Employee acquitted in criminal case entitled to reinstatement and back wages: Orissa HC

Employee acquitted in criminal case entitled to reinstatement and back wages

Orissa High Court in GhasiramBehra vs. State of Orissa (WA No. 441/2025)  on July 10, 2025, held that an employee acquitted in a criminal case on the benefit of doubt is entitled to receive back wages and all consequential service benefits. The Court rejected the employer’s argument that the “no work, no pay” principle applied in such cases. The Court placed reliance on the applicable service rules, which provide that an employee who is fully exonerated is entitled to full pay and allowances for the period of dismissal and that such period shall be treated as spent on duty. The Court observed that the employer had misinterpreted the nature of the acquittal and unfairly applied the no work, no pay principle, thereby entitling the employee to full benefits.

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