Applicability of CCS Conduct Rules 1964 to PSU Employees

An up-to-date edition of CCS (Conduct) Rules 1964 has been posted by Department of Personnel in its official website. The government decision regarding applicability of this Conduct Rule to Employees of Public Undertakings PSU been incorporated in this edition as follows..

THE CENTRAL CIVIL SERVICES (CONDUCT) RULES, 1964

1.Short title, commencement and application
(2) Applicability of the Conduct Rules to employees of public undertakings

A question has been raised whether employees of corporate bodies controlled or financed by the Central Government should be subject to all or any of the conditions imposed in the case of Central Government servants by the Central Civil Services (Conduct) Rules. The extent to which such conditions can be applied to employees of a statutory corporation would naturally depend on the provisions of the statute setting up the Corporation. The statute may provide for suitable rules being made by the Corporation itself or by Government. Where there is no such statutory provision or the body is non-statutory, the conditions of service of employees would be determined by the terms, expressed or implied, of the contract of service. It will then be open to the employer, subject to the relevant labour laws where they apply, to lay down conditions of service which would operate as terms of a contract.

It has been decided that in corporate undertakings entirely financed by the Central Government, i.e. where the whole capital is invested by the State, the activities of the employees should be restricted in the same manner as for those working directly under Government. In such cases action should be taken to extend the provisions of the Central Civil Services (Conduct) Rules to the employees either by a self-contained set of rules under the specific statutory authority for framing such rules or as terms of the contract.

In regard to employees of corporate undertakings controlled or partly financed by the Central Government also, the provisions of the Central Civil Services (Conduct) Rules should wherever possible, be applied with such modifications as may be necessary.

[MHA OM No. 25/55/53-Estt.(A) dated 14.03.1956]

(2A)

It is laid down in Decision No. (2) above that in the corporate undertakings entirely financed by the Central Government, i.e., where the whole capital is invested by the State, the activities of the employees should be restricted in the same manner as for those directly under Government and in such cases action should be taken to extend the provisions of the Central Civil Services (Conduct) Rules to the employees either by a self-contained set of rules under the specific statutory authority for framing such rules or as terms of the contract. In regard to employees of corporate undertakings controlled or partly financed by the Central Government the Central Civil Services (Conduct) Rules should wherever possible be applied with such modifications as may be necessary.

The Central Civil Services (Conduct) Rules, which have been recently revised – vide Home Ministry’s Notification No. 25/4/63-Ests.(A), dated 30th November, 1964, contain certain important provisions such as those relating to integrity, which have been made or modified on the recommendation of the Committee on Prevention of Corruption (Santhanam Committee). It is requested that statutory and other corporate public sector undertakings under the control of the Ministry of Industry and Supply etc., may be advised to bring their Conduct Rules on the lines of the revised CCS (Conduct) Rules, 1964 and to incorporate particularly, the important provisions of the CCS (Conduct) Rules relating to integrity.

[MHA OM No. 7/30/62-Ests.(A) dated 14.06.1965]

source : DoPT