| Case ID |
3c7dfe54-4f24-49a2-bea2-dae499b01c8e |
| Body |
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| Case Number |
Appeals Nos. KAR-292 and 293 of 1990 |
| Decision Date |
Sep 30, 1991 |
| Hearing Date |
Aug 26, 1990 |
| Decision |
The Labour Appellate Tribunal dismissed the grievances of the appellants regarding their retrenchment, ruling that the actions taken by the management were bona fide due to serious financial constraints faced by the company. The tribunal recognized that the management had made efforts to negotiate with the Collective Bargaining Agent and followed the appropriate procedures in the retrenchment process. The decision was supported by evidence that showed the company was undergoing financial difficulties and had to reorganize in order to survive. The tribunal emphasized that the determination of whether an action was bona fide is a question of fact reliant on the circumstances of each case. The appellants were advised to avail themselves of the 'Golden Shake-hand' Scheme as per the agreement reached during negotiations. |
| Summary |
This case revolves around the retrenchment of employees under the West Pakistan Industrial and Commercial Employment (Standing Orders) Ordinance (1968). The Labour Appellate Tribunal addressed appeals concerning the dismissal of grievances filed by employees who were retrenched due to the company's financial crisis. The tribunal upheld the decision of the Sindh Labour Court, concluding that the employer acted within its rights to reorganize and retrench employees in a bona fide manner. The importance of bona fides in employment law was a central theme, as the tribunal evaluated whether the reasons for termination were genuine or if they masked mala fides. The decision is significant for understanding employer rights in times of financial distress and the legal expectations regarding employee termination. Keywords: retrenchment, bona fide, employment law, financial crisis, Labour Appellate Tribunal, West Pakistan Industrial Ordinance. |
| Court |
Labour Appellate Tribunal, Sindh
|
| Entities Involved |
Tata Oil Mills Co. Ltd.,
Zeal Pak Cement Factory Ltd.,
Messrs EMESCO Industries Ltd.,
Muhammad Serajuddin,
Soofi Muhammad Aslam,
Lyallpur Cotton Mills
|
| Judges |
AHMED ALI U. QURAISHI
|
| Lawyers |
Gohar Iqbal,
Muhammad Faruq Abdul Ghani
|
| Petitioners |
others,
SULTANI GUL
|
| Respondents |
others,
SULTANI GUL
|
| Citations |
1992 SLD 684 = 1992 PLC 192
|
| Other Citations |
Tata Oil Mills Co. Ltd. v. Their Workmen 1963 PLC 1002,
Zeal Pak Cement Factory Ltd. v. Chairman, West Pakistan Industrial Court and others 1965 PLC 216,
Messrs EMESCO Industries Ltd. v. S. Irfan Ahmed and another 1983 PLC 981,
Muhammad Serajuddin v. Labour Appellate Tribunal and another 1983 PLC 1286,
Soofi Muhammad Aslam v. Messrs M. Iftikhar & Company Ltd. 1985 PLC 989,
Lyallpur Cotton Mills v. Punjab Labour Appellate Tribunal and others 1991 PLC 32
|
| Laws Involved |
West Pakistan Industrial and Commercial Employment (Standing Orders) Ordinance (VI of 1968)
|
| Sections |
12,
13
|