 Yes, according to a 2023 Supreme Court of Pakistan ruling, workers who are employed by a contractor may assert their rights as permanent employees if they can demonstrate that they are directly under the company’s control.
 After years of performing essential work for a large corporation, a group of Karachi laborers were branded as “outsourced.” Their struggle for recognition turned into a historic case that changed Pakistani labor laws.
 The Story Starts: The Industrial Struggle in Karachi
 In the early 2000s, the sun rose over the vast industrial areas of Karachi. Employees at a large oil refining company reported for duty every day. They kept the plant running smoothly, packed goods, and ran machinery. For many, this was more than just a job; it was their routine, pride, and means of subsistence.
 However, they were viewed as outsiders by the company. They were employed by third-party contractors and were referred to as “contract workers.” No annual raises, bonuses, medical benefits, appointment letters, or the opportunity to join a trade union—an organization that defends workers’ collective rights—were provided.
 The employees recognized that they were carrying out essential business functions while being denied the status and privileges of full-time staff.
 Making a Decision
 The Karachi-based National Industrial Relations Commission (NIRC), which handles labor disputes across provinces, was contacted by the workers in 2020. They made a straightforward argument:
 “We are more than just contractors. We are directly supervised by the company and are entitled to permanent employee rights, such as union membership.
 The business reacted angrily. They asserted that contractors such as Hasnain Tanveer Associates and Gul Muhammad Enterprises were used to outsource the workers. They insisted that there was “no employer-employee relationship.”
 The Historic NIRC Decision
 The NIRC looked at the information:
 Numerous contractor contracts, some dating back to 2008, had expired.
 Employees were paid straight from the business’s funds.
 It was the supervisors who oversaw their daily work, not the contractors.
 The workers won their case before the NIRC in November 2020. They were protected from unfair labor practices, considered employees, and had the right to join trade unions.
 The full NIRC bench rejected the company’s appeal in September 2021, confirming that the workers were, in fact, employees.
 The Supreme Court’s Legal Journey
 Unwilling to back down, the business challenged the NIRC’s jurisdiction and claimed that the workers were contractor hires in constitutional petitions filed in the Sindh High Court.
 The Sindh High Court affirmed the NIRC’s decisions in February 2023.
 The case ultimately made its way to Pakistan’s Supreme Court. The business contended:
 Contractors were used to hire workers.
 NIRC had no power.
 There were no instances of unfair labor practices.
 Regardless of contractor agreements, the workers contended that they were employees due to direct control, daily supervision, and reliance on their work for core operations.
 Analysis of the Supreme Court
 The Court concentrated on the “control test,” which looks at who oversees and guides an employee’s work. Important conclusions:
 Tasks performed by employees, such as packing goods and refining oil, were essential to business operations.
 The business made the payments directly.
 The contracts with the contractors had long since expired.
 Contractors showed no true control by refusing to defend the workers’ claims.
 Legal citations taken into account:
 Anyone working for pay in an industry, including those directly controlled by the company, is considered a “workman” under the Industrial Relations Act of 2012 (IRA).
 Employees are defined as those who carry out regular, permanent tasks under the Industrial & Commercial Employment (Standing Orders) Ordinance, 1968.
 Pakistan’s commitments to the ILO Conventions (87 and 98) safeguard employees’ rights to organize unions and engage in collective bargaining.
 Conclusion and Its Effects
 The workers won their case at the Supreme Court:
 They weren’t contractors; they were workers.
 They could obtain employee benefits and become members of trade unions.
 It was incorrect for the business to call them “outsourced.”
 The choice changed everything. In addition to giving these workers their rights back, it issued a warning:
 By mislabeling core employees as contractor hires, businesses are unable to get around labor laws.
 The Story’s Human Side
 It was a long-awaited acknowledgement for the employees:
 Voice and dignity: No more unseen cogs in the business machine.
 Benefits obtained include health insurance, paid time off, and equitable pay.
 Union membership: Rights to collective bargaining are reinstated.
 The decision emphasized the significance of adhering to labor laws and the control test for businesses throughout Pakistan.
 FAQs
Are workers who are employed by a contractor regarded as permanent employees?
 Indeed. Labor laws such as the IRA recognize them as permanent employees if they carry out essential functions and are directly under the company’s control.
What is the labor law control test?
 It looks at the worker’s supervisor. Workers are employees, not contractor hires, if the business oversees tasks directly.
Is it possible for contract workers in Pakistan to become members of a trade union?
 Indeed. Workers have the right to join unions if they are deemed employees by the control test.
What occurs if a business incorrectly classifies workers as contract workers?
 Employees may legally contest it. As demonstrated in this 2023 Supreme Court case, courts have the authority to grant union rights, benefits, and permanent status.
How does the NIRC function in labor disputes?
 In order to ensure equitable treatment and protect workers’ rights, the National Industrial Relations Commission resolves conflicts for transprovincial corporations.
Why do businesses use contractors for hiring?
 to save money and forego benefits like health insurance, pay increases, or union membership. According to the Supreme Court, this is unlawful if employees are effectively carrying out their job responsibilities.
 Disclaimer
 This blog is not legal advice; it is merely for public awareness.
