This article gives a comprehensive overall insights of the list of labor legislations applicable to organizations, commercial establishments, industrial establishments and factories in Pakistan. The application, brief of benefits extended to the workmen and the obligations on the employer under these laws are explained here-under:
Annual holidays:Every worker who has completed a period of twelve months continuous service in a factory shall be allowed, during the subsequent period of twelve months holiday for, a period of fourteen consecutive days, inclusive of the day or days, if any, on which he is entitled to a holiday. The Standing Orders also requires publication of the holidays observed by an establishment. Festival holidays:Every worker is to get holidays with full pay on all days declared by the Provincial Government to be festival holidays. In case a worker is required to work on a festival holiday, a substituted holiday along with a compensatory holiday is required to be given to him. Casual and Sick Leave:Every worker is entitled ten (10) days casual leave with full pay in a year and 16 days sick leave on half average pay in a year. Group Incentive Scheme:Every industrial establishment which is a factory and wherein fifty (50) or more workers are employed is required to introduce a group incentive scheme to provide incentive for greater production to groups of workman employed in the factory. The scheme shall provide the manner in which the performance of different group of workmen, whether in the same section, shop, department or shift or in different sections, shops, departments or shifts, shall be evaluated. The incentive shall be in form of additional wages or additional leave with wages or in both such forms to the members of the group of workmen whose production exceeds that of the other groups or the average of all the groups. Bonus:Every employer making profit in any year shall pay for the that year within three months of the closing of that year to the workmen who have been in his employment in that year for a continuous period of not less than ninety days a bonus in addition to the wages payable to such workmen. The amount of bonus payable shall –
Gratuity:The gratuity is payable at the rate of 30 days wages for every completed year of service or any part thereof in excess of 6 months. Gratuity is not payable in case the employer has established a Provident Fund. Provident Fund:The establishment of a Provident Fund is not obligatory but should the employer establish it and equally matches the contributions of the workmen, the employer is then not liable to pay gratuity. Compulsory Group Insurance:The employer shall have all the permanent workmen employed by him insured against natural death and disability and death and injury arising out of contingencies not covered by the workmen’s Compensation Act, 1923 or the Provincial Employees Social Security Ordinance, 1965. The employer shall in all cases be responsible for the payment of the amount of premia and for all administrative arrangement whether carried out by himself or through an Insurance Company. The amount for which each workman shall be insured shall not be less than the amount of compensation specified in Schedule-IV of the workmen’s Compensation Act, 1923. Working time and late coming:Publication of the working time has been made obligatory for the employer. On the other hand, all workmen are required to be punctual and in case of their late attendance or absence they are liable to proportionate deduction of their wages. Retrenchment:While retrenching workmen, the junior most workmen in particular category shall be retrenched first. In case the employer proposes to take into his employment any person within a period of one year, date of such retrenchment, he shall give an opportunity to the retrenched workmen belonging to the concerned category, by sending a notice by registered post to their last known addresses to offer themselves for re-employment and they shall have preference over other persons, each having priority according to the length of his service under the employer. Termination of Employment:For terminating the employment of a permanent workman for any reason other than misconduct, however, one months’ notice stating the reason for such termination is required to be given. One month’s wages calculated on the basis of average wages earned by the workmen during the last three months shall be paid in lieu of notice.
Although no notice for termination of employment in case of misconduct is required to be given to a workman, any order of dismissal can only be made if the concerned workman is informed in writing of the alleged misconduct and is given an opportunity to explain the charges against him. No temporary workmen whether monthly rated, weekly rated, daily rated or piece rated and no probationer or badli shall be entitled to any notice, if his services are terminated by the employer, nor shall any such workman be required to give any notice or pay any wages in lieu thereof to the employer, if he leaves employment of his own accord.
The amount allocated or accruing to the Fund shall be available to the company for its business operations. The company may request the Board to utilize the amount to purchase the approved securities
The disbursement of benefits from the fund shall be as under:
The minimum age for enrolment as an apprentice is 15 years and maximum age is 20 years. The minimum educational qualification for an apprentice varies from trade to trade. An Apprenticeship contract is executed between the employer and the apprentice.
The duration of the apprenticeship is determined by the authority, keeping in view the following factors-
Every apprentice is required to undergo a probationary period of three months, commencing from the date of his enrolment as an apprentice. During the period the employer as well as the apprentice is free to terminate apprenticeship after giving a written notice. It is not obligatory on the part of the employer to offer an employment to an apprentice on completion of his apprenticeship nor is it obligatory on the apprentice to serve the employer after completion of apprenticeship.
The employer shall pay to the apprentice, during the period of his apprenticeship, a weekly or monthly stipend which shall be not less than the under mentioned percentage of the skilled worker wage in the concerned rate.
The proper and efficient supervision, direction and control of the apprentices and their training shall be ensured by the employer. The employer shall appoint, on full or part time basis, one or more officers to operate the apprenticeship program efficiently. A whole time apprentice training officer shall be appointed in the undertaking having more than fifty apprentices.
The employer shall work out and introduce a system of periodical tests of the apprentices employed by him in the undertaking so as to ensure and stimulate the desired progress in the training of apprentices. The final in-plant examination/test (practical and theoretical) for the purpose of employer certificate shall be organized by a Board setup for this purpose by the employer. The employer shall issue a certificate, countersigned by the competent authority, to his apprentices on successful completion of apprenticeship period. The certificate shall indicate the specific trade trained in, the period and nature of training including related instruction undergone, the degree of proficiency achieved etc.
The Disabled Persons (Employment and Rehabilitation) Ordinance, 1981 apply on industrial establishments in which the number of workers employed, at any time during a year, is not less than one hundred. The Ordinance does not define the term employer, however, conjunctive reading of the relevant provisions leads to the conclusion that every establishment having hundred workers working therein, during a year, is bound to have at least one percent disabled persons as its employee and such worker would be deemed to be the employee of establishment, where it is in fact working. The disabled persons employed against any post shall be entitled to the terms and conditions which are not less favourable than those of the other persons employed by the establishment against similar posts. An establishment which does not employ a disabled person as required, shall pay in to the Funds each month the sum of money, it would have paid as salary or wages to a disabled person, had he been employed.
The Industrial Relations Act, 2012 (the “Act”) is applicable to every establishment or industry situated in Islamabad Capital Territory or carrying on business in more than one province except the persons employed in Police or Defense Services of Pakistan, Armed Forces of Pakistan, persons employed in the Ordinance Factory, administration of state other than those employed as workman, member of security staff, PIA staff, Pakistan Security Printing Corporation or Security Papers Ltd.
Initially the matters relating to welfare of labour and trade union were mentioned in the concurrent legislative list at item Nos. 26 and 27 as such the Federal Government as weel as Provincial Government both were competent to make legislation in that behalf. The Federal Government promulgated the Industrial Relations Ordinance, 1969 which was repealed by Industrial Relations Act, 2008. Section 87(3) of the Industrial Relations Act, 2008 provided that the said Act shall unless repealed earlier stand repealed on 30/04/2010. Hence it was temporary legislation which was to die on 30/04/2010 automatically if it was not extended by legislative measure. Before the repeal of Industrial Relations Act, 2008 and 18th Constitutional Amendment was passed whereby the concurrent legislative list was abolished and the matters relating to labour and trade union were transferred to legislative competence of Provincial Government. Meaning thereby that the matter relating to labour industrial dispute and trade union came under the legislative competence of respective province.