[G.O.Ms.No. 1002, G.A.D. (Ser.), Dt. 29-11-1967]
Order :—The question of regulating the pay, leave, pension and seniority of the retrenched employees owing to reduction to staff as a measure of economy
on their re-absorption, has been engaging the attention of Government for some time past. After careful consideration, it has been decided that the order issued in G.O. Ms. No. 909, General Administration (Services-A), Dt. 14-6-1958, in connection with the absorption of retrenched Telangana employees, are liberal enough and may be adopted as general orders applicable to all retrenched employees. Government, therefore, direct that the following principles should be adopted in respect of pay, leave, pension and seniority of all the retrenched employees :
(i) The pay of such retrenched persons as absorbed on an identical post or lower one should be fixed at the minimum of the time-scale applicable to the post in which they are absorbed actually, plus grade increments counting the length of their previous continuous service, in an equivalent as well as a higher grade, if any, for the purpose provided they have not received any pension or gratuity in respect of their previous service. In case where such pension or gratuity was given, the pay on absorption should also be fixed in the above manner provided the persons concerned agree to surrender the entire amount of pension, or gratuity received by them. Otherwise only the minimum of time-scale of the post in which they are absorbed should be allowed. The refund of the pension or gratuity already received by such persons may be made in one lump or in such instalments as may be prescribed by the appointing authority.
(ii) The pre-retrenchment service will not count for purpose of leave i.e., such persons should not be allowed to carry over to their account any leave to their credit under the leave rules by which they were governed at the time of their retrenchment.
(iii) The period of former qualifying service at the time of their retrenchment will be linked with period of subsequent qualifying service on re-absorption for the purposes of pension. The break in service between the date on which they were retrenched from service and the date of their re-employment will be condoned but will not count for any purpose like increments, pension, etc., however service will be regarded as continuous for the purpose of pension. Any pension or gratuity paid to the employees on retrenchment from his former post will have to be refunded to Government as stated in item (i) above.
(iv) Those persons will start their probation and acquire seniority from the date of their regulation in the post in which they are appointed in the departments concerned.
The Heads of Departments are requested to bring these instructions to the notice of all appointing authorities concerned for their guidance.