NIRC orders reinstatement, Pak datacom challenges back benefits

A two-year legal dispute involving former Pak Datacom employees has still not ended, with the workers demanding salary arrears

Islamabad: A two-year legal dispute involving former Pak Datacom employees has still not ended, with the workers demanding salary arrears while the company challenges the National Industrial Relations Commission decision that ordered their reinstatement with back benefits.

The dispute began on June 30, 2024, when the former CEO ended the service contracts of 24 employees. According to the briefing before the Senate Standing Committee on Information Technology and Telecommunication, 16 employees accepted the Voluntary Separation Scheme, two were not eligible for it and six remained in the dispute. Three of the six went to the court, claiming the former CEO removed them after they raised complaints.

The employees claimed they remained without their previous salaries for about two and a half years and asked for payment of benefits from 2024. However, Pak Datacom’s officials told the committee that the company exercised its legal right to challenge the single bench decision before the NIRC full bench. The appeal was filed on July 28.

The company also rejected the description that the employees were simply terminated. Its counsel told the committee that their contracts had expired and were not renewed. This position directly differs from the workers’ account that they were removed as a result of complaints against the former CEO.

The NIRC single bench had ruled in favour of the three employees and ordered their reinstatement with back benefits. The company then challenged the ruling. The current company management told the committee that the employees had been restored from July 1 and that salaries were being paid while the appeal remained pending.

The main dispute now concerns the salary arrears. Company counsel said that paying the arrears before the appeal is decided could create problems with auditors because the case is still before the appellate forum. The company has therefore maintained that the final decision on the arrears should come through the legal process.

The committee also questioned Pak Datacom’s ownership structure. Officials told the committee that Telecom Foundation holds 55 percent of the company while the remaining 45 percent is held by the public and institutions. The Ministry of IT said it does not have direct legal control over the company because Pak Datacom is a private listed company and the Telecom Foundation is a trust.

The committee was also informed that two other employees who did not file cases are still waiting for their position to be decided. Senator Kamran Murtaza suggested they submit a written request and refer to a 1996 Supreme Court judgment concerning people in the same legal position, but he also stressed that the wording and effect of that judgment would have to be examined before any relief is given.

The committee ultimately told all sides to follow the law. It suggested that the company could consider humanitarian relief for the affected workers only where there was no legal problem, while the employees were told to continue using the proper legal forum for their remaining claims.