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GUDAKESH KUMAR (LAW OFFICER)     02 February 2011

Salary Revision Arrears

The salary of employees of an organisation stands revised with effect from 01/08/2007, vide notification dated 28/12 / 2010. The arrears of revision was paid to all the employees on its rolls as on the date of notification. Will an employee who has resigned in April 2010 be also eligible for revision arrears. it is to be noted that the notification for revision in salary itself staes that the same would not be applicable only to those employees who have resigned prior to the date of notification.



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 10 Replies

sanjay kumar (BE/ LLM in Corporate Laws)     02 February 2011

The Salaries & Emoluments are an internal policy of the organisation. If the Pay-revision Order clearly states that the new pay-structure will be valid for only those who are on company's rolls as on such & such dates then it cannot be challenged.

In your case, the company is not bound to pay arrears to those employees who have resigned prior to Notification Date.


(Guest)

 

 

Dear Gudakesh,

I would like to differ with the opinion of Mr. Sanjay Kumar. In fact the order of revision of salary, if applicable from retrospective  date, but the benefit is denied to any employee, who may not be presently in service, but would have been on rolls on the date from which the salary revision is effective, can easily be challenged. In my view the notification in itself becomes invalid, being unethical in nature.

 

I don't think the amount payable to the ex-employee would be of such a large extent than the likely expenditure on litigation that the company may have to bear in case some employees decide to challenge the notification in the court of law.

 

PS Dhingra

Chief Executive Officer

Dhingra Group of Management & Vigilance Consultants

New Delhi-110089

Mobile: 09968076381

[dcgroup1962@gmail.com]

 

 

Originally posted by :GUDAKESH KUMAR

"
The salary of employees of an organisation stands revised with effect from 01/08/2007, vide notification dated 28/12 / 2010. The arrears of revision was paid to all the employees on its rolls as on the date of notification. Will an employee who has resigned in April 2010 be also eligible for revision arrears. it is to be noted that the notification for revision in salary itself staes that the same would not be applicable only to those employees who have resigned prior to the date of notification.
"

GUDAKESH KUMAR (LAW OFFICER)     03 February 2011

Dear Mr Dhingra,

First of all I would like to offer my sincere thanks for your opinion. Of late I have come across a recent judgment, which makes the issue clear. the same is attached.


Attached File : 38 38 a k chandrashekhar.doc downloaded: 538 times

(Guest)

Dear Gudakesh,

 

Thanks for providing a copy of the case law. But, if you to go through that very carefully, you would find that in the referred case of appeal, the State could adopt the Government OM dated 19.07.1995 for pay revision only with effect from 1.04.1997, and NOT with retrospective effect from 1.4.1992, or even from 19.07.1995. Here the pay revision of employees was given effect from the date when the Director had already resigned, not from the back date when he was in service. But, in the case of your company, the employee was very much in service on the date from which the revision was given effect to. So, the case of the referred appeal does not match with the case of your company, which has given effect to salary revision with retrospective effect from 1.08.2007. I may like to point out that the Boards of different PSUs had had their discretion to accept the recommendations of the recommendations of the Pay Revision Committee fully or partially, either from the recommended date by the committee, or from any date thereafter, or even could totally reject to adopt the recommendations for their respective companies.

 

Now it is up to your organizaion whether that wants to extend the benefit of revised salsry to the ex-employee or not. I just gave my raional opinion about the case.

Kirti Kar Tripathi (lawyer)     03 February 2011

But this judgment is distinguishable as in this case the appellant was seeking benefits of revision which was meant for pension able post whereas the he was retired on the post of which was not pension able thus this can not be applied in the present query.

Amardeep Srivastava (Senior Law Officer)     17 February 2011

Besides what Mr. Dhingra has said, I would like to add that there could be 2 kinds of situation - one where a decision to revise the salary has been taken in December 2010 and applied retrospectively say from 01/08/2007. Another situation could be that the pay revision was due on 01/08/2007 and it is only the decision on revision which has been taken at belated stage. I feel that the employee who has resigned would have a very strong case in the second scenario and may not have much strength in the first situation.

ramadevi (manager)     21 December 2011

Dear sirs

My situation is also similar to that of Mr. Gudakesh kumar.  I joined the services of the Bank in Jan 2009.  The salary revision was due from 1.4.2009, but negotiations ended only on 5th December 2011, almost 30 months later.

Meanwhile, I resigned from the services of the Bank on 5th Nov 2011.  I am told that the bank always includes a clause in the settlement that the arrears are payable only to those members on the role of the Bank on the date of signing the agreement.

The management has agreed for an increase of 15% which translates into 5-6k per month of arrears for my cadre-which means I stand to lose over a lac of rupees

Please let me know how to go about claiming the dues to me.  I do not want to go into litigation straight away, since I fear that I may be spending all my arrears for the same.


regards

 

 

 

 

 

 

Kumar Doab (FIN)     21 December 2011

Learned Mr. Dhingra has given valuable advise and has made the matter crystal clear. Kindly follow the advise.

ramadevi (manager)     01 February 2012

can anyone give me an approximate cost as legal fees etc., if I decide to proceed against the bank?

dhinesh   06 August 2015

Dear Sir i am worked in repco as clerk from march 2012 to june 2013. now they give arrear for the period nov 12 to june 2015.But in circular they mentioned resigned employees not eligble for arrear. I resigned in proper channel only.

Now what i do to get arrear  plz help me

 

Dhinesh


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