25925445 Labour Laws Pakistan

8/22/2019 25925445 Labour Laws Pakistan

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LABOR LAWS

Soofi & soofi

Management Consultants

BYSoofi29


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Stereotypical Practices of Personnel Management and

Human Resource Management

Approaches of

Approaches to

Personnel

ManagementHuman Resource Management

Time ad planning

perspective

Short-term

Reactive

Ad-hoc

Managerial

Long-term

Proactive

Strategic

Integrated

Psychological Contract Compliance Commitment

Control Style External Controls Self-Control

Employee relations

perspective

Pluralist

Collective

Low trust

Unitarist

Individual

High trust

Preferred structures /

systems

Bureaucratic

Centralized Defined roles

Organic

Devolved Flexible roles

Roles Specialist and / or

ProfessionalLargely integrated into line management

Evaluation Criteria Cost-minimization Maximum utilization human asset accounting


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Life Cycle Stages

HR

FunctionStart-up Growth Maturity Decline

Labor

EmployeeRelations

Set basic

employeerelations

Philosophy

and

Organization

Maintain

labor peaceand

employee

motivation

and moral

Control

labor costsand

maintain

labor peace.

Improveproductivity

Maintain

laborpeace

Source: Storey Sisson (1993,p.61), adapted from Kochan and

Barocci (1985,p.104)


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Legislation

1.Factories Act, 1934 /

Payment of Wages Act.

1936

6. Industrial RelationsOrdinance, 2002

2.Apprenticeship ordinance,

1962

7. Punjab Fair Price Shop

(Factories Ordinance,

1971)

3.Provincial Employees

Social Security Ordinance

1965

8. Cost Of Living Relief Act

1973.

4.Standing Orders

Ordinance, 19689. N.I.R.C. 1973.

5.Companies Profits

(Workers Participation)

Act, 1968

10.Employees Old Age

Benefit Act 1976.


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Factories Act

1. Occupier Owner Ultimate Control

Factory Manager Design: 4. Working Hours (Weekly) Max:

48/Week-Daily9 Hours Max.

2. Notice to inspector: Form-A (Rule-3)

Name Of Factory- its situation-Nature

Of Manufacturing.

3. Health and Safety Cleanliness-Ventilation and Temperature:

Circulation of Fresh Air-Temperature

reasonable.

Over Crowding- 500 cft

Light Drinking Water-250-cooling

and Urinal (Separately for Male /

Female)-Spittoons-Periodical

Medical-Checkup (July-Jan-Hygiene

Card) Compulsory Vaccination

Welfare Officer (Not Less than 500

Workers) Precaution Against Fire.

5. Interval for Rest:

Half an hour (Five hours working,One hour (After six hours working)

6. Extra Pay Overtime:

Twice ordinary rate of pay

7. Holiday with Pay:

Weekly RestAnnual 14 Consecutive

Days (12 Months Continuous

Service).

Casual - 10 Days

Sick - 16 Days / Half Pay

Festival - As notified by Govt.


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Standing Orders Ordinance-1968

Classification of Workman Permanent _ Nature Of Work

Permanent.

Probationer _

Provisional,Permanet Vacancy.

Badli_ Temporary Absent.

Temporary _Work Temporary

Nature

Apprentice_ Ordinance,1962

Group Incentive SchemeGroup Insurance

Bonus 10 - C

Gratuity

Misconduct

Dismissal

APPLIES:-20 Or More Wokmen


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W.P. Industrial & Commercial Employment

Applicability

Applicable to all industrial and commercial establishment employing 20 ormore workmen on any day during the preceding twelve months. Howeverfor smaller industries establishments employing between 20 to 49workman on any day during the preceding twelve months four

exemptions form the application of S.O 10-B,11,12(6) and (8), 15 havebeen granted, once the number of workmen is at 50 or more in anyindustrial establishment employed on any day of the preceding twelvemoths, all provisions of the ordinance are applicable without anyexception.

S.O.10-B Compulsory Group Insurance.

S.O.11 Stoppage of Work / Lay off.

S.O.12(6) & (8) Payment of Gratuity

S.O15 Punishment From Misconduct, Enquiry Procedure,

Disciplinary Actions (Final / Dismissal)

(Standing Orders) Ordinance 1968


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[10-C. Payment of Bonus:-

(1) Every employer making profit in any year shall pay 2[for that year

within three months of the closing] that year to the workmen who have

been in his employment in that year for a continuous period of not lessthan ninety days a bonus in addition to the wages payable to such

workmen.

(2) The amount of the bonus payable shall

(a) If the amount of the profit is not less than the aggregate of onemonths wages of the workmen employed, be not less than the

amount of such aggregate, subject to the maximum of thirty

percent of such profit;



Cont..


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3[Illustration 1.-- If the profit is Rs. 1,20,000.00 and the aggregate of

the workmen is Rs. 30,000.00, the amount of bonus

payable shall be not less than the aggregate of one months

wages, that is to say, Rs. 30,000.00

Illustration 2.-- If the profit is Rs. 30,000.00 and the aggregate of one

months wages of the workmen is also Rs. 30,000.00, the amount

of bonus payable shall be not less than the thirty percent of the

profit that is to say, Rs. 9,000.00].

(b) If the amount of the profit is less than the aggregate of referred to

in paragraph (a), be not less than fifteen percent of such profit.



Cont..


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Misconduct

Something done or omitted to be done, which aman of Ordinary prudence would not have doneor would not have omitted to do.

Applicable: (S.O-15) General terms-20 or moreworkers commercial-20 or more.Industrial-50 ormore. Compliance mandatory. Jurisdiction ofLabour Court-Fair Enquiry.Punishment-quantem-commensurate with nature of fence.

Where Law not Applicable-natural Justice not tobe condemned unheard whether a legalprovision or not (S.C).


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The following Acts and Omission

shall be treated as misconduct

a) Willful insubordination or disobedience,whether alone or in combination with others,to any lawful and reasonable order of asuperior.

b) Theft, fraud, or dishonesty in connection withthe employers business or property.

c) Willful damage to or loss of employers goodsor property.

d) Taking or giving bribes or any illegalgratification.e) Habitual absence without leave or absence

without leave for more than ten day.


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f) Habitual late attendance.

g) Habitual breach of any law applicable to the establishment.

h) Riotous or disorderly behavior during working hours at theestablishment or any act subversive of discipline.

i) Habitual negligence or neglect of work.

J) Frequent repetition of any act of omission.

k) Striking work or inciting others to strike in contravention ofthe provision of any law, or rulehaving the force of law.

l) Go slow.


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Other Provisions

4) No Order of dismissal shall be made unless the workmanconcerned is informed in writing of the alleged misconductwithin one month of the date of such misconduct or of the dateon which the alleged misconduct comes to the notice of theemployer and is given an opportunity to explain thecircumstances alleged against him. The employer shallinstitute independent inquiry before dealing with chargesagainst a workman.

Provided that the workman proceeded against may, if he sodesires for his assistance in the enquiry, nominate any

workman employed in that establishment and the employershall allow the workman so nominated to be present in theenquiry to assist the workman proceeded against and shall notdeduct his wages if the enquiry is held during his duty hours.


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5) Where, for the purpose of conducting an inquiry into thealleged misconduct of a workman, the employer considers itnecessary, he may suspend the workman concerned for aperiod not exceeding four days at a time so, however, that thetotal period of such suspension shall not exceed four weeksexcept where the matter is pending before an Arbitrator, aLabor Court, Tribunal or conciliator for the grant of permissionUnder Section 40 of the Industrial Relations Ordinance 2002.The order of suspension shall be in writing and may take effectimmediately on delivery to the workman. During the period ofsuspension, the workman concerned shall be paid by theemployer subsistence allowance of not less than fifty

percentum of the wages. If the workman is found not guilty, heshall be deemed to have been on duty during the period ofsuspension and shall be entitled to the same wages as hewould have received if he had not been suspended.


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Enquiry

Explanation considered unsatisfactory-formal enquiry. Refusal to submitexplanation-proceed.

Notice-name of E.O, date, time, venue,charge sheet reference.

Attendance inability-change date by E.O.

Nominated workman employed-chargesfully explained statement recorded/signed.


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Other Points

E.O senior-subordinate to punishingauthority.

No ground-change of E.O-not necessary togrant- Assistance of other workmen-cannot act legal representative-nor xxxxxxprosecuiton.Produce defence-accused-request summon-accede.

Enquiry


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Evidence

Confined to issue-hearsay-best evidence-beginning prosecution statement xxxxx allquestion-no-relevant only-no xxxx-

record.Defence statement-production ofdocuments-findings-state facts-sum up-corraboration (1971 PLC 148)-reasoning-not

justified recommendations-Employer approval-

supply copy of enquiry report(1972 PLC 327)supply prceedings-

(1972 PLC 392)


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DISMISSAL PROCEDURE

For misconduct by an employee the following four steps procedurefor dismissal from service S.O. 15(4) Charge sheet,explanation of the workman, independent inquiry, and awardof punishment is compulsory:-

I. Written notice of alleged misconduct (charge-sheet) is givento aworkman within one month.

II. An opportunity is to be given to the workman to explain orrespond to charges against him.


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III. If employer is not satisfied with the explanation, he maysuspend the workman and shall institute independent inquiryby appointing an Inquiry Officer to objectively determinewhether the workman is guilty or not. Employer includesthe manager as per section 2(c).

IV. If the workman is found guilty of misconduct in an inquiryreport the employer can award punishment ranging from fineto dismissal. Approval of the employer is take in everycase of dismissal.

Where this four-steps procedure is not adopted it will amountto

contravention of the provisions of the Ordinance


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Industrial Relations Ordinance-2002

Collective Bargaining Agent:-Trade Union-u/s 20.

Conciliation:-Proceedings before conciliator.

Illegal Lock Out:-Otherwise than in accordance with I.R.OProvisions.

Illegal Strike:-Otherwise than in accordance with I.R.O Provisions.

Industrial Dispute:-Means any dispute or difference between

employers and workmenor between workmen and workmen which is concerned with theemployment or Non-employment or the terms of employment orthe conditions of work,and is not in respect of the enforcement ofany right gauranted or accrued to workers by or under anylaw,other than this ordinance or any award or settlement for thetime being inforce:

Lock Out:-means closing of a place of employment, partly orwholly.

Settlement:-Arrived at as a result of conceliation proceedings.


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Trade Unions

Trade Unions and Freedom of Association-Art:17 of theconstitution of the Islamic Republic Of Pakistan.

Application for Registration:-President and GeneralSecretary may apply duly signed.

Requirement (a) Name Address- of Union (b)formation date (c) Titles, Names, Ages, Addresses andOccupation office bearers. (d) Total Membership (e)Name Of Establishment (f) Other Trade Union Registeredin the establishment. (g) Three copies Union constitution

with resolution authorizing P/G.S. to apply.


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Change Industrial Relations Ordinance1969 Vs 2002

1. Definition of workman

Supervisors not exempted NewJob Description

7. Registered Cancellation ofInactive Union

2. Affiliation of CBA with Federation

Registered with NIRC

8. Reinstatement Compensation

High Court Stay

3. Establishment One Unit 9. J.W.C (10 Members) 40%-60%

9.1 - Productivity9.2 - Min: Facilities Contractor

Labor

9.3 - Bilateral Negotiation

9.4 - Safety & Health

4. Job Contract and Manpower Supply

Contract

5. Disqualification Theft, PhysicalAssault, Murder 10. The commission (NIRC) shall notgrant interim relief against any

action mentioned in Section

63(d) of this Ordinance, (dismiss,

discharge transfer etc).6. Tenure of CBA Three Years


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Industrial Relations Ordinance 1969

Worker and workman means any person not (including employment [asa supervisor or] as an apprentice) in an establishment or industry for hire

or reward either directly or through a contractor whether the terms of

employment b express or implied, and for the purpose of any proceeding

under this Ordinance in relation to an industrial dispute includes a person

who has been dismissed, discharged, retrenched, laid-off or otherwiseremoved from employment in connection with or as a consequence of that

dispute or whose dismissal, discharge, retrenchment, lay-off, or removal

has led to that dispute [but does not include any person

a) Who is employed mainly in a managerial or administrative capacity, orb) Who, being employed in a supervisory capacity draws wages

exceeding rupees eight hundred per mensem or performs, either

because of the nature of duties attached to the office or by reason of

the powers vested in him, functions mainly of managerial nature]

Worker and Workman

Cont


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Worker and workman means any person not falling within the

definition of employer who is employed in an establishment or

industry for remuneration or reward either directly or through a

contractor, whether the terms of employment be express or

implied, and for the purpose of any proceeding under this

Ordinance in relation to an industrial dispute includes a personwho has been dismissed, discharged, retrenched, laid-off or

otherwise removed from employment in connection with or as a

consequence of that dispute or whose dismissal, discharge,

retrenchment, lay-off or removal has led to that dispute but does

not include any person who is employed mainly in a managerialor administrative capacity.

Worker and Workman

Cont..


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Management / Administration

In practice, the term management andadministration are interchangeable, inrecognition of the responsibility of

mangers and administrators to plan,organize, direct and control the activitiesof those who make up the work team.


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Administrative Functions

Transport Canteen Horticulture

Janitorial services Procurement, supply & distribution of materials

e.g. stationery Management of services

Maintenance of building & equipment Receipt & dispatch of mail Managing budget for the above.


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Management Functions

Planning

Organizing

Directing (Leading)

Staffing

Controlling

Manager: The one who undertakes the task andfunctions of managing at any level in any kind ofenterprise.


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Functions Held of Supervisory Nature

1. Appraising performance of

subordinate, granting leave andrecommending increments (1979

PLC 279-H.C)

5. Sanction leave, issue charge

sheet and recommend cases(1984 PLC 465-Tribunal)

2. Recommending leave, punishment

and other actions for and against

workers (1971 PLC 196-LaborCourt)

6. Supervising the process to ensure

that the same is done technically

correct (1990 PLC 423 Tribunal)

3. Recommending leave, issuing or

charge sheet and transfer of

workers (1981 PLC 625 Tribunal)

7. To sanction or recommend leave,

to recommend increment and to

make a report (1990 PLC 693-

Tribunal)

4. Guiding subordinates (PLJ 1981 Tr.

C274-Tribunal)

8. Application of mind and

supervision of work done by other

(1992 PLC 154-Tribunal)


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1.ESTABLISHMENT

Establishment means any office,firm, society, undertaking,

company shop or enterprise

which employs workmen directly

or through a contractor for the

purpose of carrying on anybusiness or industry and includes

all its departments and branches,

whether situated in the same

place or in different places

having a common balance sheet

and profit and loss account, and

except in section 54, includes a

collective bargaining unit, if any,

constituted under that section in

any establishment.

2. INDUSTY SECTION 2 (XVI)

Industry means any business,trade manufacture, calling,

service, occupation or

employment engaged in any

organized economic activity of

producing goods or services for

sale, excluding those setup

exclusively for charitable

purposes, operating through

public or private donations

where charitable purpose

includes provision of education,medical care, emergency relief

and other needs of the poor and

indigent.


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I.R.O. 2002

Notwithstanding anything contained in the constitution or rules

of a trade union, a person who has been convicted or any

offence under Section 70 (for embezzlement ormisappropriation of trade union funds) or of a criminal offence

of heinous nature within the meaning of Pakistan Penal Code

such as theft, physical assault, murder, attempt to murder etc

shall be disqualified from being elected as, or from being a

member or office bearer of a trade union.

Disqualification for being an officer of a trade union


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Industrial Dispute

Means any dispute or difference between

employers, and workmen or between workmen

and workmen which is concerned with the

employment or non-employment or the terms ofemployment or the conditions of work; and is not

in respect of the enforcement of any right

guaranteed or accrued to workers by or under

any law, other then this ordinance, or any award

or settlement for the time being in force;


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Influence on Labor Management Relations

EXTERNAL Market Trend (National International)

Competitiveness Govt. Policies

Legislation on Labor Laws I.L.O. Conventions

INTERNAL Climate

Mutual Trust and Confidence

MAJOR INFLUENCE Labor Laws Legislation by Government

I.L.O. Conventions


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Key factors which have played a dominate role in theevolution of industrial relations practices, polices andsystems in various types of industrial enterprises

within the country:

Labor Laws

Case Law

Government Labor Policy

Managerial Styles

Work Attitudes and Role Played by Unions Type of Industry


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LABOR LAWSSince early seventees, most of the amendments carried in labor laws

and enactments introduced, have been due to political expediency.Apart from causing difficulties, they have been hardly of any use to the

employers. Resultantly, total compliance with these laws is neither

practical nor possible.

CASE LAWSThe decisions given by courts are equally important in influencing the

industrial relations policies and environment of undertakings. At times

these have the potential of making or breaking an industry. A ruling,

which is unfair to employers or creates further complications for them,will adversely affect the industrial relations.


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GOVERNMENT LABOR POLICIESThe reluctance on the part of government to effect realistic changes in

the labor laws send negative signals to the employers. They tend tobelieve that such laws will continue to pile up and while implementing

they will have to mould them to suit their own convenience.

MANAGERIAL STYLESThey vary in a family enterprises, a multinational company and a state

enterprise. Even in a family enterprise it may vary from a paternalistic

approach to a strict disciplinarian style. In a multinational company,

management will strictly abide by their laid down principles but remain

within the framework provided by laws of the land. In most of the stateenterprises, managements are subdued and unions are supreme. They

get equal share in running the affairs of a factory and become

instrumental in its doom


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WORK ATTITUDE AND ROLE PLAYED

BY UNIIONS

There is in fact an element of reciprocity between these and themanagerial styles. The attitude of workforce towards and role played by

their unions flows from the managerial style. In a professionally

managed organization, the output of workers will be high. The workers

will believe that management will never give in on principle. They will

respect their superiors and will feel pride in obeying their instructions.This attitude of workers and ultimately their unions will be reversed in

an organization run by managers lacking in competence and integrity.

TYPE OF INDUSTRYIt is unfair to believe that the behavior of employees in a high tech

chemical plant and a textile or re-rolling mills will be similar.

Nevertheless, the aggression in behavior of workers in difficult and

strenuous work processes, may be reduced by improving their working

conditions.


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CONCLUSIONS

Legal Framework

Communication

Problem Solving

Welfare

Mutual Trust / Confidence

P i i l E l


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Provincial Employees

Social Security

Applies: Notified ( Service of state , A. Forces ,police, local bodies , excluded)

Benefits :

Sickness: A condition requires / necessitates

medical treatment and absenteeismfrom work.

Maternity : Twelve weeks, not more than sixweeks shall precede the expected date of

confinement.Death grant: Rs. 1500 / for funeral.

Injury benefit: Daily rate of wages for a max180 days.

P i i l E l


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Social Security

Applies: Notified ( Service of state , A. Forces ,police, local bodies , excluded)

Benefits :

Sickness: A condition requires / necessitates

medical treatment and absenteeismfrom work.

Maternity : Twelve weeks, not more than sixweeks shall precede the expected date of

confinement.Death grant: Rs. 1500 / for funeral.

Injury benefit: Daily rate of wages for a max180 days.


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Social Security

Disablement pension: On expiration ofinjury benefit as per rates notified.

Disablement gratuity: Minor disablementrates notified.

Survivors Pension: Death as result ofemployment injury, payable to

dependents.


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Contribution

Type of Scheme

Max.

Employers

Contribution

pm

Max.

Workers

Contribution

pm

Total

Contribution

pm

Normal of Regular Scheme[section 20 (1), proviso]

(7% of max. Rs. 5000

wages)

Rs. 350 --N/A-- Rs. 350

Self-Assessment (Optional)

[section 20A (1)]

(fixed rate irrespective of

employees wages)

Rs. 210 Rs. 20

[section 20A(3)]

Rs. 230


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E.O.B.I.

APPLIES: Industry / establishment employing tenor more persons.

Old age pension: Male over sixty years / femaleover fifty five years. Contribution paid for not

less than fifteen years. Old age grant: Not entitled for pension .

Contribution less than 15 but more than 2 years. Survivor pension: Death , 36 months insurable

employment. Invalidity pension: Not less than 5 years

contribution paid.


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CONTRIBUTION

Type of Scheme Max. Employers Max. Workers Total

contribution contribution contribution

pm (sec. 9) pm (sec. 9-B) pm

Normal Scheme Rs. 240 Rs. 40 Rs. 280

(6% of max. Rs. 4,000/- wages)

Self-Assessment Scheme Rs. 240 Rs. 40 Rs. 280

(optional scheme, flat rate irrespective

of employees wages, no inspection for two years)


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Workmens Compensation Act

1923

Applies: Workman employed on monthlywages not exceeding six thousand rupees.

Compensation: Personal injury by accidentin the course of employment. Total orpartial disablement.

Partial disablement: Temporary reducing

earning capacity. Total disablement: Incapacitates wholly

capable of doing at the time of accident.

C


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Workmens Compensation Act

1923 Exceptions:

Drunk / Drugs influence. Violation of rule securing safety Willful removal of safety guard / device.

Rate of compensation: Rs. 200,000(Death and permanent total disablement) Payment deposit with the commission. Compensation not to be assigned by operation of law.

Notice and claim (S/10) Report of fatal accident (S/10-B) Penalties ( S/18 A)


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Documents

25925445 Labour Laws Pakistan