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29 January, 2026On 20 January, workers in Pakistan won a landmark victory when the commissioner for workmen’s compensation and authority, under the Payment of Wages Act in Karachi, ordered IFFCO Pakistan Pvt. Ltd. to deposit Rs. 46,656,000 (US$168,019) to workers, within 30 days sending a clear message that outsourcing does not absolve companies of legal responsibility and that the rights of contract workers are non-negotiable.
The ruling ensures that 54 workers will each receive Rs. 864,000 (US$3,111), an amount that includes triple compensation for the prolonged denial of their lawful dues. Failure to comply with the order will result in the attachment of property and recovery of the amount as arrears of land revenue.
An excerpt from the order, by the commissioner, reads:
“The conduct of the respondents in denying lawful dues for several years, despite clear judicial pronouncements, warrants imposition of triple compensation to meet the ends of justice.”
In 2018, 54 workers of IFFCO Pakistan Pvt. Ltd. had filed a case under Section 16 of the Sindh Payment of Wages Act, 2015, stating they were denied their lawful 5 per cent profit bonus for the years 2011 to 2016. The workers argued that non-payment of the bonus was discriminatory and a clear violation of labour rights. The company repeatedly asserted that as employees of contractors, the workers were not entitled to the benefits being sought.
Contract workers employed by IFFCO Pakistan have previously challenged unfair labour practices and denial of union rights by the company. In 2024, the Supreme Court of Pakistan ruled that employees of third-party contractors are employees of the principal employer (IFFCO). The Court further declared that workers performing permanent and integral functions are entitled to all statutory benefits, regardless of the nature of employment.
The persistence of the workers and the efforts of IndustriALL affiliate Pakistan Federation of Chemical, Energy, Mines and General Workers Union (PCEM) demonstrated that organized struggle can overcome long delays in justice, setting a powerful legal precedent for wage recovery, profit bonus claims and contract workers’ rights.
Ashutosh Bhattacharya, IndustriALL’s south Asia regional secretary, says:
“This decision reaffirms a fundamental principle of labour justice: companies cannot use outsourcing as a shield to evade their obligations. The ruling strengthens protections for contract workers and sends a clear warning that denial of lawful dues will not go unpunished.”
The workers were represented by Ghulam Murtaza Tanoli, deputy general secretary of PCEM, and an applicant in the case.