[15th April, 1976]

An Act to repeal and re-enact the law relating to old-age benefits for the persons employed in industrial, commercial and other organisations.

Preamble: Whereas it is expedient to repeal and re-enact the law relating to old-age benefits for the persons employed in industrial, commercial and other organisations and matters connected herewith;

It is hereby enacted as follows :-

1. Short title, extent, commencement and application: (1) This Act may be called the Employees' Old-Age Benefits Act, 1976.

(2) It extends to the whole of Pakistan.

(3) It shall come into force at once.

(4) It applies to every industry or establishment-

(i) wherein ten or more persons are employed by the employer, directly or through any other person, whether on behalf of himself or any other person, or were so employed on any day during the preceding twelve months, and shall continue to apply to every such industry or establishment even if the number of persons employed therein is, at any time after this Act becomes applicable to it, reduced to less than ten; or

(ii) which the Federal Government may, by notification in the official Gazette, specify in this behalf.

2. Definitions: In this Act, unless the context otherwise requires,-

(a) 'benefits' means old-age pension, invalidity pension, widow's pension, old-age grant and such other payments as may be determined by the Federal Government from time to time;

(aa) "Board" means the Board of Trustees constituted under Section 7;

(b) "contribution" means the sum of money payable to the institution by the employer or by the Federal Government in respect of an insured person under the provisions of the Act;

(bb) "employee" means any person employed, whether directly or through any other person, for wages or otherwise, to do any skilled or unskilled, supervisory, clerical, manual or other work in, or in connection with the affairs of, an industry or establishment, under a contract of service or apprenticeship, whether written or oral, express or implied, and includes such person when laid off;

Proviso: Omitted by the Labour Laws (Amendment) Act, 1994. dated. 29, June 94.

Provided [..] that a director of a limited company or of a corporation set up under any law shall not be treated as an employee under this Act, irrespective of his wages or emoluments;

(c) ‘employer’, in relation to an industry or establishment, means any person who employs, either directly or through any other person, any employee, and includes--

(i) in the case of an individual, an heir, successor, administrator or assign;

(ii) a person who has ultimate control over the affairs of an industry or establishment, or where the affairs of an industry or establishment are entrusted to any other person (whether called a managing agent, managing Director, Manager, Superintendent, Secretary or by any other name), such other person; and

(iii) Omitted by the Finance Act, I of 1986;

(d) "employment injury" means a personal injury to an insured person caused by an accident, or by such occupational disease as may be specified in the regulations, arising out of and in the course of his employment;

(e) "establishment" means--

(i) an establishment to which the West Pakistan Shops and Establishments Ordinance, 1969 (West Pakistan Ordinance No. VIII of 1969), for the time being applies, and, notwithstanding anything contained in Section 5 thereof, includes clubs, hostels, organisations and messes not maintained for profit or gain and establishments, including hospitals, for the treatment or care of sick, infirm, destitute or mentally unfit persons;

(ii) a construction industry as defined in the West Pakistan Industrial and Commercial Employment (Standing Orders) Ordinance, 1968 (West Pakistan Ordinance No. VI of 1968);

(iii) a factory as defined in the Factories Act, 1934 (XXV of 1934); (iv) a mine as defined in the Mines Act, 1923 (IV of 1923);

(v) a road transport service as defined in the Road Transport Workers Ordinance, 1961 (XXVIII of 1961); and

includes any class of industries or establishments which the Federal Government may, by notification in the official Gazette, declare to be establishments for the purposes of this Act ;

(f) "fund" means the Employees' Old-Age Benefits Fund set up under Section 17;

(g) "industry" means any business, trade, undertaking, manufacture or calling of employers, and includes any calling, service, employment, handicraft, industrial occupation or avocation of workmen;

(h) "institution" means the Employees' Old-Age Benefit Institution established or nominated under Section 4 or Section 5;

(i) "insured person" means an employee who is or was in insurable employment;

(j) "insurable employment" means employment of a person under a contract of service or apprenticeship, whether written or oral, express or implied and in respect of which contributions are payable under this Act;

(k) "invalidity" means a condition, other than that caused by an employment injury, as a result of which an insured person is permanently incapacitated to such an extent as to be unable to earn from his usual or other occupation more than one-third of the normal rates of earning in his usual occupation;

(i) "member" means a member of the Board;

(m) "prescribed" means prescribed by rules;

(n) "regulations" means regulations made by the Board;

(o) "rules" means rules made under this Act;

(p) "wages" means remuneration for services paid or payable in cash or in kind to an insured person, not being less than the remuneration based on the minimum rates of wages declared under the Minimum Wages Ordinance, 1961 (XXXlX of 1961), without taking account of deductions for any purpose, under a contract of service or apprenticeship, express or implied, and shall be deemed to include any dearness allowance or other addition in respect of the cost of living, and any payment by the employer to an insure person in respect of any period of authorised leave, illegal lock-out or legal strike; but does not include-
(i) any payment for overtime; or
(ii) any sum paid to the employee to defray special expenses entailed by the nature of his employment; or
(iii) any gratuity payable on discharge; or
(iv) any sum paid as bonus ;

(q) "year", with respect to insurable employment means a total of three hundred and sixty-five days for which contributions are payable, or, in the case of insured persons who are not paid for weekly holidays, a minimum of three hundred and twelve days.