Madras High Court: ‘Equal Pay’ Doctrine Can’t Apply Across Different Service Structures

The Madras High Court held that the doctrine of “equal pay for equal work” cannot be applied across employees working under different service structures.

The case involved a lineman employed by Arasu Rubber Corporation Ltd., a state-owned PSU, who sought salary parity with linemen working in government departments.

The Court observed that employees of public sector undertakings and government departments are governed by distinct service rules, recruitment processes, and financial structures. Since their service conditions are fundamentally different, pay parity cannot be claimed.

The Division Bench therefore set aside the earlier order that had directed the State to grant equal pay.