Major Relief for Daily-Wage Employees

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The Lahore High Court has ruled in favour of eligible daily-wage employees working under Punjab’s District Health Authorities, recognising their legal status as permanent workers under applicable labour laws.

Justice Khalid Ishaq declared the Punjab government’s decisions denying eligible employees permanent-worker status unlawful, observing that treating employees differently despite working under similar circumstances may violate Article 25 of Pakistan’s Constitution, which guarantees equality before the law.

The ruling was issued on petitions, including those filed by Muhammad Bilal Raza and others. The court allowed 26 constitutional petitions filed by daily-wage, work-charged and contingent-paid employees.

Employees Working for More Than Nine Months

According to the judgment, eligible employees who have continuously performed work of a permanent nature for more than nine months are entitled to recognition as permanent workers under the applicable legal framework.

Justice Khalid Ishaq observed that a separate government notification is not necessary to grant permanent-worker status where the relevant legal requirements have already been fulfilled.

The court further ruled that granting this status to some employees while denying it to others in comparable circumstances could amount to discriminatory treatment.

Verbal Termination Declared Unlawful

The judgment also addressed employment protections, stating that employees cannot lawfully be dismissed through verbal orders alone. Termination must be supported by a written order explaining the reasons.

Employees must also be given an appropriate opportunity to present their position before adverse action is taken against them.

The court noted that repeatedly appointing workers for 89-day periods does not change the permanent nature of the work they perform. An employee’s legal status must be determined by the nature and duration of the work rather than merely by the title or wording of the appointment.

Punjab’s 2021 Policy to Apply

The judgment stated that the Punjab government’s 2021 policy would also apply to District Health Authorities. Their status as autonomous bodies does not, by itself, allow them to refuse the application of the government policy.

Eligible data-entry operators, sanitary workers and other employees who meet the legal requirements under the Industrial and Commercial Employment (Standing Orders) framework of 1968 are entitled to the relevant rights and protections.

Permanent-Worker Status Does Not Mean Automatic Civil-Service Regularisation

The court clarified an important distinction: recognition as a permanent worker does not automatically make an employee a civil servant or regularise their appointment in the provincial civil service.

Instead, eligible workers will receive the legal rights and employment protections available under the applicable Standing Orders framework.

The court also directed the relevant authorities to determine employees’ outstanding dues and salaries separately, ensuring that affected workers receive an appropriate opportunity to be heard before the amounts are calculated.

The judgment further noted that the principle of “no work, no pay” may be considered when determining outstanding dues and compensation.

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