Case Details

Citation(s)
2014 SLG 2692 2014 SLD 2692 2014 PLC 10
Supreme Court of Pakistan
Civil Appeals Nos.83 and 84 of 2006, decided on 16th May,2013. Date of hearing: 16th May, 2013.(Against the dated16-3-2005 passed by the High Court of Sindh, Karachi inConstitutional Petition D-739 of 1993 and D-754 of 1996.)
IFTIKHAR MUHAMMAD CHAUDHRY, C.J., JAWWAD S. KHAWAJA AND IJAZ AHMED CHAUDHRY, JJ
Khalid Anwar, Senior Advocate Supreme Court, Raja Abdul Ghafoor, Advocate-on-Record assisted by Barrister Muhammad Anas Makhdoom, Advocate for Appellants. Abid Hassan Minto, Senior Advocate Supreme Court and Ch. Akhtar Ali, Advocate-on-Record for Responde

FAUJI FERTILIZER COMPANY LTD. through Factory Manager

VS

NATIONAL INDUSTRIAL RELATIONS COMMISSION through Chairman and others

Law:

Section:

(a) Industrial Relations Ordinance (XXIII of 1969)--- ----S. 2(viii) & (xxviii)---Industrial and Commercial Employment (Standing Orders) Ordinance (VI of 1969), S.2(c), (f) & (h)---Contract between company and contractor for supply of labour---Whether status of employees supplied by contractor, would be that of employee of company---Test. The employees of the contractor shall not be the employees of the company, if (a) they are under the control and management of the contractor, and not that of the company; (b) they are not on the pay-roll of the company and the management of the company is not even aware of the number of the workers employed by the contractor or about the terms and conditions of their appointment or service; and (c) the contractor has the power of hiring and firing the employees, and assigns works to them and the company has no concern with it. The words "employed by the factory" are wide enough to include workmen employed by the contractors of the company. The employees of the contractor shall be the employees of the company, if the contractor engaged the workers for running of the affairs of the company and not for some other independent work, which has no concern with the production of the company; if the employees are working in a department of the company, which constituted one of the principal organs of the company, the machines belong to the company, the raw material is supplied by the company and the said department is controlled by the supervisors of the company, the employees of the contractor shall be the employees of the company; the employees engaged directly or through a contractor would be deemed to be the employees of the company for whose benefit they perform functions; even though control test is an important test, it is not the sole test; a multiple pragmatic approach weighing up all the factors for and against the employment has to be adopted, including an "integration" test; and if the contract is found to be not genuine and a device to deprive the employees from their legitimate rights/benefits, the so-called contract employees will have to be treated as employees of the company. Normally, the relationship of…
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