The Supreme Court has ruled that job contractors in Odisha are not entitled to pension benefits for their pre-regularisation service, unlike work-charged employees under the Odisha Pension Rules, 1992.
Key Takeaways from the Judgment:
• On-duty employees: If they serve for a minimum of five years and subsequently attain pensionable rank, their entire on-duty tenure is counted for pension eligibility.
• Job Contractors: As per Rule 18(6) of the Odisha Pension Rules, as amended in 2001, only a part of their job contract service after regularization is considered for pension.
Background & Legal Proceedings:
- The Odisha Administrative Tribunal (OAT) and the Odisha High Court had already ruled in favour of the job contractors, covering their entire tenure for pension.
- The Supreme Court overturned this decision, citing previous judgments and legal provisions that distinguish work-charged employees from job contractors.
Criticism of the Odisha Government:
- The court criticised the Odisha government for delaying legal action and imposed a fine of Rs 1.5 lakh on each affected employee for unnecessarily prolonging the case.
- Despite the state’s inaction and procedural delays, the court took up the case because of its significant financial implications.
Final Verdict:
- The Supreme Court upheld Rule 18(6), confirming that only a limited period of contract service would be considered for pensionary benefits after regularisation.
- The Odisha government’s appeal was allowed, but with a financial penalty for its negligence.
Case Details:
Case Title: State of Odisha & Ors. vs. Sudhansu Sekhar Jena & Others
Citation: 2025 LiveLaw (SC) 239
The decision reinforces the legal distinction between work-charged employees and job contractors with regard to pension rights in Odisha.
