Lahore High Court rules workers can claim unpaid wages from trans-provincial firms under Payment of Wages Act

LAHORE: The Lahore High Court (LHC) has determined that employees of trans-provincial companies are entitled to seek recovery of unpaid wages through the authority established under the Payment of Wages Act, 1936.

The decision was announced by Justice Asim Hafeez, who dismissed petitions filed by a private security firm and other companies challenging the jurisdiction of the wage authority. The firms had argued that, since they operate across multiple provinces and in Islamabad, any disputes involving their employees should be addressed by the National Industrial Relations Commission (NIRC) under the Industrial Relations Act, 2012, rather than the authority constituted under the Payment of Wages Act.

The petitions reached the LHC after several employees lodged complaints seeking payment of outstanding wages. The wage authority had allowed these claims, and in some instances, the decisions were upheld by labour courts on appeal. The companies subsequently challenged the jurisdiction of the wage authority, contending that only the NIRC should handle such matters for trans-provincial entities.

However, Justice Hafeez rejected these arguments, affirming that the Payment of Wages Act applies to trans-provincial companies and that employees can pursue their claims for unpaid wages before the relevant authority established under this Act. The court’s judgment clarifies the legal recourse available to workers employed by companies operating in more than one province or in Islamabad.

This ruling is significant for employees seeking timely payment of wages and provides clarity on the jurisdictional authority for wage disputes involving trans-provincial firms. The judgment reinforces the rights of workers to approach the wage authority for recovery of dues, regardless of the geographical scope of their employer’s operations.