1989 PLP 30 (PLC)

As common points are involved in all the five revisions captioned above, they are being disposed of together through this single judgment. The above revisions report that the orders dated 12‑11‑1986 passed by the learned Presiding Officer, Punjab Labour Court No. 5, Faisalabad and the order dated 30‑8‑1986 passed by the learned Authority under the Payment of Wages Act are wrong and of no legal effect.

2. The facts of the case are that the petitioner paid gratuity to the respondents on basic pay only, therefore, they brought petitions under section 15 of the Payment of Wages Act claiming gratuity on allowances as well. The learned Authority accepted the claim of the respondents and the orders were confirmed in appeal by the learned lower appellate Court. Only that right can be pressed in the Courts which has any footing. Either there should be any law or an agreement. Admittedly there is no settlement between the petitioner and the CBA Union of the establishment where the respondents are employed. There was a settlement arrived at between the petitioner on one hand and CBA Rawalpindi on the other but the same is not helpful to the respondents. So far as law is concerned, the only relevant provision in this respect is contained in Standing Order 12(6) of Standing Orders Ordinance. 1968, according to which, gratuity on the wages is to be allowed for 20 days of every completed year. So over and above what the petitioner had already allowed to the respondents, the latter were entitled to gratuity on allowances for 20 days per completed year and not more than that. The learned Courts below have not made it clear on what kind of allowances the gratuity is to be paid. In my view, only those allowances can be considered in this respect which are of permanent nature. The allowances and benefits which are not included in the definition of wages given in the Payment of Wages Act, however, cannot be included while calculating gratuity. One thing is to be made clear which is that dearness allowance is not of permanent character, because unless it is made part of the pay, it is likely to be either varied or discontinued. If cost of living increases, this kind of allowance may be increased and vice versa. If cost of living comes down to normal condition, this kind of allowance may be totally discontinued.

3. The learned representative appearing for the respondent has cited P L D 1981 S C 495 but the same is not helpful because the question of bonus allowed under Standing Order 10‑C was involved and no question of gratuity was involved.

4. As a result, the revisions are partly accepted and modifying the impugned orders of the learned Courts below, it is directed that gratuity upon) C permanent allowances will be calculated at 20 days on every completed year. A.E./271/Lb.P Revisions partly accepted.