Dispute Over Ex-Gratia Payments: United Forum of We Bankers Files Complaint Against IBA
A formal complaint has been lodged against the Indian Banks' Association and Public Sector Banks over the non-implementation of Clause 36 from the March 2024 Bipartite Settlement.
Author: Kalyani Mali
Published: May 9, 2025
Retired bank employees, represented by the United Forum of WeBankers (UFoWB), have escalated a formal dispute to the Chief Labour Commissioner against the Indian Banks' Association (IBA) and Public Sector Banks (PSBs). The issue stems from an alleged violation of Clause 36 of the Bipartite Settlement dated March 8, 2024, which provided for annual ex-gratia payments in lieu of pension revision. Despite the clause's clear provisions, no such payment has been made as of April 2025, sparking concerns among retirees.
What is Clause 36 of the Settlement?
Clause 36 of the March 8, 2024, settlement between the Indian Banks' Association (IBA) and Public Sector Banks was introduced as an interim arrangement to address the long-standing demand for pension revision among retirees. It stipulated that retired employees would receive annual ex-gratia payments starting April 2024, which would be subject to yearly review and potential revision.
The clause was intended to provide immediate financial relief while broader pension reforms remained under discussion. However, as of April 2025, no such revision or disbursement has taken place, leading to frustration and formal complaints from retiree associations.
Complaint and Escalation
On April 4, 2025, the UFoWB, led by National Convener Kamlesh Chaturvedi, submitted a complaint highlighting the IBA’s failure to act on Clause 36. The email and physical documents were acknowledged by the Ministry of Labour and Employment, which has formally written to the IBA requesting clarification and comments on the matter.
Image: Screenshot of the formal complaint email sent by the United Forum of We Bankers to the Labour Ministry on April 4, 2025.
Courtesy: WeBankers
Union's Position and Demands
The UFoWB represents multiple state-level associations and has emphasized that the settlement has binding authority. The Forum is seeking:
Immediate implementation and disbursal of revised ex-gratia payments from April 2024.
Annual review mechanisms to be formally activated.
Conciliation proceedings by the Ministry of Labour for dispute resolution.
Image: Cover page of UFoWB’s official complaint citing violation of Clause 36 and seeking conciliation under the Industrial Disputes Act.
Courtesy: WeBankers
Labour Commissioner Directs IBA to Respond
The Office of the Chief Labour Commissioner (CLC) has taken note of the complaint and sent a letter to the IBA on May 8 2025, asking them to reply soon. The issue is still waiting for a response and may be looked into further under the Industrial Disputes Act.
Image: Letter from the Office of the CLC, seeking response from IBA on the ex-gratia dispute.
Courtesy: WeBankers
The complaint filed by the United Forum of We Bankers has brought to light a pressing issue that affects thousands of retired bank employees across India. With government intervention underway, the resolution of this matter will likely set a precedent for enforcement of settlement clauses concerning retirees’ welfare.
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