| Case ID |
234a33a3-4d55-4ef0-bff8-2637b07c24fc |
| Body |
View case body. Login to View |
| Case Number |
Civil Petition No.3002 of 2003 |
| Decision Date |
Jan 28, 2004 |
| Hearing Date |
|
| Decision |
The Supreme Court of Pakistan dismissed the petition filed by National General Insurance Company Ltd., thereby upholding the decision of the Lahore High Court, Rawalpindi Bench, dated 9-10-2003, in Writ Petition No. 1225 of 2003. The petitioner challenged the applicability of the Payment of Wages Act, 1936, as amended by the Labour Laws (Amendment) Ordinance, LIII of 2001, arguing that the gratuity claim by the respondent, an employee terminated in 1998, was not tenable under the amended provisions applicable from 1-7-2001. The Supreme Court held that the amendment extended the Act's applicability to employees of industrial or commercial establishments retroactively, ensuring that even those employed before the amendment could benefit. The Court emphasized the social and remedial nature of the Act, aiming to regulate wage payments and provide remedies to employees. Consequently, the petitioner-company was deemed amenable to the Act's provisions when the employee filed the gratuity claim. The Court also reaffirmed the determinable nature of tribunal jurisdiction at the commencement of proceedings, citing relevant precedents. Given the absence of legal infirmity in the lower court's judgment, the Supreme Court refused the petition for leave to appeal, thus maintaining the awarded gratuity to the respondent. |
| Summary |
In the landmark case of National General Insurance Company Ltd. versus Presiding Officer, Punjab Labour Court No.6, Rawalpindi, reported in 2004 SLD 972 and 2004 SCMR 683, the Supreme Court of Pakistan delivered a pivotal judgment on the applicability of the Payment of Wages Act, 1936, as amended by the Labour Laws (Amendment) Ordinance, LIII of 2001. The case, Civil Petition No.3002 of 2003, adjudicated on January 28, 2004, revolved around the dispute over a gratuity payment claimed by an employee terminated in 1998. The petitioner, National General Insurance Company Ltd., contested the claim, asserting that the amended Act, effective from July 1, 2001, did not retroactively apply to employees hired before the amendment. However, the Supreme Court clarified that the amendment was intended to extend the Act's protective provisions to all employees of industrial and commercial establishments, regardless of their employment start date. This interpretation underscored the Act's enduring social and remedial objectives to ensure fair wage payments and employee welfare. The Court further reinforced the principle that tribunal jurisdiction is established at the onset of proceedings unless expressly altered by statute. Citing precedents such as Ex-Lt. Col. Anwar Aziz v. Federation of Pakistan and Settlement and Rehabilitation Commissioner v. Mannu Khan, the Court affirmed the lower court's decision, thereby mandating the employer to honor the gratuity payment of Rs.40,500 along with costs. This judgment not only reinforced the retroactive applicability of labor laws in Pakistan but also highlighted the judiciary's role in safeguarding employee rights within evolving legal frameworks. The decision serves as a crucial reference for both employers and employees in understanding the extent and limitations of wage-related legislations, ensuring that labor practices align with constitutional and statutory mandates. Additionally, the case emphasizes the importance of timely and compliant administrative actions by employers to avert legal disputes, promoting a just and equitable work environment. Legal practitioners and organizations can leverage this ruling to advocate for comprehensive employee benefits and to navigate the complexities of labor law amendments effectively. The Supreme Court's affirmation in this case underscores the dynamic nature of labor jurisprudence in Pakistan, advocating for robust legal protections for the workforce amid changing industrial landscapes. |
| Court |
Supreme Court of Pakistan
|
| Entities Involved |
NATIONAL GENERAL INSURANCE COMPANY LTD.,
PRESIDING OFFICER, PUNJAB LABOUR COURT No.6, RAWALPINDI
|
| Judges |
SYED DEEDAR HUSSAIN SHAH,
FAQIR MUHAMMAD KHOKHAR
|
| Lawyers |
Syed Zulfiqar Abbas Naqvi
|
| Petitioners |
NATIONAL GENERAL INSURANCE COMPANY LTD.
|
| Respondents |
others,
PRESIDING OFFICER, PUNJAB LABOUR COURT No.6, RAWALPINDI
|
| Citations |
2004 SLD 972,
2004 SCMR 683
|
| Other Citations |
Ex-Lt. Col. Anwar Aziz (PA-7122) v. Federation of Pakistan and 2 others PLD 2001 SC 549,
Settlement and Rehabilitation Commissioner, Hyderabad Division, Karachi and another v. Mannu Khan and 3 others 1973 SCMR 62
|
| Laws Involved |
Payment of Wages Act, 1936
|
| Sections |
1(4),
15(2)
|