P.R.T.C. and others vs Shamash-uz-Zaman and others
This matter arose from Civil Petitions for Leave to Appeal filed by the Punjab Road Transport Corporation (PRTC) against the judgment of the Lahore High Court, which affirmed the findings of the Punjab Labour Appellate Tribunal and the Labour Court. The core legal question was whether retired employees (workmen) were entitled to gratuity calculated on the basis of 'wages' as defined under Section 12(6) of the West Pakistan Industrial and Commercial Employment (Standing Orders) Ordinance, 1968, or on the basis of 'pay' defined under the petitioners' internal gratuity rules excluding allowances. The Supreme Court held that Regulation 3 of the petitioners' gratuity rules explicitly excludes workmen entitled to gratuity under the Ordinance from the application of the internal regulations. Therefore, workmen are entitled to have their gratuity calculated on the basis of 'wages' including admissible allowances under the Ordinance, rather than 'pay' under the Corporation's regulations. The court dismissed the petitions and declined leave to appeal.
- Whether workmen governed by the West Pakistan Industrial and Commercial Employment (Standing Orders) Ordinance 1968 are entitled to gratuity based on 'wages' rather than 'pay' under internal service regulations?
- Does an internal regulation excluding workmen entitled to statutory gratuity prevent the application of employer-specific gratuity rules?
- Section 12(6), West Pakistan Industrial and Commercial Employment (Standing Orders) Ordinance 1968
- Section 25-A, Industrial Relations Ordinance 1969
FALAK SHER, J.-- This order will dispose of Civil Petitions for Leave to Appeal Nos. 3662 to 3666-L of 2001 involving identical question of law, stemming out of the same judgment of a learned Judge of the Lahore High Court dated. 18.7.2001 upholding the findings of Punjab Labour Appellate Tribunal, Lahore, opining that respondents are entitled to the gratuity under Section 12(6) of the West Pakistan Industrial and Commercial Employment Standing (Orders) Ordinance, 1968 hereinafter referred to as the Ordinance, to be worked out on the basis of the "wages" defined therein including the allowances admissible to a worker, in contradistinction to "pay" perceived by the petitioners' gratuity rules excluding the allowances.
2. The respondents' consequent upon retirement/resignation got entangled with the petitioners, necessitating filing of grievance petitions perceived by Section 25-A of the Industrial Relations Ordinance, 1969 claiming gratuity on the basis of "wages" perceived by the Ordinance, which was allowed by the Punjab Labour Court, Lahore on 30.10.1990, whose findings were affirmed by the Punjab Labour Appellate Tribunal, turning down petitioners' Appeal on 7.9.1991 as well as by a learned Judge of the Lahore High Court, dismissing. The writ petitions vide the impugned judgment. -
3. Dis-contended therewith present petitions have been recoursed, reiterating the sole contention viz. The respondents are entitled to gratuity under the petitioners' gratuity rules on the basis of the "pay" perceived by Regulation 4(v):-- ""Pay" means average pay drawn by a Corporation servant during the last year of the service before retirement and includes personal pay, special pay and technical pay." and not under the Ordinance on the basis of "wages".
4. Which we are afraid is mis-conceived because regulation No. 3, text whereof in extenso is reproduced herein in below:-- "These regulations shall not apply to workmen who are entitled to receive gratuity under West Pakistan Industrial Commercial Employment (Standing Orders) Ordinance, 1968. They shall apply to those servants of the Corporation who are governed by West Pakistan Road Transport Board Service Rules as adopted by the RTC," patently contemplates exclusion of workmen from sphere of its activity who are entitled to gratuity under the Ordinance on the basis of wages. While the remaining employees of the Corporation are entitled to draw gratuity, on the basis of petitioners' gratuity rules.
5. Resultantly, the petition being devoid of any substance , fail and are hereby dismissed. Leave declined. .