In Brief
Eastern Coalfields Limited appealed against a Division Bench order directing it to refix the pay of employees transferred from Coal Mines Welfare Organisation without reducing their basic salaries. The Supreme Court dismissed the appeal, holding that the company had provided dual protection—for both basic pay and total emoluments—when employees opted for absorption. Although the company had inflated total emoluments through allowances and bonuses, it had wrongfully reduced the basic pay from Rs. 1950 to Rs. 1834. The Court affirmed that a pay reduction on absorption violated the assurance given to employees and the binding Single Bench order of 2002. Benefits were to be extended to all absorbed employees, retired staff, and legal representatives of deceased employees within two months.
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