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about outside employment and noc by psu company

Sumatha Gomasta


Sumatha Gomasta


Are a psu company made own rules and regulation to giving noc to his employee for another outside employment?a public sector company name Hindustan copper limited notice that employee E0 to E8 if apply for noc...no application will be granted for noc at least four years after joining...If he promoted then another three years wait for noc....?

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Yes, the company can formulate its own HR regulations. Attrition is a major constraint in public sector industries. Best talent is recruited, trained in specific technological fields and after gaining experience these talents are coaxed by private sector offering lucrative salary and perks. Sudden depletion in highly technical or skilled manpower shall be detrimental to Man Power Planning (MPP) and smooth functioning of such units. There is nothing wrong in such policies. Such policies are formulated to attract only those best, who want to remain in the industry. Those who want to switch-over should avoid joining such PSUs.

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It is fully at the discretion of your employer to allow NOC for better prospects though as per Govt. guidelines PSU employees should normally be allowed to move from one PSU to another to facilitate free mobility.Further, in order to motivate such movement,Govt. has allowed continuity in service without any break and transfer of retirement benefits to the transfere company provided the application was forwarded through proper channel.Further, normally Bond have no legal validity, since it is a violation of Article 19 of the Constitution,which guarantees Fundamental Right to all citizens to carry on any profession,trade or business.All agreements in restraint of profession are also void U/s 27 of the Indian Contract Act.

Accordingly,you may serve a legal notice asking them to issue the release order immediately and simultaneously lodge a complaint before the Grievance officer of the concerned Administrative Dept.for not issuing the NoC/Release order inspite of Govt. Guideline in this regard.

Please take above actions through a competent lawyer to stregthen your case.

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Prasad GLN

But Sec.27 is not applicable in a case where specialised training was imparted (employment is also training) and for those agreements that was entered with mutual consent.

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