Law: Constitution of Pakistan, 1973

Section: 199, 38

Law: Employees Old Age Benefits Act, 1976

Section: 2(C), 2(BB), 2(4), 3, 4, 6,9(1), 9(3), 9B, 11(1), 11(3), 12, 12(3) 33, 35,2, 5, 6, 8, 12

SUMMARY Thus, in view of the foregoing discussion, it is concluded that: i. The employer–employee relationship shall be determined from the real nature of control, supervision and integration, and not from contractual labels. ii. Where a licensed private security company recruits, trains, deploys, pays and disciplines security guards, it shall ordinarily be deemed to be their employer. iii. An establishment obtaining security services through such licensed company is, in the ordinary course, a recipient of services and not the employer of the deployed guards. iv. The statutory duties imposed upon a security company under the Khyber Pakhtunkhwa Private Security Companies Ordinance, 2002 are strong indicators of such company’s control and responsibility over the guards. v. The true employment relationship shall be determined by applying recognised tests, including the control test, integration test and overall economic reality. vi. A licensed security company performs an independent, statutory-regulated role under the Ordinance of 2002; such role is distinct from the client’s industrial/establishment affairs, and is not to be treated as a mere intermediary or contractor. vii. All security guard companies shall revise their contracts with their clients in light of this judgment so that the responsibility for contribution is clearly rationalized and aligned with the law. viii. The practice of concealing security guards, whether by the security company or by those to whom they are assigned, shall be stopped forthwith. ix. The EOB Act being a beneficial statute, its obligations cannot be avoided through contractual arrangements designed to defeat its purpose.   Laws & Sections Involved Constitution of Pakistan, 1973 Article 199 Article 38(c) Employees Old-Age Benefits Act, 1976 Section 2(c) – Employer Section 2(bb) – Employee Section 2(4) – Applicability Section 3 – Compulsory insurance Section 4, 6 – Establishment of EOBI Section 9(1), 9(3), 9B – Contributions Section 11(1), 11(3) – Registration Section 12, 12(3) – Inspection & assessment Section 33 – Complaint Section 35 –…