Nagarkar Vinayak L
Sr. Manager (p&a)
Hr / Ir
+1 Other

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Dear Friends ,
If a employee remained On Leave Without Pay with prior information than he is not entitled for any Pay . Basic Plus all other allowances .
Is there any case law on this issue which state only Basic Pay will not be given but all other allowances are admissible as they are part of CTC .One of the Service Industry
claim it is case Law .
Pl put light .
Regards ,
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See no law regulates CTC, it is just a contract guided by Indian Contract Act. So how that contract defines your payment will be the guiding principle. But generally an employee get paid because he is working. So if he is not working no emolument can be awarded in that proportion. See Things To Remember While Drafting A Valid Employment Contract
Dear Shirke
It is not legitimate to expect to be paid when one is on LWP on the basis of ' No work-No pay'.During LWP, the employer-employee relationship continues, the lien on the job is unaffected except that one is not paid anything-basic or CTC.
Mr Shirke;

I have not yet come across any case law as you want. But yes. I know a couple of cases where there is logic. In one company, HRA was not related to attendance. As such even when an employee was absent throughout month, he will not get any wages but he will get HRA. Reasoning was he had to pay House Rent even when he is absent. Secondly if we see the history of wages, before 1st world was, i.e. 100 years ago there was only basic. there were no allowances. Later as prices started rising and workers started demanding more wages, instead of increasing basic, allowances were introduced. If we see the price rise in terms of percentage, if it was only basic, the wage would have been manifolds that what it is now. This means the workers are getting less wages. Then why not pay when worker is absent on sanctioned leave without pay? There are many cases when any employee becomes inevitable for employer, even when employee is absent, employer pays the worker as retainer charges. Conclusion - remuneration in whatever way when on sanctioned leave without pay is not of dustbin value.

Vibhakar Ramtirthkar


Dear Friends , Thanks for addl info .I will wait for further inputs on Subject . Regards
I go with Mr. Vibhakar Ramtirthkar's point. As a matter of fact in one of my employments when an employee was ill, his HRA was paid as a matter of justure. Any employee go on LOP wages or paid leave has to get HRA as the employee remains in house and the house owner will allow or say it is okay pay for next month.. Let it be a new and good beginning for all employed personnel. HRMs can look into this aspect.
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