REKO DIQ MINING COMPANY (PVT.) LTD. vs NATIONAL INDUSTRIAL RELATIONS COMMISSION Jurisdiction clause in an empl

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REKO DIQ MINING COMPANY (PVT.) LTD. VS NATIONAL INDUSTRIAL RELATIONS COMMISSION Jurisdiction clause in an employment contract---Effect---Parties agreeing to jurisdiction of courts at a particular place---Circumstances where there is inequality of bargaining power between employer and employee---Scope---Where two or more forums are otherwise competent to entertain a dispute, the parties may, by mutual agreement, restrict themselves to one such forum for the adjudication of their disputes---Such clauses, when they merely regulate the choice amongst available forums and do not oust the jurisdiction of all courts, are respected in order to uphold the sanctity of contract and the autonomy of the parties---A jurisdiction clause is a contractual stipulation, where the parties to the contract choose or select one particular forum out of two or more available forums, and the same is permissible---Choice of parties regarding jurisdiction clause has been upheld by Supreme Court to maintain the sanctity of the contract---General rule of contract in common law is founded upon the principle of freedom of contract that parties are ordinarily the best judges of their own interests and that where they freely and voluntarily enter into acontract the primary function of the courts is to enforce to what has been agreed---However, it has to noted that employment contracts are often marked by unequal bargaining power because the employer generally occupies a dominant position, while employee has little or no real opportunity to negotiate the terms of engagement, and only to sign the dotted line of the contract in order to secure his livelihood---In such circumstances, courts are not confined to formal reading of contractual clauses but are required to examine the fairness and reasonableness of enforcing such clauses---However, it has also to be noted that where enforcement of jurisdiction clause would operate oppressively, unfairly, or inequitably, courts may justifiably decline to give effect to it.

REKO DIQ MINING COMPANY (PVT.) LTD. vs NATIONAL INDUSTRIAL RELATIONS COMMISSION Jurisdiction clause in an employment contract — 2026 PLC 77 ISLAMABAD

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