Allahabad HC: 'No Work-No Pay' Inapplicable for Fully Exonerated Employees

The Allahabad High Court has ruled that the no work-no pay principle does not apply to Uttar Pradesh government employees reinstated after complete exoneration. This decision came in response to a writ petition filed by Dinesh Prasad. Justice Salil Kumar Rai stated that Rule 54 of the Financial Handbook Volume-II Part II to IV mandates that a dismissed employee, once fully exonerated, is entitled to full pay for the dismissal period upon reinstatement.

The court clarified that the period of dismissal should be considered as time spent on duty. It emphasised that a government servant cannot be denied their full pay and allowances for the period they were out of service if their dismissal or removal order is overturned. The court's ruling was delivered on Tuesday, allowing Prasad's petition.

Financial Handbook Provisions

According to Rule 54, a fully exonerated employee must receive full pay for the dismissal period once reinstated. The rule also states that this period should be treated as time on duty. The court noted that the amount payable depends on the nature of exoneration from the charges. However, if the employee was employed elsewhere during the dismissal period and earned an amount equal to or more than their entitled pay, they could be denied payment.

Dinesh Prasad, who served with the Uttar Pradesh Police, faced disciplinary proceedings under Rule 14 of the Uttar Pradesh Police Officers of the Subordinate Ranks Punishment and Appeal Rules 1991. He was charged with unauthorised leave for two days and a hunger strike that allegedly tarnished the police force's reputation.

Disciplinary Proceedings and Reinstatement

An inquiry found Prasad guilty of all charges, leading to his dismissal after a show cause notice. Prasad appealed against this termination order, and the appellate authority eventually exonerated him of all charges, resulting in his reinstatement.

Following his reinstatement, Prasad received a show cause notice under Rule 73 of the Financial Handbook Volume-II Part II to IV. The notice questioned why his service period from January 9, 2020, to September 29, 2020, should not be regularised without salary based on the no work-no pay principle. This period covered his termination until his reinstatement by the appellate authority.

Prasad challenged this order in the high court. On July 16, the court allowed his writ petition and directed the registrar compliance to send a copy of its order to SP, Deoria for implementation.

The court's decision underscores that employees fully exonerated from charges are entitled to their full pay for periods of wrongful dismissal once reinstated. This ruling provides clarity on how such cases should be handled under existing financial rules.