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HEC fails to pay arrears to retd employees

Staff reporter, New Delhi
15/03/2017   0 Comments

Despite Government’s financial assistance, the Heavy Engineering Corporation (HEC) of Ranchi has failed to clear the gratuity and pay revision arrears to its retired employees, Bureaucracy Today has learnt.
 
“The Government of India, being a promoter, has provided financial assistance to the Company in past from time to time in the form of loan - with a view to mitigate the hardship faced by their retired employees - due to non-payment of gratuity timely. (Still) the Department of Heavy Industry has been receiving complaints of non-payment of gratuity and pay revision arrears by the HEC,” Minister of  State in the Ministry of  Heavy Industries  and Public Enterprises, Babul Supriyo, told Lok Sabha in a written reply on Tuesday. 
 
The complaints are said to have been forwarded to the Company for appropriate action and redressal of grievances.
 
HEC maintained that payment of gratuity to employees up to March 31, 2014 has already been cleared except in a few deficient cases, due to specific technical reasons.
 
“In case of daughter’s marriage, medical treatment of self and spouse, children’s higher education and remittance of bank’s outstanding loans, part payment of gratuity to ex-employees is being done, as per availability of funds,” the Minister said. 
 
It has been learnt that an outstanding liability of Rs 50.28 crore on account of gratuity are payable to retired employees. The payment of arrears on account of wage revision 1992 and 2007 are approximately Rs 3.71 crore and Rs 24.70 crore.
 
“In the year 2014-15, a loan of Rs.47.89 crore was provided by the Government to the company for settlement of outstanding statutory dues of its employees,” the Minister said.
 
HEC is a company registered under the Companies Act, with a separate legal identity under the Law. The Company is primarily responsible for managing all its affairs independently including meeting expenses related to its employees.

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