Key Takeaways
- Federal Constitutional Court (FCC) ruled field workers of State Life Insurance Corporation (SLIC) are not regular employees.
- Judgment based on Regulation 2(c) of the State Life Employees (Service) Regulations, 1973.
- Field workers' earnings depend on commission from procured insurance policies.
The Federal Constitutional Court (FCC) has ruled that field workers of the State Life Insurance Corporation of Pakistan (SLIC) are not considered regular employees under the State Life Employees (Service) Regulations, 1973. This decision, detailed in an eight-page judgment authored by Justice Ali Baqar Najafi, clarifies the legal status of these workers.
The ruling stems from a petition filed by Agha Sohail Kamran, Secretary General of the State Life Field Workers Association, who sought to register the association as a trade union. The State Life Corporation contested this, arguing that field workers do not qualify as regular employees under the relevant regulations.
In 2014, the State Life Corporation rejected an application by the State Life Field Workers Association to be recognized as the Collective Bargaining Agent (CBA) of the State Life Corporation, citing the same reason. The corporation also filed an application for the cancellation of the association's registration, which was dismissed in 2019. The corporation then appealed to the Islamabad High Court, which also dismissed the application.
The case was further escalated to the Federal Constitutional Court, where the counsel for the petitioner argued that the employment contract explicitly states that field workers are not employees of the corporation. Conversely, the counsel for the respondent contended that the definition of a worker under the Industrial Relations Act, 2012, includes individuals engaged for remuneration, regardless of their employment status.
The FCC's judgment, however, adhered to the specific definition provided under Regulation 2(c) of the State Life Employees (Service) Regulations, 1973, which excludes salaried field officials whose earnings are based on procuring business. The court's decision emphasizes that the earnings of field workers are contingent on the commission from insurance policies they procure, distinguishing them from regular employees.
This ruling has significant implications for the legal and administrative status of field workers within the SLIC, potentially affecting their rights and benefits. The decision is expected to impact future applications and petitions related to the field workers' status and rights within the corporation.
The State Life Field Workers Association may consider further legal action or seek reconsideration of the decision, given the importance of this ruling for the rights and benefits of its members.
