Air India Employees Ordered To Vacate Their Homes Within 6 Months Of Privatization; Else Rs 15 Lakh Penalty

 As per the latest updates, the Centre has asked the Employees of national carrier Air India to vacate the company-provided accommodations within six months of completion of the ongoing divestment process.

Vacation Of Property By Air India Employees

On August 9, the Air India Specific Alternative Mechanism (AISAM) decided in a meeting that Air India employees may continue to stay in the residential colonies of the company post divestment for a period of six months or till the property is monetized, whichever is earlier. 

Further, they plan to have appropriate binding and legal arrangements, including financial disincentives, should be formulated.

So that it could enable prompt vacation of the properties by the employees.

15 Days Time For Undertaking Submission

Formally, this decision was communicated to the Chairman of Air India on September 29.

After that, the Air India employees have been given 15 days from the date of the letter to submit an undertaking for a peaceful handover of accommodation.

Here, post divestment is the period beyond the transaction closing date of Air India, according to AISAM. 

Coming to the disinvestment proceedings, presently, the Transaction Advisor (Ernst & Young) is reviewing the technical aspects of the financial bids received for the airline TIL on September 15.

Decision Affecting Retired Employees

This new formulation will affect all the retired employees who are residing in Air India colonies as they will have to be served eviction notices immediately.

In case if they have prior permission to retain their accommodation beyond four months then that shall stand withdrawn.

 This will also be applicable to the employees who are retiring as of September 30, 2021.

Those who are presently serving will have to vacate accommodation within six months of divestment of Air India, or by the time the property is monetized, whichever is earlier.

Penalty On Incmpliance

In their communication, the government has specified a mechanism to ensure the vacation of properties, which includes an undertaking to be taken from all employees, retired and serving, to “vacate and handover the peaceful possession of the accommodation,”.

In case if any employee fails to provide the undertaking within 15 days from the date of the government’s communication (29 September) then an eviction notice is to be served to him/her to vacate the property within one month, according to the Ministry of Civil Aviation.

Further, the letter mentions that for any unauthorized occupancy of accommodation beyond a permissible period, disciplinary action will be initiated against the employee by Air India management, on the advice of the Estate Officer.

It will consider charging penal rent equivalent to the sum of normal occupancy charges. 

It also includes double the market rent for the period of unauthorized occupancy.

Apart from this, the employee would be liable to pay damage charges of Rs 10 lakh and Rs 15 lakh for accommodation in Delhi and Mumbai respectively.

Further, this penalty would be deducted from any JDC (Justice Dharmadhikari Committee) arrear or financial benefits accruable to the errant employee. 

According to the government, all such benefits owed to the employees are to be put on hold until a peaceful vacation of accommodation.

It is noteworthy here that employees will not be paid House Rent Allowance, Lease Rental Allowance or Housing Allowance post divestment.