New Delhi: In a major ruling on the rights of temporary government workers, the Supreme Court on Monday held that long-serving employees cannot be denied pension and other retirement benefits merely because they were not formally regularised in service.

Setting aside a Patna High Court order, a bench of Justices Sanjay Karol and A.G. Masih directed the Centre to compute and release pensionary and consequential retiral benefits within three months to former Department of Posts employees who had served for decades as casual labourers (Night Guards). The court said a delay in payment would attract interest at the rate of 6 per cent per annum from the date of accrual till disbursement.

The top court observed that the employees had been granted temporary status and benefits akin to Group 'D' staff but were never formally regularised, largely due to administrative inaction by the Department of Posts.

Holding that such employees cannot be deprived of benefits available to similarly placed regular workers, the bench said, "The emphasis must be on ensuring that the State does not retain such employees in a precarious condition while extracting services identical to those performed by regular employees."

The court said it has consistently taken the view that long-serving employees, whether casual or temporary, particularly those who have been conferred recognised status, cannot be denied corresponding benefits, including social security and pensionary benefits.

Referring to the constitutional obligations of the State, the bench said, "The Directive Principles of State Policy, particularly Articles 38, 39 and 43, cast a positive obligation upon the State to ensure social and economic justice, fair conditions of work, and a decent standard of life for labourers. Pension, in this context, is not a gratuitous benefit but a facet of social welfare and economic justice."

The Supreme Court also reiterated that pension is a legal right earned through years of service.

"At this stage, it is also necessary to note that pension is not a bounty but a vested and enforceable constitutional right," the bench said.

Referring to an earlier judgment, the court noted that pension is a hard-earned benefit accumulated through long and continuous service and is in the nature of property under Article 300A of the Constitution.

Once pension is recognised as a constitutional right in the nature of property, it cannot be taken away except by authority of law.

The bench further observed, "A statutory right cannot be rendered illusory on account of inaction of the employer, and such inaction cannot defeat or deny a constitutional right."

Examining the Department of Posts' 1991 Scheme for casual labourers, the court said the policy was intended to gradually extend service benefits and integrate such employees into the regular service framework. The scheme provided wages and allowances linked to regular Group 'D' employees, indicating an intention to progressively align their service conditions with those of regular staff.

Holding that the Patna High Court had wrongly interpreted the scheme and a subsequent government circular, the Supreme Court declared the judgment unsustainable in law and set it aside.

With PTI inputs