Supreme Court Ruling: How Does It Affect NALCO School Employees' Rights and Benefits?

Supreme Court Ruling on NALCO School Employees

The Supreme Court last week declared that the employees of two schools set up by the 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 is not entitled to the benefits given to company staff. The judgment stated that "there is no parity in the nature of work, mode of appointment, experience, and educational qualifications between the NALCO staff and school employees."

Copy of judgment: http://judis.nic.in/supremecourt/img...filename=41518

Supreme Court Decision on NALCO School Employees

The Supreme Court decided so because, even though the schools were established by NALCO, they were managed by Saraswathy Vidya Mandir. If NALCO had supervision and control over the teachers, the decision would have been different. Another demand of the teachers was to be paid at par with NALCO employees, which was also denied.

Regards,
Varghese Mathew
[Phone Number Removed For Privacy Reasons]

The Supreme Court passed the order setting aside the decision of the Orissa High Court, even though two schools were established by NALCO to meet the norms of the CSR Policy as a responsible corporate citizen. The schools are managed by the trustees, who have no connection with NALCO. Therefore, NALCO does not exercise any control or supervision over the management of the trustees/schools. The schools are separate legal entities managed and controlled by the trustees.

In light of the above observations, NALCO has no association with the school once it has been handed over to the trustees to assume full management responsibility. The demand from employees/teachers/staff to receive the same pay scale and other benefits as NALCO employees is rejected, as the school employees are not considered employees of NALCO. In other words, the employees of the schools will receive their salary and benefits as per the terms outlined in the appointment letter issued by the school's management.

Thanks & Regards,

Sibabrata Majumdar
Management Consultant Legal & HR
[Email Removed For Privacy Reasons]

Difference Between Factory Employees and Teachers

The nature of work for employees of a factory and teachers is different. How can teachers claim pay parity with the employees of a factory?

Regards,
Pon