Himachal High Court upholds Pension Rights for Contractual employees

In a landmark decision, the Himachal Pradesh High Court, under Justice Jyotsna Rewal Dua, has ruled that contractual service must be included when calculating pensionary benefits for employees. The judgment was delivered in the case Som Dutt & Ors. vs State of Himachal Pradesh & Anr., where the court directed that the contractual service of Trained Graduate Teachers (TGTs) before their regularization should count toward pension calculations under the CCS Pension Rules, 1972.

The decision follows a series of similar judgments, including Sheela Devi vs State of Himachal Pradesh and Jagdish Chand vs State of Himachal Pradesh. In these cases, the courts held that ignoring contractual service would lead to discrimination, as both contractual and regular service contribute significantly to an employee’s professional tenure. Notably, the Supreme Court dismissed special leave petitions against these judgments, granting them finality.

” In light of above pronouncements, the petitioners, subject to verification of the facts of their respective cases by the respondents, would be entitled for counting of the contractual services rendered by them prior to their regularization, in accordance with law, as qualifying service not only for the purpose of pension under the CCS Pension Rules 1972 but also for the purpose of grant of annual increments,” stated the court in the order. Adding,” The respondents/competent authority is directed to consider the factual position of individual cases of the petitioners in accordance with above legal position. In case, the petitioners are found to be situated similarly as the petitioners in the aforesaid cases then they shall be granted benefits of contractual service not only for the purpose of pension under the CCS Pensions Rules 1972 but also for the purpose of granting them annual increments on the same terms as in the aforesaid cases,” stated the court in the 11 page order on December 10.

Noteworthy that during the winter session 2024 , the Himachal Pradesh government, has sought to exclude contractual service from pension considerations by passing legislation in the state assembly. The government argued that including such service would create administrative chaos, particularly by potentially disrupting the seniority and promotional hierarchy of regular employees. It expressed concerns that the inclusion might lead to the demotion of promoted regular employees to accommodate benefits for contractual workers.

This ruling however, challenges the State government’s legislative efforts to restrict pension benefits for contractual employees and sets a precedent for similar cases in the future. It strengthens the broader principle of “equal work, equal benefits,” ensuring contractual employment is not exploited to deny rightful benefits. While the government may face administrative challenges in implementing this decision, the court has reiterated that justice and equality must take precedence in public service employment.