29 Years As Peon: Gujarat HC Orders Higher Pay For Employee Stagnant Due To Promotion Rules

The Gujarat High Court has upheld an order directing Bagasara Nagar Seva Sadan to grant higher pay scale benefits to a long-serving employee who was denied promotion for nearly three decades due to restrictive qualification rules.

A division bench dismissed the Letters Patent Appeal filed by the civic body and held that denying an employee both career advancement and financial progression, when there is no avenue for promotion, is arbitrary and unfair.

Employee Remained Peon For 29 Years

The case concerned a peon who was appointed on compassionate grounds in December 1996 and regularised on January 1, 1997. Despite completing nearly 29 years of service, he continued in the same entry-level post.

The municipality argued that he was not eligible for promotion to the post of Compost Supervisor because he did not possess a Class 12 qualification. The employee, however, had met the SSC qualification prescribed for his initial appointment.

The civic body also contended that the State Government Resolutions (GRs) providing higher pay scales after 12 and 24 years of service were not applicable to municipal employees.

HC Says Employees Cannot Be Left To Stagnate

Rejecting the municipality’s arguments, the division bench observed that the government itself had recognised the need to prevent employees from remaining stagnant in the same cadre throughout their careers and to ensure their economic and social advancement.

The court noted that although Bagasara Nagar Seva Sadan had not adopted the Government Resolutions dated August 16, 1994, and July 2, 2007, and the State had not specifically extended their benefits to municipal employees, the circumstances of the case warranted application of the principle behind the resolutions.

The bench observed that where an employee has “absolutely no chance of promotion” because they do not possess the educational qualification prescribed for the promotional post, the benefit contemplated under the government resolutions would have to be applied.

Higher Pay Grade To Be Released Within 12 Weeks

The High Court held that every employee has a right to be considered for promotion and that service rules cannot effectively leave an employee without any avenue for career progression throughout their working life.

The court further held that the higher pay grade policy could be applied even if the relevant government resolutions had not been formally adopted by the municipality, as the policy was framed to address situations where employees have no promotional avenues.

The High Court directed Bagasara Nagar Seva Sadan to release the higher pay grade benefits to the employee within 12 weeks.

If the amount is not paid within the stipulated period, the civic body will be liable to pay interest at the rate of 9% per annum from the date on which the employee became entitled to the benefits.