Employees serving on the wage-revision eligibility date remain entitled to settlement benefits after retirement.

The petitioner, a Driver who was in service on 1 September 2023, retired as a Special Grade Driver on 31 January 2025.

A wage settlement under Section 12(3) of the Industrial Disputes Act, 1947, was entered into on 29 May 2025. It provided for a 6% pay revision notionally from 1 September 2023, with monetary benefits from 1 September 2024, payable in four quarterly instalments.

The petitioner sought revision of his pay and consequential arrears and terminal benefits under the settlement.

The respondent’s counsel stated that the Corporation would calculate any amount due and pay it within a reasonable time.

Whether an employee who was in service on 1 September 2023, but retired before the settlement was concluded, was entitled to the settlement’s pay revision and monetary benefits.

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

Section 12(3) of the Industrial Disputes Act, 1947, provides the statutory basis for the wage settlement at issue.

Under Clause 1 of the 29 May 2025 settlement, employees in service on 1 September 2023 were eligible for a 6% revision of pay, notionally effective from that date, 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 further held that belated settlement of monetary benefits due to an employee warranted interest at 6% per annum.

The petitioner met the settlement’s eligibility condition because he was a permanent employee in service on 1 September 2023; his retirement before the settlement date did not defeat his entitlement.

The Court therefore held that his pay scale had to be revised from 1 September 2023 and that he was entitled to the resulting monetary benefits from 1 September 2024, consistent with the settlement.

As the revision had not been made, the Court directed payment with 6% annual interest for the period beyond that contemplated by Clause 37(b), continuing until actual payment.

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

The amount was to carry interest at 6% per annum for the period beyond the payment schedule under Clause 37(b), until actual payment.

No costs were awarded.