"Sindh notification on minimum wage in limbo", 20 December 2021

The Supreme Court has temporarily suspended the Sindh government notification to fix the minimum wage rate at Rs25,000 a month.

According to the written order issued by the apex court on December 7...it had suspended the Sindh government’s notification over petitioners’ assurances that they would comply with the relevant laws.

Provincial and trans-provincial organisations will comply with the laws until the SC decides on the case pertaining to the fixing of minimum wage.

A division bench of the apex court...had heard the petitions against the Sindh High Court’s (SHC) October 15 order maintaining the provincial government’s decision.

The petitioners assailed the high court’s judgement which was delivered over pleas challenging an unpublished notification issued by the provincial government on July 19, 2021. They contended that the notification did not comply with Sindh Minimum Wages Act 2015.

Some petitioners argued that they are trans-provincial organisations which put them under the federal legislative regime with regard to fixing of minimum wages. They also said that the Sindh Minimum Wages Act was not applicable to them, but the impugned order dated November 11, 2021 did not consider this contention.

The petitioners also contended that the Minimum Wage Board had recommended a minimum wage of Rs19,000 per month, increasing it from Rs17,500. However, the provincial cabinet enhanced it to Rs25,000 without issuing a gazette notification as envisaged by Section 6 of the Act, they added. They further said that the gazette notification was instead issued on November 12, 2021, pursuant to the judgement, which the SHC could not direct.

The petitioners highlighted that while the government is empowered to refer the matter back to the board with its comments, it does not have the power to determine the minimum wage itself.

The disparity between wages determined by the board and the federal government led to petitioners from Sindh-based organisations undertaking to pay their employees in accordance with the board’s decision with effect from July 1, 2021, while those from trans-provincial organization deciding to comply with federal law till the conclusion of the case.

They further submitted that if the court upholds the high court’s judgement, they would pay the accrued amount to the workers.

The court, while taking stock of the organisations’ assurances, suspended the notification till the next hearing...