Employees covered by a wage settlement remain entitled to revised pay and arrears after retirement, with interest for delay.

The petitioner was appointed as a Conductor on 8 August 1992 and retired as a Senior Conductor on 31 October 2024.

The 15th wage settlement, entered into under Section 12(3) of the Industrial Disputes Act on 29 May 2025, provided for a 6% pay revision for employees in service on 1 September 2023, notionally from that date, with monetary benefits from 1 September 2024; arrears were payable in four quarterly instalments.

The petitioner, who was in service on 1 September 2023, sought revision of his pay and consequential arrears and terminal benefits. After representing to the Corporation and receiving no revision, he filed this writ petition.

The respondent submitted that the pay would be revised and any amount due paid within a reasonable time.

Whether the petitioner, who was in service on 1 September 2023 but retired before the 15th wage settlement was concluded, was entitled to its pay revision and monetary benefits.

Whether delayed payment of the benefits attracted interest, and, if so, at what rate and for what period.

Section 12(3) of the Industrial Disputes Act provides the framework under which the 15th wage settlement was concluded.

Under Clause 1 of that settlement, employees in service on 1 September 2023 were entitled to a 6% revision of earlier wages, notionally from 1 September 2023, with monetary benefits from 1 September 2024.

Clause 37(b) provided for arrears to be calculated from 1 September 2024 and paid in four quarterly instalments.

The Court applied the principle that delayed settlement of monetary benefits due to an employee warrants interest at 6% per annum, calculated for the period beyond the payment schedule under Clause 37(b) until actual payment.

The petitioner was a permanent employee in service on the settlement’s qualifying date, so his subsequent retirement did not remove his entitlement under the settlement.

The settlement entitled him to a pay revision effective from 1 September 2023 and monetary benefits from 1 September 2024; the Corporation had not made the revision by the time of judgment.

Given the delay, the Court directed payment with interest, but limited the interest period to the time after the Clause 37(b) instalment schedule had run, continuing until actual payment.

The Corporation was also directed to pay interest at 6% per annum for the period beyond the Clause 37(b) payment schedule until actual payment; there was no order as to costs.