ISLAMABAD, March 21: The Supreme Court has reinstated 43 Pakistan State Oil employees inducted during the Pakistan People's Party governments and fired when the Pakistan Muslim League (Nawaz) was ruling in 1997.

The court, which had in February reserved the judgment, has ordered the reinstatement of the employees with all back benefits. Many of those sacked were confirmed employees in the management cadre but their services were terminated by the company with immediate effect after giving them one month's gross salary.

When they approached the Federal Services Tribunal, it reinstated them, after which the company filed an appeal before the Supreme Court, which remained pending for over a year.

The Supreme Court declared that even in the case of a trainee or probationer, if his services were to be terminated on grounds of mala fide in law or fact, they were entitled to show-cause notices not only on the basis of principles of natural justice but also on the ground that the authority concerned had abused the power vested in it.

It said that in case the appellant company wanted to proceed against any of the employees for their appointment as political nominees and for inefficiency, it would be at liberty to terminate their services after issuing meaningful show-cause notices and personal hearings.

The counsels for the PSO had contended that some of the respondents were trainees and others were probationers, therefore, they could not be reinstated. Being the employees of the PSO, controlled by the government, they could be treated in the service of Pakistan only for a limited purpose, they argued.

According to the company's lawyers, their services being contractual were not governed by any statutory rules, and the terms and conditions of the contract of service had a binding effect.

They contended that the contract stipulated that the PSO could terminate the services of the respondents without assigning any reason on one month's written notice or gross salary. Likewise, they could leave their job by giving a one-month notice to the company, the lawyers said.

They said the performance of the respondents was not up to the mark and they were appointed because of political pressure without approval from the selection board.