Dear Comrades,
3-6-2021
Reg: Compassionate Ground Appointments in Banks
Units are aware that AIBEA had taken up with IBA the issue of expeditious appointments under compassionate grounds for the family members of employees who unfortunately die while in service, particularly, the cases arising out of death due to covid-19. The matter was discussed by the HR Committee of IBA and also by the Managing Committee of IBA. Based on the discussion and decisions of these meetings, IBA has sent its Advisory to the PSBs as furnished herein.
Units will please note that as per the Advisory,
1)
2) The stipulation of cap of 5% vacancies need not be insisted till March, 2022 3)
4)
5)
We are thankful to the IBA for these positive guidelines. We hope that Bank managements would following this Advisory and act accordingly. Our All India Bankwise Unions/Federations are requested to take note of the above, while pursuing the issue with their managements.
Banks need to be more compassionate under the current pandemic scenario and
cases of compassionate appointments should be taken up expeditiously.
Amount/Compensation (example: Rs. 20 lacs paid to family for covid deaths) received by the family of the deceased on account of pandemic not to be reckoned for evaluating the eligibility for compassionate ground appointments/
compensation.
Banks have the flexibility to define the indigent condition of the family of the deceased employees while considering compassionate ground appointments.
Banks have a free hand in ascertaining the financial distress of a family.
Banks can finetune their present Scheme in their Banks having regard to the
schemes/modalities available in other Banks.
With greetings,
PTO … IBA’s Advisory dt. 1-6-2021
Yours comradely,
C.H. VENKATACHALAM GENERAL SECRETARY
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IBA’s ADVISORY TO BANKS: June 1, 2021
Chairman SBI and MD & CEOs of Public Sector Banks
Dear Sir/Madam,
Scheme of appointment on Compassionate grounds in PSBs
The Scheme of appointment on Compassionate Grounds in Public Sector Banks was introduced with the approval of the Ministry of Finance, Department of Financial Services vide D.O.F. No. 18/2/2013-IR dated 7-8-2014. Further DFS vide its letter F.No.18/2/2013-IR dated 5.12.2014 advised IBA that all PSBs can have both the options i.e. compassionate appointment or payment of lump sum ex-gratia amount. Any of the options can be used only when the other conditions of compassionate appointment are met. This advice was
circulated amongst member banks vide our letter dated 31.12.2014.
2. We have been approached by banks referring to the eligibility clause 5.1 of above mentioned IBA circular which states “the family is indigent and deserves immediate assistance for relief from financial destitution”. Banks with the approval of their Boards have put in methodologies to assess eligibility to comply with the above criterion. The
methodologies are based on income on account of family pension and interest income on terminal benefits of the deceased received by dependents, known deposits, known sources of income etc. While some have fixed a benchmark criterion ranging from 50 % to 70 % while comparing the income from above sources to last gross / net emoluments of the deceased employee, some have even fixed an amount say Rs 50,000 per month as benchmark. There is no uniform criterion in place across PSBs and hence many banks have
requested for the same.
3. Besides, there is a cap of 5 % on such recruitments. As per extant policy guidelines Compassionate appointment can be made upto a maximum of 5% of vacancies falling under direct recruitment quota in clerical cadre or vacancies identified in the sub-staff category. The Bank may hold back 5% of vacancies in the aforesaid categories to be filled by appointment on compassionate grounds. While under normal circumstances, banks did not face much challenge in complying with the above criterion, under the current pandemic scenario this has become difficult to comply with. Considering the current scenario of pandemic when about 300 deaths are being reported from PSBs every week, above issues have become more pronounced and assumed urgency to be addressed to keep the morale
of the workforce up.
4. The matter was placed in the meeting of IBA Standing Committee on HR held on 12.05.2021. The Committee deliberated on the issue. It was felt by all members that banks need to be more compassionate under the current pandemic scenario and cases of compassionate appointments should be taken up expeditiously. SBI model of compassionate appointments was also discussed at length. It was suggested that Banks can study the SBI model or any other bank’s models and fine tune their policies. It was also suggested that the amount/compensation received by the family of the deceased on account of pandemic should not be reckoned in any manner for evaluating eligibility for compassionate appointments/ compensations. Committee after detailed deliberations suggested that the para 5.1 provides flexibility and by defining indigent family, perhaps, the flexibility would be compromised. Banks have their own way of defining indigent families
and they are free to amend that with approval of their Boards. Banks have a free hand
in ascertaining the financial distress of a family.
Post-amalgamation of banks and also under the given pandemic scenario, the banks may not have cushion to declare new vacancies and hence compliance with the laid down cap of 5 % may pose a challenge in offering compassionate appointments. It was suggested that till 31/3/22 the banks’ that are not presently able to comply with this criterion may take dependent family members on compassionate appointments, and adjust the appointments in their future vacancies over a few years for the purpose of compliance with this clause. Thus,
over the long run they would remain compliant.
5. The Managing Committee of IBA in its meeting held on 21.05.2021 has also accorded its
approval to issue this advisory. Please be guided accordingly.
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