IMTIAZ ALI and another vs HABIB BANK LIMITED
This human rights case was initiated upon an application filed by former employees of Habib Bank Limited challenging the retrenchment of 2343 employees made pursuant to a Retrenchment Scheme. During the hearing, the Supreme Court appointed an amicus curiae and facilitated negotiations between the management of the Bank and the representatives of the retrenched employees. The core legal question revolved around the fairness and resolution of the retrenchment and compensation of the affected employees. The Court decided to accept a written settlement offer made by the Bank, wherein the Bank agreed to pay an additional sum of Rs. 820.050 million as ex-gratia payment to the 2343 retrenched employees at the rate of Rs. 350,000 per employee. The Court held that the additional compensation was fair and reasonable under the circumstances. The key principle laid down is that the Supreme Court can facilitate negotiated settlements in human rights matters involving mass retrenchments to achieve a just and amicable resolution.
- Whether the Supreme Court can facilitate a negotiated settlement regarding the retrenchment of bank employees in a human rights case?
- Is an ex-gratia payment offered by an employer during court proceedings binding when accepted by the court as fair and reasonable?
ORDER
NASIR-UL-MULK, J.--- This Human Right Case initiated on the application of Imtiaz Ali and Sabit Khan, former employees of the Habib Bank Limited, (hereinafter referred to as "Bank") pertains to the retrenchment of 2343 employees of the Bank, made pursuant to a Retrenchment Scheme for "all Manual/Non-Clerical Employees" of the Bank, dated 13-2-2006.
2. Notice of the application was given to the Bank and during the course of subsequent hearing of the application, the Court appointed Mr. Abdul Rahim Bhatti, Advocate Supreme Court as an amicus curiae to assist the Court in the matter. The Bank was represented by Mr. S.M. Zafar, Senior Advocate Supreme Court.
3. Full-fledged arguments were addressed by the learned counsel for the Bank as well as the learned amicus curiae. At the conclusion of the arguments, upon our intervention, the representatives of the retrenched employees and the Management of the Bank, with the assistance of the learned counsel for the Bank and the amicus curiae, entered into negotiation for some settlement. The Bank eventually agreed to pay an additional sum of Rs,820,050 million as ex- gratia payment to the 2343 employees retrenched under the Bank's Order dated 10-3-2006 at the rate of Rs,350,000 per retrenched employee. The representatives of the retrenched employees left it to us to determine the reasonableness of the additional compensation which in our view was fair in the circumstances. The offer made by the Bank in writing, copy of which is placed on file is, therefore, duly accepted and the retrenched employees numbering 2343 shall be paid the additional ex-gratia payment in accordance with the terms of the offer.
4. We are thankful to the amicus curiae Mr. Abdul Rahim Bhatti, Advocate Supreme Court for his valuable assistance and to Mr. S.M. Zafar, Senior Advocate Supreme Court, for his efforts in bringing