Telenor Awarded Stay Order Against EOBI’s Action

Telenor has been awarded stay order by Islamabad High Court (IHC) against the action taken by Employees’ Old-Age Benefit Institution (EOBI) that sealed its property in capital (the front parking of Telenor Head Office) for non-payments of Rs 238 million dues, told us a Telenor official.

EOBI had earlier sealed the property of Telenor Pakistan under section-83 of Land Revenue Act, 1967 after the operator failed to meet the deadline for paying Rs. 238,960,800 for the period from July 2004 to June 2010.

Zafar Gondal, Chairman EOBI, in a conversation with ProPakistani told that the EOBI had explained Telenor about the country’s law and its due contribution on the behalf of employees working as bona fide staffer.

A contribution equal to 5% of minimum wages has to be paid by the Employer (Telenor in this case) of all the Industrial and Commercial Organizations whereas contribution equal to 1% of minimum wages by the employees of said Organizations on monthly basis, EOBI act 1976 under Article 38 (C) of the Constitution said.

The collected amount is paid to the employees of the company as monthly pension after their retirement of services or in case of permanent disability of staff member of any rank/grade/designation.

Telenor Pakistan was registered with EOBI therefore, it should pay its heavy unpaid amount under the rule of the law and streamline its payment system in future, said the Chairman EOBI.

“EOBI has been carrying out correspondence with Telenor for past four months and trying to explain them their outstanding payable share as basic rights of their all staff members,” EOBI chief said.

Telenor is persistent not to pay its contribution so EOBI had taken stern action and sealed its immoveable property under section-83 of Land Revenue Act, 1967, Gondal further said.

Spokesman of Telenor said that EOBI demands had no justification at all as the company could not pay any amount on the behalf of the security guards working under outsourced agreement with other company.

Spokesman explained us that the security guard company receives money from Telenor for provision of security services under a contract so it is liable for paying contribution to EOBI on the behalf of its employees, he added.