Decoding Punjab and Haryana High Court ruling on ‘no work, no pay’ principle

The Punjab and Haryana High Court has clarified that employees cannot be denied salary arrears following a retrospective promotion, particularly when they were ready and qualified to work at the promoted level but are denied the role due to departmental delays.

Understanding ‘no work, no pay’ principle

Generally, the “no work, no pay” principle means employees are not paid for work they have not done. However, the high court ruled that this principle does not apply if an employee’s promotion is delayed by the employer. In cases where a promotion is granted retroactively, but the employee was prevented from working at the promoted level, they are still entitled to arrears for the period they missed out on due to the delay.

The Case at a Glance

Justice Namit Kumar of the Punjab and Haryana High Court recently ruled in favour of a petitioner who had been granted a retrospective promotion to Accountant Grade-I, effective from June 30, 2014. Despite being eligible and willing, the petitioner was not promoted on time, even though juniors were elevated to higher positions.

Justice Kumar ruled that it was “illegal and arbitrary” to deny salary arrears because the employee was qualified and ready to take on the duties of the promoted role; there was no adverse record against him as of the promotion date in 2014; and the delay in promotion was due solely to the department’s oversight.

Why was ‘no work, no pay’ considered inapplicable?

The high court noted that the delay in the petitioner’s promotion was not due to any fault of his own. Since the employee was prevented from assuming the promoted role solely because of the employer’s delay, the court found it unfair to deny him his due. Justice Kumar reasoned that since the department eventually acknowledged his eligibility by granting a retrospective promotion, it was only just that he receives the corresponding salary arrears.

Implications for employees

This ruling sets an important precedent: if an employee is qualified and ready to work at a promoted level, but promotion is delayed due to administrative or procedural issues, the employee may be entitled to back pay for the period covered by the delayed promotion. This interpretation protects employees from financial loss caused by factors beyond their control and discourages delays in promoting eligible employees.

Court’s final ruling and next steps

The high court ordered the department to release the necessary salary arrears and other benefits to the petitioner within three months. The judgment reinforces that when a retrospective promotion is granted, employees have a right to the corresponding financial benefits, provided they were eligible and willing to perform the higher-level duties during the delayed period.