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Research Note On Rules and Guidelines For Government Employees

The document discusses rules and restrictions around government employees and public servants having interests or employment with private entities, known as Distributors. It outlines that current public servants generally cannot have ownership interests or serve as directors/managers/employees/consultants for private Distributors due to conflicts of interest. It also discusses 'cooling-off periods' that prohibit former government employees from certain types of private employment for up to one year after leaving government service.

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60 views

Research Note On Rules and Guidelines For Government Employees

The document discusses rules and restrictions around government employees and public servants having interests or employment with private entities, known as Distributors. It outlines that current public servants generally cannot have ownership interests or serve as directors/managers/employees/consultants for private Distributors due to conflicts of interest. It also discusses 'cooling-off periods' that prohibit former government employees from certain types of private employment for up to one year after leaving government service.

Uploaded by

Ishita
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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RESEARCH QUESTIONS

1. May a current public servant or government entity have an ownership interest or serve as
director/manager/employee/consultant for a Distributor?
2. Are there any legal requirements or restrictions in connection with family, personal or
professional relationship between any public servant and a Distributor?
3. Must a public servant wait for a specific period of time before working directly or indirectly
as Distributor with respect to the local government or before having an ownership interest or
serving as director/manager/employee /consultant for a Distributor (“revolving door”)?

Section 8 under Schedule I-B of the Industrial Employment (Standing Orders) Central Rules, 1946
states that a workman cannot work against the interest of an industrial establishment by taking dual
employment in addition to their existing job. Different Indian courts have also held that termination of
employment rules in India which states that termination of an employee who has taken up double
employment, is valid as having dual jobs affects efficiency and productivity of the employee, who
fails to provide 100% efforts to their job.1
The government can have ownership interest but it unlikely and that they will other cheques and
balances for them. Usually, the Indian Government does not have interest in involvement with such
private players.
As per the Do’s and Don’ts for Central Government Employees as per CCS (Conduct) Rules
(https://dmi.gov.in/Documents/Dos_donts.pdf), the employees do not have to enter into any private
correspondence with Foreign Embassies or Missions/ High Commission. Alongside that, the
employees are required to not use your official position or influence directly or indirectly to secure
employment for any number of your family in any company or firm.
The cooling-off period refers to a period during which an employee is prohibited from securing
employment that may be prejudicial to the concerns of his previous employer. The cooling-off period
is particularly important for retired government employees due to them being privy to confidential
information. Rule 26 of the All India Services (Death-cum-Retirement Benefits) Rules, 1958
prohibits retired government officials from accepting commercial employment before the completion
of one year from the date of retirement without the approval of the Central Government. This one-
year period is essentially known as the cooling-off period. However, this period may be relaxed if
prior approval of the Central Government is taken by the retired official. The retired government
employees in question here are “Group ‘A’ Officers” that belong to the highest class of government
employees. These officers are privy to confidential information which could be misused during their
commercial employment.2

Rule 9 of the CCS (Pension) Rules states that:


“If a pensioner who, immediately before his retirement was a member of Central Service Group ‘A’
wishes to accept any commercial employment before the expiry of one year from the date of his
retirement, he shall obtain the previous sanction of the Government to such acceptance”.

1
https://www.myadvo.in/blog/dual-employment-rules-in-india/
2
https://indianexpress.com/article/explained/retired-bureaucrats-cooling-off-period-new-job-explained-
7904870/
Rule 26 of the AIS Death-cum-Benefits Rules similarly restricts a pensioner from commercial
employment for one year after retirement, except with government sanction. The cooling-off period
was two years until January 2007, when the government reduced it to one year by an amendment.

Rule 4 of the CCS Conduct Rules, 1964 provides that:3


i. No Class I Officer shall, except with the previous sanction of the Government, permit his son,
daughter or other dependant, to accept employment in any company or firm with which he
has official dealings or in any other 16company or firm having official dealings with the
Government.
ii. A Government servant shall, as soon as he becomes aware of the acceptance by a member of
his family of an employment in any company or firm, intimate such acceptance to the
prescribed authority and shall also intimate whether he has or has had any official dealings
with that company or firm.
iii. No Government servant shall in the discharge of his official duties deal with any matter or
give or sanction any contract to any 16company or firm or any other person if any member of
his family is employed in that 16company or firm or under that person or if he or any member
of his family is interested in such matter or contract in any other manner and the Government
servant shall refer every such matter or contract to his official superior and the matter or
contract shall thereafter be disposed of according to the instructions of the authority to whom
the reference is made.
EMPLOYMENT OF NEAR RELATIVES:4
23. (a) Prior permission is necessary for any dependent of a Group A employee to take any job in a
firm/company having official dealing with the employee. If there is urgency for the dependent to join
the job, the fact may be reported and job accepted provisionally subject to permission of the Govt.
(b) If a family member of any Govt. employee takes a job in any company or firm, the employee shall
intimate the same to the prescribed authority and that whether he has or had any official dealings with
that company/firm.
(c) Prior permission/intimation is needed for acceptance of employment in foreign mission and related
agencies, international organizations and foreign mission and related agencies, international
organizations and foreign commercial firms in India by any family member. For commercial
employment within one year after retirement prior permission must be obtained.
PRIVATE TRADE AND EMPLOYMENT:5
1. Permission is needed to engage in any business directly or indirectly, negotiate/undertake any
employment, hold elective office; canvass for election for anybody, canvass for any business owned
or managed by any member of his family; take part, except in the discharge of his official duties, in
registration/promotion/management of any bank/company/cooperative society for commercial
purpose or in making a sponsored radio/TV programme/media programme by a private agency/private
video magazine. An employee may be permitted to hold an elective office, if the administrative
authority is satisfied that it will not interfere in any manner with the discharge of official duties by
him.
2. Undertaking private practice/consultancy work shall not be permitted to any employee.

3
https://dopt.gov.in/sites/default/files/CCS_Conduct_Rules_1964_Updated_27Feb15_0.pdf
4
https://iasst.gov.in/code-of-conduct/
5
https://iasst.gov.in/code-of-conduct/

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