The Industrial Relations Advisers,

Management & Labour Laws Consultants


Room 3, 1st floor, Falaknuma Building, Near The Laboratory & Haroon Radio, Abdullah Haroon Road, Karachi

Phone: 32727266 & 32729770 Fax: 32729770 (S M Iqbal)  Email: 




1- The Chairman                                                                                                                         Date:-_____________  

     Employee Old-Age Benefits Institution,

     4th floor, Annexe Building of G.P.O

     I. I. Chundrigar Road, Near Jang Press






2- The Regional Head

    Employees Old-Age Benefits Institution,






 IN THE LIGHT THE S.H.C. DECISION DATED 26-02-2011 IN C.P D-260/2008




Dear Sirs


 We are hereby applying for refund/adjustment of excess amount paid by us in the light of the Decision dated 26-02-2011 of the Sindh High Court in the case of Employers Federation of Pakistan & others V/s Fed. Govt., on the following facts and grounds.


1-         The Federal Government adopted an easy course to amend labour laws not being parts of the Money Bill through the Finance Acts such as the Finance Acts of 2006, 2007 and 2008. The Senate has no say on the Finance Bill and in the National Assembly debates take place only on financial proposals of the Bill, and the amendments in the labour laws get automatically passed without discussion/debate on the same along-with the financial matters of the Finance Acts.


2-         In the petition No. D-260 / 2008, Employers Federation of Pakistan & others V/s Fed. Govt., amendments made in five labour laws by the Finance Act, 2007 were challenged as the same did not constitute part of the Money Bill as provided by the Article 73 of the Constitution of Pakistan.


3-         In the above D.B. decision the Sindh High Court has elaborately discussed the Articles 73, other relevant Articles of the Constitution and various case laws cited by the parties and mainly based on the Supreme Court decision reported at PLD 2009 SC 879, Sindh High Court Bar Association V/s Federation of Pakistan, it has held that the amendments brought about by Sections 2,6,7,10, and 12 of the Finance Act, 2007 as ultra-vires of the provisions of the Constitution, be treated as without law full authority and of no legal effect as the same do not constitute Money Bill under the Article 73 of the Constitution of Pakistan and have no link with the Federal Consolidated Fund and payment or charge upon money from it.


4-         Consequently the amendments in the Act by Finance Acts, 2005, 2006 and 2008 are also to be treated as without law full authority and of no legal effect. In Finance Act, 2005, Section 2(p) of the Act was substituted and since then the contribution was/is payable on the minimum wages which was Rs. 3000/= p.m.  on that time. In Finance Act, 2007 the wage limit for your contribution was raise from 4000/= p.m. to Rs. 4600/= p.m. w.e.f. 1-7-2007 due to the amendment in the Minimum Wages for Unskilled Workers under 1969 Ordinance. This was further raised from Rs. 4600/= p.m. to Rs. 6000/= p.m. as amended through Finance Act, 2008 w.e.f. 1-7-2008 and it is the same till now and the contribution in to be paid on Rs. 6000/= and not on Rs. 7000/= as wrongly claimed by the Institution. Please note that we are legally entitled to pay you contribution for the wages of            Rs. 4000/= p.m. (Minimum Wages before the Finance Act, 2007) but we have to reduce the contribution raised by Finance Acts, 2005 and 2007 and 2008 and earlier. However you are required to refund us the excess Contribution paid to you by us from 1-7-2005 till April 2011 with 50 percent increase thereon on the same principle as levied by you on your claim of arrears of contribution. The detail figures of the refund are being worked out and shall submit the same to you within time limit of 6 months provided by Section 15 of the Act. However you can also work out the same from your record.


In view of the above, it is prayed that the order/direction may be passed/issues to refund the excess amount paid by us as provided by Section 15 of the E.O.B. Act., 1976 as explained above or allow us to adjust the same from contributions payable by us henceforth in monthly installments.



Thanking You






                    For M/s ______________