Law:

Section:

----S. O. 12(6)---Gratuity---- Expression for each completed year of service or part thereof in excess of 6 months-Divided in two parts by word "or"-Each part to be read independently--Second part not controlled or qualified by first part-Employees with more than 6 months' service, held, entitled to gratuity. A. A. Sharif for the Management. Ghulam Mustafa General Secretary for the Union. Date of hearing: 28th January 1976. DECISION This is a reference made by the National Construction Company under section 50 of the Industrial Relations Ordinance for interpretation of term No. 13 of the settlement dated 24th May 1975. 2. The respondent-Union raised an industrial dispute by serving charter of demands and strike notice. One of the demands related to gratuity and it reads as under: - "The gratuity be paid at the rate of 30 days' wages per annum and if on the completion of one year if any employee want to leave service or is discharged by the Company, he shall be paid gratuity at the rate of 30 days' wages." 3. Conciliation proceedings were resumed and a settlement was reached with regard to various demands. The term of settlement with regard to gratuity reads as under "That it has been agreed to by both the parties that gratuity will be paid to the workers at the rate of 20 days' basic wages for each completed year of service or part thereof in excess of 6 months in accordance with the provisions of the Standing Orders Ordinance." According to the settlement the gratuity is payable is accordance with the provisions of the Standing Orders Ordinance. Evidently this has reference to Standing Order No. 12(6) of Standing Orders Ordinance dealing with gratuity. It read as under "Where a workman resigns from service or his services are terminated, by the employer, for any reason other than misconduct, he shall, in addition to any benefit to which he may be entitled under this Ordinance or in accordance with the terms of his employment or any custom, usage or any settlement or an award of a Labour Court under the Industrial Relations Ordinance, 1969 (XXIII of 1969), be paid gratuity equivalent to twenty days' wages, calculated on the basis of the wages admissible to him…

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