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        Circular No. C – 173                                                                                                               Date:-08-08-2017


 

Sub: THE SINDH COMPANIES PROFITS WORKERS

       PARTICIPATION (AMENDMENT) ACT, 2017

 

The Sindh Assembly on 3-7-2017 passed “The Sindh Companies Profits (Workers Participation) (Amendment) Act, 2017” assented by the Governor on 12-7-2017. Its salient features are given as under:––

1-  The amendment Act made effective from 1-7-2011, which is same applicability date of the main Act, i.e. “The Sindh Companies Profits (Workers Participation) Act, 2016”. We have already commented in our circular No.C-165 dated 7-6-2016, back date application of main Act and this amendment Act from 01-7-2011 creates controversies and problems 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.

2-  Section 2 of the Amendment Act has deleted the words, “in Pakistan” from section 2(d) of the main Act which means profit in Pakistan and profits anywhere outside Pakistan.

3-  Section 3 of the Amendment Act substitutes the Schedule in paragraph 4 of the “Sindh Companies Profits (Workers Participation) Act, 2016” at two places as under:

i)            “Minimum Wages for Unskilled Workers Ordinance, 1969 (West Pakistan Ordinance XX of 1969) has been substituted by “The Sindh Minimum wages Act, 2015”

 

ii)      “section 3 of the Workers Welfare Fund Ordinance, 1971 (XXVI of 1971) has been substituted by “section 4 of the Sindh Workers Welfare fund Act, 2014 (Sindh Act No. XXXIII of 2015)

4-  Substitution of Sindh Minimum wages Act, 2015 means that at the time of distribution of individual share of profits to an individual worker, he can get maximum four times of prevailing minimum wages in the Province of Sindh as his individual share.

 

5-   The amendment in clause 4(d) of the schedule given in the Sindh Companies Profits (Workers’ Participation) Act, 2016, “any amount left out of the annual allocation after allocated of units shall be transferred to the Fund constituted under section 4 of the Sindh Workers Welfare Fund Act, 2014”, which means that every establishment to whom the Sindh Companies Profits (Workers’ Participation) Act, 2016 is applicable shall now transfer the left over amount if any to the Fund constituted under section 4 of the Sindh Workers Welfare fund Act, 2014.

For further details if required, you may consult your labour laws consultant.

                                                                            

 

  For M/s S. M. Yaqoob

                                                                           Industrial Relations Advisers

& Labour Laws Consultants