DPE guidelines on terms of employment will not apply to public sector banks: HC

The guidelines issued by the Department of Public Enterprises on personal policies, related terms and conditions of employment and indemnity bonds secured from employees, will not apply to the public sector banks, said the High Court of Karnataka. The guidelines by the DPE of Ministry of Heavy Industries and Public Enterprises are not applicable to public sector banks as these guidelines are applicable only to the public sector enterprises, which have different service conditions packages and lateral movement of public officials,” the Court said. Pointing out that DPE’s guidelines allows continuation of period of minimum service as specified in the indemnity bond in the new public sector enterprises to which the employee joins, the single judge had said that the bank, being a public sector undertaking, is bound by these guidelines. The single judge had said that petitioner, Abhimanyu Kumar, who left the bank before expiry of three years bond period to join Steel Authority of India Limited, a public sector enterprises, is entitled for refund of ₹3 lakh as he is entitled for continuation of minimum period of service as per the indemnity bond with SAIL.