CAT Chandigarh Directs Salary Release for Contractual Employees
The Chandigarh Bench of the Central Administrative Tribunal (CAT) has ordered the Director of the State Institute of Education, Sector 32, Chandigarh, to release the salaries of three contractual workers without requiring them to sign a fresh contract with new terms and conditions. The order was issued on June 30, 2026, following a plea by the employees who alleged that the institute had withheld their pay and was coercing them into accepting altered service conditions.
Background of the Dispute
The three applicants—Rohit Chandalia and two others—have been working at the institute as peon, sweeper, and chowkidar on a contractual basis since their initial appointments in 2010 and 2011. Their appointment letters were issued for one-year terms, and they have continued serving for over 14 years without regularization. The employees, represented by advocate KB Sharma, contended that the institute had withheld their salary for May 2026 and was pressuring them to sign a new contract that included different terms and conditions from their original agreements.
Applicants' Arguments
The applicants argued that the institute's actions were arbitrary and unjust, especially after more than 14 years of service. They stated that the respondents (the institute) were required to consider their case for regularization in light of the prolonged service, but had failed to do so. The employees prayed for a status quo order to maintain their existing terms and conditions until the final decision of the tribunal. They also sought the release of their withheld salary without being forced to sign the new contract.
CAT's Interim Order
After hearing the arguments, the CAT bench directed the respondents to release the salary for May 2026 within one week, without compelling the employees to sign the new contract. The tribunal also required the appointees to give a written undertaking that they would not file any claim or court case against the institute for extension or regularization of services. The next hearing is scheduled for July 7, 2026.
Broader Implications
This case highlights the challenges faced by long-term contractual employees in government institutions, particularly regarding salary withholding and unilateral changes to service conditions. The CAT's interim order provides immediate relief to the employees while the larger issue of regularization remains pending. The tribunal's decision reinforces the principle that employers cannot arbitrarily alter contractual terms after a prolonged period of service.
