62,000 Defence Civilian Employees Hopeful of Retaining Central Government Status

Over 62,000 defence civilian employees are hopeful of retaining their central government employee status following a cabinet secretary's assurance. This status offers job protection, better benefits, and pay revisions, including those from the 8th Pay Commission, compared to PSU employment. The government had previously assured this in court but a formal notification is awaited.

Around 62,000 defence civilian workers, who are on deemed deputation in seven defence PSUs , are really optimistic about a government notification that will confirm their status as central government employees. This comes after Cabinet Secretary TV Somanathan promised to support their request for continued deputation during the 49th meeting of the National Council - Joint Consultative Machinery (NC-JCM) this month.

C Srikumar, the secretary of the All India Defence Employees’ Federation (AIDEF), represented the defence civilian employees at the NC JCM meeting. He told ET Wealth Online that nearly 62,000 employees want to retain their status as central government employees, aiming for job security, higher salary and retirement benefits, especially those from the 8th Pay Commission, which are more favourable than what Public Sector Undertaking (PSU) employees receive.

Srikumar says that the Cabinet Secretary’s assurance has boosted the hopes of nearly 62,000 employees that the government would soon confirm their status as central government employees.

Citing an example, Srikumar said when the Prasar Bharti Act came into effect, the government issued a similar notification for employees working in Doordarshan and All India Radio.

The 8th Pay Commission has been working to revise the payout and allowances of central government employees and is expected to submit its recommendations next year.

Why do 62,000 defence civilian employees want a government notification to confirm their status as central government employees?

Srikumar says employees working in 41 production units (ordnance factories) were shifted to seven newly formed defence PSUs in October 2021 on a five-year deemed deputation, ending September 30, 2026.

Srikumar said the government in the Madras High Court assured these 62,000 employees that their status as central government employees will be retained but never issued any notification. He said the Cabinet Secretary’s assurance in the NC JCM meeting has raised their hopes about a notification.

In a case filed by AIDEF in the Madras High Court, the central government had said: “It is humbly reiterated that employees will continue to be central government employees on deemed deputation to the new corporations unless they themselves opt to get permanently absorbed in these new corporations. Hence, there is no violation of any fundamental right or Article of the constitution, including Article 14 and Article 311”.

What did the cabinet secretary say in the NC-JCM meeting?

The AIDEF secretary says that the Cabinet Secretary has assured the federation that a committee of secretaries will recommend to the Empowered Group of Ministers (EGOM) to extend the deemed deputation of defence civilian employees of ordnance factories till their retirement/superannuation from service.

What will be the benefits if 62,000 defence civilian employees retain central government employee status?

AIDEF says 62,000 defence civilian employees are likely to get these benefits if they retain their status as central government employees -

Job protection till retirement

If the PSU is closed, there is no provision for alternative employment.

In central government jobs, alternative job with pay protection is available if an organisation is closed

Many facilities such as child care leave, paternity leave, LTC leave encashment, full medical coverage, etc, are better for central government employees

PSU wage revision depends upon the loss/profit of the company

With the 8th Pay Commission in place, central government employees will get payout revision.

Central government service is protected under Articles 309, 310 & 311 of the Constitution of India.