Social security contribution: SC orders LHC to decide suspension of operation in two weeks

The Supreme Court on Monday directed the Lahore High Court to decide within two weeks the applications pending before it about suspension of operation of the notifications issued by the Punjab government regarding social security contribution by employers for the benefit of workers.
A two-member bench comprising Justice Umar Atta Bandia and Justice Ijazul Ahsan heard the petition, jointly moved by Punjab Employees Social Security Institution (Pessi), the Punjab Employees Social Security (Pess) Lahore director, and the Pess Sheikhupura director through Advocate Raheel Kamran Sheikh.
The bench directed the LHC to pass a reasonable order after hearing the parties.
Pessi had challenged the stay orders granted by the LHC. They have argued that the ad interim relief offered by the high court was issued in violation of the law and principles earlier enunciated by the apex court.
They had prayed to the apex court to overturn the LHC February 28 order of suspending amendments to the Provincial Employees Social Security Ordinance, 1965 that allow for enhancing wages of workers from Rs 10,000 to Rs 12,500 per month or more, and daily wages from Rs 400 to Rs 600.
The 1965 Ordinance was promulgated by the Punjab government to introduce social security that would ensure certain benefits to workers and their dependents in the event of sickness, maternity, workplace injury or death and medical care of dependents, disablement pension and gratuity, survivor's pension, death grant in case of death and medical care in case of employment injury, etc. These benefits are covered under Chapter V of the 1965 Ordinance and are specified in Sections 35 to 47A of the ordinance.
Likewise, Pessi was created to protect and secure the interests of low-income workers and employees in Punjab. The institution strives to provide health care facilities and cash benefits to secured workers and their dependents employed in industrial or commercial establishments operating in Punjab.
Essentially, the petition argued, the ordinance was in the nature of a beneficial and remedial legislation enacted for the purpose of welfare of the labor.
As a result, a number of industrial units - Shafi (Pvt) Ltd, Tanveer Cotton Mills (Pvt) Ltd, Tanveer Spinning, Weaving Mills and five others - approached the high court, challenging the vires of the amendments made to the 1965 ordinance.
According to the petition, a notification issued on October 18, 2012, raised the wages of workers to Rs 12,500 from Rs 10,000 per month or Rs 600 from the earlier Rs 400 daily wage, whereas, under the notification of January 30, 2013 the monthly wage was raised to Rs 15,000 from 12,500. Under a notification dated October 12, 2014, monthly wages were raised from Rs 15,000 to Rs 18,000 and the daily wage to Rs 750 from Rs 600. A notification dated June 15, 2017 raised the monthly wage to Rs 22,000 or Rs 1,000 per day.
However, the high court had suspended these notifications and ordered the petitioners to continue contributing the amount of social security payable before the issuance of the notifications, as per law, in which the upper wage ceiling was fixed at Rs 10,000 per month or Rs 400 daily wage rate.
The petitioners argued that the high court had acted with complete disregard for the law enunciated by the Supreme Court while suspending the notifications.