Labour and Employment Law: A Profile on Pakistan

Introduction Pakistan is the sixth most populated country in the world having a population of 167 Million, as estimated by the Population Census rgani!ation" #he estimated labor force is $1"7% million &'("() participation rate*" +abour force comprises all persons ten years of age and above, who fulfill the re,uirements for including among employed or unemployed" -ccording to this concept, the employed labor force is ./"0/ million &unemployed 1("6/ million* and more than half of the population is concentrated in the rural areas" f the employed labour force, women constitute only (0) &10 million*" -griculture sector employs ..) of the labor force, second to it is services sector &employing '$)*2 industry and manufacturing employ only (0) of the labor force" 3ormal sector accounts for only (7) of economic activity while informal sector is catering to more than 70) of the activity outside agriculture &+abour 3orce 4urvey, 5oP6 (00770%*" Pre-Independence Era
#he 8ndian 4ubcontinent, of which Pakistan is only one part, was ruled over by 9ritish for nearly a period of (00 years &17$771/.7*" 8t all started with trade, with coming in of a monopolist trader i"e" :ast 8ndia Company" #he :ast 8ndia Company usurped and profited the resources of this region firstly by getting goods manufactured at lowest prices &mostly textile and spices* and then selling these in :urope and ;< at higher prices and when textile industry was established in :ngland in the wake of industrial revolution and 9ritish Crown took control of subcontinent, the market for these goods was closed for 8ndian competitors through stricter legislations &-m=ad, (0016 '77*"

-fter the takeover, a series of industrial relations legislation was introduced, in the remaining part of 1/th Century, which had the primary ob=ective of providing :ngland a >protected and bonded labor market? &-m=ad, (0016 10*" #wo important industrial relations legislations of that era were :mployers and @orkmen Aispute -ct, 1%60 &making breach of contract by workers punishable, with no provision for employer breaches* and 8ndian 3actories -ct, 1%%1 &applicable to premises using mechanical power, employing 100 or more workers and it also prohibited employment of children between 7 to 1( years of age for more than / hours a day*" 8t has been argued that the factory legislation and disputes legislation were enacted only to >protect? the 9ritish industry from 8ndian competition and 9ritish investorsB interests in the area" &4haheed, (007667* -fter the 3irst @orld @ar, labor unrest increased and there were repeated strikes at that time" #he labor 7management relations were given importance for the first time, earlier the common law principle of conspiracy applied to labor unions"
#he 8ndian #rade ;nion -ct was passed in 1/(6 and after a span of three years, #rade Aisputes -ct, 1/(/ was also passed" #he #rade ;nion -ct allowed the workers to

associate and to be represented by unions" #he #rade Aisputes -ct provided for the prevention and settlement of disputes between employers and employees" #hese disputes could be referred to a court of in,uiry or board of conciliation &-m=ad C Mahmood, 1/%(6 ''*" Much other legislation related to the labor welfare was introduced during this period" #hese include 3actories -ct 1/'., Payment of @ages -ct 1/'6, Mines -ct 1/(', @orkmen Compensation -ct 1/(' and Aock +abor -ct 1/'." #he :ssential 4ervices Maintenance rdinance 1/.1 was promulgated in the wake of 4econd @orld @ar" #he 8ndustrial Aisputes -ct 1/.7 provided for permanent administrative machinery for settlement of disputes by specific procedures" #he -ct also provided for the constitution of work committees and referral, by the government, of a dispute to one man industrial tribunal constituted for that dispute &-m=ad C Mahmood, 1/%(6 ''*" 8t is important to mention that the aforementioned -ct was the last piece of labor legislation before the partition of subcontinent and subse,uent independence of Pakistan" Post independence Era (194 -!9" -fter independence, Pakistan inherited the following legislations, among many others, from the 9ritish 8ndia6 #rade ;nion -ct 1/(62 8ndustrial :mployment &4tanding orders* -ct 1/.62 8ndustrial Aisputes -ct 1/.7 and 3actories -ct 1/'." #hese four laws provided the basis for labor laws and policy making in the country" #hese laws were ,uite forward looking and progressive in the sense that these allowed trade union activities in all the sectors except armed forces and police and the workers had the rights of collective bargaining and even strike" ;nder the #rade ;nion -ct 1/(6, the trade unions could also constitute a separate fund for promotion of civil and political interests of the members &4ection 16* which meant that labor unions could use their funds in supporting some political party and in response gain support for pro7labor legislation in the parliament" #he #rade ;nion &-mendment* rdinance 1/60, containing provisions of earlier -ct, was promulgated in 1/60 and it established the principle of compulsory recognition of trade unions by employers" 8t also reduced the number of outsider officers from $0 to ($ percent &-m=ad, (0016 7(776*" 8t also included the unfair labor practices, both on the part of :mployers and :mployees" #he 8ndustrial Aisputes -ct 1/.7 was replaced with 8ndustrial Aisputes rdinance 1/$/ by a military ruler, -yub <han" #he legislation withdrew the right of strike in an indirect manner" #he workers could not go on a strike without giving due notice to the employer nor could they strike when the matter was pending before a conciliator or a court" #he courts could also prohibit any &in progress* lockout or strike &-m=ad C Mahmood, 1/%(6 '.*" #he 8ndustrial Aisputes rdinance 1/$/, in the -yub regime, changed the system2 more enterprises were included in the public utility definition and strikes were eventually banned" #he compulsory ad=udication system made workers going from one court to another court for years in the ,uest for =ustice" Auring Dahya <han Eegime, the second military dictator, labor legislation was rewritten with emphasis on two points6 the trade union movement should remain factoryFplant based and delinked from the party politics" #he martial law regimes, =ust after the first decade of independence, on the one hand did bring increased industriali!ation and =obs but on the other, also brought retrogressive labor laws and the system of repression, which still continues"

#onstitutional Pro$isions @ith 8ndependence, Pakistan nearly adopted all the laws of 9ritish 8ndia and also the interventionist attitude of the government in regulating labor7management relations &4haheed, (0076%'*" Pakistan is a Commonwealth country and it is no wonder that it follows the common law principles" Gowever, it has been argued that the 9ritish labour Constitutional Pro$isions on Labor %i&'ts -rticle 116 1H -ll forms of forced labour and traffic in human beings are prohibited" (H Io child below the age of fourteen years shall be engaged in any factory or mine or any other ha!ardous employment" -rticle 176 1H :very citi!en shall have the right to form associations or unions, sub=ect to any reasonable restrictions imposed by law in the interest of sovereignty or integrity of Pakistan, public order or morality" -rticle 1%6 1H :very citi!en shall have the right to enter upon any lawful profession or occupation, and to conduct any lawful trade or business" -rticle ($6 1H -ll citi!ens are e,ual before law and are entitled to e,ual protection of law" (H #here shall be no discrimination on the basis of sex alone" -rticle (76 1H Io citi!en otherwise ,ualified for appointment in the service of Pakistan shall be discriminated against in respect of any such appointment on the ground only of race, religion, caste, sex, residence or place of birth" -rticle '7&e*6 1H #he 4tate shall make provision for securing =ust and humane conditions of work, ensuring that children and women are not employed in vocations unsuited to their age or sex, and for maternity benefits for women in employment" -rticle '%6 1H #he 4tate shall secure the well7being of the people, irrespective of sex, caste, creed or race, by ensuring e,uitable ad=ustment of rights between employers and employees" (H Provide for all persons employed in the service of Pakistan or otherwise, social security by compulsory social insurance or other means"

+egislation has its origins from the law of contract &earlier the >law of master and slave? and later Jthe law of master and servantB* and industrial relations regulations are considered as deviations from common law and violation of the principles of Jlaisse!7faireB &-nsari et"al, (0066 //1*" +abour is a concurrent sub=ect under the constitution of the 8slamic Eepublic of Pakistan, making both the federal and provincial governments responsible for enacting laws and regulations regarding labour issues" Ionetheless, the laws are usually enacted by the 3ederal 5overnment &Ministry of +abor* and then the Provincial 5overnments can issue rulesFregulations in accordance with their specific conditions and needs" -s labor is on the concurrent list, Provincial governments have the authority to limit the application of federal laws2 this was witnessed when the Province of Pun=ab banned the workplace inspections in (00' &under its Pun=ab 8ndustrial Policy, (00'* although Pakistan has ratified 8+ Convention %1 and has provisions on workplace inspection through 3actories -ct 1/'." Pakistan follows a system of non self7executing treaties which means that any international ratified treaty &convention, covenant etc"* can be implemented only when a statute is enacted writing the countryBs obligations into a law" #he sources of industrial relations law have been enumerated as legislation, collective agreements, case laws and industrial custom &Eahman, (0016 7*" Industrial %elations 8t was in 1/6/ that laws relating to industrial disputes and trade unions were merged and consolidated into a single law, namely 8ndustrial Eelations rdinance 1/6/" 8t has been argued to be the >legislative watershed? in the industrial relations in the country" 8t aimed at resolving more and more disputes through statutory provisions and leaving the least for collective bargaining and strikes" &-nsari et"al, (0066 //(*" #he ordinance was promulgated by yet another military dictator, Dahya <han2 however it was amended by the populist and pro7union leader, Kulfi,ar -li 9hutto &1/717 77*" #he second rdinance was promulgated in (00( during the military regime of Musharraf" 8t was termed as a retrogressive step2 many of the rights granted under 8E 1/6/ were taken away" More establishments were added to the list of exclusions" 8n (00%, the newly elected government of Pakistan PeoplesB Party repealed the 8E and enacted a new &interim* legislation, 8ndustrial Eelations -ct, (00%"L(M (reedom of Association 3reedom of -ssociation is guaranteed under article 17 of the Constitution of the 8slamic Eepublic of Pakistan" #he 4upreme Court of Pakistan held &P+A 1//7 4C 7%1* that right to form a trade unionFassociation is a fundamentalFconstitutional right and includes the right of collective bargaining" Gowever the right of strike or right to go slow is the right that canBt be spelt from article 17&1*" #he legal anomaly of this decision is that it regards collective bargaining as the fundamental right but not the right to strikeFgo slow which are the weapons of labour for effective collective bargaining" 8t has been argued that this anomaly is the result of amalgamation of trade dispute and union regulating laws into a single legislation &-nsari et"al, (0066 //(*" 4ection ' of 8E- (00% says that both the workers and employers have the right to =oin and establish organi!ations of their own choosing, =oin and establish federations and =oin international association without previous authori!ation"

)nion %e&istration and #*A #he industrial relations legislation re,uires registration of trade unions before they can represent workers" Gowever, all the members of a trade union must be actually engaged or employed in the industry with which the union is connected and where two or more unions are registered, every new union must have at least one7fifth of the total workmen employed as its members &8E- (00%6 4ection 6"(*" -pplication for registration of trade union has to be submitted to the Eegistrar of #rade ;nions &present at the provincial level*, while in case of a 3ederation of two or more unions, the application needs to be submitted to Iational 8ndustrial Eelations Commission" #he application procedure re,uires a trade union to have its constitution &drafted* before making application for registration" #he right of trade unions to elect the representatives of their own choosing&by getting ($) outsiders as its executive* was taken away &in banking industry only* by introduction of section (779 in the 9anking Companies rdinance 1/6( &amended in 1//7*" -ccording to this amendment, office bearers in the banking industry trade unions must be workmen employed by the banking company in ,uestion" Eegistration of a trade union gives it a legal existence, it becomes a corporate body with the power to contract, ac,uire, hold or sell a property and by its name sue or be sued &8E- (00%6 4ection 16*" 8t also gives trade union immunity from law of conspiracy and criminal law suits &8E- (00%6 4ection 1/7(0*" Eegistration of a trade union can be cancelled by Eegistrar or +abor Court if certain conditions are met &8E- (00%6 4ection 1(*" Collective 9argaining was first introduced in Pakistan with the promulgation of 8E 1/6/" Collective bargaining has also been called a fundamental right which emanates from article 17&1* of the Constitution" - trade union can move application for determination of C9- if it has its members not less than one7third of those employed as workmen" Gowever, if more than one union exists in the premises, the registrar of trade unions will conduct a secret ballot electionFreferendum and will issue the C9certificate to union securing votes not less than one third of total votes" 8f none of the union is able to get one third of total votes, a run7off election between the top two unions will be held and the union getting ma=ority votes will be certified as collective bargaining agent" Iot every workmen employed in the premises is eligible for voting &4ection (."$*" @hen a union is certified as a C9-, no application for &re*determination of C9- can be made for a period of two years except where the registration of trade unionFC9- is cancelled" #he C9- is entitled to undertake collective bargaining with the employer or employers on matters connected with employment, non7 employment, the term of employment or the conditions of work other than matters which relate to the enforcement of any right guaranteed or secured to it or any workman by or under any law, other than this -ct , or any award or settlement2 represent all or any of the workmen in any proceedings2 give notice of, and declare, a strike and nominate representatives of workmen on the 9oard of #rustees of any welfare institutions or Provident 3unds &8E- (00%6 4ection (."1'*"

+orker Participation in ,ana&ement ;nder the new 8E-7(00%, workers have a three pronged system of participation in the workplace management" #hese include >management committees, =oint management board and work council?" - factory employing $0 or more persons has to set up a management committee of which worker representatives will be $0)" #hese representatives are either elected &if no C9- exists* or nominated &if C9- is there* for a period of at least one year" 8t has been made incumbent upon the management not to take any decision regarding matters, enunciated in section '."$, without written advice from the worker representativesL'M" ;nder the =oint management 9oard provision, every company which employs $0 or more persons should set7up a =oint management board in which the worker representation is to the extent of '0)" 3unctions of the 9oard are described in section '$"' of the -ctL.M" -s for the @orks Councils, the employer is obliged to set up a works council &if the establishment employs&ed* $0 or more workers* in which the worker representatives should not be less in number than the management" 8ts functions are also explained in section .0 of the -ctL$M" #he 8E- provides five institutions at the plant level &C9-, 4hop 4tewards, Management Committee, Noint Management 9oard and @orks Council* in order to improve the bilateral relations" Gowever, this decision is disputed on the argument that none of these except C9- has the real authority to ensure worker participation in management and have =ust created a big group of non7working workers" ;nion is not entitled to =oint consultation in cases of retrenchment, suspension, dismissal and lay off" #here are some matters which are exclusive functions of management which include location of business, closing of old units, reorgani!ation of work and introduction and use of contract system" Gowever, 8ndustrial and Commercial :mployment &4tanding rders* rdinance 1/6% was amended in 1/7( and section 117- was inserted in it which re,uires an employer to get prior permission from labour court before terminating the employment &laying7off* of more than $0) of workers or closing down the whole establishment" 9efore this, employers could also close down the business in order to do away with unions" &-m=ad C Mahmood, 1/%(6 .0* -isputes and .trikes -s discussed above, the industrial relations legislation after 1/6/ has consolidated the laws relating unions and trade disputes" #he 8E- (00% has also provisions for collective and individual labor disputes" 8f at any time, the C9- or employer finds that an industrial dispute has arisen or likely to arise, it can communicate the views to the other party through @orks Council" ;pon receipt of this communication, parties are obliged to settle the dispute through bilateral negotiation within 10 days &or more if agreed*" 8f bilateral negotiations fail, either party can serve the notice of strikeFlockout to the other within 7 days" #he duration for notice of strike or lockout is 1. days" - copy of such notice has also to be served to the conciliator &appointed by the provincial government*, who will proceed conciliation in the dispute" 8f the matter is settled within 1. days &this duration can be increased by consent of both the parties*, the conciliator is supposed to send the memorandum of settlement to the provincial government and both the parties" Gowever if the conciliation process fails, conciliator has to persuade both the parties to agree to refer their dispute to &a third

party, neutral* arbitrator" 8f both parties agree, they need to make a =oint re,uest for arbitration" #he arbitrator needs to give award within a period of '0 days and this award is final and no appeal can be made against it for a period of two years" &8E(00%6 4ection .(7.7*
8f the conciliation process fails and parties donBt want the arbitration, the workers can go on strike and employer can lockout the workers" #he party raising a dispute may, before or after commencement of strike or lockout, make an application to the labor court for ad=udication of dispute" 8f a strikeFlockout lasts for more than '0 days and it is causing serious hardship to the community or is pre=udicial to the national interest, the federal or provincial government may prohibit it and refer the dispute to the +abor court or Commission &I8EC* which will decide the dispute in '0 days and the award will be valid for a period of two years" 8f strikes or lockouts occur in the public utility services &or the industrial dispute is of national importance*, the federalFprovincial government can prohibit these before or after their commencement" nly eight set of activities have been described as public utilities &8E- (00%6 4chedule*

- strikeFlockout is treated as illegal if it is commenced without giving due notice to the other party, if it is not started by C9- or employers, is continued in contravention of prohibition orders passed by federalFprovincial governments, labor courtsFtribunals and Commission2 or is commenced or continued in a period when settlement of award is in operation" #he matter is then decided by the +abor court following an in,uiry by the labor department and if the order of court is contravened, it can order dismissal of striking workers and registration of trade unionFC9- can be cancelled &8E- (00%6 4ection 6'76.*" Labor /udiciary +abor Nudiciary is composed of three parts6 +abor Courts, +abor -ppellate #ribunals and Iational 8ndustrial Eelations Commission" +abor courts are the successor of industrial courts established for the first time after enactment of 8ndustrial disputes -ct 1/$/" -n important feature of industrial courts was their tripartite nature" Gowever, the present labor courts &constituted at provincial level* are not tripartite and these are headed by a current or ex7=udge, appointed by government" #he labor court can work both as a civil court and a criminal court" #erritorial =urisdiction of labor courts is described in section $(". of the -ct" - party aggrieved by the order of a labor court can appeal to the labor appellate tribunal &headed also by a =udge* and award given by it is final" #here is another provision, however, which says that >-ny person convicted and sentenced by the #ribunal under sub7section &6* to imprisonment for any period, or to pay a fine exceeding fifteen thousand rupees, may prefer an appeal to the Gigh Court? &8E- (00%6 4ection $$"7*" Iational 8ndustrial Eelations Commission &created for the first time in 1/7(*, composed of seven members &one member each from employer and worker side* has the functions of promotion and formation of trade unions, registration of industry7wise federations, determine C9-s among industry7wise trade unions, educating workers of their rights and most importantly to deal with unfair labor practices &either on part of workmen or employers*"L6M -ppeal against the Nudgment of I"8"E"C" first lies before the 3ull 9ench of I"8"E"C", then Gigh Court and lastly before the 4upreme Court of Pakistan"

4o, both in the case of I8EC and labour courts, the appeals courts at the higher level are general and not speciali!ed" 3or the individual grievances, a worker may bring his grievance in respect of a right guaranteedFsecured to him under the lawFagreementFsettlement to the notice of his employer through himselfFshop steward or C9-" @hen a grievance is forwarded through C9-, the employer must decide it within seven days" 8f the worker is dissatisfied with the decision of employer, he may take it to the labor court within two months of this decision and the labor court is obliged to give its decision in seven days" #he labor courts are allowed to go into all the facts of the case" -lthough there are no explicit provisions in the law on class action law suits however, section .1"% of 8E- (00% states that >workers having common grievance arising out of a common cause of action may make a =oint application to the +abour Court?" )nioni0ation -fter independence, Pakistan inherited a very small percentage &/)* of industrial establishments in the 8ndian subcontinent &-nsari et"al, (0066 //1*" #he area which constituted Pakistan had also a very low level of union organi!ing, mostly because a large part of workforce was involved in agriculture" #he union membership as a percentage of total labor force was only 0"7 ) &in (000* while if you look at the union density, it is about () of the employed labor force" #he total number of registered trade unions is more than 7(00 but only about 1/00 &(6)* of these are collective bargaining agents &C9-s* &5hayur, (00/6 ($7.7*" +abor unions have shrunk both in si!e and power" #he trade unions as pressure groups had emerged again during 9hutto regime &1/7(777* but the military takeover in 1/77, deregulation and privati!ation &1//1 onwards* and military takeover &again in 1///* diluted their value as a pressure group" 4tructural ad=ustment program, which promotes deregulation of the enterprise, started on the advice of @orld 9ankF8M3 has led to the weakening of the labor rights movement" 4tarting from 1//1 to 3ebruary (00/, 167 state owned enterprises &mainly from banking, telecommunication, and energy sector* have been privati!ed" #housands of workers have been fired in the wake of privati!ation and right7si!ing" A&riculture .ector -lthough agriculture employs ..) of the labor force, it is still not included in the ambit of labor laws" #here has been no provision in any of the three successive laws &1/6/, (00( and (00%* allowing agricultural workers as they are not defined as an industry" 8t is worth mentioning here that Pakistan has also ratified a convention &although this Convention was ratified by pre7partition 8ndia in 1/(1, so Pakistan inherited this* regarding grant of freedom of association rights to the agriculture workers &Convention Io" 11*" -ll the successive labor laws, although not explicitly, exclude agriculture but these also do not expressly cover this and seem to be excluding small agriculture workers like tenants, sharecroppers and self employed from their definition" #he Corporate -griculture 3arming &C-3* Policy also excludes agriculture from the purview of labor laws and aims to develop sector specific laws within $ years"

Employment #ontract and 1ermination 8ndustrial and Commercial :mployment &4tanding 8ndustrial and Commercial :mployment &4tanding rders* rdinance 1/6% was enacted in 1/6% to address to the contractual relationship between employer and employee" #he ordinance is applicable to establishments employing (0 or more workers" #he ordinance classifies workmen in six classes6 permanent, probationers, badlis, temporary, apprentices and contract workers &last was added in (006*" #he legislation re,uires that workmen should be provided the contract in writing, showing the terms and conditions of his service, at the time of hiring, promotion and transfer" 8t also re,uires that the wage rates paid to different categories of workersFwork should be posted on the notice boards" #ermination of an employment contract may be either termination simpliciter, which is termination on grounds other than misconduct after a notice &section 1(* or termination on account of misconduct &section 1$*" Iotice of termination, for termination simpliciter, is mandatory for permanent employees" - notice of one month must be served before severing the employment relationship or payment of one monthBs wages in lieu of notice may be provided &4ection 1("1*" #he law also obliges the employer to provide the termination certificate in writing stating the reason behind it" -lthough there is no specific provision for =ust cause dismissal, the re,uirement of written termination letter and section .1 of 8E- (00% which allow the labor court to in,uire into the legitimacy of termination provide that there should be bona fide and valid reason for dismissal" #ermination on account of trade union membership and activity is an invalid reason for termination &8+ , (0006 ($/*" @hile termination is being done on account of misconduct, worker has still the right of fair hearing" f the many types of misconduct is >go slow?, for which a worker can be fired" #ermination on economic reasonsFretrenchment has not been focused in law2 however law does provide the procedure of retrenchment &last come, first go* and preference for rehiring of retrenched workmen" 8n case of laying off the workers, they must also be given due notice or payment in lieu of notice" 8f the employer wants to close down the whole business or is terminating the employment of $0 or more workers, it must get the prior approval of labor court" -n individual whose employment is terminated has first to use internal mechanisms for dispute resolution &shop stewards, C9- through grievance procedure*, however if he is not satisfied with the decision, may appeal to the labor court" 8n that case, labor court is authori!ed to go into all the facts of the case and determine whether the termination was valid and bona fide or not" #he above mentioned ordinance also provides for severance payFgratuity to be paid &when an employee resigns or his services are terminated other than misconduct* e,uivalent to '0 days wages for every completed year of service or any part thereof in excess of 6 months&3or (0 years of service, this means /0 weeks of severance pay* E2uality and 3on-discrimination -rticles ($ and (7 of the Constitution deal with the issues of e,uality and discrimination and prohibit discrimination on the basis of race, religion, caste, sex, residence or place of birth" #he constitution also makes it incumbent upon the state to secure the well7being of the people, irrespective of sex, caste, creed or race and by ensuring e,uitable ad=ustment of rights between employers and employees among other things &-rticle '%*" -lthough Pakistan has ratified both the core conventions related to the issue but has not enacted any law incorporating the provisions of these

conventions" Currently, 5overnment is in the process of labor law reform and :mployment and 4ervice Conditions -ct &draft* has provisions on e,ual pay for work of e,ual value" Ouota has been fixed for women in the public sector =obs &10)* and they can also compete on the remaining /0) seats" Eecently, the government has enacted a new law to make provisions for protection of women against harassment at the workplace" #his -ct re,uires all public and private organi!ations to adopt an internal Code of Conduct and a complainFappeals mechanism aimed at establishing a safe working environment, free of intimidation and abuse, for all working women" 8t shall establish an mbudsman at 3ederal and provincial levels" #he law also calls for imposing of fine &unspecified*, a part of which will be payable to the complainant" - person committing harassment can also be dismissedFremoved from service" +orkin& 4ours #he 3actories -ct, 1/'. &4ection7'.*, Mines -ct, 1/(' &4ection ((79, C*, 4hops and :stablishment rdinance, 1/6/ &4ection %* and Eoad #ransport rdinance, 1/61 &4ection7.* are used to determine working hours and rest time in different industries" 4ection '. of the 3actories -ct provides that >no adult worker shall be allowed or re,uired* to work in a factory for more than .% hours in a week2 if the factory is seasonal, $0 hours a week and if the work is of continuous nature, he may work for $6 hours in a week" -s for the daily hours, these may not be more than / hours a day &in case of seasonal2 10 hours*" #he working hours of a childFadolescent &1$71%* are $ hours in a day" #he factories -ct is applicable to all the precincts employing 10 or more workers" #he law makes provisions for one weekly holiday and if that is not given, a compensatory holiday must be given as soon as possible" 4hops and :stablishments rdinance 1/6/ and Mines -ct 1/(' also limit the weekly hours to .% hours" #he above ordinance covers shops and commercial establishments not regulated by 3actories -ct and Mines -ct" -ny adult worker is re,uired to work overtime, if asked, and the rate of overtime payment is double the usual pay &4ection .7*" vertime is not payable to the contract workers, employed on piece rate basis" Lea$e and ,aternity *enefits ;nder the factories act, if a worker has completed 1( months of continuous service in a factory, he shall be allowed a paid annual leave of 1. consecutive days" :very worker is entitled to 10 days casual leave with full pay during a year" @orkers are also entitled to 16 days sick leave with half pay &% days with full pay* in a year" 3estival holidays as notified by the provincial government with full pay &usually 1071'* are also allowed" 8f a worker is re,uired to work on a festival holiday, he will be given one day additional compensatory holiday with full pay and a substitute holiday &'00) of usual wages*"

Maternity leave, under Maternity benefits rdinance 1/$%, is also allowed to pregnant women for a period of 1( weeks with full pay" 8t is unlawful for an employer to dismiss a women worker who is on maternity leave" #he ,ualifying period for getting this leave is four months of preceding employment with the employer" Maternity benefit and maternity leave of 16 weeks is also provided under the Mines Maternity 9enefits -ct, 1/.1&section $*" +a&es #he laws relating to fixation and payment of wages are Payment of @ages -ct 1/'6, Coal Mines &3ixation of Eate of @ages* rdinance 1/60, Minimum @ages rdinance, 1/61 and Minimum @ages for ;nskilled @orkers rdinance 1/6/" Civil 4ervants -ct, 1/7' &article 17* is the relevant legislation governing remuneration in the public sector and wages are recommended by the Pay and Pension Commission constituted by government" ;nder the payment of @ages -ct, no wage period should exceed one month &section .* and wages are to be paid within seven days after the end of wage period &except for establishments employing more than 1000 workers, they can pay within 10 days*" #he Provincial 5overnments constitute Minimum @ages 9oards under 4ection &'* of Minimum @ages rdinance, 1/61 to decide the wage rates" Minimum @ages 9oard is a tripartite body comprising the representative of 5overnment, :mployers and :mployees" #he 9oard, upon reference to it by the Provincial 5overnment, recommends to such government, the minimum rate of wages for workers as specified in the reference" #he Provincial 5overnment on the recommendation of the board fixes the Minimum Eate of @ages for all classes of workmen as provided in 4ection &6* of the Minimum @ages rdinance, 1/61"#he Parliament specifies the minimum wages for unskilled though the Minimum @age for ;nskilled @orkers rdinance, 1/6/ from time to time &currently P<E 6000 per month6 P7$* " #he Minimum @ages for Coal Mines @orkers are fixed under the Coal Mines &3ixation of Eate of @ages* rdinance, 1/60 after &non binding* consultation with Mines @elfare 9oard" 5ccupational .afety and 4ealt' -s regards the ccupational 4afety and Gealth & 4G*, following legislation exists in Pakistan6 Aock +abourers -ct 1/'., 3actories -ct 1/'., Mines -ct 1/(' and @orkmenBs Compensation -ct 1/('" #he 4G laws in Pakistan mainly cover the formal sector manufacturing industry" #he 3actories -ct, 1/'., the main law containing 4G provisions is applicable to manufacturing enterprises employing 10 or more workers" 8n addition the Mines -ct 1/(' covers the mining sectors" ther sectors are either not covered under 4G or the coverage is very limited"

+orkers6 +elfare #he workers welfare legislation includes :mployees ld -ge 9enefits -ct 1/76 &with provisions for old age pension, old age grant, invalidity and widow&er* pension*" #his act is applicable to establishments employing $ or more workers" Contribution has to be made both by the employer &$) of minimum wages* and employee &1) of minimum wages*" :mployees 4ocial 4ecurity rdinance 1/6$ &applicable like : -9 -ct* provides benefit to the employees in cases of sickness, maternity, employment in=ury or death" #he amount in this scheme is contributed only by the employer" #he @orkmenBs Compensation -ct, 1/(' provides for the compensation to be paid by employer to workers or their legal heirs in cases of death, permanent total disablement, permanent partial disablement and temporary disablement during working in an establishment" #he 4tanding rders 1/6% also provides for compulsory group insurance against natural death and in=ury for all the permanent employees in a workplace" #onclusion Pakistan has more than 70 laws relating to labor issues" #he government of Pakistan is currently in the process of consolidation and rationali!ation of labor laws and all these laws are being consolidated in five broad categories of 8ndustrial Eelations, :mployment and 4ervice Conditions, ccupational 4afety C Gealth, Guman Eesource Aevelopment and +abor @elfare C 4ocial 4afety Iet" - tripartite labor conference was held at the start of (00/ to discuss the draft laws relating industrial relations, employment and service conditions and occupational safety and health" #he problem with laws is the weak enforcement mechanisms at the provincial level" Gowever the irony is that countries like Pakistan &with good labor rights provisions* are unable to attract the global capital as shown by the Aoing 9usiness 8ndicators or 5lobal Competitiveness 8ndex &@orld 9ank, (00%6 1(6*" #hese markets are called rigid markets with less flexibility in hiring and firing as well as high severance pay costs" References 1H -li, K and -li, G &(006*, Pakistan +abour Manual &( volumes*, 8deal +abour +aws, <arachi, Pakistan (H -m=ad, -" &(001*, +abour legislation and trade unions in 8ndia and Pakistan, xford ;niversity Press,<arachi, Pakistan 'H -m=ad, E and Mahmood, <" &1/%(*, 8ndustrial relations and the political process in Pakistan, 1/.771/77, 8nternational 8nstitute for +abour 4tudies, 5eneva, 4wit!erland .H 9a=wa, 4"- &(00/*, +aw of industrial relations in Pakistan, -sia +aw Gouse, <arachi, Pakistan $H Chaudhry,5"M" &(00%*, ChaudhryQs annotated Consititution of Pakistan, 1/7' 6 up to date and including all amending acts and orders, 3ederal +aw Gouse, Eawalpindi, Pakistan 6H 5hayur, 4" &(00/* :volution of 8ndustrial Eelations 4ystem in Pakistan, Iew Aelhi, 8+ 4E , 8ndia

1H 5overnment of Pakistan, 8ndustrial Eelations +egislation &1/6/, (00(, (00%* (H 5overnment of Pakistan,9anking Companies rdinance, 1/6( &amended in 1//7* 5overnment of Pakistan &(00%*, Protection against Garassment of @omen at @orkplace -ct (010, 8slamabad, Pakistan 'H 4haheed , K" &(007*, #he +abour Movement in Pakistan, xford ;niversity Press, <arachi, Pakistan .H 4hafi, M and 4hafi, P &(00$*, +abour Code of Pakistan &( volumes*, 9+P, <arachi, Pakistan $H 5overnment of Pakistan &(00%*, +abour 3orce 4urvey (00770%, 8slamabad, Pakistan 6H 8+ &(000*, #ermination of employment digest, 8nternational +abour ffice, 5eneva, 4wit!erland 7H Eahman, " &(001*, +aw of industrial relations in Pakistan 6 a commentary on the 8ndustrial Eelation rdinance, 1/6/, Pakistan +aw Gouse, <arachi, Pakistan %H 4iddi,ue, -nsari, and 4alman &(006*, 5overning the +abour Market6 #he 8mpossibility of Corporatist Eeforms, Pakistan Aevelopment Eeview, .$ 6 . Part 88, /%171000 /H 4iddi,ui, 3asihul <arim &(00/, Nanuary 17* 3uture roadmap of industrial relations6 comparative analysis of 8E 1/6/, 8E (00( and 8E- (00%, 9usiness Eecorder, <arachi, Pakistan 10H @orld 9ank &(00%*, Aoing 9usiness (00/, @orld 9ank, @ashington, AC, ;4(7 777777777777777777777777777777777777777777777777777777 7777 L1M The writer, a former official at the Ministry of Labor, is currently a graduate student at ILR School, Cornell University. L(M new law, after consultation with wor!ers and em"loyer organi#ations has to be enacted by $%th "ril, &%'%. IR &%%( will no longer be a""licable after that date. )$*These include the issues of +framing of services rules and "olicy about "romotion and disci"line of wor!ers, changing "hysical wor!ing conditions in the factory, inservice training of wor!ers, recreation and welfare of wor!ers, regulation of daily wor!ing hours and brea!s, "re"aration of leave schedule, and matters relating to the order and conduct of wor!ers within the factory.. L.M Its mandate is related to im"rovement in "roduction efficiency as well fi/ation of "iece rates, remuneration methods for different wor!ers. L$M 0or!s councils mainly aim at the maintenance of cordial relations between labor and management. L6M Section '1 of the ct enumerates unfair labor "ractices on "art of the em"loyer while section '( "rovides the unfair labor "ractices on "art of em"loyees. Section 1& "rovides for the "enalties under the act.

PA3 to @or