Withdrawal of employee privilege held illegal

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The Supreme Court recently held that the unilateral withdrawal of an order raising the age to access employee superannuation, which is temporary in nature, amounts to the contravention of section 9A of Industrial Disputes Act, 1947 (ID Act), and such an act of the employer is illegal.

In Paradeep Phosphates v State of Orissa, Paradeep Phosphates (PP) was a wholly owned public sector undertaking (PSU) of the central government with a corporate and registered office in Bhubaneswar. Due to the deteriorating financial position of some PSUs, the government in May 1998 decided to temporarily raise the retirement age of all central public sector employees from 58 years to 60 years.

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The dispute digest is compiled by Bhasin & Co, Advocates, a corporate law firm based in New Delhi. The authors can be contacted at lbhasin@bhasinco.in or lbhasin@gmail.com. Readers should not act on the basis of this information without seeking professional legal advice.

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