IAS Gyan

Daily News Analysis

Employer free to reject over-qualified applicants: Supreme Court

15th November, 2020 POLITY AND GOVERNANCE

Context: A Bench led by Justice Ashok Bhushan said courts have limited judicial review over such decisions by employers.

  • Prescription of qualifications for a post is a matter of recruitment policy.
  • Verdict overturned Odisha HC’s decision allowing a graduate to be appointed as a peon with the Punjab National Bank
  • A prospective employer has discretion not to appoint a candidate who may have a “higher qualification”, but not the one prescribed for the job vacancy.
  • The apex court said courts allow a “greater latitude” for employers to prescribe the necessary qualification for a post.
  • Qualifications are prescribed keeping in view the need and interest of an institution or an industry or an establishment as the case may be.
  • The Courts are not fit instruments to assess expediency or advisability or utility of such prescription of qualifications.
  • However, an employer cannot act arbitrarily or fancifully in prescribing qualifications for posts.
  • The judgment came on an appeal filed by the Punjab National Bank against an Orissa High Court decision allowing an over-qualified candidate to be appointed as a peon.