Artificial Breaks in Service: Constitutional and Industrial Perspectives in India

Artificial Breaks in Service: Constitutional and Industrial Perspectives in India

Introduction

Artificially engineered breaks in employment—short, strategic interruptions introduced by the employer with a view to denying continuity of service or statutory benefits—present a recurring challenge in Indian labour and public service law. They raise fundamental questions of equality of opportunity under Articles 14 and 16 of the Constitution, implicate definitions of “continuous service” in statutes such as the Industrial Disputes Act, 1947 (“ID Act”), and engage doctrines governing regularisation, unfair labour practice, and pension qualifying service. This article critically analyses the legal response to artificial breaks, synthesising constitutional jurisprudence—most notably Secretary, State of Karnataka v. Umadevi (3)[1]—with industrial and service-law decisions that confront the device head-on.

Conceptual and Statutory Framework

1. Continuous Service under Labour Legislation

Section 25B of the ID Act deems service “continuous” notwithstanding interruptions occasioned by sickness, authorised leave, accident, or a non-illegal strike. The legislature thus circumscribes breaks that may legitimately dilute statutory protection. Parallel concepts appear in Section 2A of the Payment of Gratuity Act, 1972, and Rule 3.17A of the Punjab Civil Services Rules, each permitting condonation of interruptions not attributable to the employee’s fault.

2. Condonation in Government Service

Central Civil Services (Pension) Rules, 1972, Rule 18 read with Government of India orders authorises condonation of “interruptions between two spells of civil service” unless caused by dismissal, removal, resignation, or strike. Delhi Transport Corporation v. Balwan Singh[2] confirms that, in the absence of a contrary entry in the service book, breaks are automatically condoned.

3. Unfair Labour Practice

Item 10 of Part I, Fifth Schedule to the ID Act declares it an unfair labour practice “to employ workmen as badlis, casuals or temporaries and to continue them as such for years … with the object of depriving them of the status and privileges of permanent workmen.” The Supreme Court in Regional Manager, SBI v. Raja Ram[3] and Gangadhar Pillai v. Siemens Ltd.[4] holds that artificial breaks designed to evade permanency fall squarely within this mischief.

Evolving Jurisprudence on Artificial Breaks

A. Public Employment and Constitutional Requirements

  • Umadevi (2006) repudiated judicial regularisation of employees engaged in violation of Articles 14 & 16, cautioning that sympathy cannot override constitutional mandates.[1]
  • M.L. Kesari (2010) carved out a one-time window: employees in sanctioned posts who have rendered ten years’ service without court orders may be regularised, provided the initial appointment was merely irregular, not illegal.[5]
  • Pension Cases such as N. Venkatramani v. Indian Bank[6] interpret pension rules liberally to treat more-than-six-month fragments as full years, negating end-year breaks.

B. Industrial Disputes Context

  • Raja Ram (2004) held that successive fixed-term appointments with gaps engineered to defeat permanency constitute unfair labour practice.[3]
  • Gujarat Agricultural University v. Rathod Labhu Bechar (2001) directed phased regularisation of daily-rated workers of over ten years’ standing, rejecting the employer’s plea of financial hardship.[7]
  • Mohd. Abdul Kadir v. DGP, Assam (2009) quashed a circular prescribing annual termination and re-engagement of ad-hoc appointees under a continuing scheme, branding the breaks “contrary to the principles of service jurisprudence.”[8]

C. Service-Law and Pension Qualifying Service

High Courts have routinely condoned breaks not occasioned by misconduct. In Ram Dia v. UHBVNL[9] and Sabu Mathew v. State of Kerala[10], interruptions due to staff-reduction were excluded from disqualifying service. Conversely, wilful absence attracts forfeiture.[9]

Doctrinal Synthesis of the Reference Materials

1. The Constitutional/Statutory Interface

The apparent tension between Umadevi’s insistence on constitutional recruitment and industrial decisions facilitating regularisation dissolves once their domains are distinguished. Umadevi addresses initial illegality in public appointments; industrial-law cases target subsequent manipulation of employment tenure. Artificial breaks that mask an otherwise regular, sanctioned appointment offend both regimes: they subvert Article 16’s equality guarantee and breach Item 10’s proscription of unfair labour practice.

2. Burden of Proof and Adverse Inference

M.P. Electricity Board v. Hariram[11] reiterates that employees bear the burden of proving 240 days’ service; nevertheless, non-production of muster rolls can justify adverse inference where prima facie pleading exists. Artificial breaks are often unearthed through such evidentiary presumptions, aligning procedural law with substantive justice.

3. Condonation and Pension Rights

Government orders automatically condoning unspecified breaks, as recognised in Delhi Transport Corporation[2], indicate an administrative policy hostile to punitive deployment of breaks. Courts have extended this benign interpretation, as in N. Venkatramani[6], thereby safeguarding pensionary entitlements against technical fragmentation of service.

Critical Appraisal

  1. Lacuna in Legislative Text – While Section 25B defines continuous service, no equivalent statutory prohibition of artificial breaks exists in central service rules beyond pension calculation. Codifying a clear ban would enhance certainty.
  2. Need for Uniform Administrative Guidelines – Post-Umadevi regularisation exercises have been sporadic. A central directive—modeled on the M.L. Kesari conditions—could prevent litigation and harmonise state practise.
  3. Evidentiary Facilitation – Following Hariram, shifting the evidentiary onus to employers to justify breaks once 240 days’ prima facie continuity is shown would deter manipulative practices.
  4. Integration with Social Security – Artificial breaks undermine Employees’ Provident Fund and gratuity accrual. Enforcement agencies should treat proven breaks as continuous service for contribution calculations.

Conclusion

Indian courts have consistently frowned upon artificial breaks, recognising them as an instrument of unfairness that erodes constitutional values and statutory protections alike. The Supreme Court’s trilogy—Umadevi, M.L. Kesari, and Mohd. Abdul Kadir—together with a robust industrial-law jurisprudence, establishes that such breaks neither sever the juridical umbilicus of employment nor absolve the employer from statutory obligations. The emerging consensus is unequivocal: continuity of service is a matter of substance, not form. Future reform should codify this principle, reinforce evidentiary presumptions against employers, and align administrative practice with constitutional ethos.

Footnotes

  1. Secretary, State of Karnataka & Ors. v. Umadevi (3), (2006) 4 SCC 1.
  2. Delhi Transport Corporation v. Balwan Singh, Civil Appeal 1495 of 2019 (SC).
  3. Regional Manager, State Bank of India v. Raja Ram, (2004) 8 SCC 164.
  4. Gangadhar Pillai v. Siemens Ltd., (2007) 1 SCC 533.
  5. State of Karnataka v. M.L. Kesari, (2010) 9 SCC 247.
  6. N. Venkatramani v. Indian Bank, 2005 (3) LLJ Mad 844.
  7. Gujarat Agricultural University v. Rathod Labhu Bechar, (2001) 3 SCC 574.
  8. Mohd. Abdul Kadir v. Director General of Police, Assam, (2009) 6 SCC 611.
  9. Ram Dia v. UHBVNL, 2005 (3) RSJ 630 (P&H).
  10. Sabu Mathew v. State of Kerala, (2017) ILR Ker 271.
  11. M.P. Electricity Board v. Hariram, (2004) 8 SCC 246.