The protesting employees, who were marching in hundreds toward civil secretariat, were stopped by police at Residency Road here.
As the employees did not relent, they were chased away by a large contingent of police, which led to a chaos in the area and the traffic was diverted for some time.
Around a hundred employees along with their leaders were taken into preventive custody, police sources said.
The secretariat march call was given by Joint Coordination Committee (JCC) of the government employees in Jammu and Kashmir.
JCC, an amalgam of various employees' organisations, is demanding enhancement of retirement age from 58 to 60 years, removing of pay anomalies, regularisation of ad-hoc and daily wagers and payment of 6th Pay Commission arrears.
The leaders of JCC accused the government of resorting to delaying tactics in meeting their demands.