Legal Case Summary

Case Details
Case ID 430bd2de-3bae-420b-bdff-8a4860d88321
Body View case body.
Case Number KAR-76 of 1976
Decision Date Nov 12, 1976
Hearing Date Nov 12, 1976
Decision The Labour Appellate Tribunal dismissed the appeal against the Labour Court's order, which had denied the appellant's claim for an annual bonus and arrears. The Tribunal found the claim was time-barred as the appellant failed to claim the bonus within the required three months of the end of the financial year 1973-74. Furthermore, the Tribunal determined that the bonus was only payable on the basic salary, not including allowances, as there was no established custom or usage to support the appellant's claim. The appeal was dismissed, affirming the Labour Court's decision.
Summary In the case of KAR-76 of 1976, the Labour Appellate Tribunal of Sindh addressed an appeal concerning claims for bonuses under the West Pakistan Industrial and Commercial Employment (Standing Orders) Ordinance. The appellant, an employee of the Pakistan Industrial Development Corporation, sought to recover bonuses for the years 1968-74, arguing that these should be based on gross salary rather than basic salary. However, the Tribunal ruled that the claim was time-barred, as the appellant did not file for the bonus within three months of the financial year’s closing. Additionally, the Tribunal clarified that bonuses are only payable on the basic salary unless otherwise specified by custom or agreement. This case highlights the importance of adhering to statutory timelines in employment claims and clarifies the interpretation of bonus calculations under prevailing labor laws. The decision reinforces the legal framework governing employment and labor relations in Pakistan, emphasizing timely claims and the basis for calculating bonuses, which is critical for both employers and employees in understanding their rights and obligations.
Court Labour Appellate Tribunal, Sindh
Entities Involved Pakistan Industrial Development Corporation
Judges GHULAM RASOOL SHAIKH, MUHAMMAD RAFIQ
Lawyers M. L. Shahani, A. Hafiz
Petitioners
Respondents MESSRS PAKISTAN INDUSTRIAL, DEVELOPMENT CORPORATION, KARACHI
Citations 1977 SLD 1603 = 1977 PLC 262
Other Citations Not available
Laws Involved West Pakistan Industrial and Commercial Employment (Standing Orders) Ordinance (VI of 1968), Industrial Relations Ordinance (XXIII of 1969)
Sections 10(c), 25-A