Law: Constitution of Pakistan, 1973

Section: 185(3)

(a) West Pakistan Employees' Social Security Ordinance (X of 1965)--S.20--Constitution of Pakistan (1973), Art. 185(3)-- Employees engaged by independent contractor--Owner's liability to make contributions to Social Security Institution--Leave to appeal was granted to examine whether High Court rightly held that employer was not under legal obligation to make contributions to Social Security Institution in respect of employees engaged through independent contractor for purposes of executing owner's work on his premises. (b) West Pakistan Employees' Social Security Ordinance (X of 1965)- ---S.20--Owner's liability to make contributions to Social Security Institution in respect of employees engaged by contractor for purposes of executing such owner's work on his premises--Terms "employee" and "employer"--Meaning, scope and import of--Owner of establishment was obliged to contribute to Social Security Fund for employees engaged through contractor. The definition of 'employer' has two extremely relevant features for understanding its meaning and scope. Firstly, in the case of Works and undertakings on behalf of the State, the contractor or the licensee carrying on the work has been made the employer. Secondly, 'in every other case' that is in which State's interest is not in that manner directly involved "the owner of the industry, business, undertaking or establishment in which an employee works" has been made the employer. On these two features, without for the present examining the concept of employee, the respondent being the owner would be the employer. Coming to the definition of employee, the requirements are that (i) he must normally be working for at least twenty four hours per week; (ii) he must be working for wages; (iii) he must be working in connection with the work of the industry, business, undertaking or establishment; (iv) he must be working under a contract of service or apprenticeship. All the terms of the contract have not to be established once the contractual relationship is established. There appears to be a mistaken impression that the contract of employment has to be between the owner and the employee. The definition of employer and…

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