Management Consultants Legal & Hr
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The Supreme Court last week declared that the employees of two schools set up by public sector National Aluminium Co Ltd ( NALCO) are not its employees, setting aside the ruling of the Orissa High Court. Therefore, the staff of the schools set up for the benefit of company employees was not entitled to the benefits given to company staff. The judgment said that “ there is no parity in the nature of work, mode of appointment, experience, educational qualifications between the NALCO staff and school employees.”
Copy of judgement:

The SC decided so because though the schools were established by NALCO ,schools were managed by Saraswathy Vidya Mandir.If NALCO was having supervision and control over the teachers the decision would have been different .Another demand of the teachers were pay at par with NALCO employees,which was also denied.
Varghese Mathew

Dear Friend,

The SC passed the order setting aside the order of Orissa High Court though two schools were established by NALCO to meet norms of CSR Policy as a good corporate citizen. The schools are managed by the trustees and trustees do not have any connection with the NALCO. So, NALCO does not have any control and supervision over the management of the trustees / schools. Schools are separate legal entity managed and controlled by the Trustees.

In view of the above observations, NALCO has no nexus with the school after handing over to the Trustees to take full charge of the management.The demand of employees/teachers/staff to pay same pay scale and others facilities as being paid to NALCO employees is rejected, since employees of schools can not considered as the employees of NALCO. In other words, the employees of schools will get salary and other benefits in terms of appointment letter issued by the management of school.

Thanks & Regards,

Sibabrata Majumdar

Management Consultant Legal & HR

Good verdict. Difference between employees of a Factory and Teachers as their nature of work is different. How the teachers can claim pay parity with the employees of a factory? Pon
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