In a recent judgment, the Punjab and Haryana High Court addressed two pivotal issues concerning employment law: the enforceability of transfer policies and the irrevocability of voluntary retirement applications post-acceptance.
The case involved Babita Kaushal, a Scale-I officer at Punjab Gramin Bank, who was transferred from Hoshiarpur to Shri Har Gobindpur on April 18, 2024. Challenging this transfer, Kaushal argued that it violated the bank's Transfer Policy of 2023, specifically Clause 8(i), which permits officers within three years of retirement to be posted in their home region. She also cited health concerns that impeded her ability to travel. Concurrently, Kaushal submitted an application for voluntary retirement (VRS), which the bank accepted on May 27, 2024. The following day, she attempted to withdraw her VRS application, claiming it was submitted under coercion; however, the bank denied this withdrawal. Consequently, Kaushal filed two writ petitions: one challenging the transfer order and another contesting the acceptance of her VRS application.
The court examined whether the bank's transfer policy constituted an enforceable right. It concluded that transfer policies are administrative guidelines intended to facilitate internal management and do not create legally enforceable rights for employees. Therefore, an employee cannot legally challenge a transfer solely based on alleged violations of such policies.
Regarding the VRS application, the court held that once an employee's request for voluntary retirement is accepted by the competent authority, the employee cannot unilaterally withdraw it unless such withdrawal is permitted under the applicable regulations. In Kaushal's case, the bank's regulations did not allow for withdrawal after acceptance, rendering her attempt to retract her VRS application invalid.
This judgment underscores that administrative guidelines like transfer policies do not grant enforceable rights to employees. Additionally, it affirms that once a voluntary retirement application is accepted, the employee cannot withdraw it unless explicitly allowed by the governing regulations.
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