'Equal work, equal pay' applies only within same institution: Madras high court

CHENNAI: The principle of equal pay for equal work applies only when employees work in the same institution under identical service conditions, Madras high court has said.

"There cannot be any comparison in respect of employees working in public sector undertakings as well as govt departments. Since service rules are different and distinct, the question of applying the principle of equal pay for equal work does not arise at all," the HC noted.

A division bench of Justices S M Subramaniam and C Kumarappan made the observations while setting aside a single-judge order directing govt to provide equal pay to a lineman employed by Arasu Rubber Corporation Limited, a Tamil Nadu govt-owned public sector undertaking.

"Govt directives issued on various occasions right from 2010 indicate that the implementation of revised scales of pay to corporation employees on a par with govt employees should not be done in a routine manner, and approval is to be obtained from govt," the bench said. A PSU is fully funded by govt and, therefore, the financial constraints are to be considered by govt, the bench said.

"No doubt, equal pay for equal work was considered by the courts, but the principle would apply if the employees are working in the same institution and duties and responsibilities are the sameand there cannot be any comparison in respect of the employees working in public sector undertakings as well as govt departments," the bench said.

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