Act Excluding Contract Employees from Service Benefits and Nullifying Judicial Pronouncements Violates Articles 14, 16, 309 and Basic Structure of Constitution
In a landmark judgment dated April 25, 2026, the Himachal Pradesh High Court (Division Bench) struck down the Himachal Pradesh Recruitment and Conditions of Service of Government Employees Act, 2024 (Act No. 23 of 2025), declaring it unconstitutional and void ab initio. The Act, which sought to exclude persons appointed on contract basis from public services and deny them service benefits prior to regularisation, was found to violate fundamental rights under Articles 14, 16, and 309 of the Constitution of India, as well as the basic structure doctrine.
The judgment arose from a batch of writ petitions filed by contract employees challenging the validity of the Act. These employees, who had been appointed on contract basis following the procedure prescribed in the Recruitment and Promotion Rules (R&P Rules) and subsequently regularised without any break, claimed entitlement to counting of their contract service for all service benefits, including pension, increments, and seniority. The Court extensively examined the background of temporary and contract appointments in Himachal Pradesh, noting the historical misuse of ad hoc and tenure appointments to exploit employees and bypass constitutional mandates.
The Act under challenge retrospectively replaced the words "on contract basis" in the R&P Rules with "by regularisation," effectively nullifying judicial pronouncements that contract employees, appointed through prescribed procedures and regularised, are entitled to service benefits from their initial appointment date. The Court held that the Act was arbitrary, vague, and open to misuse as it did not prescribe the manner, authority, or timing for regularisation and excluded contract employees from service benefits before regularisation, contrary to settled law.
Citing a plethora of authoritative Supreme Court and High Court judgments, including State of Karnataka v. Uma Devi, Taj Mohammad v. State of HP, and Direct Recruit Class II Engineering Officers' Association v. State of Maharashtra, the Court reaffirmed that contract appointees selected through open competition and regularised without interruption are entitled to all service benefits akin to regular employees. The Court emphasized that the Legislature cannot enact laws to nullify or override final judicial decisions binding between the parties, as this violates the separation of powers doctrine and the rule of law.
The Court rejected the State’s plea that financial constraints justified the Act, reiterating that financial difficulty cannot override constitutional and legal obligations. The State was directed to extend all service benefits to contract employees in accordance with binding judicial pronouncements within three months.
The judgment also highlighted the discriminatory nature of the Act, which treated contract appointees differently based on the date of appointment, violating the principle of equality enshrined in the Constitution.
In conclusion, the Himachal Pradesh High Court held that the Act represents an impermissible legislative encroachment on judicial power, undermining the constitutional scheme of public employment and fundamental rights. All consequential actions and orders based on the Act were declared illegal and unconstitutional.
Bottom Line:
The Himachal Pradesh Recruitment and Conditions of Service of Government Employees Act, 2024, which excludes contract appointees from public services until regularisation and retrospectively nullifies court judgments extending service benefits to contract employees, is unconstitutional as it violates Articles 14, 16, 309, and the basic structure of the Constitution by overruling judicial pronouncements and undermining the rule of law and separation of powers doctrine.
Statutory provision(s):
Article 14, Article 16, Article 309 of the Constitution of India; The Himachal Pradesh Recruitment and Conditions of Service of Government Employees Act, 2024 (Act No. 23 of 2025); Central Civil Services (Pension) Rules, 1972; Himachal Pradesh Recruitment and Promotion Rules (various amendments).
Devinder Kumar v. State of Himachal Pradesh, (Himachal Pradesh)(DB) : Law Finder Doc id # 2915295
