“THE PRINCIPLE OF NO WORK NO PAY”

The division bench of the Supreme Court comprising of Justice Ashok Bhushan and Navin Sinha on July 13, 2019 in a matter titled ‘Chief Regional Manager, United India Insurance Company Limited v. Siraj Uddin Khan’[1] has observed that the principle of ‘No Work No Pay’ can be applied even when the employee was not kept away from the work by any order of the employer. Hon’ble SC reiterated that under the settled principle, the one who remained absent without leave or any justification cannot be directed to claim wages for that particular period.

Dies non or Dies non juridicum is a generally accepted Latin phrase/maxim for the principle of No work No Pay[2]. The principle of ‘No Work No Pay’ is an implied condition of the contract of employment. The said principle is the basic dictum of industrial relations. In simpler words it means, a person is generally employed to get the assigned work performed,  and in a situation where the employee fails to perform the said work, s/he is not entitled to any payment or remuneration. Generally, the absence of workers from the workplace is also covered under this principle. However, it is pertinent to note that such failure in the performance of work should not happen at the instance of any circumstance/failure on the part of the employer.

The principle of ‘No Work No Pay’ finds its root in the Indian Constitution and is a logical corollary as well as the extension of the principle of ‘Equal Pay For Equal Work’ as enshrined in Art. 39 of the Constitution of India. It aims to establish social justice in action. Though this principle is not laid down in any labor or service laws expressly but a result of judicial creativity, it has assumed great industrial importance to maintain cordial and harmonious relations between the employer(s) and employee(s).

S.2 of the Industrial Disputes Act, 1947 provides for the definition of ‘wages’ which in turn is the genesis of the said principle.  A deeper look into the definition provides us the real essence i.e. wages/remuneration are the benefits provided by the employer to the workman for the work performed by him for the employer for which s/he was engaged. S. 7(2)(b) when read with S. 9 of the Payment of Wages Act, 1936 gives the express authority to the employer to make deductions in the remuneration for absence from duty. However, absence occurring at the instance of employer by resorting to suspension pending inquiry on disciplinary charges[3], lock-out, lay off, retrenchment or failure to provide  necessary resources for performance of work like power supply, raw material, necessary technical expertise will not attract the principle of ‘No Work No Pay’.

However, No Work No Pay is a significant common law weapon in the employer’ armory to complement the statutory restrictions on industrial action.[4]

[1] Civil Appeal No. 5390 of 2019

[2] Ex. Const. Suresh Kumar (Dvr) v. Commissioner of Police and Ors. [W.P. (C) No. 8435/2003]

[3] Nirmala J. Jhala v. State of Gujarat [(2013) 4 SCC 301]

[4] Hazel McLean, Contract Of Employment- Negative Covenants And No Work, No Pay, 9 Cambridge L.J., 28, 31 (1990).

Submitted By-

Surya Pratap Singh Naruka

Student Reporter, Indian National Bar Association (INBA)

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