Room # 3, Falaknuma Bldg.
39 Abdullah Haroon Rd.
Circular Number: C-171
ABSURDITY OF SINDH GOVERNMENT IN SINDH COMPANIES PROFITS (WORKERS PARTICIPATION) ACT, 2015
Almost in all the labour laws passed by Sindh Govt. after the 18th amendment of the Constitution, it copied from the Federal Law without correcting/modification its mistakes or necessary amendment. One major mistake is explained as under:
Sindh Workers Welfare Fund Act, 2014 has been passed by the Sindh Assembly on 04-05-2015 and assented by the Governor of Sindh on 21-05-2015 and Sindh Companies Profits (Workers Participation) Act, 2015 has been passed by the Sindh Assembly on 16-05-2016 and assented by the Governor of Sindh on 16-05-2016.
According to the clause 4(d) of the schedule given in the Sindh Companies Profits (Workers’ Participation) Act, 2015, “any amount left out of the annual allocation after the units have been so allocated shall be transferred to the Fund constituted under section 3 of the Workers Welfare Fund Ordinance, 1971 (old Federal law) and not to the Fund created under the Sindh Workers Welfare Fund Act, 2014.
When Sindh Assembly was passing Sindh Companies Profits (Workers’ Participation) Act, 2015, Sindh Workers Welfare Fund Act, 2014 was enforced but not inserted at its proper place.
The Sindh Govt. just created an account and appointed one official as a Deputy Commissioner of Sindh Workers Welfare Board, writing letters after letters to the establishments of Sindh to transfer the left over amount to Sindh Workers Welfare Fund without realizing the above legal lacuna that they cannot demand the same.
Transferring the left over amount to the Federal Workers Welfare Fund shall create problems and open controversies, therefore, the employers (Board) under the Sindh Companies Profits (Workers’ Participation) Act, 2015 shall not transfer / deposit the left over amount (if any) in the account of Sindh Workers Welfare Fund but be retained by the Board unless the above amendment be made by the Sindh Govt. However during such period the Board may invest the same in secure Govt. investment scheme and its profits shall also be distributed to the workers.
For M/s S. M. Yaqoob