Friday, 10 January 2014

Compulsory retirement of employee should be based on appraisal of overall performance

Rajasthan SRTC v. Babu Lal Jangir, (2013) 10 SCC 551 (Civil Appeal No. 8245 of 2013, decided on September 16, 2013)] - Compulsory retirement should be based on appraisal of overall performance during whole tenure of service having regard to entire service record of employee and upon taking an holistic view. Old adverse entries do not lose significance or get washed off for the purpose of considering compulsory retirement even after grant of promotion or crossing of efficiency bar and hence should be taken into consideration along with recent entries. Uncommunicated adverse entries should also be taken into account. Ultimately, the employer must take an holistic view based on the entire service record.



Subjective satisfaction of employer - Must be based on holistic view of entire service record - Old adverse entries and
uncommunicated adverse entries - Relevance - Compulsory retirement, held, should be based on appraisal of overall
performance during whole tenure of service having regard to entire service record of employee and upon taking an
holistic view - Old adverse entries do not lose significance or get washed off for the purpose of considering compulsory
retirement even after grant of promotion or crossing of efficiency bar and hence should be taken into consideration along
with recent entries - Uncommunicated adverse entries should also be taken into account -
Ultimately, the employer must
take an holistic view based on the entire service record, (2013) 10 SCC 551

Nature - Not punitive or stigmatic - Employer has absolute power to compulsorily retire employee under service
rules/Standing Orders provided it forms opinion bona fide in public interest, (2013) 10 SCC 551

 
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