Court battle: Federation on notice over EOBI retention

Punjab had challenged retention of the institution post-18th amendment

ISLAMABAD: Hearing the Punjab government’s plea, the Supreme Court has issued notices to the federal government and other three provinces against the retention of the Employees Old Age Benefit Institution (EOBI) and the Workers Welfare Fund (WWF) by the federation after the passage of the 18th amendment.

WWF provides grants to worker welfare boards, constituted in each province, to execute welfare projects.

The Federal Board of Revenue (FBR) annually deducts two per cent of total income of all registered industrial units that have an income exceeding Rs500,000. This revenue is at the disposal of WWF for utilization.

Similarly, FBR collects five per cent worker wages in an industry, to be paid by the employer, and one per cent of the wages, to be paid by the worker, and places the funds at the disposal of EOBI.

The three judge bench of the apex court, headed by Justice Mian Saqib Nisar on Wednesday took up the three year old petition, filed by Punjab government under Article 184 (1) of the constitution, seeking transfer of EOBI and WWF after the passage of 18th amendment.

Assistant Advocate General Punjab Mudhasir Khalid Abbasi while appearing before the bench stated that in view of 18th amendment, the federal government was bound to complete the process regarding the transfer of EOBI and WWF to the provinces until June 30, 2011.

“However, instead of transferring, the federal government through its notification dated June 31, 2011 had merged  EOBI and WWF in ministry of Labour & Human Resources, which is a violation of the constitution”, he submitted. Abbasi added that the provinces are owners of EOBI and WWF departments in view of the 18th amendment.

The bench has issued notices to all respondents including Attorney General for Pakistan, cabinet division, three other provinces etc and adjourned the hearing for indefinite period.

Published in The Express Tribune, April 2^nd, 2015.