Delhi High Court issues directions to govt hospitals for ensuring no corrupt practices are indulged in engagement of contractual workmen through contractors

The Delhi High Court recently directed the Lady Hardinge Medical College and Associated Hospitals as also other Central Government Hospitals, in order to ensure that no improper and corrupt practices are indulged in by the contractors, in respect of their engagement of contractual workmen.

Justice Pratibha M Singh has thus asked the hospital administration to take the following steps:

1. For selection of the contractual firm, two separate and independent committees, viz., Bid finalization committee and Bid evaluation committee comprising of non-administrative faculty members would be constituted;
2. The approval, if necessary, to be obtained even from the Ministry for award of the contract, after the Bids are evaluated and finalized;
3. The hospital administration to create awareness amongst the outsourced workers about their dues and statutory deductions.
4. Proper and transparent criteria to be fixed, and once the Contractor has finalized the workers, the administration to also verify their identity cards and documents before they are allowed to report for duty;
5. Adequate administrative personnel to be recruited in the hospital to deal with the contractual workers, and if there are any vacancies, steps to fill up the same to be taken expeditiously;
6. Salary details of outsourced employees to be displayed by putting up Boards in prominent places in the premises to avoid any chances of salary being cut or unauthorized deductions being made by the contractor;
7. A committee of at least two senior persons – one from administration and one from amongst the faculty members, to be constituted to interact with the outsourced employees on a quarterly basis to check if they are facing any difficulties, and on their efficient & qualitative delivery of services;
8. Suitable provisions to be incorporated in the Service Level Agreement (SLA) to fix the accountability of the selected vendor in case of any violations of the SLA.
9. The Hospital Authority to also ensure the verification of the educational qualifications as well as other eligibility conditions by the vendor required, so as to ensure that the right person is engaged for the right job.
10. Every outsourced workman may be provided with detailed terms and conditions governing their engagement with the hospital, including the details of job requirements, attendance norms, leave entitlements, and facility available under the ESI, amongst others.
11. In accordance with the Committee’s recommendations, salary slips may be issued each month to the outsourced workmen showing the breakup of admissible salary and statutory deductions, and the net salary payable through the Bank must reflect on the salary slips.
12. Hospital to also consider introducing a system of biometric attendance in respect of outsourced workmen.
13. Rotational transfers of persons holding sensitive posts on a regular basis to also be undertaken.
14. A complaint box to be put up in a prominent place in the premises of the hospital, for contractual workers to submit their complaints in those boxes, even in an anonymous manner.
15. These complaints to also be looked into, and action to be taken within two weeks of receiving the said complaints.

These directions were passed by the single judge bench while hearing a petitioner filed by All India General Kamgar Union, who were contractually employed Workmen, working at the Lady Hardinge Medical College and Hospital

The Kamgar Union had challenged the illegal termination of their services.

As told to the Court, the grievance of the Workmen was that they had been earlier engaged by one contractor, one Jai Balaji Security Services, and had been working in the Hospital as Multi-Tasking Staff since 2015. However, when the new contractor stepped in, their services were terminated.

The Union had further alleged that the Workmen were told by the new contractor that unless and until they pay money to them, they would not be retained by the Hospital.

It was noticed by the High Court that such grievances against contractors were being raised in many cases, which prompted it to direct Secretary, Minister of Health & Family Welfare to nominate a senior official to look into the matter and submit a report.

Thereafter, a Report was submitted by the Enquiry Officer, Mr. Ghulam Mustafa, Director (A & V) Directorate General of Health Services which was forwarded to the Committee constituted by the Ministry of Health and Family Welfare for suggesting further action to be taken on the Enquiry Report.

The Committee has also examined the Action Taken Report dated October 19, 2020 submitted by the Hospital.

In light of the Report of the Enquiry Officer as well as the Action Taken Report, the Committee recommended certain reforms to ensure that there is a more transparent environment and there is no scope left for any corrupt practices.

After a perusal of this report, the Court noted that there were several gaps in the recruitment of contractual workers and went on to reiterate the steps with a view to maintain uniformity, transparency and consistency in the recruitment of contractual workers.

While concluding the Court added,

“The hospital administration shall ensure that the abovementioned steps are taken and are monitored on a regular basis. The responsibility for  ensuring that the steps as directed hereinabove are taken, would be of the  Medical Superintendent of the hospital, who shall ensure that the contractual  workers are not in any manner abused or misused, and the proper payment of their salaries, in accordance with the amount being released by the  hospitals are, in fact, being made by the Contractors.”

Cause Title: All India General Kamgar Union v Union Of India & Ors.