Law:

Section:

Industrial Relations Ordinance (XCI of 2002)-------Ss. 46 & 47(3)---Compulsory retirement---Appeal---Respondent/employee while serving as cashier in Bank was charge-sheeted, inquiry was conducted against the employee and Inquiry Committee recommended stoppage of three increments, but the Bank Management disagreeing with the Committee's recommendation, compulsorily retired the employee from service---Employee filed grievance petition against order of compulsory retirement and for his reinstatement in service with back-benefits---Labour Court accepted grievance petition of employee to the extent that punishment of stoppage of three increments would remain intact and employee would be reinstated in service and that as the punishment had remained intact, employee would be entitled to the back- benefits to the tune of 50%---Both employee and Bank filed their respective appeals---Bank requested for upholding the order of compulsory retirement of employee in appeal and for setting aside impugned , whereas employee in his appeal had requested for his reinstatement without any penalty of stoppage of increment and with 100% back-benefits---Validity---Wording of charge-sheet against the employee conveyed a different message than the actual happening and that very situation was minutely dealt with by the Labour Court in its impugned ---Finding of the Labour Court was that employee did not embezzle/misappropriate any amount as alleged by the Bank---Some negligence on the part of employee, however was found by the Labour Court and when an employee was found negligent, then major penalty could not be imposed, but minor penalty would be a sufficient one, which was imposed as per recommendations of Inquiry Committee and that was upheld---When reinstatement was made with even a minor penalty, it would not be appropriate to burden that employer for granting the employee all the back-benefits---Judgment of the Labour Court was modified to the extent of 50% back-benefits granted by the Labour Court to employee---Employee would be reinstated into service, but with a minor penalty of stoppage of three increments and without any back-benefits. 2008 SCMR 899 and 2001 SCMR 921 ref.…

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