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in Civil Law Insurance Law
Asked May 29, 2017

Workers working with LIC on temporary basis

  • 1 Answer

As Hon'ble Supreme Court modifed its earlier Judgment dated 09-08-2016, it has been informed that the employees who worked on a temporary basis with Life Insurance Corporation India had to be absorbed in the rolls of LIC. I am working as temporary peon in kavali branch since 2009 but LIC paid salary to me with different names up to 03/2011. After that LIC gave me appointment letter. In this letter mention that designation peon and method of salary daily wage after that LIC gave salary with my name and maintain attendance register, salary slips. Salary paid office working days for the month only. I am working more than 6 years without break. Recently salary paid by NEFT. Please tell me am I eligible to be permanent? I am still working in LIC.

Answer 1




Dear Sir/madam,

No matter from what date you have been working in an organisation – private or public, your rightful claim over the post of that job legally accrues only at the point when you sign the agreement with that organisation in particular. Because from the date of your appointment letter only, your wage slip and the attendance register gets prepared in your name. And all these documentary proofs serve as evidence to claim your right under any court of law. Also, 03/2011 seems to be the date from when you get enrolled with LIC and starts existing on their payroll. Therefore, the effective date of your working is when you sign the appointment letter with the organisation.

There are certain judgements on regularising the post which were recruited earlier on a temporary basis, but they are all pertaining to the time frame of 1982 to 1985 specifically. However, we are listing down the judgment titles of the cases in reference to the issue that you are confused about :-

In RBI v. Gopinath Sharma[1], Hon’ble Supreme Court has set aside the direction of the High Court of regularising the services of a workman who was appointed on daily wages and was not working on regular basis.[2]

V. Muthukumarasamy And Ors. vs The Chairman, L.I.C., Zonal – an Hon’ble Madras High Court judgement of 2007

Terminated Full Time Temporary  vs Senior Divisional Manager again an Hon’ble Madras High Court judgement of 1992

Surinder Prasad Tiwari v. U.P. Rajya Krishi Utpadan Mandi Parishad clearly suggests “it would be improper for the courts to give directions for regularisation of services of the person who is working either as daily-wager, ad hoc employee, probationer, temporary or contractual employee, not appointed following the procedure laid down under Articles 14, 16 and 309 of the Constitution”[3]

I am refering to the New and Revised Rules of the Instructions regarding the employment status of the Temporary staff  i.e. Life Insurance Corporation of India (Employment of Temporary Staff) Instructions, 1993.

We are also quoting the legislation on this point i.e. section 8 of the LIFE INSURANCE CORPORATION OF INDIA (STAFF) REGULATIONS, 1960 which goes on to suggest that the persons employed on temporary basis and falling in Classes III and IV are not guaranteed to the claim of absorption in the corporation.[4]

It gives me immense pain to inform you that the Hon’ble Supreme Court being talked about only refers to the cases falling in between 1982-1985 and unfortunately your time period does not fall under the same category.

Also, you need to go through the contract that you might have signed while joining the post at LIC of India. The contract definitely would have mentioned the true nature of the job (permanent/temporary) and also the future aspects of it. Having signed so, makes it binding on both the parties. As far as the judgements are concerned, they talk about their limitation and restriction to only the parties at hand and not applicable to the others as a general rule.

You can go through the judgements once – to give you a better idea of the situation justifying your claim to make your job permanent. They are as follows :-

V. Muthukumarasamy And Ors. vs The Chairman, L.I.C., Zonal – an Hon’ble Madras High Court judgement of 2007

Terminated Full Time Temporary  vs Senior Divisional Manager again an Hon’ble Madras High Court judgement of 1992





[1] (2006) 6 SCC 221 : 2006 SCC (L&S) 1298



[4] (1) Notwithstanding anything contained in these Regulations, a Managing Director, Executive Director (Personnel), a Zonal Manager or a Divisional Manager may employ staff in Classes III and IV on a temporary basis subject to such general or special directions as may be issued by the Chairman from time to time.

*(2) No person appointed under sub-regulation(1) shall only by reason of such appointment be entitled to absorption in the service of the Corporation or claim preference for recruitment to any post.


Agree Comment 0 Agrees over 3 years ago

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