UCO Bank: Profit Over Welfare? Staff Leave Suspended Till September-End

• Privilege Leave will not be sanctioned till September 30th, 2025, except in cases of emergencies or unavoidable circumstances, which require Zonal Office approval.
• Casual Leave should be avoided unless extremely necessary.
• LTC/LFC availment stands suspended till September 30th, 2025.
• Branches are advised not to seek deputations during this period.

The order, signed by the Zonal Head, states that uninterrupted staff presence is required for the half-yearly closing of FY 2025-26, to ensure growth in business parameters, reduction in NPAs, and improvement in profitability, performance, recovery, and control.

Image: UCO Bank Salt Lake Zone circular suspending staff leave till September 30, 2025.

While the bank has justified the decision in terms of operational requirements, the move has drawn attention to legal precedent. In the M/s Glaxo Laboratories (India) Ltd. vs Labour Court, Meerut (1984) case, the Supreme Court held that arbitrarily refusing an employee’s earned leave without valid justification amounts to unfair labour practice. The judgment reaffirmed that leave is a statutory right, not a discretionary favour by the employer.

The timing of the restriction just ahead of the festive season adds to the sensitivity of the issue, as staff may have planned leave for family and personal reasons. The circular effectively sidelines Privilege Leave and Leave Travel Concession (LTC)/ Leave Fare Concession (LFC) rights for employees during this period, raising questions about whether a blanket suspension of leave is compatible with labour protections affirmed by the Supreme Court.

According to the bankers, the larger concern highlighted by this development is the balance between business performance and employee welfare. Public Sector Banks have a mandate to improve profitability and recovery, but curtailing staff rights during critical personal and cultural periods risks creating discontent within the workforce.

The issue now rests on whether operational priorities can justify temporary suspension of leave, or whether such orders could face scrutiny under established labour rights and judicial pronouncements.

As September closing approaches, all eyes remain on how this circular will be implemented, and whether UCO Bank will revisit the decision in light of legal and welfare concerns.