WORKERS’ WELFARE FUND ORDINANCE, 1971
[9th December, 1971]

Ordinance No. XXXVI of 1971

An Ordinance to provide for the establishment of a Workers’ Welfare Fund

Whereas it is expedient to provide for the establishment of a Workers’ Welfare Fund, for providing residential accommodation and other facilities for workers and for matters connected therewith or incidental thereto;

Now, therefore, in pursuance of the Proclamation of the 25th day of March, 1969, read with the Provisional Constitution Order, and in exercise of all powers enabling him in that behalf, the President is pleased to make and promulgate the following Ordinance.

1. Short title, extent and commencement.-- (1) This Ordinance may be called the Workers’ Welfare Fund Ordinance, 1971.
(2) It extends to the whole of Pakistan.
(3) It shall come into force at once.

2. Definitions.-- In this Ordinance, unless there is anything repugnant in the subject or context, [ * * *  **]
(b) "employer" has the same meaning as in section 2 of the Industrial relations Ordinance, 1969 (XXIII of 1969);

(c) "Fund" means the Workers’ Welfare Fund constituted under section 3;

(d) "Governing Body" means the Governing Body of the Fund constituted under section 7;

(e) "Income-tax Officer" means a person appointed to be an Income-tax Officer under the ordinance;

(f) "industrial establishment" means--
(i) any concern owning or managing a factory, workshop or other establishment in which articles are produced, adapted or manufactured with the aid of electrical, mechanical, thermal, nuclear or any other form of energy transmitted mechanically and not generated by human or animal agency;
(ii) any concern working a mine or quarry or natural gas or oilfield;
(iii) any concern running a tramway or motor omnibus service;
(iv) any concern engaged in the carriage of men and goods by inland mechanically propelled vessels;
(v) any concern engaged in the growing of tea, coffee, rubber or cinchona; and
(vi) any other concern or establishment which the Federal Government may, by notification in the official Gazette, declare to be an industrial establishment for the purpose of this Ordinance, but does not include any concern or establishment which is owned by Government or by a Corporation established by Government or by a Corporation the majority of the shares of which is owned by Government.

(ff) "Ordinance" means the Income-tax Ordinance, 1979 (XXXI of 1979);

(g) "prescribed" means prescribed by rules made under this Ordinance;

(h) "Secretary" means the Secretary of the Fund;

(i) "total income" has the same meaning as in the Ordinance;

(j) "worker" has the same meaning as in section 2 of the Industrial Relations Ordinance, 1969 (XXIII of 1969).

CI. (b) "Employer". The definition of employer is the same as given in section 2 of the Industrial Relations Ordinance, 1969:-
(viii) "Employer" in relation to an establishment means any person or body of persons, whether incorporated or not, who or which employs workmen in the establishment under a contract of employment and includes--
(a) an heir, successor or assign, as the case may be, of such person or body as aforesaid;
(b) any person responsible for the management, supervision and control of the establishment;
(c) in relation to an establishment run by or under the authority of any department of the Central Government or Provincial Government, the authority appointed in this behalf, where no authority is appointed, the Head of the Department;
(d) in relation to an establishment run by or on behalf of a local authority, the officer appointed in this behalf or where no officer is so appointed, the chief executive officer of that authority;
Special Provision:- For the purposes of distinction form the category of "workers or workmen", officers and employees of a department of the Central Government or a Provincial Government or a local authority, who belong to the superior, managerial, secretarial, directional, supervisory or agency staff and who have been notified for this purpose in the official gazette shall be deemed to fall within the category of employers."

(e) in relation to any other establishment, the proprietor of such establishment and every director, manager, secretary, agent or other officer or person, concerned with the management of the affairs thereof."

CI. (f) "industrial establishment."-- The definition of industrial establishment is very wide indeed as it covers the following:--
(i) any concern owning or managing a factory, workshop or other establishment in which articles are produced, adapted or manufactured with the aid of electrical, mechanical, thermal, nuclear or nay other form of energy transmitted mechanically and not generated by human or animal agency;
(ii) any concern working a mine or quarry or natural gas or oilfield;
(iii) any concern engaged in the carriage of men and goods by inland mechanically propelled vessels;
(v) any concern engaged in the growing of tea, coffee, rubber or cinchona; and
(vi) any other concern or establishment which the Federal Government, may by notification in the official Gazette, declare to be an industrial establishment for the purposes of the Ordinance,

but does not include any concern or establishment which is owned by Government or by a Corporation established by Government or by a Corporation the majority of the shares of which is owned by Government.

The limit is set by section 4 which says that only those establishments whose total income in any year of account is one lakh rupees or more shall pay two per cent of that much income as is assessable under the Income tax Ordinance, 1979 towards the Workers’ Welfare Fund. Total income has been discussed in CI, (i) below.
CI. (i) "Total Income".-- Total income as per section 2(44) of the Income Tax Ordinance, 1979 means "the total amount of income referred to in section 11 computed in the manner laid down in this Ordinance; and includes any income which, under any provision of this Ordinance, is to be included in the total income of an assessee".

Section 11 above referred specifies: (1) Subject to the provisions of this Ordinance, the total income in relation to any assessment year, of a person,--
(a) who is a resident, includes all income from whatever source derived, which--
(i) is received, or is deemed to be received, in Pakistan in the income year by, or on behalf of, such person; or
(ii) accrues or arises, or is deemed to accrue or arise, to him in Pakistan during such year; or
(iii) accrues or arises to him outside Pakistan during such year;

(b) who is a non-resident, includes all income from whatever source-derived; which--
(i) is received, or deemed to be received, in Pakistan in the income year by, or on behalf of, such person; or
(ii) accrues or arises, or is deemed to accrue or arise, to him in Pakistan during such year."

Section 14 of Ordinance referred to above includes details of income, profits or gains under different classes which shall not be included in the total income of a person. These classes refer to income derived from property held under trust for religious or charitable purposes, income of religious or charitable institution derived from voluntary contributions, any special allowance to meet expenses of an employment, agricultural income, any income received by trustees of a recognized provident fund, income form literary and artistic work of an assessee not being a professional writer, artistic journalist or artist, etc., etc.

CI. (j) "Worker"-- The definition of "worker" is the same as in section 2 of the Industrial Relations Ordinance, 1969 which is reproduced below for ready reference:-

"(xxviii) "Worker" and "workmen" means any person not falling within the definition of employer who is employed (including employment as a supervisor or as an apprentice) in an establishment or industry for hire or reward either directly or through a contractor whether the terms of employment be express or implied, and for the purpose of any proceeding under this Ordinance in relation to an industrial dispute includes a person who has been dismissed, discharged, retrenched, laid off or otherwise removed from employment in connection with or as a consequence of that dispute or whose dismissal, discharge, retrenchment, lay-off, or removal has led to that dispute but does not include any person--
(a) who is employed mainly in a managerial or administrative capacity, or
(b) who, being employed in a supervisory capacity draws wages exceeding rupees eight hundred per mensem or performs, either because of the nature of duties attached to the officer or by reason of the powers vested in him, function mainly of managerial nature.

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