Service Case Lawyer Hasan Raza Khan Advocate High Court: Guidance on Reinstatement of Daily Wages or Contract Employees After Termination in Pakistan

Monday, August 5, 2024

Guidance on Reinstatement of Daily Wages or Contract Employees After Termination in Pakistan

As a legal advisor specializing in employment law in Pakistan, it’s important to understand the distinctions in the legal framework governing the reinstatement of daily wages or contract employees compared to regular employees. Here’s a detailed guide covering legal principles, provisions, landmark judgments, and legal recourse options for reinstatement specific to daily wages or contract employees.

Legal Principles and Provisions in the Constitution of Pakistan

Article 4:
- Rights to be dealt with in accordance with the law: Ensures that every citizen, including daily wages or contract employees, has the right to be treated in accordance with the law.
Article 25:
- Equality before the law: Guarantees equality of all citizens, ensuring that daily wages or contract employees are not discriminated against compared to regular employees.

Relevant Statutes for Daily Wages or Contract Employees

Industrial and Commercial Employment (Standing Orders) Ordinance, 1968:
- Section 2: Defines the terms "workman" and "employer" and provides protections to workers, including daily wages and contract employees.
- Section 12: Outlines the procedure for termination of employment, emphasizing that termination must be justifiable and in compliance with the law.
Punjab Industrial Relations Act, 2010:
- Section 2: Defines the term "worker," which includes contract employees.
- Section 42: Provides the right to appeal against unjust termination to the Labor Court.
Khyber Pakhtunkhwa Industrial Relations Act, 2010:
- Similar provisions to the Punjab Act, applicable within Khyber Pakhtunkhwa.

Landmark Judgments on Reinstatement of Daily Wages or Contract Employees

Supreme Court of Pakistan:
- Case: Iqbal Hussain v. Director General Pakistan Post Office, 2008 SCMR 1073:
  - Judgment: Held that the termination of daily wages employees without following proper procedures was unlawful, emphasizing the need for compliance with standing orders and contractual terms.
Sindh High Court:
- Case: Abdul Ghani v. Karachi Port Trust, 2013 PLC (C.S.) 767:
  - Judgment: Reinstated a contract employee whose services were terminated without a valid reason, stressing that even contract employees have rights under employment laws.
Federal Service Tribunal:
- Case: Muhammad Hanif v. Pakistan Telecommunication Company Ltd., 2015 FST 345:
  - Judgment: Ordered the reinstatement of a contract employee, ruling that the termination was based on malafide intentions and violated the principles of natural justice.

Legal Recourse Options for Reinstatement

Filing an Appeal:
- Labor Court: After termination, daily wages or contract employees can file an appeal with the Labor Court under the relevant Industrial Relations Act (e.g., Punjab Industrial Relations Act, 2010). The Labor Court reviews whether the termination was justifiable and compliant with legal requirements.
Petition in Civil or High Court:
- If the appeal is unsuccessful, the next step is to file a petition in the Civil Court or High Court. The court will assess the legality of the termination, ensuring it aligns with employment contracts and statutory protections.
Judicial Review:
- The court will undertake a judicial review to determine whether the termination was lawful and justified, considering adherence to contractual obligations and the presence of any malafide intentions.