[UPNL Employees Case] Major Defeat to Uttarakhand Govt. as SC Dismissed SLP

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The Uttarakhand state government encountered a legal setback in the Supreme Court regarding the case involving UPNL (Uttarakhand Purva Sainik Kalyan Nigam Limited) employees. The court rejected the Special Leave Petition (SLP) filed by the government, which sought intervention in matters related to the employment and rights of these workers,

The state government of Uttarakhand suffered a significant legal setback in the Supreme Court regarding the ongoing case involving approximately 25,000 employees of the Uttarakhand Purva Sainik Kalyan Nigam Limited (UPNL).

The Supreme Court dismissed the Special Leave Petition (SLP) filed by the state government, effectively upholding an earlier decision by the Uttarakhand High Court that favoured the UPNL employees.

The legal battle stems from a 2018 ruling by the Uttarakhand High Court, which directed the state government to develop proper regulations governing the employment conditions of UPNL workers. UPNL, an entity created to provide employment opportunities to ex-servicemen and others in the state, has employed thousands of workers over the years. However, these employees, many of whom work in various government departments through UPNL, have long complained about disparities in wages and working conditions when compared to their counterparts employed directly by the government.

In its 2018 judgment, the High Court ruled that the UPNL employees were entitled to “equal pay for equal work.” The court made it clear that until the state government drafted and implemented proper regulations for the employees of UPNL, these workers should be granted wage parity with regular government employees performing similar duties. This directive was meant to address the long-standing grievances of the UPNL employees, who argued that despite performing the same functions as regular government employees, they were not compensated equitably.

In 2018, the Nainital High Court directed the creation of a regulatory framework for UPNL (Uttarakhand Purva Sainik Kalyan Nigam Limited) employees. It also instructed that, until such regulations were in place, these employees should receive equal pay for equal work. The state government, however, challenged this ruling in the Supreme Court.

Around the same time, the government dismissed 138 employees from the State GST department. Following the High Court’s decision in this case, the state took the matter to the Supreme Court, which ultimately dismissed the Special Leave Petition (SLP) filed by the government.

During this period, the UPNL Employees Federation urged the government to withdraw the SLP filed in the Kundan Singh vs. State Government case. Nevertheless, the government persisted with its legal efforts. Now, with the Supreme Court’s rejection of the SLP, the state government has suffered a significant setback, impacting the future of approximately 25,000 UPNL employees.

This ruling has reignited hope for UPNL employees, who have long demanded the fulfillment of their employment rights. The court’s decision brings new optimism to those deployed in various departments through UPNL. Vinod Kavi, state president of the Electricity Contract Employees Organization, praised the ruling as a triumph for justice.

End of Departmental Contracts in 2003
In 2003, the state government discontinued departmental contract employment, leaving UPNL as the sole agency for recruiting personnel according to established standards. Consequently, employees recruited through UPNL began advocating for their right to be prioritized for regularization.

Vinod Kavi, Coordinator, Electricity Contract Unity Forum stated,

“The Supreme Court’s decision in the Kundan Singh vs. Uttarakhand Government case is a welcome development. It represents a victory for truth and perseverance, securing the future of hundreds of contract employees working through UPNL in various state departments. We urge the state government to promptly initiate the regularization process in the interest of these contract employees.”

The state government contended that the High Court’s directive placed a significant financial burden on the state, and that the unique nature of UPNL’s employment structure should not be compared to regular government employment. However, the Supreme Court dismissed the state’s SLP, thus upholding the High Court’s decision.

This outcome has far-reaching implications for the UPNL employees, as it reinforces their demand for fair wages and equitable treatment. It also places pressure on the state government to expedite the creation of formal regulations governing their employment. The ruling is a major victory for the UPNL workers, who have been fighting for recognition and parity for years. The state now faces the challenge of balancing the financial implications of the ruling with the necessity of ensuring justice for the employees.




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