Employees cannot be transferred to another post if it reduces their salary or pushes them to a lower rank, the Supreme Court has held.

"If orders of transfer substantially affect the status of an employee, the same would be violative of the conditions of service and thus, illegal," a bench of Justices S B Sinha and Markandeya Katju said while dismissing an appeal filed by some Maharashtra government employees.

The appeal was filed against a judgement of the Bombay high court, which had upheld the contention of a group of employees that they cannot be transferred to another post if it resulted in less salaries and allowances.

The dispute arose after the state government transferred a batch of assistant deputy education inspectors to the post of assistant project officers /assistant teachers and vice versa.

However, the ADEIs led by one Prakash Parushram challenged their transfers to the other cadre on the ground that it was illegal since their pay scales stood reduced on account of the transfer, a contention which was upheld by the Bombay high court.

Following this some APEs and ATs filed an appeal in the apex court.