In Brief
Daily-wage employees engaged by Madhya Pradesh were classified as 'permanent' under industrial standing orders after six months of service and later granted pay scales matching regular employees' minimum pay. They claimed entitlement to increments and other benefits of regular employees. The Supreme Court held that 'permanent' classification is distinct from 'regular' employee status. While permanent employees receive regular pay-scale minimum pay, they are not entitled to increments without formal regularization through proper recruitment procedures. The Court emphasized that increments require actual appointment against sanctioned vacancies following constitutional requirements. Wrongful grants to some employees cannot justify similar claims by others. The contempt petitions were dismissed as the State complied with court directions by fixing pay at the regular minimum without increments.
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