1978 PLP 147 (PLC)

S. O. 10‑C‑Proft bonus‑Bonus previously not paid at fixed rates but changing from time to time‑Claim of workman not based on any settlement but depending upon legal provision‑Standing order 10‑C (i) applicable in such case‑‑Employee not proved to have made any profit‑Demand for bonus cannot be granted. S. Mumtazuddin for Appellant. A. Hafiz for Respondent No. 1. Date of hearings 8th December 1976 DECISION This is an appeal against the order of Labour Court dismissing the applica tion made by the appellant under section 25‑A of I.R.O., 1969. The appellant was a permanent employee of W. P. 1. D. C. According to certain settlements reached between the Corporation and the Workers, bonus was allowed at diffe rent rates. On 1‑3‑72, settlement was reached providing the payment of bonus according to now Labour Policy. Apparently, this has reference to Standing Order 10‑C of the West Pakistan Industrial and Commercial Employment (Standing Orders) Ordinance, 1968. This was confirmed by another settle ment dated, 12‑3‑74. In the same month, the appellant was transferred to the State Heavy Engineering and Machine Tool Corporation Ltd. which is respondent in the present case. The old terms and conditions of service were guaranteed. 2. Since previously bonus was being paid according to the settlements taken place from time to time, the appellant claimed the bonus for the year 1974‑75, that is, the period from July 1974 to 30th June 1975. The respondent did not accept the claim of appellant as no bonus was paid to any employee on account of heavy loss during that year. The appellant therefore, approached the Labour Court after serving the grievance notice. The application was resisted and the Labour Court disallowed the claim and dismissed the application. 3. It was argued before me on behalf of the appellant that although according to S. O.10‑C of the Standing Orders Ordinance, bonus was payable in case of profit but this eras subject to clause (4) which laid down that despite what was contained in clause (1), bonus was payable in accordance with the terms of employment, usage, settlement or award and, therefore, the question of profit or loss did not arks. I find no force in this contention it was rightly pointed out by the Labour Court that at no time the bonus was paid at fixed rate and it was changed from time to time. So, there was no question of term of employment and usage. Even the claim of the appellant can't be based on any settlement as the latest settlement did not fix any amount of bonus but it depended upon the legal provision and, therefore. Standing Order 10‑C (t) will be applicable providing the payment of bonus in case any profit is made. Since there was no profit, the appellant was not entitled to any bonus. In this connection I would also 1!ke to refer to the settlement dated 2‑10‑1974. A demand for bonus at the rate of 20 % of the salary was made but subsequently this was dropped and it was agreed that existing practice would continue. This is contained under Demand No. 8 (b). Existing practice obviously has reference to provision of Standing Order 10‑C of the West Pakistan Industrial and Commercial Employment (Standing Orders) Ordinance, 1968. 4. In the result, the appeal is dismissed. Appeal dismissed.