Loss of Pay – Based on Principle of “No Pay No Work”

Loss of pay is based on the principle of “no pay no work”. It is an action quite separate and distinct from a disciplinary proceeding, which may visit an employee for such misconduct. In State of U.P. v. Madhav Prasad Sharma, 2011 (2) SCC 212, the Apex Court was considering the question whether the employer who had already sanctioned the leave, albeit without pay, was justified in terminating the service for the same charge and whether such an action is hit by the doctrine of double jeopardy. The Apex court after noticing the relevant statutory service rules concluded by holding that leave without pay is not a punishment prescribed under the rules and thus, denial of salary on the ground of “no pay now work” cannot be treated as a penalty nor the doctrine of double jeopardy would be attracted in case the employee is inflicted with the punishment of dismissal for the same charge. Purvanchal Bank v. Umesh Prasad Gupta, 2015 (3) ESC 1317.

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Filed under Employment Law, Loss of Pay

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