• Salary and wages

I am working with govt of india undertaking. The salary of employees was revised wef from 1.1.97. in the office order for revision there was clause for stagnation increment 
grant of upto a maximum of three stagnation increments for those who reach the maximum of their scales.
Accordingly employees when having reached maximum of the scale were given three increments.
The next revision was due from 1.1.2007 which also has now been implemented since Nov 2009. However in the current order for stagnation increment clause is "employees will be paid three stagnation increments , one after every alternate year on raching maximum of the scale.
Problem - Based on the basis of basic pay as on 31.12.1996 the salary was revised to new basic on 1.1.2007. We are getting the revised salary since then. 
Now suddenly management has issued an order with retrospective effect that "the employees have been given stagnation increment every year instead of every alternate year and has issued order for pay fixation to be rectified wef 1/1/1997 - taking into account one increment every alternate year.
In the original order there was no clause for stagnation increment every alternate year, it was stated that employees will be given upto maximium of three stagnation increments.
Can management issue orders at a later stage, that two when new wage revision has been implemented.
Can management decision be challenged in court of law.
Asked 4 years ago in Labour from 1, Maharashtra
prima facie it seems that the order for pay fixation retrospectively is bad in law hence can be challenged subject to going through bye laws rules etc of mgt and personal discussion also.
if you wish may call.
S.P. Srivastava
Advocate, New Delhi
703 Answers
13 Consultations

4.7 on 5.0

First let us know whether you are under IDA or CDA pay scale.  If it were to be CDA pay scale the revision was effective with effect from 01-01-1996. Moreover you would be aware that the management would have taken an undertaking from each and every employee, stating that in case any excess payment made to an employee(than is due) is discovered at a later stage due to wrong fixation of pay, then the management will have every right to recover the excess money paid or to adjust the same in future payments to the employee. However the correct advice can be given after going through the Pay Commission Report and if the management has erred in its decision while implementing, then the management's decision can be challenged initially in Central Administrative Tribunal and subsequently in higher courts.
Shashidhar S. Sastry
Advocate, Bangalore
1633 Answers
107 Consultations

5.0 on 5.0

Taking in view the pay revision, your Management  has the right to isue order for your pay-fixation.
Krishna Kishore Ganguly
Advocate, Kolkata
18425 Answers
447 Consultations

5.0 on 5.0

Ask a Lawyer

Get legal answers from top-rated lawyers in 1 hour. It's quick, easy, and anonymous!
  Ask a lawyer