The Supreme Court (SC) of Pakistan has suspended the Sindh High Court (SHC) and Sindh government’s decision with regards to the minimum wages in the province.
The provincial government, through a notification in July, had raised the minimum wages from Rs. 17,500 to Rs. 25,000 for unskilled, juvenile, and adult workers in industrial/commercial establishments.
In its detailed verdict, a three-member bench led by Chief Justice Ata Bandial ruled that the Sindh government exceeded its authority by issuing the notification last year.
“Taking into consideration the provisions of the (Sindh Minimum Wages Act, 2015) Act and the objective behind it, we are of the view that the government traveled beyond its authority to encroach upon the mandate of the Minimum Wages Board and issued the Notification without lawful authority,” an eight-page judgment written by Justice Syed Mansoor Ali Shah stated while overruling the SHC order that endorsed the Sindh government’s move.
The apex court said that it was moved by the concern shown by the provincial government for the welfare of workers. However, the revision of minimum wage should be done according to the policy and mechanism laid down in the Act.
“The Government cannot go against the provisions of the Act and arrogate to itself the function entrusted to the Board,” it said, adding that the government cannot ‘skirt around the mandate given by legislature,’ no matter how noble the objective be.’
“The Act makes the government responsible for fixing the minimum rates of wages in certain industrial undertakings. It is the government that takes cognizance of the circumstances necessitating fixation of the minimum rates of wages and sets the ball rolling by either referring the question of fixation of the minimum rates of wages to the Board under Section 4 of the Act or directing the Board under Section 5 of the Act to make recommendations on the said rates of wages and then the government accepts the recommendations of the Board with or without exceptions or modifications or sends it back for reconsideration.”
The ruling said that once the Board submits recommendations, the government must act in a manner prescribed under Section 6 of the Act.
Note here that the board had recommended raising the minimum wage to Rs. 19,000, but the government ‘exceeded its authority’ to set the minimum wage at Rs. 25,000 without taking the necessary stakeholders in confidence.
