Industrial Relations Act, 2012

Executive SummeryThe industrial Relation Act, 2012 was released on 7 March 2012. It is spread over 91 section with supporting two schedules and summarized in eleven chapters.

Chapters Main Aspects

i Preliminary

ii Registration of Trade Union

iii Collective Bargaining Agent

iv Workers Participationv Unfair Labor Practices

vi Settlement of Dispute

vii Strikes and Lock-out

viii Awards and Settlements

ix National Industrial Relations Commissionx Penalties and Procedures

xi Supplemental

DefinitionsRegistration of trade union

Definitions• a) 'Arbitrator' means a person appointed as such section 40.• b) 'Award' means the determination by the commission.• c) 'Bench' and 'full bench' means a bench and full bench of the commission.• d) 'Commission' means the industrial relation commission under section 53.• h)'establishment' means office, firm, factory, society, undertaking, company, shop or

enterprise which employ workmen for the purpose of carrying business placed except in section 62.

• i)'executive' means a body manages the affair of trade union by its constitution.• j)'government' means the federal government.• k)'group of establishment means belonging to the same employer. • l)'industry' means any trade business for the production of goods or service except

charitable• Purpose.• m)'inspector' means an inspector under this act.• n)'labour court' means a labor court established in a province. • o)'officer' means member of executive except auditor or adviser.• p)'organization' means an organization of worker for furthering and defending the

interest of the worker.• q)'prescribed' means prescribe by the rules.

Registration of Trade Union• Requirement for registration• Any trade unions under the signature of its president apply to the registrar for registration• Application for registration shall be made by a statement showing names and date of

formation of trade union, names, ages, address of officers and their paid membership.• Three copies of constitution together with the copy of resolution bearing the signature of

chairman• Federation made after the consent of members.• Names, objects and address of trade union, numbers of members not exceed the

prescribed limit.• The condition under which member are entitled for benefit and fine.• The manner in which the constitution amended varied or rescinded election.• Certificate of registration:• The registrar under section 9 issues a certificate of registration.• Cancellation of Registration:• Registration may be cancel by the registrar if contravened the rule, applied for

cancellation, fraud or misrepresentation, field to submit annual returns.• Disqualification of an officer or a member of trade union :• Involving moral turpitude under the Pakistan Penal Code shall be disqualified, unless a

period of five year elapsed.

Collective bargaining agentworkers Participation

Collective Bargaining agent is the negotiation process that take place between employers and group of employee when certain issue arise.

Functions• Represent all or any of the workmen in any matter.• Give notice of, and declare a strike.• Undertake collective bargaining with the employer or employers on matters connected with employment or non-

employment.

Worker’ Participations

1. Shop steward2. Work council3. Inspector

1-A person elected by workers in a factory to represent them in dealing with management .

Functions• Act as a link between the workers and employer.• Assist in improvement • Help workers in the settlement of their problems.

2-A body representing the workers of a plant, factory elected negotiate with the management about working conditions , wages etc.

• Functions • Maintain continuous sympathy and understanding between the employer.• Promote settlement differences and disputes through negotiation.• Promote security of employment for the workmen and conditions of safety, health and job satisfaction in their work.• Discuss any other matter of mutual interest

3-Provincial government may, by notification in the official gazette, appoint person as it think fit to be inspector within local limit as it may assign to than respectively.

Functions• Public servant according to Pakistan Penal Code.• Approval of building plan and the machinery layout.• Renewal of factory license.

By Misbah Javid

Unfair Labor Practices

Settlement

Of DisputeStrikes And Lock Out

Unfair Labor Practices• On the part of employerNo employer or trade union 1. Impose any condition in the contract of employment2. Refuse to employ or refuse to continue to employ3. Discriminate against any person in regard to any

employment4. Dismiss, discharge, remove from employment or transfer

threaten to transfer.5. Induce any person, compel or attempt to compel, influence

or interfere.6. Recruit any new workmen during the period of a notice of

strike

• Unfair labor practices on the part of workmen:No workmen or trade union of workmen shall:1. Persuade a workman to join or refrain from joining a trade

union during work hours.2. Induce any person to refrain from becoming a member or

officer of a trade union.3. Compel or attempt to compel the employer to accept any

demand by using coercion and pressure threat

Settlement Of Dispute• Redress of individual grievances:• Where a worker himself bring his grievance to the notice of the employer,

the employer shall within fifteen days of the grievance bought to his notice• Where a worker brings grievance to the notice of his employer through

his shop steward or collective bargaining agent, the employer shall, within seven days of the grievance bought to his notice.

• If the employer fails to communicate a decision within specified period the shop steward or collective bargaining agent may take this dispute to commission.

• Rising of Industrial Dispute:• No industrial dispute shall be deemed to exist unless it has been raised in

the prescribed manner • Negotiations relating to differences and disputes:• If employer or collective bargaining agent finds that an industrial dispute

has arisen or likely to arise, they should communicate his or its views in writing either to the work council or to the other party where the views are so communicated to the work council

Ways to settle dispute

Conciliation

• In this a third party helps the two parties to reach at a mutually acceptable settlement.

• Conciliator does not impose a solution but works with the parties enables them to come to an agreement.

Arbitration

• Resolution of disputes outside the courts.

• Act as a mini court .• Third party settles the

dispute by making an independent decision for the two parties.

Strikes and lock out

Where the strike and lockout lasts for more than thirty days, refer the dispute to the commission.

is an act of quitting work done by mutual understanding by a body of workmen

Strike

is temporary suspension by employer to give employment to the workmen, unless the workmen accept the demands of the employer

Lockout

Illegal strikes and lockout:• A strike or lockout shall be illegal if:1. It is continue in contravention of an order. 2. It is declared or continued without giving notice to the other party

of dispute3. During the period in which a settlement and award are in

operation. Procedure in case of illegal strikes and lockout:

1-the case shall be refer to the

commission

2-commission will pass order

3-if the workers contravenes the order

4-The commission may pass order of dismissal against all or any of the

striking worker.

Awards and settlementsNational industrial relations commission

Settlement and awards

Settlement and awards on whom binding• Binding all parties to an industrial dispute.• Binding on the hires and also collective bargaining agent.• settlement arrived at between employer and trade union. Effective date of settlement, awards,• Period is agreed upon if not agree then two years are agree.• A settlement shall effective if date is agreed upon the parties.

National industrial relation commission

• It constitute by federal government and also appointed chairman

• Commission shall consist of not less then ten full time member and also appointed two members to advice chairman

Functions of the commission• to register trade union and industry wise trade union.• To determine an industrial dispute and collective bargaining

agent among trade union.• To try offensive punishable and advice the government.• To prevent an employer committing an unfair labor practices.

Penalties and proceduresSupplemental

Penalties and ProceduresPenalty for unfair labor practices• Whoever contravenes the section 17 shall be punished for fifteen

days or fine may be thirty thousand rupees• Whoever contravenes the section 31 shall be punished for thirty

days or fine may be fifty thousand rupees or both.• who contravenes the section 32, sub-section (1) shall be liable to

imprisonment for thirty days or fine thirty thousand rupees or both.

• Whoever contravenes the section 47 shall be liable to imprisonment for thirty days or fine seventy five thousand rupees

• Whoever contravenes the section 27 or 28 shall be punishable with imprisonment which may extend to fifteen days or fine which may be one hundred thousand rupees or both

Contravention the section 27 or 28• Whoever contravenes the section 27 or 28 shall be punishable

with imprisonment which may extend to fifteen days or fine which may be one hundred thousand rupees or both.

Commits any breach of any settlement• Whoever commits any breach of any settlement or decision

under this act shall be punishable:1. For the first offence, with imprisonment of thirty days or fine of thirty thousand rupees.2. For each subsequent offence, with fine of seventy thousand rupees

Schedule I:Public Utility Service• The generation, production, manufacture, or supply of electricity,

gas, oil or water to the public• Hospitals and ambulance services• Watch and ward stuff and security services • And system of public conservancy or Sanitation, Fire Fighting

service, any postal, telegraph or telephone service, Railways and Airways, Ports.

Schedule II: Rights & duties Worker’s perspective

• Right to work, wage and welfare• worker will perform duties

as assigned • Observe the norms and

organizational discipline.• Respect employer’s rights

and co-operate

Employer’s perspective

• The employer will protect and safeguard the interest and welfare of its worker to obtain maximum productivity and output• The employer will

respect worker’s rights