Law:

Section:

Industrial Relations Act (IV of 2008)-------Ss. 41, 54 & 55---Industrial and Commercial Employment (Standing Orders) Ordinance (VI of 1968), S.Os.12 & 13--Golden Handshake Scheme---Option for retrenchment/retirement under the Scheme---Withdrawal of option---Grievance petition---Appeal---Services of employees were terminated by the authorities on account of floating of scheme called "Premature retirement of employees by Golden Handshake Scheme" which scheme was floated by Insurance Corporation without approval of Federal Government---Scheme revealed that employees who would not opt for the said scheme, would be retrenched under the "last in first out" basis on payment of only one month's salary---Employees who apprehended that they would be otherwise ousted from service under the scheme moved applications for retrenchment/retirement from service; however, on the same day employees gave another application to the authorities that they should be paid their full and final dues on the same day under the said scheme, otherwise their option could be considered as withdrawn---Employees submitted withdrawal of petitions stating that under misconception, coercion, threat of losing the job they had given the option; and that since it was not a voluntary retrenchment, same could not be considered as their wilful acceptance of the scheme---Ignoring statements of withdrawal by the employees, they were retired from the service and were relieved---Labour Court accepted grievance petition against order passed by Insurance Corporation---Validity---In the present case employees gave option as they were threatened of being removed from service after one month only which could be rightly called misconception, misrepresentation, intimidation pressure and coercion---Judgment of Labour Court was correct---Employees were made to opt for retirement and when they realized that it was not in their favour, they made applications for withdrawing said option and their withdrawal was wrongly disallowed---Insurance Corporation, in circumstances was directed to reinstate the employees in service from the date they were wrongly terminated and with full back-benefits. G.M. National Radio…

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