santosh (engineer) 29 June 2011

Deputation from PSU to private

I on behalf of around thousand permanent employees of Air India Ltd. would like to know that can the PSU management sent these permanent employees on forced deputation to a private company Air India SATS which is a 50-50 joint venture & registered as a private company as per ROC.

Also indicate is it officially permitted to for a PSU/ government to send its employees to a private body where they would have to wear uniform of the private company & work under private company management.

The Air India management has also not taken any consent from the employee or union but directed its employee under individual letters to join the company from 0000hrs 01/07.2011.

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5 Replies

(Guest)

If the employer has a stake in any other company, it can send its employees on forcerd deputation to run the company till the company recruits its own staff. MTNL and BSNL are the living examples, where 100% staff was put on deemed deputation on conversion of parts of the Department of Telecom in to PSUs. However, the employees may place their demand for deputation and other deputation facilities/ concessions, as per the Central Government Rules.

Sudhir Kumar, Advocate (Advocate) 18 February 2012

Never heard of PSU sending persons to private employment. But manning of private institution by public officials is at times there in the time of crisis. In that acase source of salary may not be changing. You have not referred to terms of employment.

santosh (engineer) 19 February 2012

This is the fact and the permanent employees of Air India commercial department are now in working for AISATS where Air India has a minority stake of 50%. The employees are allowed to draw 10% of basic pay as deputation allowance over and above their original salary.

Sudhir Kumar, Advocate (Advocate) 19 February 2012

why 10% entitlement may be 5% under Govt norms. PSU appears to be liberal

(Guest)

Mr. Sudhir Kumar,

You may probably need to review and find out difference between deputation at same station and deputation out of station for the purpose of deputation (duty) allowance.