Health staff and social workers in Jersey who were told their pay rise was a mistake and will be reversed have lost their appeal to keep it.
Salaries of 126 employees were raised in November 2017 but at the end of last year an independent review found that the roles had been 'inappropriately uplifted' and would be reversed.
This sparked the legal collective grievance action against the States Employment Board's (SEB) decision.
It was considered by a disputes panel which concluded that the SEB's decision should be maintained to keep pay grades fair.
The panel also said that affected employees should receive three years of pay protection to ensure pay grades are appropriate for each role. The SEB says employees and unions will be included in these discussions.