Law:

Section:

Employees' Cost of Living (Relief) Act, 1973 (1 of 1974)- ----S. 7, proviso--Industrial Relations Ordinance (XXIII of 1969), S.2 (xxiv)--Constitution of Pakistan (1973), Art.199--Cost of living allowance, held, would not form part of wages for purposes of gratuity payable under Settlement of Collective Bargaining Agent with management--Order passed by Labour Court being unsustainable in law was set aside by High Court in exercise of Constitutional jurisdiction. Syed Qamaruddin Hassan for Petitioner. Nemo for Respondents (absent). Date of hearing: 16th December, 1985. JUDGMENT By this Constitutional petition the petitioners have challenged the order of the Labour Court No. VI, Hyderabad, dated 23-10-1980, whereby the gratuity payable to respondent No.2, Khushhal Khan has been allowed to be calculated both on basic pay and cost of living allowance, the said respondent is entitled to. Briefly stated the facts of the case are that the respondent No. 2 was employed as an Operator in the service of the petitioners. When he resigned from his job, he was relieved of his duties and paid all his dues including gratuity which was calculated only on the basic pay admissible to him. Since the cost of living allowance was not taken into consideration for calculation of the gratuity, the said respondent filed application under section 15 of Payment of Wages Act read with section 6 of Employees Cost of Living (Relief) Act, 1973 before Authority and Commissioner Workmen's Compensation. By his order, dated 28-6-1980 the said Authority-cum-Commissioner dismissed his application. Unsatisfied with this order, the respondent No. 2 preferred appeal before the Labour Court, Hyderabad which, as stated above, allowed his appeal directing for recalculation of the gratuity both on basic salary and cost of living allowance. It is against the order of the Labour Court that the present petition has been filed. The respondent No.2 is called absent, even though notice was sent to him by him by registered A.D. It appears from the record that the said respondent had appeared in response to the initial notice following the admission of the petition and- had prayed for time for filing objections.…

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