In Brief
Paradeep Phosphates Limited, a Government of India-owned fertiliser company, temporarily raised the retirement age for all employees from 58 to 60 years in 1998 to help combat losses. After the company was partially privatised, it withdrew this benefit in 2002 without notice to employees. A trade union challenged this withdrawal. The Supreme Court held that once a superannuation benefit is granted, it becomes a 'privilege' to employees under law. Withdrawing such a privilege constitutes a change in service conditions requiring at least 21 days' statutory notice under the Industrial Disputes Act, 1947. The Court dismissed the company's appeal, upholding the High Court, and held that employers cannot unilaterally remove benefits without following statutory procedure, even if the original grant was temporary.
The lawyer headnote and full judgment text are available to registered users.