Pay protection on transfer to a lower post is mandatory regardless of probation completion in the higher grade.

The applicant was serving as a Senior Section Engineer (SSE) in Level 7 at the Kota Division of West Central Railway.

On 06.07.2021, he took a mutual transfer to the Jabalpur Division for the inferior post of Junior Engineer (JE) in Level 6.

While his basic pay was initially maintained at Rs. 44,900, the respondents issued an order on 08.07.2021 reducing it to Rs. 38,700.

The respondents justified this reduction by citing RBE No. 161/2019, arguing that the applicant had not completed the mandatory 12-month probation period on a regular basis in the Level 7 post before transfer.

The applicant’s representation against this reduction was rejected on 18.01.2024.

1. Whether an employee transferred to a lower post on their own request is entitled to pay protection of the salary drawn in the higher post, regardless of the completion of a specific probation period in that higher grade.

Fundamental Rule 15(a) (FR-15(a)) and DoP&T OM No. 12/1/2016-Estt. (Pay-I) dated 31.03.2017, which stipulate that upon transfer to a lower level post on own request, the pay of a government servant holding a post on a regular basis shall be fixed at a stage equal to the pay drawn in the higher level.

The precedent set by the Hon’ble Kerala High Court in OP (CAT) No. 113 of 2014, which established that the "two-year rule" (probation/regular service) cannot override settled rights regarding pay protection.

Rule 1313(I)(a)(2) and (3) of IREC Vol. II and Rule 227 of IREC Vol. I.

The Tribunal reasoned that the requirement to complete a specific duration of service (such as a 12-month or 2-year probation) in a higher post to qualify for pay protection is not legally sustainable when the transfer occurs under FR-15(a).

Following the logic of the Kerala High Court and the Bangalore Bench of the CAT in O.A. No. 163/2023, the Tribunal observed that once an employee holds a post on a regular basis, their pay must be protected at a stage equal to the pay drawn in the higher grade upon moving to a lower post.

The respondents' reliance on RBE No. 161/2019 to deny protection based on incomplete probation was deemed a misunderstanding of the legal position, as the DoP&T circulars (endorsed by the Railway Board) take precedence in ensuring employees do not suffer pecuniary loss due to such transfers.

The Tribunal held that the applicant is entitled to pay protection despite not completing the probation period in the higher post.

The respondents were directed to re-fix the applicant's pay in Level 7 (protecting the basic pay of Rs. 44,900 drawn at Kota) within 90 days of the receipt of the order.

No costs were awarded.