In Brief
Hospital staff employed under the Coal Mines Welfare Organisation were transferred to Eastern Coalfields Limited in 1985-87. They were promised pay protection on absorption into the new company. When their pay was refitted in 2003, their basic pay was reduced from Rs. 1950 to Rs. 1834, though total emoluments appeared higher due to added allowances. The Supreme Court held that the basic pay itself could not be reduced, regardless of total emoluments. The earlier single-bench order mandating pay protection had become final and binding. The Court dismissed the company's appeal and ordered restoration of full pay protection for all absorbed employees, retirees, and legal heirs of deceased employees within two months.
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