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Supreme Court of India 2019-07-11 partly_allowed

Chief Regional Manager, United India Insurance Company Limited vs Siraj Uddin Khan

Bench: 2 — Ashok Bhushan

In Brief

This case concerns an insurance company employee who was transferred, absented himself, faced disciplinary proceedings, and was dismissed. The Supreme Court addressed whether he was entitled to back wages for the period 14.05.2009 to 20.06.2012 after his dismissal order was set aside by the High Court. The Court held that while employees wrongfully dismissed are entitled to back wages, the principle of "no work no pay" applies when the employee himself absented without justification, not when restrained by the employer's order. Here, the respondent was not kept away by any company order but absented himself, so he was not automatically entitled to wages. The Court set aside the High Court's direction and required the company to reconsider his claim.

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Labour Law Disciplinary Proceedings Back Wages Principle of No Work No Pay Dismissal and Reinstatement Natural Justice Retirement Insurance Regulation

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