Shimla, July 27: In a strategic move to address staff shortage and reduce government expenditure, the administration has introduced new terms and conditions for re-employment of retired officers and employees. Principal Secretary Finance Devesh Kumar has issued an order clarifying these guidelines, with a focus on financial prudence while leveraging the experience of retired personnel.
Key provisions of the order-
Remuneration ceiling:
- Retired employees re-employed in posts within categories one to three will receive remuneration at 40% of their last drawn basic pay.
- The posts falling under these categories include class IV multi-task workers, class III office assistants and class I and II work supervisors.
- For special categories like doctors, engineers and consultants, the remuneration will be capped at 50% of their last drawn basic pay.
Tenure and termination:
- The period of re-employment will be as determined by the government, with the possibility of extension up to one year at a time.
- The government reserves the right to terminate the contract before the expiry of the period if the services are considered redundant or if the performance is unsatisfactory.
Allowances and benefits:
- The fixed remuneration does not include dearness allowance (DA).
- The re-employed employees will be entitled to travel allowance (TA), DA and leave as per the norms applicable to outsourced employees.
- No additional medical facilities will be provided as retired employees are already covered under existing schemes.
Housing:
Retired employees who are occupying government accommodation can retain it during their re-employment period.
Financial responsibility:
- All expenses relating to re-employment of retired persons will be charged under the outsourcing account.
- Administrative departments have to obtain prior approval from the Finance Department for each re-employment proposal.
Performance and conduct:
- The government has the right to terminate the contract if the performance or conduct of the re-employed person is found to be unsatisfactory.
- Retired employees have to submit an undertaking agreeing to the terms and conditions of their re-employment.
Results and responses-
The new policy aims to balance the need for experienced personnel with budgetary constraints. By offering a lower remuneration package, the government wants to utilise the expertise of retired employees without incurring high costs.
However, the decision has sparked significant controversy. Thousands of youth in the state are currently unemployed, and many exam results have not yet been released. Critics argue that such re-employment provisions reduce employment prospects for these youth. They argue that while the move may provide temporary relief to the state exchequer and address immediate staff shortages, it is detrimental to the long-term interests of unemployed youth.
Supporters of the policy argue that it provides a practical solution to staff shortages, ensuring that essential services continue without interruption. However, critics are concerned about low salaries and a lack of additional medical benefits, which may discourage retired employees from returning to work.
As the policy is implemented, its effectiveness in addressing staff shortages and managing expenses will be closely monitored. The government emphasises that these measures are part of a broader strategy to optimise resources and maintain efficient public service delivery. Still, the impact on the state’s unemployed youth remains a controversial issue that will need to be addressed.
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