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Principle Of “No Work, No Pay” Applies When Employee Was Not Kept Away From The Work By Any Order Of The Employer
The Division Bench of Supreme Court comprising of Justice Ashok Bhushan and Justice Navin Sinha reversed the decision of Allahabad High Court and reiterated the settled principle of “No work no pay”. This principle basically means that no person is entitled to claim wages for the period in which he was absent without any reasonable justification or without leave. The apex court made it clear that this principle is applicable in situation where the employee was not kept away from work by any order of the employer.
The matter was first placed before the High Court of Allahabad. In this case, the petitioner (employee) on 14-05-2009, was found guilty of charge of unauthorised absence by the disciplinary authority and accordingly he had to bear reduction in basic pay by two steps in accordance with Rule 23(a) of General Insurance (Conduct, Discipline & Appeal) Rules. After this a second charge sheet was issued against him and he was terminated from the service by order dated 26-06-2012. However his retirement was due on 20-o6-2016. The court ordered in favour of the petitioner and set aside both the orders against him and ordered back-wages till 26-06-2012.
The authorities of United India Insurance Company Limited filed an appeal against the order of High Court in the Hon’ble Supreme Court. The main contention was that the High Court has made a mistake in understanding the circumstances and directing them for payment of salary after 14-05-2009 to 20-06-2012 as the employee was absent in during the period and therefore was not entitled to get wages as per the principle of “No work, no pay”. Taking into consideration of all this, the court held that since the respondent was not kept away from the work by any official order of the appellant. Therefore, the court set aside the order of Allahabad High Court.
