Supreme Court Upholds Employee's Claim for Equal Pay under Equal Remuneration Act — Discrimination Based on Sex Found.

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Case Note & Summary

The dispute arose from the termination of the services of a female employee, who worked as a Confidential Lady Stenographer for the petitioner company. After her termination on June 13, 1977, she filed a petition under the Equal Remuneration Act, 1976, claiming she was paid less than male stenographers for performing the same work. The petitioner contended that there was no discrimination and that the business was not covered under the Act. The Authority initially rejected her complaint, citing a settlement between the management and the employees' union. However, the Appellate Authority found clear discrimination and ordered the petitioner to pay the difference in remuneration. The Single Judge affirmed this decision but remanded the case for recalculating the amount due. The Division Bench dismissed the petitioner's appeal, leading to the current Supreme Court petition. The court emphasized that the Equal Remuneration Act aims to prevent discrimination based on sex and mandates equal pay for equal work. It found that the female stenographers were indeed performing the same work as their male counterparts and that the management's reliance on the 1975 settlement was invalid under the Act. The court ruled that the management must pay equal remuneration irrespective of the financial ability to do so, reinforcing the principle of equal pay for equal work as enshrined in Article 39(d) of the Constitution of India.

Headnote

A) Constitutional Law - Equal Pay for Equal Work - Discrimination on Ground of Sex - Equal Remuneration Act, 1976, Section 4 - The court held that the Equal Remuneration Act mandates equal pay for men and women performing the same or similar work, and any discriminatory pay based on sex is a violation of the Act. The petitioner was found to have paid female stenographers less than their male counterparts for the same work, thus breaching the provisions of the Act (Paras 1-11).

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Issue of Consideration

Whether the petitioner violated the provisions of section 4 of the Equal Remuneration Act, 1976.

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Final Decision

The Supreme Court dismissed the petition, affirming the findings of discrimination and ordering the petitioner to pay the difference in remuneration as directed by the Appellate Authority.

Law Points

  • Equal remuneration
  • discrimination based on sex
  • same work or work of similar nature
  • applicability of the Act
  • financial ability of management
  • job evaluation
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Case Details

1987 LawText (SC) (03) 3

Special Leave Petition (Civil) No. 1265 of 1987

1987-03-26

VENKATARAMIAH, E.S., DUTT, M.M.

1987 AIR 1281, 1987 SCR (2) 659, 1987 SCC (2) 469

J.P. Cama, Raju Ramachandran, Miss Indira Jaisingh, Ravi P. Wadhwani

MACKINNON MACKENZIE & CO. LTD.

AUDREY D’COSTA & ANR.

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Nature of Litigation

Dispute regarding equal pay for equal work under the Equal Remuneration Act.

Remedy Sought

The respondent sought payment of the difference in remuneration compared to male counterparts.

Filing Reason

Claim of discriminatory pay based on sex for performing the same work.

Previous Decisions

Initial rejection by the Authority, followed by an appeal that found discrimination.

Issues

Violation of Equal Remuneration Act Discrimination based on sex

Submissions/Arguments

Petitioner argued no discrimination and reliance on settlement Respondent claimed entitlement to equal pay under the Act

Ratio Decidendi

The court held that the Equal Remuneration Act mandates equal pay for men and women performing the same or similar work, and any discriminatory pay based on sex is a violation of the Act.

Judgment Excerpts

The Equal Remuneration Act mandates equal pay for men and women performing the same or similar work. The management cannot rely upon the settlement arrived at between the parties.

Procedural History

The case began with a complaint filed by the respondent after termination, leading to an initial rejection by the Authority, an appeal to the Appellate Authority which found discrimination, a writ petition in the High Court, and subsequent appeals culminating in the Supreme Court.

Acts & Sections

  • Equal Remuneration Act, 1976: 2(h), 3, 4(1), 4(3)
  • Constitution of India: Article 14, Article 39(d)
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