मेकॉन लिमिटेड / MECON LIMITED DRAFT : V-1 (24-11-21)

राँची / RANCHI-834002

PREMATURE RETIREMENT POLICY

1. INTRODUCTION:

In the present business environment exposing the industry to a dynamic and highly
competitive environment, it is necessary that each and every employee of the company
must discharge their function efficiently and in a productive manner. The employees who
are found not aligned with organization objectives due to various reasons not attributed
to the company and not able to contribute efficiently and productively to the cause of
the organization are considered necessary not to continue in the organization in the
interest of company as well as in the public interest. Such employees shall be
compulsorily retired by way of Premature Retirement.

2. OBJECTIVES:
2.1. To weed out the (a) inefficient (b) medically incapacitated employee who are
unable to discharge their assigned function/job attached to their post and (c) the
employees with doubtful integrity.

2.2. To ensure, achieve and sustain effective utilization of manpower, improve

productivity and rightsizing of manpower.

3. SCOPE:

3.1. This rule shall be applicable to all regular employees upto E-9 grade. The
Employee means a person in employment of the company and covered within
the definition of the terms under Chapter-I of General Condition of
Company’s Service Manual.

4. COVERAGE:

4.1. The employees upto E-9 grade shall be prematurely retired from the services of
the company, who are considered not fit to continue in the company for any of
the following reason(s):

a. Inefficiency
b. Medical Incapacity rendering Unfitness
c. Doubtful Integrity
5. CRITERIA:

The criteria for judging the Inefficiency, Medical Incapacity rendering unfitness and
Doubtful Integrity are:

Inefficiency  Shall be defined on the basis of Appraisal/CCR report.

 The employee who have earned ‘C’ rating for at least 03
(three) years consecutively including last assessment in
his/her service period of preceding 07 (seven) years.
 The appraisal/CCR report along with a special report from
the Head of the Department (HoD) recording the poor
performance by describing some critical incidents.

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 Medical Incapacity  The employee is on continuous leave on medical ground
rendering Unfitness (self sickness) for a period exceeding 03 (three) months
excepting the case of “Injury while on duty’’ where the
continuous period exceeds a period of 06 (six) months.

 The employee is on leave on medical ground (self

sickness) for more than 6 months in a period of 01 (one)
year.

 The employees irrespective of regular attendance is found

prima facie weak, sick, mentally deranged or of unsound
mind or lunacy based on the medical report of the medical
board of the company’s hospital OR the hospital of any
other CPSE OR District Medical Board of State
Government OR Central Government in case the
employee is not able to report before the company’s
hospital or any other CPSE Hospital.
 In case of locations other than Ranchi, the medical board
of Ispat Hospital shall certify based on the certification of
government hospital OR MECON’s empanelled hospital as
they deem fit. The Head of Department (HoD) shall
arrange to send the employee for medical examination
and collect the report from the concerned hospital. The
report must contain the details of the disease the
employee is suffering, whether the disease is curable or
not, whether the disease is infectious/contagious and if
curable where the employee is likely to be declared to be
fit to resume duty and discharge his assigned job attached
to post in fullest capacity within a period of 01 (one) year.
Doubtful Integrity  Shall be on the basis of Appraisal/CCR report and special
report from the Head of Department (HoD).
 The employee who gets an adverse comments
consecutively for 3 years on his integrity. Doubtful
integrity shall mean theft, dishonesty, fraud or any such
commission or omission of action having same or similar
gravity.

Note – Head of Department (HoD) means executive who is the direct reporting officer
(DRO) to Director/ CMD.

6. EXECUTIVES TO BE COVERED UNDER REVIEW:

SN Executives to be considered for review

Entered service before attaining age of 35 years & attained 50
(a)
years of age at the time of review

(b) In other cases, after attaining the age of 55 years

7. PERIOD OF REVIEW :

7.1 The review should be carried out 6 months before the date on which the
employee completes the qualifying service for review (50/ 55 years, as the case may
be) as per the time schedule. The preparation should begin in advance so that the entire
exercise is completed within the time schedule given below :-

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 Quarter in which review is to Cases of employees who will be attaining the
be made age of 50/ 55 years as the case may be, in the
quarter indicated below
January to March July to September of the same year
April to June October to December of the same year
July to September January to March of the next year
October to December April to June of the next year

Note:
I. Notwithstanding anything above, a review may be taken up at any time, in the
event no review has been done earlier.

II. Notwithstanding anything above, CMD has right to order for review at any time.

8. REVIEW COMMITTEE

8.1 The Review Committee shall comprise of all the Functional Directors excluding
CMD. The committee shall be assisted by an Internal Committee.
8.2 The Review Committee shall review all the eligible cases as per the broad criteria
as mentioned at clause no. 9.
8.3 The Review Committee shall put up its recommendation for consideration of
approval of Competent Authority where it has been recommended for Pre-mature
retirement.

9. GUIDELINES FOR REVIEW COMMITTEE

The broad criteria to be followed by the Review committee while making the
recommendations are as under:-
9.1 No employee should ordinarily be retired on ground of ineffectiveness, if, in any
event, he would be retiring on superannuation within a period of one year from
the date of consideration of his case. However, in a case where there is a sudden
and steep fall in the competence, efficiency or effectiveness of an employee, it
would be open to review such a case also for premature retirement. The said
instruction of not retiring the employee within one year on the ground of
ineffectiveness except in case of sudden and steep fall in his performance is
relevant only when he is proposed to be retired on the ground of ineffectiveness,
but not on the ground of doubtful integrity.
9.2 No employee should ordinarily be retired on ground of ineffectiveness, if, his
service during the preceding 5 years or where he has been promoted to a higher
post during that 5 year period, his service in the highest post, has been found
satisfactory.
9.3 There is no such stipulation, however, where the employee is to be retired on
grounds of doubtful integrity.
9.4 The entire service record of an employee should be considered at the time of
review. The expression 'service record' refers to all relevant records and
therefore, the review should not be confined to the consideration of the
Appraisal/ CCR dossier. The personal file of the employee may contain valuable
material. Similarly, his work and performance could also be assessed by looking
into files dealt with by him or in any papers or reports prepared and submitted by
him. Even un-communicated remarks in the Appraisal/ CCR may be taken into
consideration. Before the cases are put up for Review Committee, the personal
files of the concerned employees should be brought up to date.

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 9.5 The HR Department shall put together all the data available about the employee
and prepare a comprehensive brief for consideration by the Review Committee in
the prescribed proforma (Annexure-I).

10. INTERNAL COMMITTEE

10.1 There shall be an internal committee to assist the Review Committee.

10.2 The internal committee shall comprise of Head of HR department & Head of Legal
department.
10.3 The HR Department shall place the personal files, appraisal/ CCR dossiers and
other relevant information.
10.4 The HR Department shall also place the information before the Review Committee
in the prescribed proforma (Annexure-I).

11.PROCEDURE

11.1 The HR Department shall be the nodal agency to convey meeting of the Review
Committee and shall prepare the list and place it before the Review Committee.

12.APPROVING AUTHORITY

12.1 The Chairman & Managing Director shall be the Competent Authority to approve
the recommendation of Review Committee for Premature Retirement.

13.ISSUE OF THE ORDER

13.1 The HR Department shall issue the order (Annexure-II) on the same day or
next working day of receipt of approval of competent authority.

14.PROCEDURE FOR CONSIDERATION OF REPRESENTATION

14.1 An employee, if he so desires, may submit representation to HR Department,

against the order of pre-mature retirement within 3 weeks from the date of
issue of such order.
14.2 The Representation shall be placed before Board of Directors of MECON within
4 weeks of receipt of the representation along with the fresh inputs, if any.
14.3 The Board of Directors after due consideration of the representation shall make
its recommendation within 2 weeks from the date of placing of the
representation before it.
14.4 The HR Department shall communicate the order of the Board of Directors
within 1 week from the date of receipt of the recommendation.

15.COMMUNICATION OF THE ORDER

The order of pre-mature retirement shall be communicated in the following manner:-

15.1 By handing the order anywhere on the premises.
15.2 By dispatching the order by Registered Post/ Speed Post to his last known
address.
15.3 By displaying the order in notice board or at any conspicuous places.
15.4 By sending the order in the official email or any other email address of the
employee as available with the Company.

16. REINSTATEMENT
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 16.1 In the event, it is decided to reinstate the employee in service, the authority
ordering reinstatement may regulate the interregnum period between the
premature retirement and the date of reinstatement by grant of leave of the kind
due or ‘dies-non’ depending upon the facts and circumstances of the case.
16.2 In the event, it is specifically held by the authority ordering reinstatement that
premature retirement was itself not justified under the facts and circumstances of
the case, the interregnum period shall be treated on duty. In such case, the
employee on reinstatement shall be entitled for full pay and allowances as would
have been payable to him in case he was not prematurely retired.
16.3 Where the premature retirement order is set aside by court of law, the
interregnum period shall be regulated in accordance with the direction of court
of law.

17.GENERAL INSTRUCTIONS

17.1 In all cases of pre-mature retirement 3 months’ salary (Basic + DA) shall be paid
in lieu of notice pay on the date of issue of the order.
17.2 No show cause notice shall be issued before the issue of order of pre-mature
retirement.
17.3 The date of order of the Premature retirement shall be treated as separation from
the services of the Company in the afternoon of that date.
17.4 The employee shall be entitled to all benefits as applicable in case of
superannuation including VR.
17.5 The HR Department shall ensure the dispatch of the order on the same day or
next working day.
17.6 HR Department shall assist Review Committee, Chairman & Managing Director
and Board of Directors of MECON as deemed necessary.
17.7 The Premature retirement shall not be passed as a shortcut to evade any
departmental disciplinary proceeding, when such course is visible and also
desirable.

18.SAVING
18.1 The Chairman & Managing Director shall have the discretion to alter/ modify/
cancel/ withdraw/ keep in abeyance the scheme without notice and assigning any
reason thereof.

19.EFFECTIVE DATE

19.1 The rules shall come into effect from the day of approval of the Board of Directors
of MECON.

20.SUPERSESSION

20.1 This policy supersedes the exiting Policy vide policy circular no: 94/2016 dated
02.08.2016 (Chapter XXXV of Establishment Manual).

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