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Industrial Relations Advisers,
Management & Labour Laws
Circular No. C – 165 Date:-07-06-2016
Sub: SINDH COMPANIES PROFITS (WORKERS PARTICIPATION)ACT,2015
This is in continuation of our Circular No. 163 dated 07-05-2016.
1- The above Act after passing by the Sindh Assembly and assent of the Governor of Sindh on 16-05-2016, it has become a law in the province of Sindh on the 16-05-2016 on the above subject but made effective from 01-07-2011.
2- Unfortunately Labour laws passed by the provincial assemblies are being passed mechanically without even properly reading it.
3- The Act comes into force w.e.f. 1-7-2011 applicable to the province of Sindh in place of the Federal law on the same subject but its effective date is from back date of 01-7-2011 without realizing the fact that the establishments have already acted on the Federal law on the same subject before passing of the Sindh law on the subject.
4- The Act made applicable from back date of 1-7-2011 is due to the eighteenth amendment in the Constitution of Pakistan separated the labour legislation from Federal Govt. The Sindh Govt. has made the Sindh Employees Old Age Benefits Act, 2014 and this law is also with full of controversies.
5- The establishments having acted under the Federal law on the subject before passing this Sindh law cannot be penalize twice one having acted under the Federal law and now under the Sindh law making it effective from back date as back as from 1-7-2011.
6- Beside the above there are several establishments functioning in more than on province but the provincial assembly cannot pass any act applicable to the establishments functioning in more than one province or its office in Islamabad. Section 2 (b) (ii) of the Act and section 15 of the Schedule does not meet the constitutional requirement and its application on the establishments functioning in more than one province is not legal as provincial assembly cannot legislated any law coming under jurisdiction of the Federal Government.
7- In clause 1 (1) ( a mistake 1 used twice) of the schedule to the Act the scheme has been made applicable to the companies having number of employees 100 or more (besides two earlier conditions) which was 50 workers in the Federal Act.
8- By clause 4 of the schedule of the Act, new three categories of the workers have been introduced. These new categories are particle and good change.
9- By clause 4 (d) of the schedule of the Act instead of four times of current minimum wages for individual workers share, has used the Minimum Wages for Unskilled Workers Ordinance, 1965 and forgot that Sindh Minimum Wages Act, 2015 has been made by the Sindh Govt. In same clause the left over amount has to be transferred to the fund under the Workers Welfare Fund Ordinance, 1971 and forgot that the Sindh Workers Welfare Fund Act, 2014 has been made by the Sindh Govt.
10- The Act has created several lacunas and Controversies instead of solving the same.
FOR M/S. S. M. YAQOOB
INDUSTRIAL RELATIONS ADVISERS AND
LABOUR LAWS CONSULTANTS