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Appointing heirs of employees after Retirement – Unconstitutional: Supreme Court


Contents News/Article  Date:  5th  September 2022  

Relating to which  Act:  The Indian Succession Act, 1925, The Industrial Disputes Act, 1947, The Industrial Employment Standing Orders Act, 1946

Type:    A bench comprising Justices MR Shah and BV Nagarathna of the Supreme court gave their judgment 

Relevance of this news:   Karma Management Global Consulting Solutions Pvt. Ltd is in the business of  Payroll, Outsourcing, and Regulatory Compliances from its inception in 2004 and since then,  has brought in a lot of efficiencies and technological upgradations with experts on its roll, to ease the hassles of Payroll Processing, Temp Staffing On-boarding Management, Regulatory and Payroll compliances by providing customized solutions to all its elite clients.

Now Karma Global is also fully into labour compliances for nearly 18 years and is helping both establishments and workers the fulfillment of obligations as per the laws of the land.  It has over 200 staff, both direct and indirect on its rolls and operates on a Pan India basis.  Recently, it has diversified into foreign shores as well, into countries like the US, UK, UAE, Canada, Philippines, and Asia for handling payroll, outsourcing, recruitment, and governance.

Karma Management, besides payroll, outsourcing, and labour laws, is deeply into the management of HR services where it does a lot of work on employment contracts, recruitment and talent acquisition, compensation and benefits, health and wellness programs, performance management, training and development, career and succession planning, employee engagement and corporate social responsibility programs.  It has over 6000 employees on its roll who are outsourced to us and their entire employee life cycle is managed by our expert staff dedicated to this purpose.

It has faced a number of situations for recruiting people in such situations relating to the supreme court judgment, however, it has proceeded judiciously after considering all the parameters in relation to succession by kin,  succession on merit, etc., and also makes a lot of effort in guiding the establishments on this front.   Incidentally, it has an alliance with S. D. Puri & company who are leading advocates and handling legal, paralegal, disputes, litigations, settlements, etc. for a vast clientele and who work closely as a part of the collaboration with karma management.


Subject: Appointing heirs of employees after retirement unconstitutional: Supreme Court

 For greater details, attached is the notification

Appointing heirs of employees after Retirement – Unconstitutional: Supreme Court


The Supreme Court said on Monday that appointing heirs of the employees on their retirement or superannuation is a violation and unconstitutional. The Supreme Court said it is violative of Articles 14 and 15 of the Constitution. A bench comprising Justices MR Shah and BV Nagarathna observed that if the appointment of heirs to the employees is permitted after their resignations, outsiders should never be allowed to get an appointment. The bench said only the heirs of the employees on their superannuation and/or retirement shall get an appointment.
An industrial court had earlier directed the Ahmednagar Mahanagar Palika to give appointment to the heirs of the employees on their retirement/ superannuation. It was done on the basis of a settlement award between the Employees Union and the Mahanagar Palika. 
The Union had demanded that legal heirs of the employees be employed after their retirement. Mahanagar Palika had filed a writ plea challenging this order which was dismissed by the Gujarat high court. 
During the hearing before the Supreme Court, Mahanagar Palika argued that the direction of giving appointment to the heirs of the employees shall be hit by Article 14 of the Constitution of India and against the appointment on compassionate grounds. 

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