June 24, 2026

Supreme Court rules suspended employee entitled to full salary, benefits

Islamabad  –  The Supreme Court of Pakistan has reiterated that suspension does not amount to removal, dismissal, or termination from service, ruling that a suspended employee of the Federal Board of Revenue (FBR) is entitled to full salary and benefits. The decision, delivered by a two-judge bench comprising Justice Shahid Bilal Hassan and Justice Shakeel Ahmad, upheld a Federal Service Tribunal (FST) order in favor of the civil servant, emphasizing that contractual rights remain fully intact during suspension.

In a four-page verdict authored by Justice Shakeel Ahmad, the SC observed that suspension is an interim measure that temporarily halts the performance of duties, while the appointment or service contract continues to subsist. “Consequently, the civil servant continues to hold the post, albeit without performing duties. All rights, including entitlement to full salary, remain enforceable during the suspension period,” the ruling stated.

The case concerned a senior clerk/inspector of the FBR, who after more than 31 years of service applied for retirement on medical grounds. Despite a medical board declaring him unfit for further service, he was compulsorily retired on July 12, 2024, with his period of suspension treated as extraordinary leave without pay. The department sought to recover salary and allowances paid during the suspension.

His appeal before the FST partly succeeded, prompting the FBR to challenge the tribunal’s order in the Supreme Court. The SC affirmed that a government-issued appointment constitutes a binding contract, and any unilateral withholding of salary without legal authority violates the terms of service.

The verdict cited Fundamental Rule 53(b), noting that depriving a suspended employee of full pay is unjust and oppressive. It also highlighted Islamic injunctions, referencing the Quran and Hadith, which emphasize the sanctity of lawful earnings, fulfillment of contracts, and prohibition of exploitation. The court stated that punishing an employee financially before adjudication equates to injustice, contrary to Islamic principles of justice.

The Supreme Court concluded that the FST had correctly held that the suspended civil servant was entitled to full salary and benefits throughout the suspension period.

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