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Letter to C&MD regarding profit sharing payment to the officers on deputation

 

Issues/C&MD/05-07/2                                                                                                            23.01.2007


To,
Chairman & Managing Director
Oil and Natural Gas Corporation Ltd
6th Floor Jeevan Bharti Building
New Delhi

SUB: Payment of Profit Sharing to Officers on deputation outside ONGC



Sir,

Kindly refer to the above mentioned subject. This issue is regarding payment of profit sharing to the officers who have been deputed to other organizations like OISD, DGH and MRPL etc.

Time and again this issue has been discussed with you and Director (HR). I shall at this stage like to appraise you of the facts and attach few documents that shall establish the fact that denial of profit sharing payment to our officers who have been deputed in the interest of our organization is not justified.

Sir, till the year 2002-03 all the officers were receiving the payment of profit sharing. Despite this payment, when the payment of 1998-99 and 1999-2000 was made in the year 2006, these officers were denied the payment.

Further, payments were also stopped till date. Enclosed are the documents that we have gathered from ONGC service rules, terms and conditions of other Oil Sector PSUs on this aspect.

Placed at Annexure I is the relevant Clause No. 21 of ONGC Service Rules 1995. The service conditions entitles all the employees who are deputed to other organizations equal treatment related to payment of all the benefits as would have accrued to him, had he been present in the company.

Placed at Annexure II is the letter of Ministry of Petroleum and Natural Gas where they have brought out that all the officers deputed to DGH shall continue to be part of parent organization and would continue to be eligible for all the benefits.

Placed at Annexure III is the letter of DG - DGH where he has specifically brought out that all the officers of ONGC posted at DGH needs to be covered for payment of profit sharing as all the payments are reimbursed to ONGC and further they all have been posted there in the interest of ONGC.

Placed at Annexure IV are the excerpts of the minutes of meeting that was held between DG – DGH and C&MD, ONGC while discussing the issue of additional development of South Heera field. This project was also studied by our officers deputed to DGH and had contributed for the final clearance of the same. The project is being implemented now.

Placed at Annexure V are the practice and payments to officers of other Oil PSUs who have been deputed to OISD, DGH, MRPL etc. All these companies like GAIL, IOC, OIL, BPCL etc. have been making payment related to profit sharing etc. to all the officers who have deputed to other organizations.

Sir, The deputation/ secondment that happen to the organization have been always in the interest of ONGC and allow the officers to work in different work culture and environment which in fact is an intangible benefit to ONGC. The tangible benefit from the deputation/secondment has also been in earning revenues in the form of reimbursement of the expenditure that ONGC makes on the employees who are on deputation/secondment. Approximate earnings from such postings have been to the tune of more than Rs. 1.5 crores per annum. This is actually a fabulous return on investment as our officers are literally getting on the job training, experience and knowledge enhancement without ONGC spending anything on them.

Sir, already we have suggested this change in the incentive committee recommendations from ASTO’s side. Changes to the scheme for certain areas like WSS etc. have already taken place. We again emphasize that the due payment of profit sharing be made to the officers who are on deputation to other organization like DGH, OISD, MRPL etc.

With warm Regards,


(Amit Kumar)
President, ASTO, Delhi
Copy to:-

1. Director (HR), ONGC, New Delhi.
2. Office Copy.

 
 

 

 

 

 

 

 

 

 

 

 

 

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