Economy

Centre to turn the heat on non-performing PSU employees

| Updated on: Jan 01, 2016

Quarterly performance audit for employees on cards

The officers with Central Public Sector Enterprises, who have completed 30 years of services or reached the age of 50, will also have to undergo a quarterly performance audit similar to the review for civil servants.

The move is expected to help improve the “probity and efficacy” of employees of public sector units, according to a recent directive by the Department of Public Enterprises.

“All concerned Ministries and Departments are requested to advise the CPSEs under their administrative control to carry out the exercise of periodical review of officials of their respective organisations…,” said the DPE, adding that similar provisions as laid down under FR 56 (j) are incorporated in their respective service rules.

Under the provision, the government can retire employees who have completed 30 years of service in lieu of three months’ notice period or three months salary and allowances.

The Department of Personnel and Training had in September last year issued a similar directive to spruce up the administration by initiating such performance reviews of all government employees six months before they attain the age of 50 or 55 years and on completing 30 years of service. Based on the appraisal, non-performing employees would be allowed to retire.

“Such a policy has already been in place for civil servants and government employees for some time, which was re-iterated last year by the DoPT. Since PSUs are also under state control, it was felt that their employees should also come under a similar review,” said a senior official, adding that the move is also expected to improve the performance and productivity of PSUs.

“If state run firms have to compete with private sector companies, their employees also have to be fully focussed and interested in working,” said the official.

According to DPE data, the directive will impact over 14.04 lakh workmen, clerical staff and executives in 277 CPSEs (excluding banks and insurance companies) as on March 2013.

“PSUs already have a system of performance management which is very effective. But all guidelines issued by the government will be followed,” said UD Choubey, Director General of SCOPE.

Published on January 19, 2018

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