组织要求的劳动法, 巴基斯坦的工业和企业 - 哈立德扎法尔和同事

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:

Comprehensive List of Labour Laws

  1. Employees’ Old Age Benefits Act, 1976.
  2. Provincial Employees’ Social Security Ordinance, 1965.
  3. The Industrial and Commercial Employment (St anding Orders) Ordinance, 1968.
  4. Workers’ Children (Education) Ordinance, 1972.
  5. Minimum Wages Ordinance, 1961.
  6. Payment of Wages Act, 1936.
  7. Workmen’s Compensation Act, 1923.
  8. The Factories Act, 1934.
  9. Punjab Shops and Establishments Ordinance, 1969.
  10. Companies Profits (Workers’ Participation) Act, 1968.
  11. Disabled Persons (Employment and Rehabilitation) Ordinance, 1981.
  12. Apprenticeship Ordinance, 1962.
  13. West Pakistan Maternity Benefit Ordinance, 1958.
  14. Workers’ Welfare Fund Ordinance, 2002.
  15. Punjab Industrial Relations Act, 2010.
  16. The Industrial Relations Act, 2012.

1. Employees Old Age Benefits Act, 1976 (“EOB Act”)

  1. ApplicationThe EOB Act applies to every industry and establishment wherein five or more persons are employed by the employer, directly or through any other person, whether on behalf of himself or any other person or were so employed on any day during the preceding twelve months and shall continue to apply to every such industry and establishment even if the number of persons employed therein is, at any time, after EOB Act becomes applicable to it, reduced to less than five.
  2. EmployeeAll employees of an establishment and industry, irrespective of status, nature of job, powers enjoyed, salary drawn, will fall within the ambit of an “employee” except the Director of a limited company or a corporation. This will include every person employed in an establishment whether in managerial and administrative capacity or holding a professional degree. No distinction would be made between a part time employee and a full time employee as employment of every type and kind is covered under the definition of employee. Furthermore, it is irrelevant whether the employees are employed directly by the establishment, industry or through an independent contractor, for they are all employees for the purpose of this Act. Even workers employed by independent contractors who carried out or executed their work in their premises would fall within the definition of workers as the definition of workers is very wide and would include all employees engaged to perform work in any establishment and industry either directly or indirectly in connection with the affairs of the establishment and industry.A distinction has been drawn between a contractor who has been engaged to procure the necessary labour or to use manpower for the establishment and industry and a contractor who has been entrusted to perform certain functions for the establishment. The employees of the former contractor would fall within the definition of an employee under Section 2 (bb) of the Act as opposed to the employees of the latter contractor.
  3. Registration of Employers and Insured PersonsAn employer shall before expiration of thirty (30) days on which the EOB Act becomes applicable to his industry or establishment communicate to the Employees Old Age Benefit Institution (the “Institution”), the name and particulars of the establishment in Form “PR-01” and of every insured person employed there in Form “PE-01 and, in-case of Form “PE-01”, give the receipt appended to the Form to the insured person.An insured person may also communicate his name and other particulars to the Institution in Form “PE-02”.On receipt of the requisite particulars in Forms “PR-01” and “PE-01” from an employer, the Institution shall register the name of the establishment in respect of which he is the employer and of the insured persons and issue to the employer a “Certificate of Registration” in Form “PE-02” and to each insured person a “Registration Card” in Form: “PI-03”.
  4. Contributions:After getting itself registered with the Institution, the establishment shall pay contribution to the Institution in respect of every person in his insurable employment at the rate of 5% of the wages and every employee shall pay contribution to the Institution at the rate of 1% of the wages. The contribution shall be paid into the collection accounts of the Institution in authorized banks through EOBI Contribution payment slips as set out in Form PR-03 under Rule 3 (7) of the Employees Old Age Benefit (Contribution) Rules, 1976.If the establishment does not deduct or deposit the employee’s contribution payable, the registered employee can deposit his own share of contribution in Challan as set out in Form PR-03A and produce a copy of paid Challan along with Pass Book to the nearest office of the Institution for entry of the particulars regarding payment. The Incharge of the said office shall acknowledge the receipt on the basis of paid challan, determine the jurisdiction of the establishment and pass on to concerned office of the Institution, a copy of the Challan collected from the concerned bank for further action under the EOB Act.

2. Provincial Employees Social Security Ordinance, 1965 (“PESS”)

  1. ApplicationThe PESS is applicable on the establishments specifically notified by the Provincial Governments. A notification was issued by the Government of Punjab on 18 July, 2003, wherein it was stated that the PESS shall be applicable on every organization whether industrial, commercial, agricultural or otherwise which has five or more employees.
  2. Employees:All employees whose wage is not in excess of four hundred rupees per day or ten thousand rupees per month whether employed directly by the employer or through any other person, are covered by the definition of employee and shall be entitled to the benefits as envisaged by PESS, irrespective of their designation, status or nature of work. Once an establishment is notified, then the specified benefits under the PESS would accrue to all employees of the said establishment, who are working either in the establishment or in connection with the work of the same.The wages has been defined as remuneration based on the minimum rates of wages declared under the Minimum Wages Ordinance, 1961 (the “Ordinance”) which presently is Rs. 14,000/- per month. This means it is obligatory upon the establishments to pay a minimum of at least Rs. 14,000/- wages per month to its employees. However, if the establishment is paying less than minimum wages of Rs.18,000/- per month to its employees, then although it may be violating the PESS, but even then it would not be exempted from payment of said security contribution on behalf of its employees.The establishment shall be liable for contribution under the PESS in respect of employees of the contractor working in the establishment, the only exception would be the employees of the contractor for construction in the premises of establishment, even in this case the establishment will be under an obligation to ensure that the contractors make the contributions. In case of construction worker, the owner of the building shall guarantee the payment of contribution by the contractors.
  3. RegistrationThe establishment shall complete and send an application for registration on Form R-1 to the Institution, indicating therein the approximate number of its employees liable to become insured persons, within ten days of the notification. After acceptance of the application, the establishment shall arrange that each of its employee who is liable to become a secured person and who has not already been registered as such shall send Secured Persons’ Registration Form (Form-R-2 and Form R-3) to the local office of the Institution at which the establishment has been registered, within fifteen days of the acceptance of its application. The Institution shall issue Secured Person’s Registration Card (Form R-5) to each employee. The establishment shall distribute them to each of the employees named thereon, ensuring that the signature or thumb-print of the secured person is clearly impressed on the appropriate space on page one of the card. Whenever a secured person leaves the employment, the establishment will complete the record of his employment on page 2 or 3 of the card and give it to the secured person.
  4. ContributionThe establishment can pay contribution either through the Normal or the Self-Assessment Scheme.The establishment can opt for the Self-Assessment Scheme after it has been in the Normal Scheme for some time or it could directly join the latter scheme for the first time once the notification has been issued to it. In case the establishment opts for Normal Scheme, it shall pay contribution at the rate of 6% of the wage of the employee.In case the establishment opts for the Self-Assessment Scheme, the establishment shall pay contribution of six percent (6%) of the wage limit determined by the Government per month per secured employee to the Institution, in return for no intervention by any Social Security Officials and Inspectors for two years for checking the establishment’s records. The secured employee shall also pay an amount of Rs. 40 per month through the establishment as his share to the Institution, which shall be deducted by the establishment from the secured employee’s wages. Non-Registration or non-payment of contribution by the establishment for non-secured employees would not be used against them to deny benefits to them under the PESS if they had regularly paid their own share of contribution amounting to Rs. 40 per month.The establishment shall show contribution either in the manner provided under Rule 4 (1)(i) of Social Security (Contribution) Rules, 1966 (the “Rules”) where the establishment shall enter the registration numbers of the secured employees and amount of contribution against their names on a form of pay roll approved by the Institution and shall submit a true copy of such form to the Institution or under Rule 4 (1) (ii) of Rules wherein the establishment shall complete the contribution schedule, obtained from the local office of the Institution at which the establishment is registered, and shall submit it to the Institution. In either case, the establishment shall submit copies of pay rolls and contribution schedules to the local office of the Institution by the end of the calendar month next following that to which the constitution relates and shall pay total amount of the contribution shown therein at the said local office of the Institution. The establishment shall retain in its possession a legible copy of each pay roll or contribution schedule which have been committed with the Institution and shall produce such copy on request by authorized officials of the Institution.

3. The Industrial and Commercial Employment (Standing Orders) Ordinance, 1968 (“Standing Orders”).

  1. ApplicationThe Standing Orders regulate the conditions of employment of workmen in industrial and commercial establishment wherein twenty (20) or more workmen are employed, directly or through any other person, whether on behalf of himself or any other person, or were so employed on any day during the preceding twelve months.In the case of contract employees, a key issue is, as to who is responsible for the observance of the Standing Orders i.e. the contractor or to whom he provides work force under contract of service. The judicial pronouncements on the issues is that the person who exercise control over the workers would be deemed as employer and shall be obligated to comply with the provisions of Standing Orders. According to the Superior Courts of Pakistan the following are the determining factors to establish control on the workers; (i) who make the payments to the employees; (ii) who has the power to hire and fire employees; (iii) who has the administrative control; etc.
  2. WorkmanWorkman means any person employed in any establishment or commercial establishment to do any skilled or unskilled, manual or clerical work for hire or reward.
    The Standing Orders has classified workmen in six categories:

    1. Permanent
    2. Probationers
    3. Badlis
    4. Temporary
    5. Apprentices
    6. Contract Worker
    A “permanent workman” is a workman who has been engaged in work of permanent nature likely to last more than nine months and has satisfactorily completed a probationary period of three months in the same or another occupation in the industrial or commercial establishment, including breaks, due to sickness, accident, leave, lockout, strike (not being an illegal lockout or strike) or involuntary closure of the establishment and includes a badli who has been employed for a continuous period of three months or for one hundred and eighty-three days during any period of twelve consecutive months.A “probationer” is a workman who is provisionally employed to fill a permanent vacancy in a post and has not completed three months service therein. If a permanent employee is employed as a probationer in a higher post, he may, at any time during the probationary period of three months, be reverted to his old permanent post.A “badli” is a workman who is appointed in the post of a permanent workman or probationer, who is temporarily absent. A “temporary workman” is a workman who has been engaged for work which is of an essentially temporary nature, likely to be finished within a period not exceeding nine months. An “apprentice” is a person who is an apprentice within the meaning of the Apprenticeship Ordinance, 1962 (LVI of 1962). A “contract worker” means a workman who works on contract basis for a specific period on remuneration, to be calculated on piece rate basis.
  3. Rights extended to Workmen:

    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 –

    1. If the amount of the profit is not less than the aggregate of one month’s wages of the workmen employed, be not less than the amount of such aggregate, subject to the maximum of 30% of such profit.
    2. If the amount of the profit is the less than the above referred aggregate, be not less than 15% of such profit.

    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.

4. Workers Children (Education) Ordinance, 1972

  1. Application:The Workers’ Children (Education) Ordinance, 1972 (the “Ordinance”) is applicable on every employer of an establishment in which the number of workers employed at any time during a year is ten (10) or more. The employer of the establishment pays to the Provincial Government an education cess at the rate of one hundred rupees per worker per annum.
  2. Worker:Worker means any person employed, whether directly or through any other person, in any establishment to do any skilled or unskilled, manual or clerical work for hire or reward whose monthly wages do not exceed three thousand rupees. It is further provided that a worker shall not cease to be a worker for the reason that his monthly wages exceed three thousand rupees or the number of person employed in the establishment, at any time is reduced to less than ten.
  3. Notifying Requirement:Every employer of the establishment prepare and deliver, or cause to be prepared and delivered, in the from and to the officer prescribed by the Provincial Government, a return showing the number of workers employed in the establishment during the proceeding quarter and shall subscribe a declaration of the truth of the return at the foot thereof. This cess is levied on the basis of the number of workers shown in the return submitted by the employer of the establishment.
    The employer may assess and pay the cess at the rate of twenty five rupees per worker per quarter and the return shall accompanied by a pay order or cheque in favor of the Punjab Employees’ Social Security Institution (the “Institution”). The cess levied under the Ordinance is collected by the Institution.

5. Minimum Wages Ordinance, 1961 (the “Ordinance”).

  1. Scope:Under the Ordinance a Minimum Wages Board is established which recommends minimum wages for a particular industry. Functions of the said Board are to hold necessary inquiry and make recommendations to the Provincial Government upon reference made by the Government. The Provincial Government is empowered to declare by notification in the official Gazette the minimum rates of wages for workers specified as recommended by the Board. No employer can pay any worker wages at a rate lower than the rate declared under this Ordinance to be minimum rate of such worker.
  2. Application:It is applicable to any person who employs either directly or through another person, whether on behalf of himself or any other person, any person for whom a minimum rate of wages may be declared under this Ordinance, and includes in relation to a factory, a managing agent or other person who has ultimate control over the affairs of the factory; and in other cases, any person responsible to the owner for supervision and control of such worker or for payment of his wages.
  3. Worker:Worker means any person including an apprentice employed in any industry to do any skilled or unskilled, intellectual, technical, clerical, manual or other work, including domestic work, for hire or reward
  4. Obligation:The employer shall be under an obligation to pay the minimum wages declared under this Ordinance. The employer who contravenes this obligation shall, inter alia, be liable to punishment with imprisonment for a term which may extend to six months or with fine which may extend to five hundred Rupees or with both.

6. Payment of Wages Act, 1936.

  1. Application:The Payment of Wages Act, 1936 (the “Act”) regulates the payment of wages to certain classes of persons employed in any factory, industrial establishment or commercial establishment. Every employer including a contractor is responsible for the payment to persons employed by him of all wages required to be paid and the wage period should not exceed one month and should be paid before the expiry of tenth day. In case of termination of employment of any person, the wages earned by him shall be paid before the expiry of the second working day on which his employment is terminated. All wages shall be paid in current coins or currency notes or in both.
  2. Wages:Wages means all remuneration capable of being expressed in terms of money. The employer is authorized to deduct fines from the wages of the employed person for the absence of duty, damages to or loss of goods expressly entrusted to the employed person for custody or for loss of money for which he is required to account for where such damage or loss is directly attributable to his neglect or default, for house accommodation supplied by the employer, for such amenities and services supplied by the employer as the Provincial Government may by general or special order authorize, for recovery of advances or for adjustment of overpayment of wages, income tax payable by the employed person , required to be made by the order of the court other authority competent to make such order, for subscription to and for the repayment of advances from any provident fund to which the Provident Funds Act, 1925 applies or any recognized provident fund as defined under the Income Tax Laws or any provident approved in this behalf by the Provincial Government during the continuance of such approval, for payments to Co-operative Societies approved by the Provincial Government or to a scheme of insurance maintained by the Pakistan Post Office, deduction made with the written authorization of the of the employed person in furtherance of any war Saving Scheme approved by the Provincial Government for the purchase of securities of the Government of Pakistan or the Government of the United Kingdom.

7. Workmen’s Compensation Act, 1923

  1. Application:The Workmen Compensation Act, 1923 (the “Act”) make compulsory for the employer to make payment of compensation to workmen for any injury or death caused while performing his duties.
  2. Employer:According to the definition of employer and managing agent as provided under the Act, the liability under the Act shall be on the body or person for whom the workmen was working while he sustained injury or his death was caused. Definition of managing agent provided in this Act has exclude an individual subordinate to an employer, whereas it means any person appointed or acting as the representative of another person for the purpose of carrying on such other person’s trade or business.
  3. Compensation:If a personal injury is caused to a workman by accident arising out of and in the course of his employment, his employer shall be liable to pay compensation. The employer is not liable to make payment of compensation; (a) In respect of any injury which does not result in the total or partial disablement of the workman for a period exceeding four days and (b) In respect of any injury, not resulting in death, caused by an accident which is directly attributed to (i) the workman having been at the time thereof under the influence of drink or drugs, or (ii) the willful disobedience of the workman to any order expressly given, or to a rule expressly framed, for the purpose of securing the safety of workman, or (iii) the willful removal or disregard by the workman of any safety guard or other devise which he knew to have been provided for the purpose or securing the safety of workman.
    The employer is liable to pay to workman a compensation in accordance with the Schedule attached with the Act. The payment of compensation shall not be made directly to the workman or his dependent but to the Commissioner of Workmen’s Compensation.

8. The Factories Act, 1934.

  1. Application:The Factories Act, 1934 (the “Act”) is applicable to factories wherein ten (10) or more workers are working or have worked on any day in the preceding twelve months.
  2. Worker:Worker means a person employed directly or through an agency whether for wages or not, in any manufacturing process or in cleaning any part of the machinery or premises used for a manufacturing process or in any other kind of work whatsoever incidental to or connected with the subject of the manufacturing process, but does not include any person solely employed in a clerical capacity in any room or place where no manufacturing process is being carried on.
  3. Factory:The Factory is any premises, including the precincts thereof wherein ten (10) or more workers are working on any day of the preceding twelve months and in any part of which a manufacturing process is being carried on or is ordinarily carried on with or without power.
    The Provincial Government may by notification in Official Gazette declare that all or any of the provisions of this Act applicable to factories shall apply to any place wherein a manufacturing process is being carried on or is ordinarily carried on, whether with or without the use of power whenever five (5) or more workers are working therein or have worked therein on any one day of the twelve months immediately preceding. The Provincial Government may also by order in writing direct that the different departments or branches of a specified factory shall be treated as separate factories for all or any of the purposes of this Act.
  4. Working Hours:The Act prescribes working hours for workmen. The daily and weekly working hours of an adult workman are limited to nine hours and forty-eight hours respectively. The working hours are extendable to ten hours a day and fifty hours a week in case of a seasonal factory. An adult worker is, however, permitted to work for fifty-six hours in any week in a factory engaged in work which, for technical reasons, is to be continued throughout the day. Continuous working time is fixed at six hours or five hours after which one hour or half hour intervals respectively are required. The period of working time is required to be so arranged that inclusive of the interval period mentioned above, it does not spread over more than twelve hours in a day, save with the permission of the Provincial Government and subject to such conditions as at may impose either generally or in case of any particular factory. If a worker works for more than nine hours in any day or more than forty-eight hours in any week in a non-seasonal factory or for more than nine hours in any day and more than fifty hours in any week in a seasonal factory will be entitled to receive payment at the rate of twice his ordinary rate of pay. The Act prohibits work in a factory on a weekly holiday subject, however, to certain relaxations. In case any worker is deprived of any weekly holidays under the law, he is entitled to be given an equal number of holidays as compensation.
  5. Working, Health and Safety Conditions:The Act prescribes minimum working, health and safety conditions like keeping the factory clean and free from effluvia arising from any drain, privy or other nuisance, effective arrangements in factory for the disposal of waste and effluents due to the manufacturing process carried therein, adequate ventilation and reasonable temperature for factories, to prevent the dust or fume or other impurity of such a nature and to such an extent as is likely to be injurious or offensive to the workers, prescribe standard of humidification, regulate the methods used for artificially increasing the humidity of the air in the factories, to restrict the overcrowding to an extent injurious to the health of the workers employed in the factory, to ensure the sufficient supply of wholesome drinking water, to provide sufficient latrines and urinals, conveniently situated and accessible to all the workers of the factory, to provide sufficient number of spittoons in clean and hygienic conditions, compulsory vaccination and inoculation for the workers. Under the Act the workers are provided with a “Hygiene Card” in which entries shall be recorded after examination by the appointed factory doctor to the effect that the worker is not suffering from any contagious or infectious disease. It is also provided in the Act that in every factory wherein not less than five hundred workers are ordinarily employed, the Occupier or Manager shall employ such number of Welfare Officers, having such qualification, to perform such duties and on such terms and conditions as may be prescribed.
    The Act has prohibited the employment of children with the age of less than fourteen. No worker shall be allowed to work in a factory unless he has been granted a certificate of fitness from a certifying surgeon.

9. Punjab Shops and Establishments Ordinance, 1969 (the “Ordinance”):

  1. Application:The Ordinance is applicable on commercial establishments and industrial establishments and factories. The rule made under the Ordinance makes every employer to maintain certain records and registers. The commercial establishment means an establishment which carries on any business, trade or profession or any work in connection with or incidental or ancillary to any business, trade or profession and, inter alia, includes a clerical department of a factory or of any industrial or commercial undertaking but does not include a factory etc. An industrial establishment means a workshop or other establishment in which the work of making, altering, repairing, ornamenting, finishing or packing or otherwise treating any article or substance with view to its use, sale, transport, delivery, or disposal is carried on or where any such services is rendered to a customer and include such other class or classes of establishment as Government may by notification in the official Gazette declare to be an establishment for the purpose of this Ordinance but does not include a factory.
  2. Rights conferred on Employee: Following rights have been conceded to employee under the Ordinance:
    1. Weekly Holidays in Establishments: Every employee shall be allowed one holiday in each week. No deduction on account of any holiday shall be made from the wages of any employee of the establishment. If an employee is employed on daily wages, he shall be paid his daily wages for the holiday and where an employee is paid on piece rate, he shall receive for the holiday the average wage received during the week.
    2. Casual and Sick Leave: Every employee shall be entitled to casual leave with full wages for ten (10) days in a calendar year and every employee shall be entitled to sick leave with full wages for a total period of eight days in every year. Such leave, if not availed by any employee during a calendar year, may be carried forward, but the total accumulation of such leave shall not exceed sixteen days at any one time.
    3. Festival Holidays: Every employee shall be allowed ten (10) festival holidays with full wages in a year. The days and dates for such festival holidays shall be notified to the employee by the employer in the beginning of the calendar year
    4. Opening and Closing Hours of Establishment: No establishment shall on any day remain open after 8:00 p.m. If a customer who was being or was waiting in the establishment to be served at such hour, may be served during the period of thirty minutes immediately following such hour. Every employer shall display, at a prominent place in the establishment, a board specifying the hours during which the establishment shall remain open. No employee shall be required or permitted to work continuously in any establishment for more than six hours in the case of an adult and for more than three and half hours in the case of young person, unless he has been allowed an interval for rest or meal of not les than one hour. Except with permission of the Government, no woman or a young person shall be employed in any establishment otherwise than between the hour of 9:00 a.m. to 7:00 p.m
    5. Daily, Weekly Hours and Overtime:No adult employee shall be required or permitted to work in any establishment in excess of nine hours a day and forty-eight hours a week and no young person in excess of seven hours a day and forty two hours a week.
    6. Overtime Wages: When an employee is required to work overtime in any establishment, the wages payable to such employee in respect of such overtime work shall be calculated at double the ordinary rate of wages payable to him.
    7. Spread-over:The period of work of an adult and young person shall be so arranged that inclusive of the interval for rest or meals, shall not spread over more than twelve hours in the case of adult and nine hours in case of young person. The total period of work so worked out, in case of an adult worker shall not exceed sixty hours and by a young person fifty hours a week.
    8. Time and Conditions of Payment of Wages:Every employer or his agent or the manager or an establishment shall fix the period in respect of which wages to employees shall be payable and shall be responsible for the payment to persons employed by him of all wages required to be paid. The wage period shall not exceed one month. The wages of every employee shall be paid on a working day before the expiry of the seventh day of the last day of the wages period in respect of the wages are payable.
    9. Annual Leave: Every employee shall be allowed leave with full wages for a period of fourteen days after continuous employment in an establishment for a period of twelve months. If an employee does not avail the leaves allowed to him, in any period of twelve months, the leaves allowed to him shall be added to leaves allowed to him in next twelve months but shall not exceed the thirty days. The employee can demand, in lieu of the leave not availed by him, be paid full wages for such leave.
    10. Termination of Employment:For terminating employment of a permanent employee, one month’s notice in writing shall be given either by the employee or by the employer and in lieu of notice, one month’s wages calculated on the basis of average of wages earned during the preceding three months shall be paid. No temporary employee, whether monthly rated, weekly rated or daily rated and no apprentice shall be entitled to any notice or pay in lieu thereof if his services are terminated, but the services of a temporary employee shall not be terminated as a punishment unless he has been give an opportunity of explaining the charges leveled against him.
    11. Prohibition of Employment of Children: No child is allowed to work in any establishment.
  3. Registration:Every establishment is required to be registered with the Deputy Chief Inspector for the area within which such establishment is situated. The application for registration of an establishment shall be made by the employer in Form ‘A’ and shall be accompanied by a Treasury Challan.

10. Companies Profits (Workers Participation) Act,1968.

  1. Application:The Companies Profits (Workers Participation) Act, 1968 (the “Act”) applies to all companies engaged in industrial undertaking in which the number of workers employed by the company, at any time during a year, is fifty (50) or more, or the paid up capital of the company as on the last day of its accounting year is Rs. 5.00 Million or more or the value of the fixed assets of the company as on the last day of the accounting year is Rs.20.00 Million or more.
    An industrial undertaking means an institution, organization, enterprise or establishment which involves the use of electrical, mechanical, thermal, nuclear or any other form of energy transmitted machinery and not generated by human or animal agency and which is, inter alia, engaged in manufacturing.
  2. Obligation:Every company to which the Act applies shall establish a Workers’ Participation Fund (the “Fund”) in accordance with the Act as soon as the accounts for the year in which the Act becomes applicable to it, are finalized but not later than nine months after the close of the year. The company is required to pay to the Fund five (5) percent of its profits, not later than nine months after the close of the accounting year. Within two months of the establishment of the Fund by a company, there shall be construed a Board of Trustees, to manage and administer the Fund, consisting of the following trustees.
    1. Two persons elected by the workers of the company from amongst themselves;
    2. Two persons nominated by the management of the company, of whom, at least one shall be a person from the accounts branch of the company.

    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

  3. Payment to worker:All workers shall be eligible to the benefits of the Fund but the worker, who has not completed six months of employment during a year of account, shall not participate in the Fund in respect of that year.
    The share of a worker in the annual allocation to the Fund shall be expressed in units or fractions of unit of the face value of Rs.10/-, determined in the following manner:

    1. The number of available units shall be so divided into three parts for the three categories of workers mentioned below, that a worker in this first of those categories get four units for each two units that a worker in the second of those categories gets or for each one unit that worker in the last these categories gets. The categories are described as under:
      1. Workers drawing average monthly wages not exceeding Rs.7,500/-.
      2. Workers drawing average monthly wages exceeding Rs.7,500/-, but not exceeding Rs.15,000/-.
      3. Workers drawing average monthly wages exceeding Rs.15,000/-
      4. The average monthly wages shall be rounded up to the nearest Rs.10/-.
    2. The number of units available to each category of workers shall be divided equally among all the workers in that category to determine the share of each worker of that category.
    3. No worker shall, in any one year, be entitled out of the annual allocation to units exceeding the amount of four times of the minimum wages for unskilled worker.

The disbursement of benefits from the fund shall be as under:

  1. Hundred (100) percent of the annual income of the fund, including capital gains realized, shall be distributed each year to workers in proportion to their units of entitlement.
  2. A worker who voluntarily leaves the employment of the company or whose services are terminated shall be entitled to receive hundred (100) percent of the net asset value of the units standing in his name.
  3. A worker who continues in service of the company shall be entitled to received hundred (100) percent of the net asset value of the units in his name each year or he may choose to leave his share in the fund, provided that a worker while in employment, may choose to en-cash all the units standing in his name at any time at his discretion.
  4. A worker, in event of his retirement or his nominated beneficiary, in the event of the work’s death while in the employment of the company, shall receive hundred (100) percent of the net asset value of the unit standing in the worker’s name, irrespective of the period of employment.

11. West Pakistan Maternity Benefit Ordinance, 1962.

  1. Application:The West Pakistan Maternity Ordinance, 1962 (the “Ordinance”) is applicable on all establishments whether industrial, commercial or otherwise.
  2. Obligation:Every woman employed in an establishment is entitled to a maximum of twelve weeks of maternity leave which shall be fully paid by the employer. The maternity benefits are paid by the employer at the rate of her wages last paid during a period of six weeks immediately preceding. Only those woman employees are entitled to maternity benefits who have been employed in the establishment of the employer for a period of not less than four months.
    The employer of every factory, other than seasonal factory, in which women are employed shall maintain a muster roll in Form A and shall enter therein the particulars prescribed in the Form, in respect of women workers employed, in the factory who have intimated the employer regarding their pregnancy or child delivery.

12. Apprenticeship Ordinance, 1962.

  1. Application:The Apprenticeship Ordinance, 1962 (the “Ordinance”) is applicable on such undertakings as the Provincial Government may notify in the official Gazette. The undertaking is defined in the Ordinance as any establishment wherein fifty or more persons are employed.
  2. Obligation:The notified undertaking is obliged to introduce and operate an apprenticeship program and get the program registered with the competent authority. Under the apprenticeship program, the notified undertaking is required to train apprentices in the proportion of a minimum of twenty (20) per cent of the total number of person employed in apprentice able trade.
    The following procedure should be observed by the employer for the selection of the apprentices-

    1. The vacancies shall be advertised in the important newspaper.
    2. Intimation about the vacancies shall be given to the nearest employment Exchange.
    3. A written test of the candidate shall be held.
    4. A viva voice test shall be given to those candidates who qualify the written test.
    5. An aptitude test shall be given if the competent authority deems feasible and practicable.

    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-

    1. The nature and the job description of the trade
    2. The expected degree of skill and knowledge of the trade to be achieved by a worker before entering the employment market as a skilled worker in the trade
    3. The likely duration required for attaining the desired proficiency in the trade
    4. The practical training, related (theoretical) instruction and the job practice needed for the development of the desired skill and knowledge
    5. The minimum educational qualifications laid down for entrance as an apprentice in the trade

    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.

    1. 1st 20 percent of the duration of apprenticeship = Not less than 40%.
    2. 2nd 20 percent of the duration of apprenticeship = Not less than 50%.
    3. 3rd 20 percent of the duration of apprenticeship = Not less than 60%.
    4. 4th 20 percent of the duration of apprenticeship = Not less than 70%.
    5. 5th 20 percent of the duration of apprenticeship = Not less than 80%.

    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.

13. Disabled Persons (Employment and Rehabilitation) Ordinance, 1981.

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.

14. Workers’ Welfare Fund Ordinance, 1971 (the “WWF Ordinance”)

  1. Scope:The WWF Ordinance was promulgated for the establishment of a Workers’ Welfare Fund (the “Fund”) for providing residential accommodation and other facilities for workers and for matters connected therewith.
  2. Application:Every industrial establishment, the total income of which in any year of accounting is not less than five lakh of rupees, shall pay to the Fund in respect of that year, a sum equal to two per cent of its total income. An industrial establishment, inter alia, includes any concern owning or managing a factory, workshop or other establishment in which articles are produced, adapted or manufactured with the aid of electrical, mechanical, thermal, nuclear or any other form of energy transmitted mechanically and not generated by human or animal agency. In addition to the above amount, every industrial establishment shall, in addition to the amount payable by it in respect of any year of account, pay such amount as the Federal Government may determine.
  3. Mode of Payment:Section 4 of the Ordinance describes in detail the mode of payment and recovery of such amount from an industrial establishment. The industrial establishment shall pay the amount due from it to the Taxation Officer having jurisdiction over the industrial establishment for the purposes of the Income Tax Ordinance, 2001.

15. Punjab Industrial Relations Act, 2010

  1. Application:The Punjab Industrial Relations Act, 2010 (the “Act”) is applicable to every establishment or industry situated in Punjab.
  2. Worker:Worker means any person not falling within the definition of employer, who is employed, including employment as a supervisor or as an apprentice in an establishment or industry for hire or reward either directly or through a contractor.
  3. Trade Union:The Act provides requirements and mechanism for the establishment of trade unions in establishment. Workers and employers have the right to establish and join trade unions.
  4. Unfair Labour Practices:The Act enlists the unfair labour practices on the part of the worker/trade union and on the part of the employers.
  5. Collective Bargaining Agent:In the case of a single registered trade union having membership comprising of more than one third of the total number of the workmen employed in such establishment or group of establishment, upon an application made in this behalf, be certified by the Registrar of Trade Unions to be the collective bargaining agent for such establishment or group of establishments. In case of more than one registered trade union, upon an application made in this behalf by one fifth of the total number of workmen employed or by the employer or the Government, the Registrar of Trade Unions shall hold a secret ballot to determine as to which one of such trade unions shall be the collective bargaining agent.
  6. Workers Participation:
    1. Shop Steward:In every establishment, in which fifty (50) or more workmen are employed, shop stewards, from amongst the workmen in a shop, section or department of the establishment shall, in the case of a collective bargaining agent, be nominated by it or in the absences of a collective bargaining agent shall be elected at a secret ballot held in the prescribed manner. The shop steward shall act as a link between the workers and the employer, assist in the improvement of arrangements for the physical working conditions and production work in the shop, section or department and help workers in the settlement of their problems either connected with work or individual grievance.
    2. Works Council:In every establishment in which fifty (50) or more workmen are employed, the employer shall constitute a Works Council consisting not less than six members and representative of workers shall not be less than 50%.

16. Industrial Relations Act, 2012

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.

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