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Appeal No. LHR‑573 of 1984, decided on 18th November, 1984.

West Pakistan Industrial and Commercial Employment (Standing Orders) Ordinance (VI of 1968)‑

‑‑S. O. 12 (6)‑Gratuity‑Calculation of‑On basis of "wages" and not merely basic pay‑Wages include all allowances except those excluded vide S. 2 (ii) of Payment of Wages Act, 1936‑Puniab Road Transport Board rules providing payment of gratuity @ 45 days pay per year‑Employee of P. R. T. B., held, entitled to gratuity @ 45 days instead of 20 days pay per year as provided in S. O. 12 (6)‑Rules of P. R. T. B. providing admissibility of earned leave and sick leave encashment‑Order of Labour Court allowing such encashment also upheld by Appellate Tribunal‑Industrial Relations Ordinance (XXIII of 1969), Ss. 25‑A & 38 (3).

Amir‑ud‑Din Ansari for Appellant.

Date of hearing : 10th November, 1984.

The decision dated 22nd August, 1984 passed by the learned Presiding Officer, Punjab Labour Court No. 1, Lahore has been challenged, whereby gratuity and other service benefits were allowed to the respondent on account of the acceptance of his resignation on the average pay drawn during the last twelve years. The learned lower Court has calculated the wages as Rs. 798, whereas the appellant had allowed gratuity calculating if at the pay of Rs. 422. Several opportunities were given to the appellant to produce salary record but the reply was that none was available. The learned lower Court thus relied upon the oral evidence of the respondent.

2. It has been argued that allowances could not be added in the basic pay for the calculation of gratuity. The same argument was advan ced before the learned lower Court and it was rightly not accepted. In Standing Order 12 (6) the word wages' and not basic pay' has been used. Wages include all allowances, except the ones that have been excluded from the definition of wages' as given in section 2 (ii) of the Payment of Wages Act. The learned lower Court has not included in the pay such an allowance which is excluded by the definition. No doubt Standing Order 12 (6) directs that gratuity will be equal to 20 days pay per year but since according to the Rules of the appellant. the rate is 45 days, pay per year and the appellant calcula ted the gratuity at the said rate, the learned lower Court was justified in calculating the gratuity at the rate of 45 days per year. Since according to the Rules earned leave and sick leave was due and allowable, its' encashment was rightly ordered.

3. The impugned decision being just and proper does not call for any interference by this Tribunal.

4. As a result, the appeal is dismissed in limine.

A.E.

Appeal dismissed.

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