Employee, who was transferred to foreign branch and not sent on deputation, can be granted voluntary retirement with retiral benefits without curtailment of the period of notice

M.R. Shah J has recently held that, “Chief Manager seeking voluntary retirement, shall be entitled to same with retiral benefits and there cannot be any curtailment of the period of notice.” In the case before Court, an employee who was posted as Chief Manager under the employment of Bank, sought for voluntary retirement. In the application for voluntary retirement, the employee requested for waiver of three months’ notice, and to deduct salary of notice period from the amount payable by the employer on retirement as required under Regulation 29 of the Indian Bank Employees Pension Regulations, 1995.

Employer-Bank, however, rejected the application of voluntary retirement on the 90th day from the date of submitting the voluntary retirement application and rejected the prayer of curtailment of the period of notice without providing any reason. Bank raised the question that the employee was on deputation at an oversea branch at Colombo therefore as per Regulation 29(1) of 1995 Regulations cannot apply for voluntary retirement unless after having been transferred or having returned to India, he has resumed charge of the post in India and has served for a period of not less than one year.

In answer to such plea, M.R. Shah J held that, “Employee was transferred to foreign branch and was not sent on deputation. The transfer cannot be said to be a deputation. Hence it can not be said that employee did not fulfill the statutory requirement of serving for a period of one year after returning to India, as required under service regulations.”

Ultimately, it was held that application for voluntary retirement being absolutely in consonance with Bank Employees Pension Regulations, rejection of same by Bank, was bad in law. The employee is entitled to voluntary retirement with all the retiral benefits.