Piece-Rate Workers Not Entitled To Pension Benefits Granted To Regular Staff: J&K High Court

Jammu and Kashmir High Court: A single judge bench of Justice Sanjay Dhar dismissed petitions seeking pensionary benefits filed by former piece-rate workers of J&K Handicrafts Corporation. The court distinguished between piece-rate workers and regular employees, and held that workers paid based on daily output cannot claim parity with regular government employees for pension benefits. Background Three petitions were filed by former piece-rate workers of the J&K Handicrafts Corporation, who were employed at production centers in Namchibal and Nowshera. Their wages were tied to daily output and market rates. These centers were later closed in 1997, and most workers were provided a compensation package along with other benefits. Years later, these workers approached the court claiming that their employment should be equated with regular government employees. They relied on a 2009 judgment of the J&K High Court (SWP No.1250/2002), which referred to employees of a similar industrial unit, and held that they were entitled to pensions and retiral benefits under the J&K Civil Service Regulations. Citing this judgement, the piece-rate workers argued that excluding them from benefits violated the principle of equality under Article 14 of the Constitution. The workers had previously filed cases that resulted in favourable orders directing the government to consider their pension claims. Despite these directions, no decision was made by the government. Aggrieved, they filed writ petitions before the High Court. Arguments The workers relied on a 2009 judgment, which granted pensions to employees of J&K Industries under the J&K Civil Service Regulations. The judgement had recognized their posts as 'civil posts', entitling them to benefits enjoyed by other government staff. Similarly, Hamidullah Andrabi v. State of J&K also had extended pensionary benefits to employees of the J&K State Forest Corporation. Later, through Order No.35-IND of 2018 the government further extended these benefits to employees of J&K Handloom Silk Weaving Factory. The workers argued that their unit operated in the same way as these other industrial units. They claimed that this similarity effectively made their roles civil posts as well and entitled them to pensionary benefits. Denying these benefits, they argued, was discriminatory. The government argued that the workers' claims were baseless. It explained that piece-rate workers were not regularized employees. Their wages depended on daily productivity, and they were not part of the graded pay structure applicable to permanent staff. They further argued that the 2009 judgment (SWP No.1250/2002) was irrelevant to the workers, as it dealt exclusively with regular employees whose posts were declared as civil posts. Similarly, the benefits granted under Government Order No.35-IND of 2018 applied only to regular employees, not to temporary or daily-wage workers. Court's Findings Firstly, the court differentiated between piece-rate workers and regular employees. It noted that piece-rate workers were paid based on their daily output, and their wages varied with market rates. It ruled that they were not part of the corporation's regular payroll structure and thus were not eligible for the benefits given to permanent employees. Further, the court clarified that the petitioners could not rely on the 2009 J&K High Court judgement (SWP No.1250/2002) to support their case. It held that the 2009 judgment only applied to regular employees whose posts had been formally recognized as civil posts. Since the petitioners were piece-rate workers, the court ruled that they did not meet this criterion. Similarly, the court also addressed the petitioners' reliance on Hamidullah Andrabi v. State of J&K, which had extended pensionary benefits to employees of the J&K State Forest Corporation. The court explained that the decision had been overturned by a Division Bench. Moreover, it ruled that the case was inapplicable to the workers, as it involved regular employees and not piece-rate workers. Lastly, the court noted that the production centers were closed in 1997 and compensation packages accepted by most workers at the time. It observed that the petitioners had effectively agreed to disengagement and compensation. The court held that this precluded them from making any retrospective claims for pensionary benefits. Thus, the court dismissed the writ petitions, and concluded that no pension benefits can be given to piece-rate workers. Decided on: 27-12-2024 Case No.: WP(C) No.642/2022 (Mohammad Yousuf Mir & Ors. v. UT of J&K & Ors.) Counsel for the Petitioners: Ms. Syed Ruqaya Siddique Counsel for the Respondents: Mr. Mubashir Majid Malik, Dy. AG Click Here To Read/Download The Order

Piece-Rate Workers Not Entitled To Pension Benefits Granted To Regular Staff: J&K High Court

Pranav Kumar

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