Supreme Court announces major decision on salary of suspended employees

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The Supreme court of Pakistan has ruled out that suspension from service does not constitute dismissal, removal or termination and a government employee does not lose any remuneration entitlement to receive full salary and benefits during the period of suspension.

The verdict was issued by a two-member bench that included Justice Shahid Bilal Hassan and Justice Shakeel Ahmad while it was hearing a petition filed against an earlier decision of the Federal Service Tribunal.

In its four page judgment authored by Justice Shakeel Ahmad the court had noted that suspension is just a temporary administrative step which prevents an employee from performing official work but suspension does not break the relation of employment. The court stressed that the service contract is valid for the suspension period.

The bench held that a suspended civil servant continues to be in that post and therefore, all the contractual rights are still in place, including a civil servant’s right to receive full pay and allowances, till a final decision is made in the case.

The matter involved a senior clerk/inspector of the Federal Board of Revenue who completed over 31 years of service and wanted to go for retirement on medical grounds. Although a medical board has declared him unfit for any further physiological board and he was compulsorily retired on July 12, 2024. His suspension period was later treated as extraordinary leave without pay and the department also tried to recover salaries and allowances already disbursed.

Challenging these actions the employee approached the Federal Service Tribunal that partially ruled in favor of him. The FBR later approached the Supreme Court with an appeal.

Upholding the tribunal’s findings the apex court ruled that a government issued appointment letter amounts to a binding contract and any unilateral withholding of salary without any lawful justification amounts to a violation of service rules. Referring to Fundamental Rule 53(b), the court called the refusal to give full pay while suspended unjust and oppressive.

The Supreme Court in the last ruling affirmed that the suspended civil servant was legally entitled to full salary and benefits for the entire period of suspension dismissing the appeal filed by FBR.

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