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Complaint, decided on 24th August, 1986.

----S.57 read with Ss.2(8)(f) & 20(4)(a) [as amended on 27-7-1985]-Contribution--Employees drawing wages from Rs.1,001 to Rs.1,500 p.m. brought under purview of Ordinance through amendments made in Ss.2(8)(f) & 20(4)(a) on 27-7-1985--Industrial unit exempted by Government from Social Security Scheme w.e.f. 4-8-1986 on request of Collective Bargaining Agent of workers--Management of such unit paying medical allowance of Rs.170 p.m. to employees drawing wages of Rs." ,001 to Rs.1,500 p.m. for period from 27-7-1985 to 3-8-1986-Contril.ution in respect of such employees for the said period directed not to be" recovered from the Management.

Kohinoor Chemicals Limited and others v. Sind Employees Social Security Institution PLD 1977 S C 197 rel.

Anwar Ullah Sheikh, Senior Manager rep: of the Complainant.

Khalid Saifullah Virk, Director, PKSSI, Shahdara for Respondent.

Dace of hearing: 24th August, 1986.

This complaint dated 19-8-1986 has been filed 4 by M/s. Ittehad Chemicals/ Pesticides against the demand of Social Security Contribution in respect of workers drawing wages Rs.1,001 to Rs.1,500 per month for the period July 1985 to 3-8-1986 raised by the Director, Local Office, Shahdara.

2. I have gone through the contents of the complaint referred to above, parawise comments submitted by the respondent under his letter dated 23-8-1986. I heard the arguments of the securities and perused the record file. I have gone through the law on the subject.

3. Brief facts of the case are that the complainant units were covered under the Social Security Ordinance vide Gazette Notification No.Lab-II-II-24/69, dated 18-4-1970, and workers were being benefited under the Scheme. The Social Security Ordinance was applicable to the workers drawing wages upto Rs.1,000 per month when on 27-7-1985 Federal Government introduced an amendment to sections 2(8)(f) and 20(4)(a) of the aforesaid Ordinance. As a result of this amendment category of workers drawing wages from Rs.1,001 to Rs.1,500 became under the purview of the Ordinance. Therefore; these workers agitated against their coverage under the Scheme because they were already drawing Rs.170 per month from their employer as medical allowance. They did not accept the scheme and continued to get medical allowance from their employer. The application of the scheme to the complainant"s units as a whole was taken up to the Provincial Government by the C.B.A., of the Workers Union and the Managements who exempted these units from the Social Security Scheme under Notification No. Lab-V-11/79/85, dated 4-8-1986, with immediate effect.

4. The Managements in their present complaint submitted that they have paid medical allowance of Rs.170 per month to each of their workers who was 11rawing wages Rs.1,001 to Rs.1.500 per month for the period 27-7-1985 to 3-8-1986, in lieu of the Social Security Coverage, therefore, recovery of Social Security Contribution for the same workers would be burden on the management for the same cause. The representative of the Management referred to a Judgment of the; Honourable Full Bench of Supreme Court delivered in Kohinoor Chemicals Limited and others v. Sind Employees" Social Security 1977 SC 197 wherein it has been held Institution reported in P L that the arrears of contribution may not be realized from an employer for the period during which he had made alternative arrangements for affording the necessary benefits to the employees and had made a contribution in that behalf at least equal to the rate prescribed under the Ordinance and the Rules and Regulations framed there-under otherwise, the realisation of arrears would mean a double levy on the employer, without any corresponding benefits to his employees. According to the facts discussed above, the complainant paid Rs.170 per month as medical allowance to their workers which is higher than the rate of contribution payable under the Ordinance, therefore, in the light of the above referred judgment there is no justification to charge social security contribution for the workers who have been paid abovementioned allowance by their employer.

5. I, therefore, decide that the demand of the Director, Local 7 Office, Shahdara regarding workers drawing wages Rs.1,001 to Rs.1,500 for the period 27-7-1985.to 3-8-1986 should not be recovered.

6. In the circumstances discussed above the complaint is accepted.

S.Q. /312/ Lb.P Complaint accepted.

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