Companies Profits (Workers Participation) Act, 1968

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THE COMPANIES PROFITS (WORKERS PARTICIPATION) ACT, 
1968 
 
 
 
 
 
 
 
                                                           CONTENTS 
       
1.  Short title, extent and commencement. 
2. Definitions. 
3. Establishment of Fund. 
4.  Management of the Fund. 
5. Penalty. 
6.  Power to call for information. 
7. Settlement of disputes, etc. 
8. Delegation of power. 
9.   Power to make rules. 
10.  Act to override other laws. 
 
THE SCHEDULE 
 
 
 
Updated till 14.04.2023
 
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THE COMPANIES PROFITS (WORKERS PARTICIPATION) ACT, 1968. 
 
1Act No.  XII OF 1968 
 
[5th July, 1968]  
An Act to provide for Participation of workers in the profits of companies. 
 WHEREAS  it  is  expedient  to  provide  for  participation  of  workers  in  the  profits  of 
companies and for matters ancillary thereto ; 
 AND WHEREAS  the national interest of  Pakistan in relation to the achievement of 
uniformity within the meaning of clause (2) of Ar ticle131 of the Cons titution requires Central 
legislation in the matter; 
It is hereby enacted as follows :__ 
1. Short title, extent and commencement.__ (1) This Act may be called the Companies 
Profits (Workers Participation) Act, 1968. 
(2)      It extends to the whole of Pakistan. 
(3)       It shall come into force at once. 
2. Definitions. __ In this Act, unless there is anything repugnant in the subject or context,__ 
 
(a)  “Board” in relation to a Fund means a Board of Trustees constituted  
under section 4 for the management and administration of the Fund; 
(b)  “company” means a company within the meaning of 2[Companies 
Ordinance, 1984 (XLVII of 1984)], and includes— 
(i)  a body corporate established by or under any law for the time being 
in force; 
(ii)  any institution, organization or association whether incorporated or not, 
declared  by the 3 [ Federal Government] in the official Gazette to 
be a company for the purposes of this Act; 
(c)  “Fund” means a Workers Participation Fund established under section 3;  
(d)  “Profits” in relation to a company means such of the “net Profits ” as 
defined in section 87C of the Companies Act, 1913, as are attributable to its  
business, trade, undertakings or other operations in Pakistan;    
4[(dd)  “rules” means rules made under this Act; ]  
 
_________________________________________________________________________________ 
1For Statement of Objects and Reasons, see Gaz., of P., 1968, Extraordinary, p. 461.  
*The Act has been applied to the Provincially Administered Tribal Areas or to the parts or those areas to which it does not already apply, see 
Regulation No. 1 of 1972, s. 2 and Sch. 
2 Subs. and ins. by Act IV of 2007, s. 7 sub-sect.(1) clauses (a) & (b) (w.e.f. 1-7-2007).  
3Subs. and shall be deem ed to have been so subs. by the Labour Laws (Amdt.) Act, 1975 (11 of 1975), s. 2 and Sch., for “Central 
Government” w.e.f. 14-8-1973).  
4Clause (dd) added by the Companies Profit (Workers Participation) (Amdt.) Ordinance, 1970, (12 of 1970), s.2.  
 
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 (e)   “scheme” means the scheme set out in the S chedule;   
1[(f)  “worker” in relation to a company, means an employee of the company 
2[,including e mployed by or through the contractors ,] who falls within the 
definition of a worker a s defined in clause (xxx) of section 2 of the Industrial 
Relations Ordinance, 2002 (XCI of 2002) and has been 2[working for or in] 
the company  for a period of not less than six months.] 
3[3. Establishment of Fund. — (1) Every company to which the scheme applies shall__  
 
(a)  establish a Workers Participation Fund in accordance with the scheme as 
soon as the accounts for the year in which the scheme becomes applicable 
to it are finalised, but not later than nine months after the close of that year; 
4[*] 
 
5[(b)  subject to adjustments, if any, pay every year to the Fund not later than 
nine months after the close of that year five percent of its profits during such 
year 6[* * *]; and 
 
(c)  furnish to the Federal Government and the Board, not later than nine 
months after the close of every year of account, its audited accounts for that 
year, duly signed by its auditors.] 
 
(2) The amount paid to the Fund under clause (b) of sub-section (1) in relation to a year 
shall be deemed to have been allocated to the Fund on the first day of the year next succeeding that 
year. 
 
 
4. Management of the Fund.— (1) As soon as may be 7[but not later than two 
months], after the establishment by a company of a Fund under section 3, there shall be constituted 
a Board of Trustees consisting of the following trustees, namely:— 
 
(a)  two persons elected by the workers of the company from amongst themselves; 
and 
 
(b)  two persons nominated by the management of the company of whom at least 
one shall be a person from the accounts branch of the company. 
 
(2) The person’s bolding office as trustees s hall elect f or one year a person to be the 
chairman of the Board alternately from amongst the trustees elected under clause (a) of sub-section 
(I) and those nominated under clause (b) of that sub-section, t he first Chairman being from 
amongst the latter. 
(3) A  trustee shall, unless he sooner ceases to represent the interest he was e lected or 
nominated to represent, hold office for such term and on such conditions as may be prescribed by 
rules. 
 
 
  1Subs. by Act. III of o6, s.7. 
  2 Ins. and Subs. by Act IV of 2007, s. 7 (w.e.f. 1-7-2007).  
3Subs. by the Companies Profits; Workers’ Participation) (Amdt.) Ordinance, 1970 (12 of 1970) s. 3, for the original sections 3 and 4.  
4The word “and” omitted by the Labour Laws (Amdt.) Act, 1977 (17 of 1977), s. 2 and Sch.  
5Subs. ibid., for Cl. (b). which was previously amended by various enactments.  
6Omitted by Act IV of 07,s.7 (with effect from 01-07-2007).  
7Ins. by the Labour Laws (Amdt.) Act, 1977 (17 of 1977), s. 2 and Sch.  
 
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(4) All decisions of the Board shall be expressed in terms of the opinion of the majority of 
the trustees and in the event of the trustees being equally divided in their opinions, the Chairman 
shall have and exercise a second or casting vote. 
 
(5) The Board shall manage and administer the Fund in accordance with the provisions of 
this Act, the scheme and any rules made in this behalf. 
 
(6) The Board shall, in the exercise of its powers and performance of its functions under this 
Act, be subject to such directions as the 1[Federal Government] may from time to time give. 
 
(7) The 1[Federal Government], if it is of opinion that a trustee or a Board has been 
persistently failing in the performance of his or its functions or has generally been act ing in a 
manner inconsistent with the objects and interests of the Fund, may, after giving such trustee or, as 
the case may be, the Board, an opportunity of showing cause against it, by order, __ 
 
(a)  remove such trustee  from his office or direct that the Board shall stand 
superseded for such period as may be specified in the order; and 
 
(b)  direct that, pending the election or nomination of a person in place of the trustee 
removed from office or, as the cast may be, the re-constitution of the Board, the 
powers and functions of the trustee so removed or the Board shall be exercised 
and performed by a person specified in the order. 
 
(8) A  casual va cancy in the office of a trustee shall be filled as soon as may be by the 
election or, as the case may be, nomination of another person and the person elected or nominated to 
fill such vacancy shall hold office for the unexpired term of his predecessor. 
 
(9) Upon the supersession of a Board under sub-section (7) the trustees in that Board shall 
cease to hold office and references to the Board in this Act, the scheme and the rules shall be 
construed as references to the officer specified in the order under that sub-section. 
 
(10)  Before the expiry of the period of supersession, the Board shall be re-constituted in 
accordance with the provisions of this Act so as to enable it to take over its functions upon the 
expiry of such period. 
 
(11)    No act or proceeding of the Board shall be invalid or questioned merely on the ground 
of the existence of a vacancy in, or defect in the constitution of the Board.] 
 
5. Penalty.__ 2 [ (1) Where a company to which the scheme applies fails to comply with 
any of the provisions of this Act or the scheme, every director,  manager or other officer 
responsible for the management of the  affairs of  t he company, shall, if the Federal 
Government by order so directs, pay by way of penalty a s um which may extend to five thousand  
rupees and, in case of a continuing failure, a further sum which may extend to one thousand rupees 
for every day after the first during which the failure continues.] 
 
(3) A penalty imposed by an order under sub-section 3 [(1)] shall, if it is not paid within 
the time specified in the order, be recoverable as an arrears of land revenue. 
 
 
 
1Subs. and shall be deemed to have been so subs. by the Labour Laws (Amdt.) Act, 1975 (11 of 1975) s. 2 and Sch. for “Central 
Government” (w.e.f.14-8-73) 
2Subs. by the Labour Laws (Amdt.) Act, 1977 (17 of 1977), s. 2 and Sch. for sub-sections (1) and (2).  
3Subs.ibid. for “(2)”  
 
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(4) The 1[Federal Government] may, upon an application made in this behalf by any person 
aggrieved by an order made under sub-section (1) 2 [* * *] within a period of six months 
from the date of the order, review the order and may, upon such review, pass such order as it may 
think fit. 
 
3[(5) Notwithstanding anything contained in this Act or the scheme, if any defaulting 
employer strictly complies with the provisions of section 3 and distributes the benefits in accordance 
with paragraph 4 of the scheme for the pe riod of default on or before the date fixed by the Federal 
Government, no such penalty shall be imposed and the company shall not be liable to pay interest as 
provided in paragraph 2 of the scheme.] 
 
4[6. Po wer to call for information. __ The 1[Federal Government] may , at any time, call 
upon a company or a Board  to furnish it with such information and documents, including the 
records of the proceedings of the company or  the Board, as may be relevant or useful for the 
purpose of, or necessary for ensuring pr oper compliance with, the provisions of this Act, the rules 
and the scheme. 
 
7. Settlement of disputes, etc.__ (1) Any di fference a rising between the Boa rd and the 
company relating to the ad ministration of the scheme s hall be  reported to the 1[ Federal 
Government] whose decision thereon shall be final. 
   
(2) All claims of a worker relating to the  benefits of the scheme, whether a gainst the 
Board or the company, shall be settled in the same manner as is provided for in the Payment of 
Wages Act, 1936 (IV of 1936), for the settlement of claims arising out of deductions from wages. 
 
8. Delegation of power. __ The 1[Federal Government) may, by notification in the official 
Gazette, direct that all or any of its powers or functions under this 5[Ordinance] may, subject to such 
limitations, restrictions or conditions, if any, as may be specified in the notification, be exercised or 
performed also by any officer subordinate to it or by any authority so specified. 
 
7[8A. Power to exempt.⸻ The Federal Government may, through notification in the offic ial 
Gazette,⸻ 
 
(a) declare that any company or class of companies shall  be exempt from the 
application of the scheme; and  
 
(b) exempt any company or class of co mpanies from any amoun t payable under 
section 3 of this Act.] 
 
9.  Power to make rules. __ The 1[Federal Government] may make rules6 to carry out the 
purposes of this Act. 
 
10. Act   to   override   other   laws. __   The   provisions   of   this   Act   shall   have   effect 
notwithstanding anything contained in any other law for the time being in force, or in a ny 
contract or the memorandum or articles of association of a company.] 
 
1Subs. and shall be deemed to have been so subs. by the Labour Laws (Amdt.) Act, 1975 (11 of 1975), s. 2 and Sch. for “Central 
Government”. (w.e.f. 14-8-73).  
 2The words “or sub-section (2)” omitted by Act 17 of 1977 s.2 and Sch.  
3Added by Act III of 06, s.7. 
4 Subs. by the Companies Profits (Workers Participation) (Amendment) Ordinance, 1970 (12 of 1970) s. 4 for the original sections 6 and 7. 
5Sic. Should read “Act”.  
6For Companies Profits (Workers Participation) Rules, 1971, see Gazette of Pakistan, 1971, Extraordinary, page 1038.  
7Ins. by Act. no. XXXV of 2022. 
 
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THE SCHEDULE 
 
SCHEME 
 
[ See Section 2(e)] 
 
1. Scope of the scheme.__ The scheme applies to all companies 1[*]  engaged in industrial 
undertakings w hich satisfy any one of the following conditions, and to such other 
companies  as the 2[Federal Government] may, by notification in the official Gazette, specify 
in this behalf, namely :__ 
(i)  The number of workers employed by the company 3[* **] at any time during a 
year is 4[50] or more. 
 
(ii)  The paid-up capital of the company as on the last day of its accounting year is 
Rs.20 lakhs or more. 
 
(iii)  The value of the fixed assets of the company (at cost) as on the last day of  the 
accounting year is Rs. 40 lakhs or more5[:] 
 
       5[Provide that for the companies established on or after 1st day of July 2006,__  
 
     (a)   clause (ii) shall have effect  as if for the figure  and word “20 lacs” the figure   
and word “5 million” were substituted; and 
 
(b)    clause (iii)  shall have effect as if for the figure and word “40 lakhs” the        
figure and word “20 million” were substituted.] 
  
6[Explanation.__ In this scheme,__ 
 
(a)  “industrial undertaking” means an  institution, organization, enterprise or 
establishment whic h involves the use of electrical., mechanical, thermal, 
nuclear or any other form of energy transmitted mechanically and not 
generated by h uman or animal agency  and w hich is engaged in any one or 
more of the following operation, namely:__ 
 
(i)  the subjection of goods or materials to any manufacturing, assembly, 
finishing or other artificial or natural process, which changes their 
original condition or add to their value; 
 
(ii)  ship-building; 
 
(iii)  the transformation, generation, conversion, transmission  or 
distribution of electrical energy, including hydraulic power; and  
 
(iv)  the working of a mine, oil well or any other source of minera l deposit, 
including blending, refining and purification or oils and gases; 
 
and includes companies engaged in the ma rketing and distribution of gas or oil or in the carriage of 
men or goods by sea or air, and any other institution, organization, enterprise or establishment which 
the 2[Federal Government] may, by notification in the official Gazette, declare to be an ind ustrial 
undertaking for the purposes of this scheme; and  
 
 
1The word “primarily” omitted by the Companies Profits (Workers Participation (Amendment) Ordinance, 1970 (12 of 1970), section 5.  
2Subs. and shall be deemed to have been so subs. by the Labour La ws (Amdt.) Act, 1975 (11 of 1975),s.2 and Sch. for “Central 
Government”, (w.e.f. 14-8-73). 
3The words “in any shift” omitted by the Companies Profits (Workers Participation) (Amdt.) Act, 1973 (20 of 1973), s.3. 
4Subs. ibid., for “100”.  
5Subs. & added by Act III of 06, s. 7. 
6Explanation added, by Ord. 12 of 1970,s.5. 
 
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 (b)  references to the paid -up capital and the value of the fixed assets  of the 
company shall,  in th e case of a company incorporated outside Pakistan but 
having a branch in Pakistan , b e construed as references respectively to the 
capital invested in such branch and value of the fixed assets of the branch.] 
 
 1[2. Investment of Fund.__ (1) The amount allocated or accruing to the Fund shall be 
available to the company for its business operations. The company may, however, request the Board 
to utilize the amount in the Fund for investment under sub-paragraph (7) and the Board may decide 
to so invest the amount. 
 
 (2) The company shall pay to the Fund in respect of the amount in the Fund available to it 
for its business operations as aforesaid interest at the rate of 2- 1 / 2% above the bank rate or 
75 percent of the rate at which dividend is declared on its ordinary shares, whichever is higher. In 
case there is more than one class of ordinary shares on which different rates of dividend have been 
declared, then the weighted average of the different rates of dividend shall be taken for the purpose 
of determining the rate of interest. The interest to the Fund shall accrue on and from the first day of 
the year next succeeding the year in which the scheme becomes applicable to the company. Even 
when the company does not wish to utilize the amount available to it under sub-paragraph (1), 
interest at the rate aforesaid shall be payable by the company for the period between the date of 
allocation of any amount to the Fund and the date of its investment under sub-paragraph (7). 
 
(3) If, at any time after the establishment of the  Fund, the company raises any 
additional capital, otherwise than through the issue of bonus or bonus shares, the Fund shall have 
the first option to convert any amount available to the company under sub-paragraph (I) or any of 
the assets of the Fund into ordinary equity capital up to a ceiling of 20 per cent of the paid up 
capital of the company prior to such conversion on 50 per cent of the additional capital, whichever 
is less. 
 
Explanation. —In this sub-paragraph, “additional capital” does not include any capital 
offered or to be offered to foreign participates of the company. 
 
(4) For the exercise of the right of conversion under sub-paragraph (3), the Board shall be 
given sufficient time to sell assets of the Fund to realise the amount needed for subscription to the 
additional issue of capital by the company. 
 
(5) The shares acquired in the manner set out in sub-paragraph (3)  Shall participate in 
future bonus and right issues in the same manner as other shares. 
 
(6) The shares acquired in the manner set out in sub-paragraph (3) shall carry voting rights 
in the same manner as other shares and such voting rights shall be exercised by the Board on behalf 
of the Fund. 
 
(7) The amount in the Fund which, under sub-paragraph (1), the company has 
requested to be utilized for investment under this paragraph my be invested by the Board for the 
purchase of any of the following, namely:— 
 
(a)  I.C. P. Mutual Fund Certificate; 
 
(b)  National Investment Trust (Unit) Certificates; 
 
 
 1Subs. by the companies Profits (Workers Participation) (Amendment) Ordinance, 1970 (12 of 1970), s. 5, for the original para 2. 
 
 
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(c)  Government securities including Defence and Postal Savings Certificates; and 
 
(d)  any other securities approved for the purpose by the 1[Federal Government]. 
 
2[3. Eligibility to benefits of scheme.__ All workers shall be eligible to the benefits of the 
scheme and to participate in the Fund. However, a worker not completing six months of 
employment with the company during a year of account shall not participate in the Fund in respect 
of that year 
 
4. Distribution of benefits to worker.__The share of a worker in the annual allocation to 
the Fund shall be expressed in units or fractions of units (worked out to two places of decimal) of 
the face value of Rs.10 determined in the following manner, namely:— 
 
3[a)  The number of available units shall be so divided into three parts for the 
three ca tegories of workers mentioned below that a worker in the first of  
those categories gets four units for each two units that a worker in the second 
of those categories gets or for each one unit that a worker in the last of those 
categories gets. 
 
Categories 
 
4[1. Workers drawing average monthly wages not exceeding seven thousand five 
hundred rupees. 
 
 2.  Workers drawing average monthly wages exceeding seven thousand five 
hundred rupees but not exceeding fifteen thousand. 
 
 3.  Workers dr awing average monthly wa ges exceeding fifteen thousand 
rupees.] 
 
(b)  The average monthly wages shall be rounded up to the nearest Rs.10. 
 
(c)  The number of units available to each category of workers shall be 
divided equally among all the workers in that category to determine the share 
of each workers of that category. 
 
5[(d)  Notwithstanding anything contained in this scheme, no worker shall, in any 
one year, be entitled out of  the annual allocation to units exceeding rupees 
6[the amount of 4[four] times of the minimum wages for unskilled workers as 
given in the schedule of Minimum Wages for unskilled Workers Ordinance, 
1969 (W.P. Ord. XX of 1969)] in value in so far as such allocation is relatable 
to 7 [* * *] of clause b of sub-section (1) of section 3.  Any amount left out of 
annual allocation after the units have been so allocated shall be transferred 
to the Fund constituted un der section 3 of  the Workers Wel fare Fund 
Ordinance, 1971 (XXXIV of 1971). No part of such amount shall be deemed 
to be included in the asset value of the Fund established under this Act and no 
individual worker shall have any lien on this amount by virtue of holding any 
units]. 
 
 
1Subs. and shall be deemed to have been so subs. by the Labour Laws (Amdt.) Act, 1975 (11 of 1975), s. 2 and Sch., for “Central 
Government”, (w.e.f. 14-8-73).  
2Subs. by the Companies Profits (Workers Participation) (Amendment) Ordinance, 1970 (12 of 1970), section 5, for the original paras 3 and 
4.  
3Subs. by the Labour Laws (Amdt.) Ordinance, 1972 (9 of 1972), s. 2 and Sch., for cl. (a).  
4Subs. by Act IV of 07. 
 5Subs. by the Labour Laws (Amdt.) Ordinance 1972 (9 of 1972), s. 2 and, Sch., for cl. (d)  
6 Subs by Act III of 2006, s. 7.  
7The words “sub-clause (i) of “omitted by the Companies profits (Workers Participation) (amdt.), Act 1973 (20 of 1973), s. 3.     
 
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 Explanations. —  In this paragraph, “average monthly wages” means total 
wages dr awn during the year of acco unt divided by 12,  or by the number of 
months a worker actually worked during a year in respect of which he is entitled 
to the benefit under the scheme, as the case may be, and “wages” has the same 
meaning as in clause (vi) of section 2 of the Payment of Wages Act, 1936 (IV of 
1936), but does not include any overtime allowance 1[or bonus],  
 
5. Disbursement of benefits. __ The disbursement of the benefits from the Fund shall be as 
under: __ 
 
(a)  100 % of the annual income of the Fund, including capital gains realized, 
shall be distributed each year to workers in proportion to their units of 
entitlement. 
 
2[b)  A worker who voluntarily  leaves the employment  of the company or  whose 
services are terminated shall be entitled to receive 100 per cent of the net asset 
value of the units standing in his name.]; 
 
3[*  *  *  *  *  * *] 
 
4[(f)  A worker who continues in the service of the company shall be entitled to receive 
100 per cent of the net asset value of the units in his name each year or he may 
choose to leave his share in the Fund :  
  
 Provided that a worker while in employment may choose to encash all 
the units standing in his name at any time at his discretion.]. 
 
(g)  A worker, in the event of his retirement or, his nominated beneficiary, in the 
event of the worker's death (from whatsoever cause) while in the employment of 
the company, shall receive 100 % per cent of the, net asset value of the units 
standing in the worker’s name 5[* * *]. 
 
6. Definition of the net asset value of the unit. — To determine the net asset value of a unit, 
the total net assets of the Fund, namely, market value of the securities, cash and other assets resulting 
from the investment and re-investment, capital accretion thereto and all in comes of any kind rising 
there-from shall be divided by the number of units in the Fund. Net asset value of the entire Fund shall 
be computed once every year and each worker's unit en titlement determined at the same time. 
Additional units will be given to the workers according to the amount they voluntarily contribute to the 
Fund. 
 
6[7. Employee's own contribution. — A worker may voluntarily choose to contribute a part of 
his wages, cash bonus, dividend or interest to the Fund. For each unit of contribution, he sh all 
receive credit for 1-1/4 units. Contribution received during the course of a year of acco unt sh all, 
however, be deemed to be contribution received on the last day of that year. If at any time a worker 
chooses to leave the employment of the company or 7[his services are terminated or in the event of his 
retirement or death or' on the expiry of three years from the date he voluntarily chooses to contribute a 
part of his wages, cash bonus, dividend or interest to the Fund, he, at his option, or, in the event of his 
death, his nominated beneficiary, may], receive the net asset value of the units representing his 
contribution. The contribution by a worker in any one year of account shall not exceed 10 per cent 
of his annual wages during such year.] 
 
 
 1Add by Ordinance 4 of 1985, s. 3.  
2Subs. by the Companies Profits (Workers Participation) (Amdt.) Act, 1973 (20 of 1973), s. 3, for cl. (b), which was previously amended by 
Ord. 12 of 1970, s. 5. 
3Cls. (c), (d) and (e) omitted ibid. 
4Subs. by the Companies Profits (Workers’ Participation) (Amdt.) Act, 1973 (20 of 1973), s. 3, for cl. (f)  
5Certain words omitted ibid.  
6Subs. by the Companies Profits (Workers Participation) (Amdt.) Ordinance, 1970 (12 of 1970), s. 5, for the original para 7. 
7Subs. by Act, 20 of 1973, s. 3, for certain words. 
 
Page 10 of 10 
 
8. Fiscal concessions to the companies.— All companies to whom the scheme applies shall 
be allowed the allocation made to the scheme as a deduction to arrive at the taxable income. 
 
9. Tax treatment of the income of the fund.— The income of the Fund including capital 
gains shall be exempt from income-tax. 
 
10. Tax treatment of the income to the workers.— All sums paid out by the Fund shall be 
exempt from income-tax in the hand of the workers. 
 
1[11. Worki ng and location of the Board of Trustees.— The office of the Board of 
Trustees shall be located at the factory premises or, if there is more than one factory run by the 
company, at the registered head office of the company. All expenses of the Board, including the 
cost of maintaining accounts, shall be borne by the company.] 
 
12. Audit of the Fund accounts.— The Fund accounts shall be audited annually at the 
company's expense in the same manner as the accounts of the company are audited : 
 
Provided   that   the 2[Federal Government]   may, at   its   own   cost, appoint independent 
accountants for a special audit of the accounts of the Fund. 
 
13. Scheme’s benefits to be in addition to other benefits.— The benefits to a worker 
under t his scheme shall be in addition to, and not in derogation or substitution of, any other 
benefits to which the worker may be entitled under any other law, contract, terms and 
conditions of employment or otherwise. 
 
3[14. Special provision  f or industries working  s easonally.—  Notwithstanding  
anything contained in this Act or this scheme the 2[Federal Government] may, by 4notification in 
the o fficial Gazette, make special provisions for the participation of workers in  the profit of 
companies engaged in industrial undertakings which operate only for a part of the year. 
 
15. C ompanies e ngaged in more t han one industrial undertakings.— Notwithstanding 
anything contained in this Act or this scheme, the 2[Federal Government] may, at the request of a 
company which is engaged in more than one industrial undertakings located at di fferent p laces 
permit the splitting up of the Fund amongst the various undertakings or groups of 
undertakings and constitution of the Board of Trustees for each such undertaking or group of 
undertakings; and thereupon the provisions of this Act and this scheme shall have effect in relation 
to such undertakings or groups as if each such undertaking or group were a company. 
 
16. E ntrustment of management of Fund to Investment Corporation of Pakistan 
etc.— The Board of Trustees may, with the prior approval of the 2[Federal Government], enter into 
a con tract with the Investment Corporation of Pakistan, the National Investment Trust or the 
National Bank of Pakistan, entrusting the management of the Fund to that Corporation, Trust or  
Bank  on  such  fee,  which  sh all  be  pa yable  by  the  com pany,  and  on  such  terms  a nd 
conditions as may be mutually agreed upon.] 
 
 
 
 
 
 
 
 
 
1Subs. by the Companies Profits (Workers Participation) (Amdt.), Ordinance, 1970 (12 of 1970), s. 5, for original para 11. 
 2Subs. and shall be deemed to have been so subs. by the Labour Laws, (Amdt.) Act, 1975 (11 of 1975), s. 2 and Sch., for “Central 
Government” (w.e.f. 14-8-73).  
3Paras.14, 15 and 16 added, ibid., by Ord. 18 of 1970, s. 5.  
4For Such notification, see Gaz. of Pak., 1971, Ext. page 1037.