One rupee salary due costs company Rs.970,000

July 28th, 2008 - 4:29 pm ICT by IANS  


Ranchi, July 28 (IANS) The Heavy Engineering Corporation (HEC) in Jharkhand has finally agreed to pay a total compensation of Rs.970,000 to 24 of its employees because it had paid them Re.1 less as salary for as long as 30 years, an official said Monday. The affected employees had taken the company to court, fighting a legal battle all these years. However, five of them died during the course of the case and the remaining 19 have retired from HEC.

According to an HEC official, the company had promoted around 500 employees from grade E to grades C and D in 1978 and their salary was increased to Rs.8 per month. The management however, gave Rs.7 per month while implementing the new scale.

The 24 employees moved the labour court, which took up the matter in 1990 and passed a judgement in their favour in 1997. The HEC management then moved the high court in appeal, which upheld the labour court’s verdict.

HEC appealed again to a two-judge bench of the high court. In February this year, the bench rejected the company’s plea.

HEC then invited the employees’ union for negotiations. The union had calculated Rs.1.1 million as dues for 30 years. The company and the union last week finally agreed on a compromise amount of Rs.970,000, the official told IANS Monday.

“After negotiating with the union, we have agreed to pay Rs.970,000 against the demanded Rs.1.1 million to the employees,” he said.

“The different amounts the employees will get vary between Rs.9,191 and Rs.60,573, according to the period of work and promotion,” the official added.

He said a cheque would be sent to the employees through post and in case of those who have died, their relatives would receive the compensation.

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