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BHARAT PETROLEUM CORPORATION LIMITED (DETERMINATION OF CONDITIONS OF SERVICE OF EMPLOYEES) ACT, 1988
44 of 1988
3rd September, 1988
STATEMENT OF OBJECTS AND REASONS Prior to 1976, Burmah Shell had two companies in India, namely, the Burmah Shell Refineries Limited (Burmah Shell Refineries) and the Burhma Shell Oil Storage and Distributing Company of India Limited (Burmah Shell). While the former was exclusively concerned with the refining of crude as its only activity, the latter was concerned with the sale. supply and distribution of petroleum products in the country. These two companies had common shareholders. 2. In 1976. the undertakings of Burmah Shell were acquired by the Central Government by the provisions of the Burmah Shell (Acquisition of Undertakings in India) Act. 1976. Subsequently, by a process of share transfer, all the shares of Burmah Shell Refineries were transferred to the President of India thereby making it a Government company. The assets and liabilities of Burmah Shell which were acquired by the Act of 1976, were vested in the said Government company in accordance with the powers conferred under section 7 of the 1976 Act and the officers and employees of Burmah Shell were also transferred to the said Company by section 9 of that Act. Thus, from 1976. the Burmah Shell Refineries (which had then become a Government company) were not only engaged in refining activities but also in 'he sale. supply and distribution of petroleum products in the country. The name of the company was also changed to Bharat Refineries Limited and then to Bharat Petroleum Corporation Limited (Bharat Petroleum) from 1977. 3. The Bharat Petroleum now consists, therefore, of three categories of employees. They are: the employees of Burmah Shell Refineries who continued to serve in that company even after it became a Government company, the employee of Burmah Shell whose services were transfeired to Burmah Shell Refineries under the provisions of the 1976 Act and the employees recruited by Bharat Petroleum after it became a Government company. 4. Out of the first two categories ot employees mentioned above, a few have not agreed to abide by the public sector wage policy and therefore continue to enjoy the emoluments and other conditions of service to which they were entitled to under the aforesaid companies even after Burmah Shell Refineries became a Government company, or, as the case may be. after the nationalisation of Burmah Shell. The emoluments and other conditions of service of the third category of employees mentioned above and who were recruited by Bharat Petroleum were, however, sought to be regulated after taking into consideration the conditions of service applicable to employees in other public sector companies in accordance with the wage policy of the Government for public sector that there should as far as possible, be parity in the conditions of service of public sector companies. But as these conditions of service are less favourable, this category of employees claimed that their emoluments and other conditions of service should also be on the same lines as are applicable to the employees of Burmah Shell Refineries and Burmah Shell. 5. On a dispute being taken to the Industrial Tribunal it was held that in view of the provisions of section 18(3) of the Industrial Disputes Act, 1947, these employees are also entitled to the same conditions of service as are applicable to the other two categories of employees. An appeal had been preferred to the Bombay High Court against the award of the Tribunal and the same is pending. The award of the Industrial Tribunal, if given effect to in Bharat Petroleum, will amount to giving a higher wage structure in this Corporation alone and other employees in similar undertakings may demand that they should also get the benefits of the higher scales of pay on the principle of "equal pay for equal work". This may eventually result in high wage islands and depart radically from the public sector wage policy. It is, therefore, necessary that the conditions of service of the employees of Bharat Petroleum should be made comparable with the conditions of service prevalent in other public sector companies in accordance with Government of India's wage policy. As the continuance of the conditions of service of the employees of the former companies is due to historical reasons and as the conditions of service of the employees of Bharat Refineries were arrived at as a result of settlements made by the company and its workmen, and the demand of the post-nationalisation employees for parity with the employees of the former companies may have to be conceded in view of the provisions of the Industrial Disputes Act and the award of the Industrial Tribunal, any attempt to make the conditions of service of the officers and employees of Bharat Petroleum comparable with conditions of service of other public sector companies can only be done by legislation. Such a legislation could provide for determination of comparable conditions of service for all the categories of employees of Bharat Petroleum, but at the same lime. provide for protection to those pre-nationalisation employees of their conditions of service. 6. The Bill accordingly seeks to achieve this object by empowering the Central Government to frame one or more schemes for determination of the conditions of service of the officers and employees of Bharat Petroleum.- Gaz. of Ind., 10-5-1988. Pt. II. S. 2 Ext.,. p. 4 (No. 27). An Act to empower the Central Government to determine the conditions of service of the officers and employees of Bharat Petroleum Corporation Limited and for matters connected therewith. WHEREAS for the purpose of making the conditions of service of the officers and employees of the Bharal Petroleum Corporation Limited comparable with the conditions of service of the officers and employees of other public sector companies, it is necessary to empower the Central Government to determine the conditions of service of the officers and employees of the said Corporation: BE it enacted by Parliament in the Thirty-ninth Year of the Republic of India as follows:-
SECTION 01: SHORT TITLE AND COMMENCEMENT
(1) This Act may be calledthe Bharat Petroleum Corporation Limited (Determination of Conditions of Service of Employees) Act, 1988-.
(2) It shall be deemed to have come into force on the 2nd day of July. 1988.
SECTION 02: DEFINITIONS
In this Act. unless the context otherwise requires,-
(a) "Burmah Shell" means the Burmah Shell Oil Storage and Distributing Company of India Limited, a foreign company within the meaning ofsection 591 of the Companies Act. 1956-as it existed immediately before the appointed day underthe Burmah Shell (Acquisition of Undertakings in India) Act, 1976-:
(b) "Burmah Shell Refineries" means the Burmah Shell Refineries Limited, a company registered underthe Indian Companies Act. 1913. as it existed immediately before it became a Government company.
(c) "Corporation" means the Bharat Petroleum Corporation Limited, a Government company, as defined insection 617 of the Companies Act. 1956-:
(d) "officers and employees of the Corporation" includes.-
(i) the officers and employees who were in the service of the Burmah Shell Refineries and who continued to be in the service of the said company after it became a Government company: and
(ii) the officers and employees who were in the service of Burmah Shell and whose services were transferred to the Corporation bysection 9 of the Burmah Shell (Acquisition of Undertakings in India) Act, 1976-:
(e) "public sector company" means any corporation established by or under any Central Act or a Government company as defined insection 617 of the Companies Act. 1956.-
SECTION 03: POWER OF CENTRAL GOVERNMENT TO FRAME SCHEMES TO DETERMINE CONDITIONS OF SERVICE OF OFFICERS AND EMPLOYEES
(1) Where the Central Government is satisfied that for the purpose of making the conditions of service of the officers and employees of the Corporation comparable with the conditions of service of the officers and employees of other public sector companies, it is necessary so to do. It may. notwithstanding anything contained inthe Industrial Disputes Act. 1947-or any other law or any agreement, settlement, award or other instrument for the time being in force, and notwithstanding any judgment, decree or order of any court, tribunal or other authority, frame one or more schemes1for the purposes of determination of the conditions of service of the officers and employees of the Corporation.
(2) While framing any scheme under sub-section (1). it shall be competent for the Central Government to provide for the continuance, after the commencement of any such scheme, of such of the emoluments or other benefits as were payable to or entitled to be received by. the officers and employees of the Corporation referred to in sub-clause (i) or sub-clause (ii) of clause (d) ofsection 2-immediately before the Burmah Shell Refineries became a Government company or as the case may be. immediately before the appointed day underthe Burmah Shell (Acquisition of Undertakings in India) Act, 1976-.
(3) The Central Government may make a scheme to amend or vary any scheme made under subsection (1).
(4) The power to make any scheme under sub-section (1) or sub-section (3) shall include-
(a) the power to give retrospective effect to any such scheme or any provision thereof: and
(b) the power to amend, by way of addition, variation or repeal, any existing provisions determining the conditions of service of the officers and employees of the Corporation in force immediately before the commencement of this Act.
(5) Every scheme made under sub-section (1) or sub-section (3) shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if. Before the expiry of the session immediately following the session or the successive sessions aforesaid. both Houses agree in making any modification in the scheme, or both Houses agree that the scheme should not be made the scheme shall thereafter have effect only in such modified form or be of no effect, as the case may hee so however that any such modification or annulment shall be without prejudice to the validty of any thing previously done under that scheme.
SECTION 04: REPEAL AND SAVING
(1) The Bharat Petroleum Corporation Limited (Determination of Conditions of Service of Employees) Ordinance. 1988. is hereby repealed.
(2) Not with standing such repeal, anything done or any action taken under the said Ordinance shall be deemed to have been dune or taken under the corresponding provisions of this Act.
BHARAT PETROLEUM CORPORATION LIMITED (DETERMINATION OF CONDITIONS OF SERVICE OF POST POST-NATIONALISATION REFINERY EMPLOYEES) SCHEME, 1989
G.S.R. 495 (E), dated 28th April, 1989.- In exercise of the powers conferred under sub-section (1) of Sec. 3 of the Bharat Petroleum Corporation Limited (Determination of Conditions of Service of Employees) Act, 1988 (44 of 1988), the Central Government, on being satisfied that for purpose of making the conditions of service of the officers and employees of the Corporation comparable with the conditions of service of the officers and employees of other Public Sector Companies, it is necessary so to do, hereby frames the following Scheme, namely: Doctrine of implied repeal.- The doctrine of implied repeal is based on the postulate, the Legislature which is presumed to know the existing state of the law did not intend to create any confusion by retaining conflicting provisions. Court in applying this doctrine are supposed merely to give effect to the legislative intent by examining the object and scope of the two enactments. But in a conceivable case, the very existence of two provisions may by itself, and without more, lead to an inference of mutual irreconcilability if the later set of provisions is by itself a complete code with respect to the same matter. In such a case the actual detailed comparison of the two sets of provisions may not be necessary. It is a matter of legislative intent that the two sets of provisions were not expected to be applied simultaneously.2
SCHEME 01: SHORT TITLE AND COMMENCEMENT
(1) This scheme may be called the Bharat Petroleum Corporation Limited (Determination of Conditions of Service of Post- nationalisation Refinery Employees) Scheme, 1989.
(2) The provisions of this scheme shall be deemed to have come into force, on and from the 24th day of January, 1976.
SCHEME 02: DEFINITIONS
- In these rules, unless the context otherwise requires :
(a) "Act" means the Bharat Petroleum Corporation Limited (Determination of Conditions of Service of Employees) Act, 1988-;
(b) "Clerical employees" means an employee covered by Standing Orders No.B-5 (1-A) 79- S.O., dated 30th June, 1982 certified by the Regional Labour Commissioner (Central) Bombay under sub-section (3) of Sec. 10 of the Industrial Employment (Standing Orders) Act, 1946 (20 of 1946)-, read with sub-section (3) of Sec. 5-thereof;
(c) "Labour employee" means an employee covered by Standing Orders No. B-5 (1)/79-S.O., dated 30th June, 1983 certified by the Regional Labour Commissioner (Central) Bombay under sub-section (3) of Sec. 5 of the Industrial Employment (Standing Orders) Act, 1946 (20 of 1946)-, for workmen other than clerks.
(d) "Schedule" means a Schedule appended to this scheme.
SCHEME 03: APPLICATION
- The provisions of this scheme shall apply to all clerical employees and labour employees who have joined the Refinery of the Corporation on or after 24th day of January, 1976 (hereinafter referred lo as "the employee").
SCHEME 04: CONDITIONS OF SERVICE
(1) The clerical employees and labour employees of the Corporation shall be governed by the conditions of service, as applicable to them, in the following manner, namely:
(i) for the period beginning on the 24th day of January, 1976 and ending on the 31st day of December, 1979 as specified in Part 'A' of the First Schedule;
(ii) for the period beginning on the 1st day of January, 1980 and ending on the 31st day of December, 1983 as specified in Part 'B' of the First Schedule.
(iii) for the period beginning on the 1st day of January, 1984 and ending on the 31 st day of December, 1987 as specified in Part 'C' of the First Schedule;
(iv) for the period beginning on the 1st day of January, 1988 and ending on the 31st day of December, 1991 as specified in the Second Schedule: and
(v) for any period after the 31st day of December, 1991, the conditions of service shall be governed by the Second Schedule unless they are altered, varied or repealed by any other scheme.
(2) Subject to the provisions of paragraph 5 of this scheme, the Corporation shall grant such benefit to every employee, as is applicable to him in accordance with sub- paragraph (1) above, depending upon the period of his employment in the Corporation.
Explanation.- For the purpose of calculation of such benefit, wages of the employee alongwith other benefits which were extended to him prior to the date of publication of this scheme in the Official Gazette shall be taken into account: Provided that where an employee has received emoluments more than the amount due to him in accordance with sub-paragraph (1) above, the Corporation shall have the right to recover such excess amount.
SCHEME 05: COMPUTATION OF ARREARS
(1) Payment of amounts computed in accordance with paragraph 4 shall be governed by the following conditions namely :
(a) the employee shall not be entitled to the amount of arrears for the period he was away from duty on loss of wages;
(b) the Corporation shall deduct from the amount of arrears so computed, income- tax in accordance with the provisions of theIncome-tax Act, 1961 (43 of 1961)-;
(c)
(i) on completion of computation of wages of an employee, provident fund contributions of the employees shall be recalculated or readjusted on the basis of the difference between the provident fund contribution actually made by him and amount of provident fund calculated in accordance with paragraph 4 and any excess amount of provident fund payable by the employee shall be recovered out of the arrears payable to him and credited lo his provident fund account and the Corporation shall also contribute a matching amount to the provident fund account of the employee;
(ii) after recalculation of the provident fund contribution of an employee, if it is found that during any period, the amount deducted, based on the actual wages paid, is more in comparison with the amount of provident fund required to be deducted on the basis of wages due to him on the basis of paragraph 4, such excess contribution to his Provident Fund Account shall not be refunded to the employee. However, the excess equivalent contribution made by the Corporation for the relevant period shall be re-adjusted from the amount of arrears that may be payable to the employee.
(2) Where an employee has received for any period an amount in excess of the amount computed in accordance with paragraph 4, the Corporation shall have the right to recover such excess amount from the amount of arrears payable to the employee.
SCHEME 06: TIME LIMIT FOR THE PAYMENT OF ARREARS
- The Corporation shall make the payment of arrears in accordance with paragraph 4 within six months from the dale of publication of this scheme.
SCHEME 07: CATEGORISATION OF EMPLOYEES
- There shall be seven grades for the Clerical Employees and Labour Employees of the Corporation who are governed under the scheme, as set out in the Third Schedule.
SCHEME 08: GENERAL
- Subject to the condition that there shall be no retrenchment of any employee, the Corporation shall undertake such steps as may be necessary for increasing productivity by way of work-simplication, reallocation of work, redeployment of employees, installation of improved and more efficient equipment, closure of unproductive units, relocation of establishments or part thereof, relocation of plants and machinery or introduction of new lines of production and manufacture.
SCHEME 09: TRANSFERS
(i) The Corporation shall be entitled to transfer employee from one unit to another unit in the same Department or from one Department to another Department in the same establishment of the Corporation.
(ii) An employee of the Corporation may be transferred from one establishment of the Corporation lo another establishment in the interest of increasing productivity of the Corporation.
SCHEME 10 INTERPRETATION
- If any question arises as to the interpretation of this scheme, the decision of the Central Government thereon shall be final.
SCHEME 11:
All other conditions of service of employees which are not specifically covered by this scheme shall continue to be applicable.
SCHEDULE 01: SCHEDULE
(see paragraph 4) PART 'A' Conditions of service applicable to employees for the period from 24th day of January, 1976 to 31st day of December, 1979 1 Wage Scales
- The Wage Scales effective from 24th day of January, 1976 shall be as follows : Grades:
1. Rs. 300-8-356-8-412-9-520
2. Rs. 330-8-410-10-40-10-520-12-580
3. Rs. 375-13-440-15-530-15-695
4. Rs. 445-15-640-16-672-16-800-18-854
5. Rs. 515-16-643-18-769-20-934
6. Rs. 615-20-755-25-805-25-1030
7. Rs. 665-25-915-30-1125
NOTE.- The Wage Scales are consolidated at All India Consumer Price Index No. 244 Simla Series (1960 = 100). 2 Fixation of salary
-
(A) The Basic Salary of the employees shall be fixed at the minimum stage of respective Wage Scales from the dates of their original appointment in the Corporation's service. Annual increments as due on completion of each year of service, shall be given to employees in their respective grades.
(B) If during the relevant period, any employee has been promoted to higher positions, promotional increments and fitments, if any, shall be given in the following manner, namely:
(i) the employee on promotion shall be given an increment in his existing scale and he shall then be fined in the nearest higher step in the higher grade;
(ii) the employee on promotion shall be fitted at the minimum of promoted scale in case the basic pay after giving one increment in the pre-promoted scale is less than minimum of the promoted scale.
3 Dearness Allowance
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(A) Fixed Dearness Allowance. - With effect from the 24th day of January, 1976, all eligible employees shall be paid Fixed Dearness Allowance at the following rates:
(i) Grades I to 4: Rs. 85/- per month; and
(ii) Grades 5 to 7: Rs. 105/- per month.
(B) Variable Dearness Allowance.- Variable Dearness Allowance shall be paid to the eligible employees, linked to All India Consumer Price Index Number (1960 = 100) Series. For any increase or decrease in the Quarterly Average Consumer Price Index by a full point. Variable Dearness Allowance shall be increased or decreased at the rate of Rs. 1.30 per point rise or fall over All India Consumer Price Index No. 244.
Explanation.- For the purpose of this sub-clause the Quarterly Average of Consumer Price Index Number shall be computed as follows, namely : For Variable Dearness Allowance payable for the first Quarter of any year, average of Consumer Price Index Numbers for the months of September, October and November of the preceding year shall be taken into account. Similarly, for Variable Dearness Allowance payable in the second quarter of any year, the service of Consumer Price Index Numbers for the month December of the preceding year and January and February of the current year shall be taken into account. The Variable Dearness Allowance payable for subsequent quarters shall also be worked out on similar basis.
4 House Rent Allowance
- With effect from the 24th day of January, 1976, all eligible employees shall be paid House Rent Allowance at the rate of 25 per cent. of Basic Salary of Rs. 150/- per month, which is less.
5 City Compensatory Allowance
- With effect from the 24th day of January 1976, City Compensatory Allowance shall be paid to eligible employees at the rate of 8 per cent. of basic salary subject to a maximum of Rs. 75/- per month,
6 Shift Allowance
- With effect from the 24th day of January, 1976, all eligible employees working in two shifts rota or three shifts rota shall be entitled to shift allowance at the rate of Rs. 2.50 per shift worked.
7 Transport Allowance
- With effect from the 24th day of January, 1976, all eligible employees shall be entitled to Transport allowance at the rate of Rs. 40/- per month.
8 Washing Allowance
- With effect from the 24th day of January 1976, Washing allowance at the rate of Rs. 10/- per month shall be paid to those employees who were in receipt of Uniforms or protective work clothes, provided that the arrangements made by the Corporation to wash the uniforms were not availed by them.
9 Leave Fare Assistance
- With effect from the 24th day of January 1976, all employees, who have completed more than 6 months service in a calendar year, shall be entitled to Leave Fare Assistance as follows : Basic Pay Range (per month) Leave Fare Assistance
(i) Upto Rs. 415 Rs. 500/-
(ii) Rs. 416/- to Rs. 785/- Rs. 600/-
(iii) Rs. 786 to Rs. 1015/- Rs. 750/-
(iv) Rs. 1016/- and above Rs. 1000/-
10 Leave
(A) Privilege Leave.- Privilege Leave for all eligible employees shall be credited at the rate of 32 running days per calendar year of service.
(B) Casual Leave.- All eligible employees shall be entitled to Casual Leave at the rate of 12 days per year.
(C) Sick Leave.- All eligible employees shall be entitled to Sick Leave, if not covered under the Employees State Insurance Scheme, at the rate of 10 days per annum and if covered under the Employees State Insurance Scheme, at the rate of 7 days per annum.
(D) Maternity Leave.- Maternity Leave shall be admissible to eligible female employees in accordance with the provisions of theMaternity Benefit Act, 1961 (53 of 1961)-.
11 Working Hours
- With effect from the 24th day of January, 1976, the working hours for labour and clerical employees shall be as follows, namely :
(i) For labour employees.- 48 hours per week and
(ii) For clerical employees.- 40 hours per week.
12 Provident Fund
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(a) Eligible employees shall be required to make contribution to Provident Fund at the rate of 8 per cent. of their Basic Salary plus Variable Deamess Allowance and plus Fixed Dearness Allowance.
(b) The Corporation shall make matching contribution to the Employees' Provident Fund Accounts.
13 Gratuity
-Gratuity shall be payable to eligible employees in accordance with the provisions of the Payment of Gratuity Act, 1972 (39 of 1972)-PART 'B' Conditions of service applicable to employees for the period from the 1st day of January, 1980 to the 31st day of December, 1983
1 Wages Scales
-With effect from the 1st day of January, 1980, the Wage Scales applicable to the eligible employees shall be as follows, namely : Grades:-
1. Rs. 325-8-381-8-437-9-545.
2. Rs. 355-8-435-10-465-10-545-12-605.
3. Rs. 400-13-465-15-555-15-720.
4. Rs. 470-15-665-16-697-16-825-18-879.
5. Rs. 540-16-668-18-794-20-954.
6. Rs. 640-20-780-25-830-25-1055.
7. Rs. 690-25-940-30-1150.
NOTE.-The Wage Scales are consolidated at All India Consumer Price Index No. 244. Simla Series (1960=100).
2 Fixation of salary
-
(A) The Basic salary of the employees who joined the Corporation prior to the 1st day of January, 1980 shall be arrived at by adding Rs. 25/- to their Basic Pay as on 31st December, 1979 and fitting them in the respective Scales as provided in Cl. (1) above. Annual increments as due to completion of each year of service shall be given to employees in their respective grades.
(B) The Basic Salary of employees who joined the Corporation between the period 1st January, 1980 and 31st December, 1983 shall be arrived at by fitting them at the minimum stage of the respective scales from the dates of their original appointments in the Corporation's service. Annual increments as due on completion of each year service shall be given to employees in their respective grades.
(C) If during the relevant period, any employee has been promoted to higher positions, promotional increments and fitments, if any, shall be given as follows :
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