Implementing new pay scale prerogative of employer: SC

NEW DELHI: The Supreme Court on Friday said that it is the prerogative of the government to implement revised pay scale for employees. There is no legal right vested in employees to claim implementation of revised pay scale, the apex court said. “The question as to whether the scale of pay would be revised or not is a matter of policy decision for the state. No legal right exists in a person to get a revised pay scale implemented. It may be recommended by a body but ultimately it has to be accepted by the employer or by the state that bears the financial burden,” a bench comprising Justice S B Sinha and Justice Cyriac Joseph said. The court dismissed the appeal of an employee who had resigned from the service of a PSU but claimed arrears which accrued due to the retrospective implementation of the revised pay scale by the government. The appellant, Mr A K Chandrashekar, was employed as finance director in an PSU of the Kerala government. He had resigned from service on May 23, 1995. Subsequently, the Government of India issued an office memorandum (OM), on July 19, 1995, revising scales of pay for `executives holding board level posts’ with effect from January 1, 1992. In January, 1996, the appellant made a representation requesting payment of arrears on the ground that he was in service on January 1, 1992, and was entitled to the benefit of the OM of 1995. It was, however, rejected by the state government. It had said that the OM of 1995 issued by the secretary to the Government of India directing the revision of scales of pay of scheduled posts effective from Jan 1, 1992, specifically contains a clause that all the administrative ministries/ departments are required to issue presidential directives to the concerned public sector enterprises under its administrative control to give effect to the revision. The industries department of the BPE of Kerala government has not issued any specific directive to the PSU for making the revision effective. “Hence, we are unable to consider your request,” the government said. Another representation of the appellant drew a similar fate. The appellant then approached the Kerala high court. The HC had dismissed the plea of the appellant.

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