Govt Servants Required To Be At Disposal Of Govt All The Time; Can't Claim Overtime Allowance Under Factories Act : Supreme Court

The Supreme Court has held that government employees cannot claim double overtime allowance as per the Factories Act, if the service rules do not provide for it.A bench comprising Justices V Ramasubramanian and Pankaj Mithal made this significant ruling while deciding the issue whether employees working as supervisors at the Security Printing & Minting Corporation of India (a company under the Ministry of Finance responsible for minting currency notes) are entitled to double overtime allowance as per Chapter VI of the Factories Act 1948.Setting aside a judgment of the Bombay High Court which held that the employees were entitled to overtime benefits as per the Factories Act, the bench explained that appointment either to a civil post or in the civil services of the Union or the State, is one of a status and that it is not an employment governed strictly by a contract of service or solely by labour welfare legislations.The bench observed that government servants enjoy several special privileges which are not available to labourers covered under the Factories Act, such as periodic pay provisions. So, a claim by those in government servants for benefits under the Factories Act must be examined to see "whether it is an attempt to get the best of both the worlds""Persons who are not holders of civil posts nor in the civil services of the State but who are governed only by the (Factories Act )1948 Act, may be made to work for six days in a week with certain limitations as to weekly hours under Section 51, weekly holidays under Section 52, daily hours under Section 54, etc. Workers covered by Factories Act do not enjoy the benefit of automatic wage revision through periodic Pay Commissions like those in Government service. Persons holding civil posts or in the civil services of the State enjoy certain privileges and hence, the claim made by the respondents ought to have been tested by the Tribunal and the High Court, in the proper perspective to see whether it is an attempt to get the best of both the worlds".The Court further noted that as per the relevant service rules, unlike those employed in factories and industrial establishments, persons in government service are required to place themselves at the disposal of the Government all the time. "In the light of the above Rule, there was actually no scope for the respondents to seek payment of Double Over Time Allowance. It is needless to say that no benefit can be claimed by anyone dehors the statutory rules", the bench observed.Here, the claim of the employees were not based on any service rule but on Section 59(1) of the Factories Act. Since, the governing services rules did not provide for any overtime allowance, their claim was held to be untenable. The Supreme Court held that the Tribunal as well as the High Court did not consider the distinction between persons in Government service and those in private service and the effect of the statutory rules upon the conditions of service of the respondents, including their liability to work for extra hours."In any case, the respondents, who are holders of civil posts or in the civil services of the State till the year 2006, could not have claimed the benefits of the provisions of Chapter VI of the 1948 Act, dehors the service rules", the bench observed while allowing the appeals.However, considering the fact that some of the employees have already retired and some others have passed away during the pendency of the appeals, the Court directed not to effect any recovery from those to whom payments have already been made.Case Title : Security Printing & Minting Corporation of India Ltd. & Ors. Etc vs Vijay D. Kasbe & Ors. Etc.Citation : 2023 LiveLaw (SC) 321Service Law-Government servants cannot claime the benefits of Double Overtime Allowance Benefits under the Factories Act, dehors the service rules-Unlike those employed in factories and industrial establishments, persons in public service who are holders of civil posts or in the civil services of the Union or the State are required to place themselves at the disposal of the Government all the time-Persons holding civil posts or in the civil services of the State enjoy certain privileges and hence, the claim made by the respondents ought to have been tested by the Tribunal and the High Court, in the proper perspective to see whether it is an attempt to get the best of both the worldsConstitution of India 1950 - Article 309- appointment either to a civil post or in the civil services of the Union or the State, is one of a status. It is not an employment governed strictly by a contract of service or solely by labour welfare legislations, but by statute or statutory rules issued under Article 309 or its proviso - Para 21Service Law - there are three different categories of employment, if not more, in the country. They are, (i) employment which is statutorily protected under labour welfare legislations, so as to prevent exploitation and unfair labour practices; (ii)...

Govt Servants Required To Be At Disposal Of Govt All The Time; Can't Claim Overtime Allowance Under Factories Act : Supreme Court

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