratia payment is made universal. It would become virtually a condition of service. Besides, the ex-gratia payment cannot be equal or nearly equal to the gross emoluments of deceased employee because, in that case, the result would be that while one person fills the post, the bank would be obliged to pay twice or nearly twice the emoluments attached to the post. Hence, payment of ex-gratia should also be subject to certain conditions that would ensure that the benefit is available only in deserving cases. The amount of benefit should also be such that. If invested, it will fetch the deceased’s family a reasonable income that will save them from penury.

3. The Ministry of Finance, Banking Division vide its letter dated June 19, 2007 has advised the Indian Banks’ Association that the existing scheme may be amended by dividing it into two parts, the first part relating to compassionate appointments, in exceptional cases and the second relating to ex-gratia payment as explained below.

(A) Compassionate Appointments in exceptional cases

Compassionate appointment to one among the next of kin may be confined to exceptional cases, where

(a) an employee dies while performing official duty as a result of violence, terrorism, robbery or dacoity;

(b) an employee dies within five years of his first appointment or before he reaches the age of thirty years, wherever is latter leaving a dependant spouse and/or minor children; and

(c) the appointment shall be made only in classes III and IV. A reasonable period of time after the death of the employee may be prescribed and eligible next of the kin should seek employment during that period. Since the model scheme was circulated by the IBA on 31.07.2004, this may be taken as the cut off date. All cases of death occurring after 31.07.2004, in the circumstances described above, may be dealt with according the new scheme.

(B) Ex-gratia payment

(a) ex-gratia payment may be made only to the family of an employee, who dies in harness or who seeks pre-mature retirement due to total incapacitation. The family shall be in indigent or penurious circumstances.

(b) The monthly income of the family may be calculated in accordance with the method suggested in the model scheme circulated by IBA. If the current income of the family does not exceed 60 percent of gross emoluments (net of taxes) of the deceased employee, the family with be entitled to a lump sum ex-gratia payment.

(c) Lump sum ex-gratia payment will be calculated at 60 percent of the gross emoluments net of taxes per month of the deceased employee (as last drawn) multiplied by the number of remaining months of service of the deceased employee had he/she retired in the normal course.

(d) The ceiling caps suggested in the model scheme of IBA, shall apply.

(e) The family of he deceased employee shall apply within 6 months of the death for ex-gratia payment and such application shall be disposed off within 3months after its receipt.

(f) All applications for ex-gratia payment pending as on 31.07.2004 shall be considered in accordance with the Scheme to be revised now.

(g) Any application that has been disposed off prior to 31.07.2004 and any order passed thereon shall not be reopened.

4. IBA has been advised that the existing scheme be revised suitably on the above lines and circulated to all PSBs for adoption, preferably by 31.08.2007, with the approval of their respective boards.

6.4. The Committee appreciates that the views expressed by the Committee in its previous study visits regarding revival of compassionate appointments in public sector banks atleast in those cases where the official died while performing official duty has resulted in modifying the model scheme of compassionate appointments in the public sector banks. The Committee, therefore, recommends that Government of India should accept this revised proposal of IBA and start ‘compassionate appointments’ in public sector banks with immediate effect. The Committee feels this act of the Government would certainly help the family of deceased Banks employee to tide over sudden crisis.
6.5. However the Committee strongly feels that the judgment given/ delivered by the Hon’ble Supreme Court in the Shri Umesh Kumar Nagpal Vs. State of Haryana and others doesn’t totally ban the employment on compassionate grounds rather it has been misquoted, misinterpreted and misunderstood that the Hon’ble Court has totally banned the compassionate employment’s. The Committee feels that Government should not put a blanket ban on providing compassionate appointment to the family members of the deceased employees in the public sector banks rather should find ways and means for giving employment under compassionate grounds in view of shrinking employment opportunities in the Banking Sector. The Committee, therefore, recommends that Government should not totally ban the appointments on compassionate grounds in the Banking Sector rather think of providing compassionate appointments to the family members of the deceased. For this the power to appoint on compassionate grounds may be conferred on the CMDs of public sector banks so as to enable them to give appointments to well deserved cases alone.

7.0. The Committee having the nomenclature of Personnel, Public Grievance Law and Justice Committee receives many public grievance cases on daily basis. In one such representation it was stated that an employee of the Central bank of India died and his son applied for a job on compassionate ground after a gap of two years. His application was rejected by the bank on the ground of late submission of application. The hapless son of the deceased Bank employee then submitted a representation to the Chairman of the Committee which was forwarded to the Banking Division for their comment. The Committee had visited Mumbai in July 2006 and held discussions with Central Bank of India. The Committee then referred to that case. The Committee wanted to know the reasons for not extending a helping hand to the deceased family and rejecting the application. Whether the bank had any responsibility towards the deceased family? Why the rules could not so interpreted so as to help the family? Whether any court judgment/ order has defined ‘a family in penury’ and ‘indigent condition’ etc.

7.1. In their reply the representatives of the Central Bank of India stated that the said application was rejected on two grounds i.e., (i) late submission and (ii) financial condition of the family was not indigent.

7.2. The Committee was not satisfied by the reply. The Committee feels that in the hour of crisis each and every member of the family stands together to support the family and try to overcome the problems that come their way and in this case, the bank instead of extending a helping hand quoted some rules and simply rejected the application. The Committee feels that such type of incidences are unwarranted, speaks volumes about the policy of a particular bank when our effort should be in the direction of building relationship of trust, help, loyalty etc. The Committee desires that in such cases a realistic and humanitarian view should be taken by the concerned authorities.

PUBLIC SECTOR UNDERTAKINGS (PSUs)

8.0. The Committee also held discussions with the representatives of Public Sector Undertakings and other organisations/Trusts etc. on the issue. In all, the Committee met 40 odd public sector undertakings and others on the issue. The following Public Sector Undertakings etc. were examined by the Committee :-

S.No.
Name of the Organisation

1.
Murmagao Port Trust
2.
Hindustan Petroleum Corporation Limited

3.
Bharat Petroleum Corporation Limited

4.
Indian Oil Corporation

5.
National Aluminium Company Limited

6.
ONGC

7.
Chennai Port Trust

8.
National Mineral Development Corporation

9.
Bharat Dynamics Limited

10.
Hindustan Latex Limited

11.
Hindustan Newsprint Limited

12.
Cochin Refineries Limited

13.
Cochin Port Trust

14.
Chennai Petroleum Corporation

15.
Madras Fertilizers Limited

16.
Nevyeli Lignite Corporation

17.
Coal India Limited

18.
IBP Company Limited

19.
MSTC Limited

20.
Tehri Hydro Development Corporation Limited

21.
Rajasthan Drugs and Pharmaceutical Limited

22.
National Seeds Corporation Limited

23.
Rajasthan Electronics and Instruments Limited

24.
Hindustan Salts Limited
25.
National Fertilizers Limited
26.
Sambhar Salts Limited
27.
GAIL (India) Limited
28.
MMTC Limited
29.
PEC Limited
30.
STC Limited
31.
Container Corporation Limited
32.
Nuclear Power Corporation Limited
33.
Cotton Corporation Limited
34.
Air India Limited
35.
Mumbai Railway Vikas Corporation
36.
LIC Limited
37.
New India Assurance Company Limited
38.
BHEL
39.
National Handloom Development Corporation
40.
Central Warehousing Corporation Limited

8.1. The Committee observes that the Public Sector Undertakings and other organisations/Trusts etc. examined by the Committee are having separate schemes for the benefit of their employees. Some of them were following the policy of making ex-gratia payment to the family of the deceased and some were continuing with the policy of appointment on compassionate grounds. The Public Sector Undertakings which are following the policy of appointment on compassionate grounds are GAIL (India) Limited, STC Limited, Container Corporation of India Limited, Bharat Dynamics Limited, Neyveli Lignite Corporation Limited, Cochin Port Trust, Bharat Petroleum, Chennai Port Trust, Chennai Petroleum Corporation etc.

8.2. Many of them have started following financial package schemes for the family member of the deceased employees. Some schemes were unique and could really help the deceased family.

8.3. Few such schemes are mentioned below:

8.4. In Gail (India) Limited a dependent of deceased employee will be eligible for consideration for appointment in the company against an available vacancy commensurate with his/her qualifications and experience. Priority will, however, be given to dependents of those employees who die as a result of an accident while on duty. This consideration will be admissible even if the name of such dependants is not sponsored by the Employment Exchange or if he/ she has not applied against any advertisement provided the applicant is otherwise eligible. It is however obligatory to notify such a vacancy to the Employment Exchange concerned indicating in the requisition that the vacancy in question is proposed to be filled by the dependant of the deceased employee and that nominations by the Employment Exchange are not required. Non-existence of an earning member in the family of the deceased employee will be an important criterion in this regard.

8.5. In MMTC Limited, they have introduced the ‘Employee Family Benefit Scheme’ in place of ‘Compassionate appointments’ from the year 1996. Prior to this, appointments on compassionate grounds were made in the company on discretionary basis. Owing to liberalization of the economy in 1991-92 14 out of 18 items canalized through the company was decanalized. Due to excessive manpower, embargo on fresh recruitment was imposed and Voluntary retirement scheme was introduced in the company for rationalization of the manpower. Thus, the company decided to introduce a scheme for the benefit of its employees. The scheme of ‘Employee Family Benefit Scheme’ ensures 50% of the last drawn Basic Pay + DA in case the length of service is 20 yrs or more and 40% of the last drawn Basic Pay + DA in case the length of service is less than 20 yrs subject to a maximum of Rs. 12,000/- pm is admissible to the dependent spouse/ children till the notional date of superannuation. The entire terminal benefits like PF, Gratuity, Group Insurance, Leave Encashment etc, unlike other PSUs are released to the spouse/ dependent children and in case of any hospitalization of the employee, the entire expenditure is borne by the company. As such there is no financial burden on the family.

8.6. In Chennai Petroleum Corporation, the company was having a very different and unique policy for the benefits of its employees. In case of death of any employee of the PSU, the company stands beside the family and offers full support. The company gives full salary to the family of the deceased till the date of his actual superannuation without making any cut so that the family survives the sudden crisis inspite of loss of bread earner of the family. Such type of schemes actually gives much needed support to the family after the death of the ‘Karta’ of the family. Hence an equitable compensation system was devised as under:-

SAMPLE FINANCIAL PACKAGE PAYABLE TO
DEPENDENTS OF DECEASED
Description
Workman in
Grade V
Officer in
Grade A
Officer in
Grade D

Pay Scale
8400-15300
12000-17500
17500-22300

Past service in years
17
17
17

Future notional service in years
18
18
18

Salary (BP/DA/SP/PP/SI)
16600
25950
34600

Encashment of EL (say 150 days)
83000
129750
173000

PF accumulation with interest
975283
1524614
2032819

Gratuity
350000
350000
350000

Employees Deposit Linked insurance
100000
100000
100000

Group Savings Linked insurance
110000
120000
125000

Personal Accident Insurance Claim
100000
100000
100000

Employees benefit fund
15000
15000
15000

Superannuaction benefits
665361
1040128
1386837

Total Amount payable
2398644
3379492
4282656

Interest earned per month @ 8% p.a.
15991
22530
28551

Add: EPS 1995 pension per month
2050
2050
2050

Total income per month to family
18041
24580
30601

Walver of House Building Advance (max.)
1000000
1200000
1400000

Medical Benefits for spouse & Children




Domiciliary Treatment
7000 p.a.
9000 p.a.
9000 p.a.

Special Diseases
15000 p.a.
15000 p.a.
15000 p.a.

Hospitalisation (Mediclaim Policy)/member
1.5 Lakhs p.a.
1.5 Lakhs p.a.
1.5 Lakhs p.a.


8.7. The Committee is of the opinion that the above mentioned sample financial package payable to dependents of deceased was a very good scheme, which caters to needs of the family of the deceased, and is worth to be mentioned in the report of the Committee. The Committee feels that such type of welfare schemes are the need of the hour when appointments on compassionate ground have been discontinued or offered very rarely in PSUs.

8.8. The Committee feels that though death of the ‘Karta’ of a family can never be compensated but family can be consoled by offering compassionate appointment or financial package to support the family. The Committee, therefore, recommends that the Government of India should positively think towards revival of the policy of appointments on compassionate ground in the PSUs and other organisations falling within its jurisdiction or the PSUs should introduce a unique scheme of ‘full salary till superannuation of the deceased employee’ uniformly so that the bereaved family could tide over the crisis created by the cruel hands of destiny.

8.9. The Committee took note of the views of Secretary, Ministry of Personnel, Public Grievances and Pensions regarding uniformity in policy in all the PSUs who stated that it was a matter on which the Department of Public Enterprises should be able to really respond better. He also stated that because many public sector undertakings either are under restructuring or are to be disinvested, only those PSUs, which are profit making and big public enterprises, have their own policies and that the Government did not really think that it should lay down any policy in this regard for the PSUs.

8.10. The Committee does not find the views of Secretary convincing and feels that the Ministry of Personnel is passing on its responsibility to Department of Public Enterprises (DPE). The Committee strongly feels that it is the policy of the Ministry of Personnel, Public Grievances and Pensions and it is obligatory for the Ministry to ensure its implementation in toto in not only all the Ministries/Departments of Government of India, but also in the organisations falling within their administrative control. The role of DPE in the case of PSUs and the Banking Division in the case of Banks is to regulate and implement the policy as laid down by the Ministry of Personnel, Public Grievances and Pensions. The Committee however acknowledges that the policy may vary keeping in view the specific nature of the organisations. What Committee proposes is the mechanism to monitor the policy at both levels i.e., at the level of DPE or Banking Division and also at the level of Ministry of Personnel.

GOVERNMENT DEPARTMENTS

9.0. The Secretary, Ministry of Personnel, Public Grievances and Pensions in his deposition before the Committee on 17th July 2007 stated that there was a need for Government employee to feel that his family would be looked after even after he was not there, and especially, if his family was in indigent condition. He informed the Committee that the policy, in whatever shape it exists today, operates primarily with the philosophy and view that the Government employees’ need to be taken care of. But with the increasing trend towards reducing the size of the Government, especially the number of employees, and, very strict adherence of the reservation rules and regulations through various enactment’s and orders of the courts, it has now become nearly impossible to increase the percentage from five percent, where it is pegged now.

9.1. The Committee was further informed by the Secretary that this percentage left very little scope in most of the Ministries to really help all the dependents of employees who pass away, in matters of giving employment. In every Ministry a large number of people are waiting for employment because there are simply no vacancies. Earlier, the calculation of the five percent vacancies was against the Direct Recruit quota to be filled up during the year. This Direct Recruit quota has shrunk because in 2001, the Government decided that the 66 percent, that is, 2/3rd of the Direct Recruit quota in every Ministry would be abolished and only 1/3rd vacancies would be filled up. So, if there are hundred vacancies, sixty-six will be abolished and only 33 or 34 vacancies will be filled up. And, this five percent used to be calculated of the thirty-four rather than of the entire hundred. The Ministry has now modified the rule. While the number of vacancies to be filled up will still be 34 but the number of vacancies for compassionate appointments will be calculated against the entire hundred. That way, a marginal increase in the number of vacancies has been achieved. But the problem still remains and the problem is quite acute. But in an effort to balance between the number of people that Government should have and the reservation requirements, the Government finds itself in a difficult position to really expand the scope of the compassionate employment.

9.2. The Committee has also come across certain representations wherein it has been mentioned that at the time of the death of the breadwinner the wife was uneducated/ not able to take up the job and the deceased has left small children’s where the 3 years criteria to fill up the said vacancy cannot be applied. The Committee feels that such type of situation can come in anybody’s life wherein the 3 year rule cannot be applied, hence such type of cases should be dealt with separately. The Committee recommends that if the Government really intends to help the family of the deceased employee then the Government should come forward with certain changes in its policy on appointments on compassionate ground like waiving of all outstanding loans, free health expenditure, free education to the children till they attain the age of majority, family pension, housing facilities etc for the family of the deceased.

9.3. The Committee finds that the Guidelines/ circulars issued in this regard by the Government of India are actually not adhered to in true spirit and in many cases some PSUs are not even aware of any such new guidelines etc. The Committee, therefore, recommends that the Guidelines/ circulars issued by the Government must be complied with and a feedback must be obtained from each of the administrative Ministries so that a cross check can be in place to see that the instructions issued are followed properly. The Committee also feels that the role of the administrative Ministries under which the particular PSU comes become all the more important and it should pass on each and every instruction issued by the Government of India to the PSUs and receive the confirmation from them and send the feedback to the Government of India. The Committee recommends that this is a continuous process and atleast yearly report must be sent to the Ministry of Personnel, Public Grievances and Pensions (Department of Personnel and Training) by the administrative Ministries to ensure whether the instructions issued by the Government are complied with and the Ministry of Personnel must also call for a report on this issue per annum.

9.4. The Committee also feels that if the Government’s effort is to help the family of the deceased employee then there must be a separate Cell in each of the Ministries or Departments which will cater to only compassionate appointment cases. The cell should send periodical information on number of vacancies, number of applications received, time taken to dispose of the cases, reasons for not disposing favorably etc to the head of the Department. The Committee, therefore, recommends that Government should come forward with certain new guidelines in addition to the one which is already in existence for the benefit of the employees like creation of a separate Cell, proper monitoring of its guidelines, gathering of information from the Ministries periodically, compliance report etc.

9.5. Finally, the Committee feels that in a welfare state like ours it is obligatory on the part of the Government to provide a social security net to the employees and appointments on compassionate ground is one such measure. It gives a sense of being part and parcel of the organisation amongst its employees who feels that in case of falling victim at the hands of cruel destiny the organisation will take care of their families. The umbrella of protection certainly boosts the morale of not only the employees but also their families. The Committee, therefore, recommends that the policy of compassionate appointments should continue in the Government, its PSUs, organisations, Trusts etc. as a measure of social security net and also consider offering the package on the lines of Chennai Petroleum corporation Ltd. so that the family of the deceased employee survives the sudden void and crisis created by the cruel destiny.

9.6. The Committee is perturbed to note that there is lack of uniformity in the rules/ standing orders/guidelines, formulated till date, by various organisations/Departments, which govern the policy of appointment on compassionate ground. It notes that lack of clarity/precision is a major handicap in implementing the scheme in its true letter and spirit. It is of the view that this has been the main reason for various conflicting judgments by the Courts. The Committee strongly feels that common standards eligibility criteria should be made applicable for such appointments. It is also of the view that recurrent judgments by the courts can be avoided if a uniform and transparent policy is envisaged in all the Organisations/Ministries/Departments. It is of the considered opinion that giving this policy statutory backing would rectify the anomalies which exist at present in this regard.

9.7. In view of the above, the Committee unanimously recommends that concrete steps should be taken to enact a comprehensive legislation which would govern the policy of appointment on compassionate ground. The Committee feels that such a legislation would render clarity to the eligibility criteria under this scheme and would make it obligatory on the part of Ministries/Departments/ Organisations to implement this beneficial policy.

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eligibility criteria under this scheme and would make it obligatory on the part of Ministries/Departments/ Organisations to implement this beneficial policy.

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* To be appended at printing stage