Employees who take VRS cannot claim parity with those who superannuated: SC
While holding that revision of pay involves a larger public interest, the bench observed, "That on whether, and what should be the extent of pay revision, are undoubtedly matters falling within the domain of executive policy making".
The Supreme Court has recently held that VRS employees cannot claim parity with others who retired upon achieving the age of superannuation.
These observations came to be made by a division bench of the Top Court while partly allowing an appeal filed by Maharashtra State Financial Corporation Ex-Employees Association wherein they had challenged the decision of the Industry, Energy and Labour Department, Government of Maharashtra denying the benefit of revision of pay scales, as recommended by the Fifth Pay Commission, to the employees of the Maharashtra State Financial Corporation (“MSFC”) who had retired or died during the period of 01.01.2006 to 29.03.2010.
Notably, the decision of the State made the revision of pay scale as a result of the Report of the Fifth Pay Commission applicable to 115 employees of MSFC who were working as on 29.03.2010. The revision, however, was given effect from 01.01.2006.
It had been earlier urged before the High Court, that denying them the benefit of pay scales was discriminatory and arbitrary, because they were in continuous service, and had even received the benefit of interim revision, pending finalization of pay scales pursuant to the Pay Commission Report.
It was further urged that those in employment on and after 29.03.2010, and those who continued in service after 01.01.2006 but retired before 29.03.2010, belonged to the same category.
The Top Court noted that in the instant case, there was no distinction between those who retired (or died in service) before 29.03.2010 and those who continued in service - and were given the pay revision.
The exclusion of the retired employees, who retired between 01.01.2006 and 29.03.2010 on achieving their date of superannuation, was also held to be violative of Article 14 of the Constitution of India.
Alternatively, the Court has held that employees who secured VRS benefits and left the service of MSFC voluntarily during this period, stand on a different footing and they cannot claim parity with those who worked continuously, discharged their functions, and thereafter superannuated.
"VRS employees chose to opt and leave the service of the corporation; they found the VRS offer beneficial to them. Apart from the normal terminal benefits they were entitled to, the additional amount each of them was given - was an exgratia amount, equal to a month’s salary for each completed year of service. Other retired employees were never given such amounts...", a bench of Justices Aniruddha Bose and S. Ravindra Bhat has held.
With this view, the Court has held that VRS employees cannot claim parity with others who retired upon achieving the age of superannuation.
Likewise, those who ceased to be in employment, for the reason of termination, or their dismissal, etc., would not be entitled to the benefit of pay revision, has added the Top Court.
Case Title: MAHARASHTRA STATE FINANCIAL CORPORATION EX-EMPLOYEES ASSOCIATION & ORS. vs. STATE OF MAHARASHTRA & ORS.