| Case ID |
9d26a08b-5997-4a68-8fb4-c76197c87059 |
| Body |
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| Case Number |
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| Decision Date |
Aug 24, 1986 |
| Hearing Date |
Aug 24, 1986 |
| Decision |
The Commissioner decided that the demand for Social Security Contribution for workers drawing wages between Rs.1,001 to Rs.1,500 per month for the period from July 1985 to August 3, 1986, should not be recovered from the management of Messrs ITTEHAD CHEMICALS/PESTICIDES LIMITED KALA SHAH KAKU. This decision was based on the management's provision of a medical allowance of Rs.170 per month to the affected employees, which exceeded the required social security contribution rates, thereby preventing a double levy and ensuring that employees received adequate benefits without additional financial burden on the employer. |
| Summary |
In the landmark case of MUHAMMAD ASGHAR KHAN, COMMISSIONER vs MESSRS ITTEHAD CHEMICALS/PESTICIDES LIMITED KALA SHAH KAKU vs THE REGIONAL DIRECTOR, LOCAL OFFICE, SHAHDARA, decided on August 24, 1986, the court addressed key issues surrounding the West Pakistan Employees' Social Security Ordinance of 1965. The crux of the dispute involved the applicability of social security contributions for employees earning between Rs.1,001 to Rs.1,500 per month following amendments made in 1985. The petitioners, ITTEHAD CHEMICALS/PESTICIDES LIMITED, argued against the recovery of these contributions, citing that they provided a monthly medical allowance exceeding the mandated social security rates. Citing the precedent set by Kohinoor Chemicals Limited and others v. Sind Employees Social Security Institution, the Commissioner ruled in favor of the petitioners, emphasizing the importance of preventing double financial burdens on employers while ensuring employee benefits. This decision highlights the delicate balance between regulatory compliance and corporate responsibility, offering valuable insights for businesses navigating social security obligations. Trending keywords such as 'social security contributions', 'employee benefits', 'legal compliance', and 'employment law' are integral to understanding the implications of this case in contemporary legal and business contexts. |
| Court |
|
| Entities Involved |
Sind Employees Social Security Institution,
Workers Union,
ITTEHAD CHEMICALS/PESTICIDES LIMITED KALA SHAH KAKU,
PKSSI, Shahdara
|
| Judges |
MUHAMMAD ASGHAR KHAN, COMMISSIONER
|
| Lawyers |
Anwar Ullah Sheikh, Senior Manager rep: of the Complainant,
Khalid Saifullah Virk, Director, PKSSI, Shahdara for Respondent
|
| Petitioners |
Messrs ITTEHAD CHEMICALS/PESTICIDES LIMITED KALA SHAH KAKU
|
| Respondents |
THE REGIONAL DIRECTOR, LOCAL OFFICE, SHAHDARA
|
| Citations |
1988 SLD 1127 = 1988 PLC 508
|
| Other Citations |
Kohinoor Chemicals Limited and others v. Sind Employees Social Security Institution PLD 1977 S C 197 rel.
|
| Laws Involved |
West Pakistan Employees' Social Security Ordinance (X of 1965)
|
| Sections |
S.57,
Ss.2(8)(f),
20(4)(a)
|