Tag: Pay Protection

Employers Must Accommodate: Supreme Court’s Landmark Ruling on Medical Disability & Jobs
Supreme Court

Employers Must Accommodate: Supreme Court’s Landmark Ruling on Medical Disability & Jobs

This Supreme Court held that a binding Memorandum of Settlement under the Industrial Disputes Act, 1947, which specifically provided alternate employment for colour-blind drivers, created an enforceable statutory obligation on the employer. The subsequent settlement and internal circulars could not override this specific contractual right, and the Corporation's failure to explore redeployment violated principles of natural justice and statutory compliance. Facts Of The Case: The appellant was appointed as a driver by the Andhra Pradesh State Road Transport Corporation (APSRTC) in 2014. During a subsequent periodic medical examination, he was found to be colour blind and declared medically unfit to continue in his role as a driver. Following this, the appellant sought alternate employment...
No Pay Cut Without a Chance to Argue: Supreme Court Sides with Ex-Navy Personnel Against Bank
Supreme Court

No Pay Cut Without a Chance to Argue: Supreme Court Sides with Ex-Navy Personnel Against Bank

The Supreme Court held that pay fixation of re-employed ex-servicemen is governed solely by government guidelines, which banks cannot override. It ruled that reducing pay without providing an opportunity of hearing violates principles of natural justice, rendering such an administrative action legally unsustainable. Facts Of The Case: After retiring from the Indian Navy, the appellants were re-employed by Punjab National Bank between 2015-2017 as Single Window Operators. Their initial pay was fixed at a higher amount, with four appellants receiving ₹40,710 and one receiving ₹34,160. However, following a 2018 clarification from the Indian Banks' Association (IBA) that capped the maximum basic pay for ex-servicemen at ₹31,540, the bank issued a circular and subsequently reduced the appella...