Case Note & Summary
The Petitioner, Smita Yohan Godbole, was employed with the Shahda Municipal Council (Respondent No.4). She alleged that her monthly salary was unilaterally reduced from Rs.9,038/- to Rs.4,630/- per month from January 2010 without any prior notice or compliance with Section 9A of the Industrial Disputes Act, 1947. Another employee, A.P. Chaudhari, had also suffered a similar reduction and had challenged it before the Industrial Court, but his complaint was dismissed and he accepted the verdict. The Petitioner filed a writ petition before the Bombay High Court challenging the reduction. The Court considered the submissions of the parties and focused on the requirement under Section 9A of the Industrial Disputes Act, 1947, which mandates that an employer must give 21 days' notice before effecting any change in conditions of service enumerated in the Fourth Schedule, including reduction in wages. The Court held that the reduction in salary without such notice was illegal. The Court allowed the petition, quashed the reduction, and directed the employer to restore the Petitioner's salary to the level prior to January 2010. The Court also directed that any future reduction must comply with Section 9A. The judgment was restricted to the Petitioner and not to be used as leverage by the other employee who had accepted the Industrial Court's verdict.
Headnote
A) Industrial Disputes Act - Section 9A - Notice of Change - Reduction in Wages - The employer reduced the monthly salary of the Petitioner without issuing any notice of change as required under Section 9A of the Industrial Disputes Act, 1947. The Court held that reduction in wages is a change in conditions of service covered by the Fourth Schedule, and non-compliance with Section 9A renders the reduction illegal and unsustainable. (Paras 4, 9-10) B) Industrial Disputes Act - Fourth Schedule - Conditions of Service - Reduction in wages is a matter enumerated in the Fourth Schedule to the Industrial Disputes Act, 1947, requiring prior notice under Section 9A. The Court directed the employer to restore the salary of the Petitioner to the level prior to January 2010 and to comply with Section 9A before any further reduction. (Paras 9-10)
Issue of Consideration
Whether the reduction in salary of the Petitioner without complying with Section 9A of the Industrial Disputes Act, 1947 is sustainable in law?
Final Decision
The Court allowed the writ petition, quashed the reduction in salary, and directed the employer to restore the Petitioner's salary to the level prior to January 2010. The Court further directed that any future reduction must comply with Section 9A of the Industrial Disputes Act, 1947.
Law Points
- Section 9A of the Industrial Disputes Act
- 1947 requires employer to give 21 days' notice before effecting any change in conditions of service enumerated in Fourth Schedule
- reduction in wages is a change in conditions of service
- non-compliance renders the change illegal
