The Lahore High Court (LHC) has delivered a significant verdict affirming that continuous contractual employment before regularisation must be included in the calculation of qualifying service for pension and retirement benefits for government employees.

A two-judge bench led by Justice Muzamil Akhtar Shabbir dismissed an appeal filed by the Punjab government, thereby upholding a prior single bench decision. This earlier ruling had directed government authorities to grant pension and related benefits to Kaneeza Fatima, widow of a deceased employee of the health department.

Records show that Kaneeza Fatima’s late husband was initially appointed as a naib qasid on a contractual basis in 2005. He was regularised in 2010 and passed away in 2016. The Punjab government contended that only service rendered after regularisation should count toward the mandatory 10-year qualifying period for pension, excluding any contractual service.

However, the court rejected this argument, emphasizing that the employee had served continuously for five years on contract before his regularisation. It ruled that such service could not be ignored when assessing pension eligibility, especially since the employee was later regularised.

The bench further stated that denying pension rights on the basis that part of the service was contractual would be unjust. This decision ensures that employees who transition from contractual to regular status are not deprived of their rightful benefits.

Additionally, the Punjab government challenged the validity of the single-bench ruling, claiming it was unlawfully issued while the judge was sitting in chambers. The two-member bench dismissed this objection, confirming the legality of the earlier decision.

Consequently, the LHC dismissed the Punjab government’s appeal and upheld the direction to provide pension and other retirement benefits to Kaneeza Fatima, reinforcing the principle that continuous service, whether contractual or regular, should be counted for pension purposes.