Continuous temporary service before an employee’s regularisation cannot deprive them of pension rights, a two-member bench ruled.
LAHORE, (UrduPoint / Pakistan Point News – 15th Sep, 2026) The Lahore High Court dismissed the Punjab government’s intra-court appeal against a single-bench decision concerning the counting of former contract service toward the pensions of government employees who were later regularised.
The court ruled that continuous temporary service rendered before an employee became permanent or regular could not deprive the employee of pension rights.
A two-member bench comprising Justice Muzammil Akhtar Shabbir and Justice Syed Ahsan Raza Kazmi issued the judgment after hearing the arguments of all parties.
The case involved a deceased Health Department employee’s widow, who sought pension and gratuity benefits.
The District Accounts Office Khanewal had objected to the pension claim on the grounds that the employee’s service was less than 10 years, prompting legal proceedings against the decision.
After examining the matter, the Lahore High Court ruled that if a government employee had continuously served on a contract or temporary basis before being made permanent and was subsequently regularised, the earlier continuous service could not be excluded from pension calculations merely because it was rendered on a contract basis.
The court held that continuous temporary service before regularisation was also countable for pension purposes and that, once an employee became permanent, previous contract service could not be deducted from pension benefits.
It further clarified that any condition in a government policy or appointment letter that sought to eliminate a legal right available under the pension rules could not, on that basis alone, extinguish that right.
Referring to the legal principle settled by the Supreme Court, the judgment stated that contract employment also falls within the category of temporary service.
Therefore, an employee who had rendered continuous contract service could not be denied pension rights solely because the initial appointment had been made on a contract basis.
The Lahore High Court also examined the Punjab government’s position that contract service should not be counted toward pension, but the government failed to establish its stance.
The court rejected the objection raised by the District Accounts Office Khanewal regarding service of less than 10 years and upheld directions to fulfil the legal requirements for releasing pension and gratuity benefits to the deceased employee’s widow.
The two-member bench ruled that an employee who had rendered continuous contract service could not be deprived of pension benefits for that previous service after subsequently becoming regular.
Upholding the single-bench decision on counting the contract service of government employees toward pensions, the Lahore High Court dismissed the Punjab government’s intra-court appeal.
The judgment is being described as a significant legal setback for the Punjab government, particularly in cases involving government employees who secured permanent status after serving on contract for an extended period.
The legal principle may also be cited as a precedent in other pension cases of a similar nature.
The decision is also being described as the first notable judicial setback for the Punjab government following the appointment of Advocate General Punjab Barrister Zafarullah Khan.
