In a ruling that could bring cheer to decision-makers in 'over-staffed' organisations, the Supreme Court has ruled that retaining or retiring an employee is at the discretion of the management and courts should not interfere in such matters.
"It is not for this court to opine as to who should be retired and at what stage and situation, as this is a matter to be left to the exclusive discretion of the employer," a bench of Justices Tarun Chatterjee and H S Bedi observed in a judgement, dismissing some former bank employees' appeal.
A single judge of the Patna high court had earlier rejected the plea of the petitioners, who belonged to the Class IV category like peons, that their compulsory retirement was illegal and discriminatory as the top-level executives were being retained by the bank.
The apex court said that when the bank was overstaffed and accumulating losses, it was entitled to prune staff in accordance with the rules. It accepted the bank management's plea that it was over-staffed on account of which it had suffered huge losses.
