Law:

Section:

Employees Cost of Living (Relief) Act, 1973 (I of 1974)­-- -- Ss. 2 (e) & 7, proviso [as amended by Employees Cost of Living (Relief) (Amendment) Act (XXVI of 1977)]-Cost of living allowance-Part of wages for purpose of statutory bonus payable under S. O. 10-C of West Pakistan Industrial and Commercial Em­ployment (Standing Orders) Ordinance, 1968-No part of wages for purpose-Bonus paid as practice, usage and custom. Employees Union, Pakistan American Fertilizers Ltd, v. Management P.A. Fertilizers Ltd. Mianwali 1979 P L C 40 and General Manager, Larkana Sugar Mills v. Larkana Sugar Mills Employees' Union 1981 P L C 636 rel. Shaukat Ali A. Nanji for the Management. S.A. Channa for the Workers. Date of hearing : 16th November, 1983. ORDER The facts briefly stated are that M. Saleem son of Rehmat Khan and Sikandar Khan son of Ali Gohar and 63 other workers of the establishment, Pakistan Fisheries Ltd., claimed to recover each of them Cost of Living Allowance at the rate of Rs. 110 for each year excluded from the bonus paid to them for the years 1978, 1979 and 1980 respectively, in violation of the provisions of section 7 of the Employees Cost of Living Relief Act, 1973, as amended by Act (XXVI of 1977). They also claimed to recover as a result of non-payment of Cost of Living Allowance as above-mentioned a compensation on account of deducted wages, equal to ten times the above deductions. Accordingly, they filed two applications Nos. 32 and 33 of 1981 before the Payment of Wages Authority under section 45 read with 16 of the Payment of Wages Act, 1936. The Payment of Wages Authority recorded evidence and since the claim in the applications involved common facts and questions of law disposed of the same by a consolidated order, dated 26th February, 1983 whereby allowed each of the workers a sum of Rs. 330 as cost of living allowance for the 3 bonuses already paid to them in all amounting to Rs. 21,450. The learned Authority further allowed a compensation to the extent of five times the deducted wages in each case in all amounting to Rs. 1,07,250. Thus the Payment of Wages Authority ordered payment of total amount both towards deducted wages and the…

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