The Division bench of the Gujarat High Court reiterates principle of equal pay for equal work

The appellant company had entered into a settlement dated 21^st March 1996 with its employees. The terms of settlement and benefits arising out of the settlement were only applicable to the employees who were in employment before 31^st December 1994. The respondent employees joined after 31^st December 1994 and as a reason of this they were not entitled to benefits under the settlement. However, the Industrial Tribunal and the Single Judge bench extended the benefits to the respondent employees quoting the principle of ‘equal pay for equal work’ relying on the decision of the Supreme Court in Jagjit Singh & Ors. The division bench in this R/Letters Patent Appeal No. 746 of 2024 in R/Special Civil Application No. 12844 of 2018 held that the respondent employees are doing the same work as their colleagues who are signatory to the settlement, hence cannot be denied the allowances/wages on the principle of equal pay for equal work. The appellant company cannot deny the allowances attached to the basic wage structure.