The Federal Constitutional Court has declared pension and related retirement benefits a fundamental legal right of employees, ruling that such payments cannot be withheld without an order from a competent court.
The court issued a nine-page judgment authored by Justice Arshad Hussain, stressing that unnecessary delays in the payment of pension and pensionary benefits violate the law and undermine the rights of retired workers.
According to the judgment, pension is not a discretionary payment or favour granted by an employer but a legitimate entitlement earned through service. The court held that retired employees must receive their pension and other benefits promptly unless a legally authorised court has ordered otherwise.
The judgment noted that the Supreme Court had already delivered several rulings against delays in pension payments. It warned that failure to comply with court orders concerning pension and benefits could amount to contempt of court.
The Constitutional Court also addressed the finality of legal proceedings, ruling that when an appeal or review petition is not filed within the prescribed period, the original court order becomes final and binding.
It said a party that fails to seek review in time cannot later attempt to challenge the same order through a constitutional petition. The court observed that litigation must ultimately come to an end and that settled matters cannot be reopened indefinitely through successive legal proceedings.
The ruling came in a case involving Muhammad Akram, a daily-wage driver who had been dismissed by a private bank.
The Labour Court had ordered Akram’s reinstatement along with all previous benefits, but the decision remained unimplemented for 17 years.
The Constitutional Court described the prolonged failure to enforce the Labour Court’s order as painful and unacceptable.
It directed the implementation of the decision reinstating the dismissed driver and granting him the benefits awarded by the Labour Court.
The judgment reaffirmed that employers, including private institutions, are bound to comply with final judicial orders and cannot deny employees their lawful retirement or service-related benefits through administrative delay.
The court’s decision is expected to strengthen legal protections for retired employees and reinforce the obligation of public and private employers to release pensions and other dues without unnecessary delay.