Employees in service on the wage-revision cutoff retain settlement benefits after retirement, with interest for overdue payment.

The petitioner, a permanent employee of the respondent Transport Corporation, was appointed as a Driver on 19 September 1997 and retired as a Special Grade Driver on 31 May 2025.

The 15th wage settlement under Section 12(3) of the Industrial Disputes Act, entered into on 29 May 2025, provided for a 6% pay revision notionally from 1 September 2023, with monetary benefits from 1 September 2024.

The petitioner, who was in service on 1 September 2023, sought the resulting wage-related and retirement benefits.

After making a representation and alleging inaction, he filed the writ petition seeking payment of the amounts due, with interest

1. Whether the petitioner, having been in service on 1 September 2023, was entitled to the benefits of the 15th wage settlement, including monetary benefits from 1 September 2024

2. Whether delayed payment of those benefits warranted interest, and what directions should be made for payment

Section 12(3) of the Industrial Disputes Act provided the statutory basis for the wage settlement between the Management and the Unions.

Under Clause 1 of the 15th wage settlement dated 29 May 2025, employees in service on 1 September 2023 were eligible for a 6% revision of pay, with monetary benefits from 1 September 2024.

Clause 37(b) provided that arrears of monetary benefits would be calculated from 1 September 2024 and paid in four quarterly instalments.

The Court further applied the principle that belated settlement of monetary benefits due to an employee should carry interest at 6% per annum for the period beyond the settlement’s prescribed payment schedule until actual payment

The petitioner was in service on the settlement’s eligibility date and therefore qualified for the 6% pay revision and monetary benefits under the settlement.

Although the revision was to operate notionally from 1 September 2023, the monetary benefits were payable from 1 September 2024, subject to Clause 37(b)’s instalment schedule.

As the revision had not been made, the Court directed the Corporation to provide the benefits and imposed interest at 6% for any delay beyond that schedule

The Court directed the respondent Transport Corporation to revise the petitioner’s pay scale with effect from 1 September 2023 and provide the benefits due under the 15th wage settlement from 1 September 2024 within six months of receiving a copy of the order.

Interest at 6% per annum is payable for the period beyond the schedule under Clause 37(b) until actual payment.

There was no order as to costs