The Lahore High Court (LHC) has ruled that withholding an employee’s previous financial benefits after reinstatement following dismissal can be unfair and, in certain circumstances, unlawful.
Justice Shireen Imran issued the 10-page judgment while hearing a petition filed by Babar Masih, an employee of the Cantonment Board.
The court set aside an earlier order that had denied Masih his previous financial benefits following his reinstatement.
The judgment held that benefits could not be withheld merely based on an employee’s absence if the employee had later been reinstated.
It observed that where no corruption or misconduct was proved, and the absence was due to compelling circumstances, restoration of previous financial benefits should be treated as a basic principle.
Referring to principles laid down by the Supreme Court, the LHC said that when a dismissal order is declared null and void, the affected employee should be financially compensated and previous benefits restored.
The petitioner had been reinstated after being acquitted, but his previous salaries and other financial benefits remained withheld during the departmental proceedings.
The Lahore High Court declared the order withholding those benefits null and void and directed the relevant department to reconsider the matter and issue a fresh decision within two months.
The ruling could serve as an important judicial precedent concerning the financial rights of employees reinstated after acquittal, particularly in cases where salaries and other benefits were withheld during departmental proceedings.
