Government of the Punjab, Services and General Administration Department has issued a Notification on 14-10-2009 in connection with Pay Protection on regularization of Contract Employees. This Notification illustrates how the pay of a contract employee can be protected if the employee at a later stage is regularized.

Pay Protection on Regularization of Contract Employees Punjab

In exercise of the powers conferred upon him by rule 23 of the Punjab Civil Servants (Appointment and Conditions of Service) Rules, 1974, the Chief Minister, Punjab is pleased to order appointments, on regular basis, in relaxation of the relevant service rules, of the employees in BS-1 to 15, recruited on contract basis under the provisions of the Contract Appointment Policy issued by the S&GAD in 2004 against the posts presently held by them in various Government Departments of Punjab, with immediate effect. However, the contract employees working against the post in various projects I programs I PMUs I PMOs and other time-bound (one-time) development activities shall not be covered by this notification.

Withdraw the Posts in BS-11 to 15 Presently Held by the Contract Employees

                For the purpose of this notification, the Chief Minister, Punjab has further been pleased to withdraw the posts in BS-11 to 15. These posts are presently held by the contract employees, as mentioned in rule 16 of the Punjab Civil Servants (Appointment and Conditions of Service) Rules, 1974 from the purview of the Punjab Public Service Commission in terms of rule 5 of the Punjab Public Service Commission (Functions) Rules,

These appointments will, however, be subject to fulfillment of requirements of rules 18, 19, 20, 21, and 21-A of the Punjab Civil Servants (Appointment and Conditions of Service) Rules, 1974.

Probation Period

The contract appointees on their regular appointment shall remain on probation. They are in terms of section 5 of Punjab Civil Servants Act, 197 4 and rule 7 of the Punjab Civil Servants (Appointment and Conditions of Service) Rules, 1974.

Service Period of Contract Employees

The service period of contract employees shall not be counted for any purpose (pension, gratuity, leave, etc.) on their appointment. That is under the Punjab Civil Servants Act, 197 4 and the rules framed there-under. The salary component of such employees shall be in accordance with the pay scales plus the usual allowances prescribed for the posts against which they are being appointed. They will, however, not be entitled to the payment of 30% social security benefit in lieu of pension or any other pay package being drawn by them.

Pay Protection of Contract Employees

However, the pay of the contract employees being appointed in the basic pay scales shall be fixed at the initial of the respective pay scales and the increment(s) already earned during the contract appointment period shall be converted into Personal Allowance. The pay of those appointed on the basis of the pay package will be fixed in consultation with the Finance Department. The decision of the Finance Department on this behalf shall be final. The Finance Department shall constitute an Anomalies Committee to resolve the issues arising out of appointments of contract employees on regular basis.

Use of Option

The contract employees who do not intend to be appointed on regular basis should furnish their option to this effect in writing within 30 days from the date of issuance of their appointment letters by the respective appointing authorities. They may continue with their present employment as per the terms and conditions of their contract.

However, no extension in their contract period shall be allowed. Those who intend to be appointed on regular basis need not apply. The option once exercised shall be final.