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Non-Profit Entities with Trans-Provincial Operations, like NRSP, fall within the NIRC’s Jurisdiction, aligning with the broader language of IRA 2012, which prioritizes Employee Protections and Dispute Resolution --- Lahore High Court, Lahore

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Islamabad 12-11-2024: In a significant ruling, the Lahore High Court has dismissed a constitutional petition filed by the National Rural Support Program (NRSP), a non-profit organization, affirming the jurisdiction of the National Industrial Relations Commission (NIRC) over employment disputes involving trans-provincial entities. The case centered around whether NRSP, as a non-profit entity, falls within the scope of “industrial establishment” or “commercial establishment” under the Industrial Relations Act, 2012 (IRA, 2012) and the Industrial and Commercial Employment (Standing Orders) Ordinance, 1968.

The legal question emerged when an NRSP employee filed a grievance that was ultimately taken up by NIRC. NRSP challenged NIRC’s jurisdiction, asserting its non-profit status under Section 42 of the Companies Ordinance, 1984, and arguing that it should not be classified as an industrial or commercial establishment. The petitioner cited the precedent set in Syed Shahid Abbas Vs. Chenab Club (Guarantee) Limited Faisalabad (2008 PLC 58) to support its position.

The Lahore High Court, however, ruled in favor of NIRC’s jurisdiction, reinforcing that NRSP qualifies as an “establishment” under Section 2(x) of IRA, 2012, which encompasses entities operating across provincial boundaries. Notably, the Court cited Section 87 of IRA, 2012, which grants overriding effect to the Act, ensuring NIRC’s authority over trans-provincial entities irrespective of their commercial or non-profit nature.

The Court also defined “industrial dispute” under Section 2(xvi) of IRA, 2012, as inclusive of any employment-related grievance. This interpretation allowed the respondent employee, who held a non-managerial role, to pursue his grievance as a “workman” under IRA, 2012, and the Standing Orders, 1968.

The judgment referenced the recent case Pak Telecom Mobile Limited Vs. Muhammad Atif Bilal (2024 PLC 130), establishing that individuals must meet the statutory definition of “workman” to qualify for protections under IRA, 2012. The Court concluded that the respondent fulfilled this requirement, thus entitling them to the protections and rights under IRA, 2012.

The Lahore High Court’s decision confirms that non-profit entities with trans-provincial operations, like NRSP, fall within the NIRC’s jurisdiction, aligning with the broader language of IRA, 2012, which prioritizes employee protections and dispute resolution. The ruling underscores the expansive reach of the IRA, 2012, over trans-provincial establishments, offering clarity on jurisdictional authority in labor disputes involving non-commercial entities.

The petition was ultimately dismissed, affirming the legal soundness of NIRC’s decision and emphasizing the judiciary’s support for comprehensive labor protections under the IRA, 2012.