EMPLOYEES’ OLD-AGE BENEFITS
ACT, 1976
(AMENDED UPTO SEPTEMBER 2002)
(BEAR ACT)
UPDATED
BY
MAHMOOD ALAM SOOMRO
M.A. , LL.B.
DY. DIRECTOR (LAW)
EOBI, Head Office,
PREFACE
For one decade
I had been thinking to do creative-work on the law side, particularly on
welfare and beneficial enactment. Some time I did some work with the intention
to provide service to my advocate brothers as well as functionaries of social
security organizations but couldn’t find way to complete it and
self-satisfaction. Inspite of sincerity, devotion and
professional integrity I couldn’t find appreciation thus remained de-motivated.
Some ignored me some condemned me unheard. I was just to become hopeless when a
spiritual beam of hope boosted up my abilities and shoed me the way of success
in this field.
This spiritual
beam that turned my mind to this work was the love of my Chairman for
meticulous, sincere, faithful and painstaking officers of EOBI. His words I can
never forget till my last breath. I have been working in EOBI since 1985. I
have worked with my top ranking officers of EOBI, including Mr. S. Imran Shah, S. Barkatullah, the
then Chairmans EOBI, with Mr. Ashraf
Nadeem, and Com. Ahmed Muhammad, the then DG(s), Mr. Asadullah Khan and Mr. Abbas Hussain, the then DDG(s), Mr. Mujtaba
Rasul(Late) and Dilawar
Shah, the than Assistant Director General(s), but except Mr
Mujtaba Rasul (Late) none
appreciated the legal work. It was first time when I felt proud to work under
the control of a Chairman who is a law known officer.
Mr. Muhammad Shafi Malik, Chairman EOBI, encouraged all the officers to
EOBI. It is his endeavor that today we have a complete code of instruction for
all the divisions, wings and sections in the shape of Manuals. This corporation
was working without any mission like a boat without radar today EOBI has its
vision, mission, objects, values, strategy and action plan. In this scheme many
revolutionary reforms had been made for its viability, credibility, and
improvement in its image by eliminating corruption & inefficiency, by
making it a service oriented modern and self-sustained organization. With the
grace of GOD under the guidance of present Chairman, EOBI is systemizing its
procedure, actions, team work and by adopting modern means for achievement of
goal, EOBI is proceeding towards the viability and credibility of the scheme.
This book of
Employees Old-Age Benefits Legislation is updated/ revised with the historical
back ground of the EOBI legislation, Rules and Regulations, Canons of laws,
case laws of superior courts and the findings of the Appellate Authority under
section 35 of the Act, 1976 and certain SRO(s) under the guidance of Chairman,
EOBI for the officers of EOBI and the scholars of Law.
EMPLOYEES’
OLD-AGE BENEFITS ACT, 1976
CONTENTS
CHAPTER – I
PRELIMINARY.
1.
Short title, extent,
commencement and application.
2.
Definition.
CHAPTER – II
INSURED PERSON
1.
Compulsory Insurance.
2.
Administration.
3.
Nomination of a body corporate pending establishment
of an Institution.
4.
Management.
5.
Board of Trustees
6.
Powers and Functions of the
Board of Trustees
8A. Appointment,
Powers and Functions of Chairman
CHAPTER – III
CONTRIBUTION
7.
Rates and Assessment
9A.
Contribution by Government.
9B. Contribution by the
insured person
8.
Records and Returns by
Employers.
9.
Registration of
Establishment, Etc.
11A.
Cancellation of Registration of Establishments etc.
10.
Officials of Institution to
Check Employer's Books.
11.
13. Increase of Unpaid
Contribution and Recovery of Contribution, etc., as arrears of land revenue.
12.
Safeguard of Insured
Person’s Right in Default of Payment of Contributions by Employers.
13.
Refund of Contributions Paid
Erroneously
14.
Extinguishment of Claims to
Contributions
CHAPTER – IV
FINANCE
AND AUDIT
15.
Employees' Old‑Age
Benefits Fund
16.
Investments and Loans
17.
Budget, Accounts and Audit
18.
.Annual Report
19.
Valuation of Assets and
Liabilities
CHAPTER – V
BENEFITS
20.
Old-Age Pension
22-A Old-Age Grant
22-B Survivor’s Pension
21.
Invalidity Pension.
CHAPTER – VI
PROVISIONS COMMON TO ALL BENEFITS.
22.
Calculation of Qualifying
Contribution Periods.
23.
Benefit Claims and Payments.
24.
Extinguishment of Benefits.
25.
Suspension of Old‑Age Pension
and Survivor's Pension.
26.
Non‑Duplication of
Benefit.
27.
Benefit nor Attachable,
Chargeable Or Assignable.
28.
Repayment of benefit
improperly received.
29.
Institution's Right to Be
Indemnified in Certain Cases
30.
Recovery of Amounts Due
CHAPTER – VII
DETERMINATION
OF QUESTIONS AND CLAIMS
31.
Decisions of Complaints,
questions and disputes.
32.
Review of decision
33.
Appeal to Board.
34.
Assessment of invalidity.
CHAPTER – VIII
OFFENCE
AND PENALITIES.
35.
Offences.
36.
Prosecution.
CHAPTER – IX
37.
Contributions etc
38.
Exemption From Stamp Duty
39.
Exemption From Taxes
40.
Member and servants of the
institution to be public servants
41.
Delegation of Powers
42.
Power to make Rules
43.
Power to make Regulations
44.
Power to exempt.
45.
Act not to apply to certain persons.
46.
Repealed
Schedule
EMPLOYEES' OLD‑AGE BENEFITS ACT, 1976
(ACT No. XIV OF 1976)
[
An Act
to repeal and re‑enact the Law relating of Old‑Age benefits
for the persons employed in industrial, commercial and other organisations.
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 therewith:
It is hereby enacted as follows :‑
CHAPTER 1
PRELIMINARY
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
(3) It shall come into
force at once.
1[(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
2[(i-a)
wherein less than ten persons are employed if such industry or establishment
voluntarily applies for application of this Act and this Act shall apply to
such industry or establishment for the date of submission of an application by
such industry or establishment; or
(ii) which the Federal Government may, by notification in the
official Gazette, specify in this behalf.}
__________________________________________________________________
1.
Sub-sec.(4)
by Ord. XVII of 1983.s.e enforced from July
1,1983=1983 PLS 81
2.
Inserted Cl.(i-a)
in sub-sec(4) by Labour Laws (Amendment)
Ordinance,2001(Ord. LIII), s.7(1), effective from
2. Definitions.‑In
this Act, unless the context otherwise requires,‑
[(a) "benefits" mean old‑age
pension, invalidity pension, [survivor’s] 2 pension, old‑age grant and such other payments as may be
determined by the Federal Government from time to time;}
3[(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}4 in respect of
an insured person under the provisions of the Act.
5[(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 {:]]
6[ Omitted]
Provided5[ * * ] 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 ;]
7[(c) "employer",
in relation to an industry or establishment, mean 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]
8[(iii) [Omitted]
(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:
_________________________________________________________________________________
1Cl..(a) added after
re-numbering original cl.(a) as (aa)
by Or. XVII of 1983, enforced from 1st July 1983= 1983 PLS 81
2. Subs. for word”widow’s”,by Employees’ Old
Age Benefits (Amendment) Ord. 2002,s. 2(a)
3.Original Cl. (a) re-numbered as (aa),
ibid.
4.Add. By Finance Act, 1986(Act I of 1986) s.11.1.(a)
5.Cl. (bb) add by Ord. XVII of 1983.
6. Omitted 1st proviso of cl.(bb) added by Act I of 1986, by Labour
Laws(Amendment) Act, 1994.
7. Cl. ( c ) subs.
By Ord. XVII of 1983, s. 3
8. Sub-Clause (iii) omitted by Act I of
1986
1[(e)
"establishment" means‑
( i ) an establishment to which the West of
( ii
) a construction industry as defined in the
(
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
of1961) ; 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 l7 ;
(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
Benefits Institution established or nominated under section 4 [or section 5;] 2
(i)
"insured person" means [an employee] 3 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;
_________________________________________________________________
1.
Cl. (a) subs. By Ord. XVII of 1983, s.4=1983
PLS 81.
2.
Words and figure added. ibid.
3.
Subs for “a person”, by Act
I of 1986.
(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 earn from his usual or other occupation more than one
third of the normal rates of earning in his usual occupation ;
(1) "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;
1[(oa)
“Self assessment scheme” means a self assessment schemefor
which the employer has opted and applied to the Institution on such form as
prescribed.
2[(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 (XXXIX 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 cost of living, and any payment by
the employer to an insured person in respect of any period of authorized leave,
illegal lock‑out or legal strike ; but does not include‑
(iv)
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 ; and]
[(q) “year”, with
respect to insurable employment means, a total of three hundred and sixty‑five
days for which contribution are payable, or, in the case of insured persons who
are not paid for weekly holidays, a minimum of three hundred and twelve days.]
1 Subs.
by Employees’ Old Age Benefits (Amendment) Ord.
2002,s. 2(b ) for inserted Cl.(ao) which was inserted
by Labour Laws(Amendment) Ordinance, 2001(Ord. LIII of 2001, effective retrospectively from July 2001.
2 Clauses
(p)&(q) subs.
By Ord. XVII of 1983, s.4=1983 PLS 81
CHAPTER II
INSURED PERSONS
1[3. Compulsory Insurance.‑
All employees in an industry or establishment shall be
insured in the manner prescribed by or under this Act.]
4. Administration.‑(1)
As soon as may be, after the commencement of this Act, the Federal Government
shall establish or nominate by notification an Institution to be called the
Employees' Old‑Age Benefits Institution.
(2) The Institution
shall be a body corporate having perpetual succession and a common seal, with
powers, subject to the provisions of the Act, to acquire, hold and dispose of
property, both movable and immovable, and shall by the aforesaid name sue or be
sued.
5.