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Sub Section A:1


GENERAL TERM AND CONDITIONS OF SERVICE The following general terms and conditions of service apply to all the employees, besides other rules and regulations that may be framed and notified by the Company from time to time on various other subjects:


Classification of employees The employees shall generally be classified as under: Regular Temporary Casual Probationer Apprentice/Trainee under BHEL Schemes 'Regular' employee is an employee who has been engaged in a vacancy on the regular establishment of the Company and who has satisfactorily completed his probationary period of service and whose employment in regular service has been confirmed in writing. 'Temporary' employee is an employee who has been engaged on a temporary basis for work, which is essentially of a temporary nature and likely to be completed within a stipulated period. 'Casual' employee is an employee whose employment is of an occasional or casual nature. 'Probationer' is an employee who is provisionally employed with a view to being considered for appointment on the regular establishment of the company. 'Apprentice/Trainee' is a learner who is paid a stipend/pay or placed in a grade as may be decided by the Management, during the period of apprenticeship/ training. Note: The terms and conditions of employment and the period of training of all apprentices/trainees will be governed by the apprenticeship contract and/or any special rules or orders framed by the company from time to time.


Probation and confirmation Unless otherwise provided in the terms of appointment or any other agreement or award, the following rules will govern the probation and confirmation of employees:

to Section


A1A A2




Page No.2

20500-26500 and above. The employee will be considered to be continuing on probation until so confirmed in writing. initially taken on deputation and subsequently absorbed in the Company's service except where the period of deputation is less than one year. 2.1 All employees on first appointment in the service of the company including employees appointed to a higher grade consequent on promotion or on the basis of an open selection shall be placed on probation for a period of one year during which period their performance will be watched carefully with a view to determining their suitability for confirmation against the regular post.5 If during the probationary period or extended period of probation. progress and general conduct of the employee are not found satisfactory or upto the standard required for the post.2 Officers appointed to posts in the grade of Rs. If. his/her services are liable to be terminated at any time without notice and without assigning any reason therefore. the following categories of employees are exempted from the above rules: a) Employees of the Government and other Public Sector Undertakings. the performance. after satisfactory completion of a probationary period of at least three months from the date of joining the Company. however. Every new employee appointed in the Company's service will be issued with a formal order of confirmation on satisfactory completion of probationary period or the extended period of probation.4 2. to Section A1 A1A A2 A3 A4 A5 to Page No.6 Permanent Government servants joining BHEL against open advertisement who retain lien on their substantive posts in their parent departments: The normal probation period of all such employees will be one year from the date of joining the company. as the case may be.2. However. An order relating to confirmation or extension of probation will normally be communicated within one month from the date of completion of the probationary period or extended period of probation. The period of probation may be extended at the discretion of the competent authority. for administrative or other reasons it is not done so. the employee concerned will be informed of the reasons thereof within the stipulated period of one month. but will not be extended by more than one year save for exceptional reasons to be recorded in writing.3 .3 2. However. b) 2. any such employee can be permanently absorbed in the company provided his pay has been fixed under the relevant Government rules applicable to Government servants getting absorbed in Public Sector Undertakings in public interest and provided the employee himself pays the required contributions towards leave salary and pension to his parent department till the date of his absorption in BHEL. 2.

7 Note: An employee who on joining public sector undertaking retains lien in Government for some time is not entitled to CPF.2 Temporary employees b) If no period of appointment is stipulated or One month on either side the appointment is required to be terminated before the expiry of the stipulated period for which there should be a provision in the letter of appointment One month on either side in the case of Executives and 14 days notice on either side for other categories As per the provisions of the Bond No notice on either side 3. 3. those appointed on Probation 3. all cases of resignation of executives involving waival of the prescribed notice period will require approval of the Corporate Office and as such may be . an employee who is in an executive/supervisory cadre and who tenders resignation will be relieved of his duties only on his resignation being accepted. if the disciplinary proceedings are pending or a decision has been taken by the competent authority to issue a charge sheet. Notwithstanding the above provision.4 3.2 3.2.1 Notice Period Category of employee Regular Employees a) b) All Executives Others Three months on either side One month on either side Notice period 3.1 Discharges and Termination of Service Except as may be specifically provided in the contract of service or in the Standing Orders. 3.2.5 3.2. The resignation will be effective only from the date from which it is accepted by the Company and the employee is finally relieved in consequence thereof. Acceptance of payment of salary from the employee in lieu of full or unexpired period of notice will be at the discretion of the Management. 3.4 3.6 Apprentices/Trainees Substitutes and Casual employees with less than 240 days service In order to ensure consistency. Leave. The Management reserves the right not to accept his resignation if the circumstances so warrant i.2. Similarly. the Management may at any time discharge an employee from service by giving notice for the period mentioned hereunder or by payment of wages in lieu of such notice.e.2. the Competent Authority will obtain clearance from the Unit and Corporate Vigilance Departments where necessary.2 Temporary employees a) On expiry of stipulated period of appointment No notice on either side to Sub Section A1 A2 A3 A4 A5 to Page No.e.3 Probationers i. Before accepting the resignation.2.2. the employee will be required to give the same notice in the event of his intention to leave the service of the Company.2. and Gratuity benefits under the Company Rules for the period of service during which he retains lien in Government irrespective of the fact that leave salary and pension contributions are paid by the employee himself.

8 3. 3. On being declared unfit for further service on medical grounds. he may be permitted to do so giving one and half months notice instead of three months. however.2. leprosy. where applicable.10 For instructions regarding enforcement of Bond.2.030/PPX/2005 dated 08/07/2005) to Section A1 A1A A2 A3 A4 A5 to Page No. Insolvency. notice period is one month as per the terms of appointment. f g 4. the benefit of encashment of earned leave and half pay leave as admissible on superannuation may also be extended to the employees resigning from the service of BHEL under the above circumstances. The above provisions relating to notice period should invariably be incorporated by the Units / Divisions suitably in the appointment letters/offers of appointment made to the Executives / Supervisors 3. among others: On abolition of the post. In addition.5 3. has attained the age of 50 years and wishes to resign from BHEL. it will remain unchanged.12 Where an employee in the senior executive level i. With a view to avoid any anomaly and ensure consistent policy in line with the above orders being adopted in all cases. Where.. Absence by an employee on grounds of sickness for a continuous period of more than 18 months if suffering from tuberculosis. Employee engaging himself in other employment without the written permission of the Management or if he is found to have been working elsewhere during the period of leave or off duty. wherever the non-executives are promoted to executive cadre. refer to Rule 15 of this chapter.e. Superannuation / Voluntary (Pre-mature) Retirement / Review on attaining 55/58 .2. 3. Conviction by a court of law for criminal offence amounting to moral turpitude.referred to Corporate Office for processing and obtaining orders of the competent authority.7 The cases of non-executive's resignations requiring waival of notice period may be dealt at unit level subject to the conditions that the employee has not encashed his EL during the preceding one year and no vigilance case is pending against him. A maximum of one-month waival can be considered subject to other conditions. mental or malignant diseases or fracture of lower/upper extremity and six months or more if suffering from any other ailment on the basis of the opinion of the Medical Board.11 In case of employees who resign from the services of the company on being selected by or through UPSC or by another Public Sector Enterprise.2.2. Loss of confidence by the company in an employee holding position of trust or confidence or by virtue of his nature of duties. the aforesaid notice period need not be insisted upon and the employees may be relieved as soon as possible subject to exigencies of work.3 a b c d e The services of an employee may also be terminated by the Company on the following grounds. (Amended vide Circular No.9 3.2. E5 and above not getting promoted to the next higher grade. 3. they will be governed by three months notice clause.

after attaining the age of 55 years.3.years of Age 4.3. ii) Areas if any. 040/TRX/2007 dated 11/9/2007) . 4.R.6 4. 4. In both the cases. who can be easily relieved without a substitute.3 below. be accepted by the Management subject to the guidelines provided for under Voluntary (Pre-mature) Retirement in para 4.2 The Management may. will be effective only from the date of relieving of the employee by the Company.) 4. however.1 The following guidelines will be adopted while processing the cases of employees seeking voluntary (pre-mature) retirement 4. ii) In the case of employees in the grade of General Manager & above to Section A1 A1A A2 A3 A4 A5 to Page No. 4.3. (Corp.2. i) Erection.1 Superannuation Every employee shall be required to retire from service on attaining the age of 60 years. be made in the case of i) Employees with known serious health problems and ii) Employees who have stagnated in the current & previous two grades for a long time. iii) Areas where the Company is not experiencing a shortage of manpower. on review retire any employee after he attains the age of 55/58 years on giving one and half months notice or payment of one and a half month's pay and allowances in lieu thereof subject to necessary clearances including vigilance clearance. opt to retire voluntarily from the service of the Company on giving one and a half month's notice subject to necessary clearances including vigilance clearance. Marketing. including vigilance clearance. Manufacturing and related activities. 039/TRX/2006 dated 10/07/2006.1 The Voluntary (Pre-mature) retirement will. however. Employees retiring between the age of 55 and 60 years will be eligible for all retirement benefits. R&D.3. Servicing. however.3 4.2(B) Exception to the general guideline as at (A) above may. where a decision has been taken by the Company to exit etc.g. the retirement after approval on obtaining the necessary clearances. Circular No.2(D) Requests of employees at all levels for voluntary( pre-mature) retirement within three months of their superannuation may be considered subject to exigencies of service and at the discretion of the management ( vide Corporate HR circular No.2(C) Requests for Voluntary (Pre-mature) Retirement may also be considered for the following cases:i) Those working in / having experience in peripheral / non-core areas.2(A) Requests for Voluntary (Pre-mature) Retirement should not be accepted in the following cases:In the case of employees in core areas of operations of the Company e. Voluntary (Pre-mature) Retirement 4. Engineering & Designs. and in all above cases.H.3. Commissioning. An employee may also. IT etc.

4. 4.4 4.02. will be granted.6..4 In cases where a definite decision cannot be taken to retire the employees because of marginal level ratings in performance. subject to further improvement. as part of their Service rules. before forwarding their cases to Competent Authority for approval.6.6. the cases of employees are required to be reviewed twice. No. Equivalent of "Good" will be as follows: a) In ACR System Rating of "Good" or less/ Third level or less in a 5 point scale b) In PMS System Score of less than 60 c) In e-MAP System Pre normalized score of less than 3 . Cases upto E6.) In case a Functional Director resigns from his/her post in the interest of BHEL (e. he/she will be entitled to all benefits as available on retirement to BHEL employees. Circular No.2009 and will be subject to further approval of the Board in each case. will not be extended by BHEL. Retirement of employees shall take effect from the afternoon of the 24th day of the calendar month. the last day of BHEL wage month in which the employee concerned attains the age of superannuation instead of the afternoon of the actual date of his superannuation.5 4.4 below. those benefits which are being provided by the JV Company. in the prescribed proforma (Annexure). (having the powers of ED) and the cases of Executives in E6A and above grades will be sent to Corporate Office with specific recommendations of Unit Head.H. on 24th October and not on 24th November. at a time. that is.6. Only those cases where Head of Unit recommends that the services of an employee in E5 & E6 grades cannot be further continued beyond 55/58 years.6 4.e.04. To avoid double benefits.2 4.1 Review of employees on attaining the age of 55/58 years For further continuation in service. This is applicable only in such cases where the performance rating is "Good" or less in three or more years in the preceding 5 years. If date of birth is 25th of the month like 25th October the employee will retire on the preceding 24th i.4. ( Corporate HR Circular No.3. at the level of General Manager.4 4. the ACR ratings/PMS/MAP Score of last 5 years shall be taken into consideration. and the resignation is accepted by Government of India. except as indicated at 4.3.6. 4.R. This will be effective from 01. once at the age of 55 years for retention upto 58 years of age and again at 58 years for retention upto 60 years of age.3 All cases of employees opting for Voluntary (Pre-mature) Retirement should be scrutinized based on above guidelines. only one year extension in service beyond the age of 55/58 years.019/TRX/2009 dated 23. (Corp. by special Cross Functional Committees which should be formed at Units / Regions.09) No BHEL employee shall be granted extension in service beyond the age of 60 years. The cases of non-executives in various grades and Executives upto E6 shall be reviewed at the Unit level by ED or GGM. will be referred to Corporate Office.3 While reviewing the cases of employees for further continuation in service. for review by Director (HR) and CMD as applicable.g to take up a Board level position in a Joint Venture formed by BHEL) or in public interest. where Units are not headed by ED or GGM (having powers of ED) will be reviewed by concerned Functional Directors. 039/TRX/2006 dated 10/07/2006.

Verification of Character and Antecedents. 6. to Section A1 A1A A2 A3 A4 A5 to Page No. Their cases shall be reviewed again in the subsequent year. be liable to serve in any Defence Service or post connected with the Defence of India for a period of not less than four years. This is without prejudice to the obligations of the Engineer /Executive Trainees under the contract executed under the provisions of the Apprentices Act.6. The same approach of giving one year extension shall also be followed in cases where disciplinary enquiry is pending while reviewing on attaining the age of 55/58 years. (Corporate HR Circular No. Organisations /other Public Sector Undertakings: The employee may be allowed to accept the job offered to him and released by waiving recovery of the training expenses otherwise required to be paid under the bond. Liability for defence service All Engineering and Medical Graduates appointed to any post in the Company shall.7 (i) For joining Central /State Govt. Appointment to any post in the Company shall be subject to the satisfactory verification of character and antecedents. if so required by the appointing authority. /Quasi-Govt. if any.50/TRX/2005 dated 26/10/2005 & Corporate HR Circular No. and ordinarily be required to serve as aforesaid after attaining the age of 40 years in case of Engineering Graduates and after attaining the age of 45 years in the case of Medical Graduates. including the period spent on training. (ii) In all other cases full recovery of bond amount as per the existing orders will . provided the concerned Trainee executes a fresh bond with the Central /State Govt.5 Such cases shall be reviewed again in the subsequent year and recommended for continuance in service.4. only on evidence of improvement in performance. This could be done in consultation with the concerned Government Department /Organisation /Undertaking. Provided that such persons shall not: (a) (b) be required to serve as aforesaid after the expiry of ten years from the date of their appointment.009/TRX/2007 dated 02/02/2007) 5. if the Trainee leaves the service during the training period. Organisation/the Public Sector Undertaking where he joins for serving the said Organisation/Undertaking for the unexpired period of bond./Quasi-Govt.

the existing policy will continue. the conditions of the waival of bond will be sympathetically considered. the amount payable as bond money or the pay for the notice period whichever is greater.continue. 15.2 Waival of bond in respect of female employees who on getting married.11 .e.. In the case of employees under study leave bond.3 In case an employee under bond is selected for appointment in Central / State Government service based on success in the competitive examination(s) conducted by the UPSC or similar Governmental agencies. In the case of employees under bond wishing to join other Public Undertakings.4 It is clarified that the recovery of the bond amount and notice period pay in the case of employees under bond who resign should be regulated as follows: Both the bond amount and the notice period pay need not be recovered and only the greater of the two may be recovered. only may be recovered. want to leave the service of the Company before the expiry of the bond period: All such cases where a female employee wants to resign on getting married. 15. However. to Section A1 A1A A2 A3 A4 A5 to Page No. This dispensation will however not apply in case of employees who are under bond for training abroad at Company's expenses. this will be applicable even if they submit their resignations without returning from study leave. the employees wishing to apply and appear for such Examination(s) will be required to take prior approval of the Competent Authority. 15. This will be applicable in cases of employees under bond for training within the country and those who are under study leave bond. Such permission will ordinarily not be withheld for identical and superior level posts. i. the recovery of training expenses may not be enforced provided the employee concerned executes a fresh bond with the Government for the unexpired period of the bond.

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