(IREC - 1002) General Rules of Gratuity - Introduction & Definitions.

Introduction & Definitions - Gratuity 

Except as provided for in rule 1008, these rules shall apply to temporary railway servants recruited under the normal recruitment rules prior to 16th November, 1957 and who have not opted for the Pension Scheme; (IREC - 1001)

Note. - These rules also apply to temporary engineers recruited either locally, or through the Union Public Service Commission, after 19th October, 1955 but prior to 16th November, 1957 provided they have not opted for the Pension Scheme.

Gratuity - In these rules unless there is anything repugnant in the subject or context,- (IREC - 1002)

(1) 'Controlling Officer' means, in relation to the classes of railway servants specified in the first column of the table below, the officer or authority specified in the corresponding entry in the second column thereof; 

Classes of railway servants                                                   Controlling Officer

(2) 'Children' means legitimate children and step-children and shall also include adopted children at the discretion of the Controlling Officer according to the circumstances of each case irrespective of whether the adoption was valid under the personal law of the subscriber, having regard to his religion, or not. 

(3) 'Pay' means the average pay as defined in the manner indicated in rule 103(35) except that in the case of grant of compassionate gratuity to :- 

(i) a permanent railway servant it will mean the substantive pay admissible to him in the permanent post on which he holds a lien or would hold a lien had it not been suspended on the date of quitting service, and shall include personal pay and special pay; 

(ii) a temporary railway servant the pay last drawn by him in the temporary post which he would have officiated continuously but for his death: 

Provided that in respect of a railway servant of either case, entitled to running allowances, pay shall also include the monthly average running allowances drawn by the railway servant during 365 days of running duty immediately preceding the date of quitting service limited to 75 percent of average pay for the same period.

Note 1.-Pay for this purpose shall also include "Dearness Pay". 

Note 2.- The provision contained in rule 902(8) equally apply in this case. 

Railway Board's decision.- Railway Board’s decisions under rule 902(8) shall also apply to this rule. 

(4) 'Railway Servant' means a person belonging to the Railway Audit Department or holding a post under the administrative control of the Railway Board, other than a person whose services are obtained on loan from a Department not under the control of the Railway Board or the Additional Deputy Comptroller and Auditor General of India (Railways). 

(5) 'Running allowance' is an allowance ordinarily granted to running staff for the performance of duty directly connected with the charge of moving trains, and includes mileage allowance but excludes special compensatory allowance. 

(6) 'Service' for the purposes or these rules means a continuous service paid monthly from railway revenues and includes any periods- 

(i) of officiating or temporary service or service as paid apprentice or as probationer ; 

(ii) spent on the works Establishment of the Railway whose pay is paid monthly; or

(iii) which the President may by general or special order permit to be counted as service.

A gratuity may be paid to a temporary railway servant.- (IREC - 1003) 

(a) on discharge from service arising directly or indirectly from a reduction of establishment; or

(b) on retirement on account of permanent incapacity due to bodily or mental infirmity. 

Railway Board's orders.-1. These orders do not apply to those temporary engineers who were recruited up to 19th October, 1955 and are governed by the following provisions: - 

(i) Temporary engineers should subscribe to the State Railway Provident Fund on completion of one year's continuous service, the amounts of subscription, the contribution by Government and other conditions for such subscription and contribution, etc. being the same as those laid down in the State Railway Provident Fund Rules. In case the employee quits service for any reason, whatsoever, before the completion of five years service, Government contribution and the interest thereon will not be payable but in such cases gratuity at half a month's Pay for each completed year of service will be payable if the employee retires : 

(a) on account of permanent incapacity due to bodily or mental infirmity; or 

(b) on abolition of appointment due to a reduction of establishment; and 

(ii) a special contribution will be payable in add1tion to the Government's contribution payable under (i) above if the service of the employee exceeds a continuous period of 12 years; this will be subject to the usual condition governing the grant of special contribution to a Gazetted officer in permanent employ. 

(Railway Board's letter No. E47RC/1C1, dated the 24th February, 1950, 30th March, 1950 and E 54RC2/ 14 dated the 19th October 1955). 

2. Grant of gratuity at the rate of a half a month's pay for each completed year of service is normally admissible to temporary railway servants discharged from service; provided that they have been recruited under the normal recruitment rules and that their discharge has been due to the reduction of establishment and not due to cessation of isolated temporary posts. This concession does not cover staff recruited otherwise on construction projects where the cessation of currency of sanction to temporary posts on completion of different phases of work cannot strictly be held to be "reduction of establishment". It has, however, been decided that the benefits of granting gratuity in the cases of staff employed on projects or a group of works or constructions; should be viewed sympathetically so long as they are not cases of persons engaged for brief periods on projects or elsewhere, who are discharged on cessation of currency of isolated temporary posts. All cases of expected retrenchment of staff where it is proposed to grant gratuity, should be referred to the Railway Board for sanction. 

(Railway Board's letter No. F(S) 56-CPC/44 dated 13-9-55).

No gratuity shall be admissible to re-employed retired staff. (IREC - 1004)

Also See

Discipline & Appeal Rules (Railway)

Establishment Rules (Hindi & English)