Pay scales cannot be reduced: HC

The Punjab and Haryana High Court has ruled that the higher pay scale obtained by workmen cannot be reduced.

The ruling by Justice K Kannan came in connection with a petition filed by Punjab Agro Industries Corporation Limited against the presiding officer of the UT Labour Court.

The corporation, a state government undertaking, had challenged the award passed by the labour court acceding to a reference that was a sequel to a demand notice on behalf of 35 fertiliser clerks-cum-clerk typists complaining against the order of reversion without notice and fixing them on lower scales of pay.

The main opposition to the labour court award was the alleged inherent lack of jurisdiction for a court to accord sanction for restructuring of cadre and fixing a scale of pay, which was exclusively in the domain of the employer.

The petitioner’s contention was reorganisation took effect only from assistants upwards; and no decision had been taken for providing for any promotion for clerks, fertiliser clerks or senior clerks.

Counsel appearing for the workmen contended that it was decided to revert all workmen without affording any notice to them and to put them on lower scales, even while stating their payswere protected.

Management counsel, on the other hand, contended no notice or opportunity of hearing was required, while reverting a person wrongly promoted. A reversion, which arises on account of rectification of mistake, does not attract Article 311 (2) and principles of natural justice are not required to be followed.

Justice Kannan concluded: “The increase in scales of pay that the workmen have obtained by the upgradation or promotion, in whatever manner they have obtained a higher scale, cannot, in any way, be reduced and the decision of the board reverting them without any notice was against law.”

“The labour court was, therefore, perfectly justified in upholding the claim of the workmen… The award of the labour court is, under the circumstances, perfectly justified and confirmed. The writ petition is dismissed,” it said.