Punjab and Haryana High Court upholds employees’ right upon retirement

In a landmark ruling, the Punjab and Haryana High Court has declared in favor of Punjab government employees, asserting that “the state government cannot withhold the final increment from employees upon retirement”.

The Double Bench of the Punjab and Haryana High Court upheld the decision of a Single Bench, which affirmed that Punjab government employees who complete one year of service on their retirement day are entitled to receive their annual increment, typically granted on the 1st of the month. The Punjab Government had challenged the Single Bench’s ruling, arguing that employees retiring on any day other than the 1st of the month should not receive the increment as their service year would be considered incomplete. However, the Double Bench dismissed the government’s appeal and sided with the employees. Advocate Geetanjali Chhabra, representing the employees, emphasized, “Throughout an employee’s tenure, annual increments are provided as a standard component of their compensation.

Despite this, the Punjab Government had previously withheld the final increment citing the completion of the service year a day after retirement”.With this judgment, the Punjab and Haryana High Court has reaffirmed retiring employees’ entitlement to their final increment on their last day of service, ensuring that the Punjab Government cannot deprive its retiring employees of this benefit.