Himachal High Court Gives Relief to Employees by Staying Notification on Recovery of Contract Service Period
Shimla, March 11, 2025: The Himachal Pradesh High Court has stayed the state government notification, which had sought recovery of money from employees who had taken seniority benefits while they were in service on the basis of contract. The decision, announced on Tuesday, has provided significant relief to many thousands of government workers who were facing financial pressure from the recent ruling.
The issue involves the Government Employees Recruitment and Service Conditions Amendment Bill 2024 which was adopted on 20 February 2024. It also included a provision to seek financial recovery from employees who availed the benefits like seniority, salary increases and promotions based on their contract service period, especially to those whose services were regularized on or after December 12, 2003. The decision then specifically applied to those employees regularized in employees in CWP No. 2004/2017 (Taj Mohammad vs State of Himachal Pradesh) and in CWP No. 629/2023.
The note had caused a lot of concern among the employees, as it would impose a monetary burden on those who had been enjoying certain perks because of their contracted years of service, and the officials meant to recover the amounts. Many people considered this to be an injustice since this would have resulted in huge deductions from their salaries and other disruptive situations.
The employees, however, have welcomed the High Court’s order of staying the notification. A two-judge bench, comprising Justice Tarlok Singh Chauhan and Justice Sushil Kukreja granted relief on the ground that the execution of the government’s recovery order requires to be stayed. The bench said that in light of this, the next date of hearing in this case would be also postponed till the time when the state government will pass further orders in the matter of notification.
As this decision gives the government a chance to review its stance on the recovery of money spent on employees with seniority and other perks during their contracts, It represents an important outcome in terms of fairness and safeguarding the rights of employees previously disadvantaged by the government injunction, which blocks the compulsion of such deals.
The ruling is a major lifeline for employees who were worried about the financial consequences of the government’s action and have now received temporary relief as the case is considered further.
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