Suspended employee: SC declares withholding of pay & benefits unjust, contrary to rules

ISLAMABAD: The Supreme Court declared that depriving a suspended employee of full pay or salary and service benefits is not only unjust and oppressive, but also contrary to the express mandate of Fundamental Rule 53 (b).

A two-judge SC bench of Justice Shahid Bilal Hassan and Justice Shakeel Ahmad decided the matter in an appeal of the Federal Board of Revenue against the verdict, passed by the Federal Service Tribunal, Islamabad.

The judgment said that suspension is not removal, dismissal or termination from service. Rather, it is an interim measure, which merely suspends _ the performance of duties while the order of appointment or contract continues to subsist, and the relationship of employer and employee remains intact. Consequently, the civil servant continues to hold the post, albeit without performing duties, adding that when the contract of service continues to operate, all rights flowing therefrom, including entitlement to full salary, remain enforceable during the suspension period.

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The suspension does not extinguish the contract; therefore, an employee cannot be deprived of lawful remuneration without express legal sanction.

The judgment said that when the government issues an appointment order, it enters into a binding contract of service with the employee. Any unilateral withholding of salary, without the authority of law, is inconsistent with the terms and conditions of such appointment.

Suspension is merely an interim arrangement and does not amount to a finding of guilt. Imposition of financial deprivation before adjudication amounts to punishment without proof, which is repugnant to Islamic principles of justice.

It noted that in I A Sherwani case the Shariat Appellate Bench of the Supreme Court while interpreting Rule 53 of the Fundamental Rules, held that in light of the injunctions of Islam, a suspended government servant must be allowed full salary along with all other benefits and facilities provided to him under the contract of service.

The brief facts of the case are that Irshad Hussain Qaisrani (respondent No.1) was employed as Senior Clerk/ Inspector, at Federal Board of Revenue.

Copyright Business Recorder, 2026