JUDGMENT This is a petition under section 50 of Industrial Relations Ordinance, 1969 for the interpretation of clauses Nos. 1 and 2 of Settlement dated 23-7-74 between the Management of Aziz Tanneries Ltd., Sahiwal and its Labour Union.
2. Clause No. 1 of the Settlement reads as follows : -- "It was agreed that workers would be laid off for 14 days, and after that they would resume duty, and termination proceedings would not be taken against them. In case the raw material is available before the expiry of 14 days, the laid off workers would be called to resume their duties earlier. 3. Clause No. 2 of the Settlement reads as follows :-- "It was agreed that there would be no further lay-off. However from 24th July 1974, till the procurement of raw materials, the surplus workers excluding the laid off workers would be pent on annual or casual leave. 1975 4.
595According to these clauses there would be no further lay-off after the expiry of 14 days, starting from 24th July 1974, and that no termination proceedings would ever be taken against those workmen.
5. Standing Order 11 of West Pakistan Industrial and Commercial Employment (Standing Orders) Ordinance, 1968 reads as follows :-- "Stoppage of work.--(1) The employer may, at any time, in the event of fire catastrophe, breakdown of machinery or stoppage of power supply, epidemics, civil commotion or other cause beyond his control, stop any section or sections of the establishment, wholly or partially for any period or periods without notice." (2) (3) In cases where workmen are laid off on account of failure of plant, a temporary curtailment of production or any stoppage of work for reasons mentioned in clause (1), they shall be paid by the employer an amount equal to one-half of their daily wages during the first fourteen days of lay-off as compensation. When however, the workmen have to be laid off for an indefinite period beyond the above-mentioned fourteen days, their services may be terminated after giving them due notice or pay in lieu thereof. (4).............................................................................................. From the perusal of the above it is clear that an employer can stop any section or sections of the establishment wholly or partially for any period or periods without notice and that when workmen had been laid off for an indefinite period beyond the period of 14 days, their services can be terminated after giving them due notice or pay in lieu thereof. The clauses 1 and 2 of the A Settlement are therefore, against the statutory provisions and as such the Settlement, so far as they are concerned, is void and cannot be enforced. '
6. The petition is disposed of accordingly.