Chennai: The principle of equal pay for equal work applies only when employees work in the same institution under identical service conditions, Madras high court said on Friday.“There cannot be any comparison in respect of the employees working in public sector undertakings and govt departments. Since service rules are different and distinct, the question of applying the principle of equal pay for equal work does not arise at all,” the court added.A division bench of Justice S M Subramaniam and Justice C Kumarappan made the observations while setting aside a single judge order directing the govt to provide equal pay to a lineman employed by Arasu Rubber Corporation Limited, a Tamil Nadu govt-owned public sector undertaking.“Govt directives issued on various occasions right from 2010 indicate that the implementation of revised scales of pay to the corporation employees on a par with the govt employees should not be done in a routine manner, and approval is to be obtained from the govt,” the bench said.A PSU is fully funded by the govt and, therefore, the financial constraints are to be considered by the govt, the bench added. “No doubt, equal pay for equal work was considered by the courts, but the principle would apply if the employees are working in the same institution and duties and responsibilities are the same, and there cannot be any comparison in respect of the employees working in public sector undertakings and govt departments,” the bench said.
