1996 PLP 740 (PLC(CS))

Iqbal Afridi for Respondents (in Application No. KAR‑4 of 1996). Date of hearing: 22nd April, 1996. These are two identical cases against Pakistan Machine Tool Factory in respect of wages of employees Abdul Aziz Butt and Abdur Rashid Khan and 1565 others. The learned Commissioner for Payment of Wages Act dismissed the applications of the employees on the ground that their wages exceeded Rs.3,000 per month while the Authority had jurisdiction only up to Rs.3,000 per month, therefore, the applications were not maintainable. The employees went in appeal before Fourth Sindh Labour Court, Karachi The learned Labour Court held that the Authority has rightly decided the point of jurisdiction. He, however, found that Rs. 89 per month originally paid to the workers should not have been deducted on the ground that Rs.200 were instead being paid to the workers while revising their wages. He also held that the arrears of Rs.89 could not be. recovered as such recovery was illegal but the appeals of the workers were dismissed on the question of jurisdiction.

2. Against this order the employees have preferred this Revision Application before this Tribunal.

3. Mr. Ali Amjad for the employees has referred on this point to Sindh Employees Special Allowance (Payment) Ordinance, 1986. He has argued that under section 6(b) in case of Shops and Establishment Ordinance or in any other case such as the present one the Authority for Payment of Wages has the jurisdiction even under the provisions of the sections 6, 16, 17, 18, 19, 22, 23 and 26 of the Payment of Wages Act and the Authority can apply these provisions with necessary modification for the purpose of recovery of even Special Allowance and Additional Special Allowance.

4. Mr. Ali Amjad has accordingly argued that the Authority for Payment of Wages Act should not have thrown out the applications of the employees for recovery of the allowances in view of the modification allowed by section 6(b) of the Allowance Payment Act.

5. Mr. Iqbal Afridi for the Machine Tool Factory has on the other hand argued that although the Sindh Employees Special Allowance (Payment) Act authorises the Authority under the Payment of Wages Act to deal with cases of Special Allowance also apart from the salary or wages. It does not enhance the pecuniary jurisdiction of the Authority under Payment of Wages Act from the limit Rs.3,000 per month. Under section 2(vi) Wages means all remunerations capable of being expressed in terms of money except House Rent, Electricity charges, Water charges, Traveling Allowance or gratuity on discharge. Mr. Ali Amjad has however pointed out that Special Allowance is not to be treated as part of wages for the purpose of Payment of Wages Act. Where the payment of allowances has been withheld or delayed by an employer the employee can apply for recovery to the Authority regardless of wages paid to him under section 7 of the Special Allowance Act. Special Allowance does not form part of wages. The Special or Additional Special Allowance cannot therefore be added to the wages and because the sum total exceeds Rs.3,000 be taken out from the jurisdiction of the Authority for Payment of Wages Act. Mr. Ali Amjad clearly states that his claim is in respect of allowances and not wages and there is no question of non‑maintainability of his application before the Authority.

6. Under the circumstances the order of the Labour Court is set aside and the case is remanded to the Authority under Payment of Wages Act for entertaining the claim, and disposing of the question of allowances, on merits.

7. Case remanded. H.B.T./101/Lb.S Order accordingly.