1. Mastering Labour Practices for
HR Business Partners
By
Tafveez Amin
PhD-OB & Marketing (University of Wales), MBA – MKT
(USA), MBA-HRM (PK),
CMILT – UK, CIPD – UK, Six Sigma Black Belt
tafveezamin@yahoo.com
0307 2228857
2.
3.
4. What is Employee Relation
• Employee Relations involves the body of work concerned with maintaining
employer-employee relationships that contribute to satisfactory
productivity, motivation, and morale. Essentially, Employee Relations is
concerned with preventing and resolving problems involving individuals
which arise out of or affect work situations.
• Advice is provided to supervisors on how to correct poor performance and
employee misconduct. In such instances, progressive discipline and
regulatory and other requirements must be considered in effecting
disciplinary actions and in resolving employee grievances and
appeals. Information is provided to employees to promote a better
understanding of management's goals and policies. Information is also
provided to employees to assist them in correcting poor performance, on
or off duty misconduct, and/or to address personal issues that affect them
in the workplace. Employees are advised about applicable regulations,
legislation, and bargaining agreements. Employees are also advised
about their grievance and appeal rights and discrimination and
whistleblower protections.
5. FIRST LABOUR POLICY – 1955
(Announced on 15th August 1955)
• Raise the standard of living and working conditions of workers and ensure them reasonable return
for their labour;
• Provide social security for all workers by means of social insurance or otherwise to the extent the
economic conditions permit;
• Ensure that factories have proper standing orders and the systems of workers committees and joint
consultative committees in the interest of efficiency and production, labour officers and similar
organizations for looking after the welfare of labour and for permitting laborers to bring their
legitimate grievances to the notice of the employers;
• Take steps to see that the workers are properly fed, clothed, housed, better educated, given
technical training and provided with amenities which may help to make them useful to the state
and lead a happier existence;
• Encourage healthy trade unionism and collective bargaining for Industrial peace and progress.
6. REVISED LABOUR POLICY – 1959
(Declared on 4th February 1959)
• The policy of the Government of Pakistan in the field of labour shall be based on
ILO convention and recommendations ratified by Pakistan.
• Government of Pakistan believes that the growth of healthy trade union is
essential for the growth of a stable social structure wherein there will be Industrial
and social peace, ensuring greater production and equitable distribution of wealth.
• Government of Pakistan believes that sound and healthy relationship between the
employers and employees is prerequisite of increased productivity.
• The Government of Pakistan believes that industrial peace is essential for
economic progress. It discourages agitations and tension in industrial and
commercial undertakings and other fields of human endeavor. Government
believes in the settlement of disputes between the management and labour
through constitutional means, such as joint consultation, voluntary
arbitration, conciliation, mediation and adjudication.
7. • Government of Pakistan believes that simultaneously with the stepping up of production, suitable
measures, should be adopted for providing social amenities to workers of all categories. Calculated to
meet, as for as possible, their requirement of health, education, recreation, housing wage and similar
other need in relation to their work.
• Government of Pakistan will take suitable measures for removing unemployment in the country.
• The state will continue to maintain non-fee charging employment agencies and work on a program of
employment information.
• Government of Pakistan would give due importance to research and collection of statistics concerning
working and living conditions of the workers and will also encourage the same by private enterprise of
employees and employers.
• Government of Pakistan would take suitable steps to ensure proper employment of seamen in the country
and outside. It will take steps to ensure to the regularity of employment fair wages and social amenities.
• The Government of Pakistan believes that social welfare is not the responsibility of the state alone. Private
industrial organization should also pool their reserves in a cooperative manner to provide for social
amenities. Government may consider the desirability of imposing welfare cess in commercial, industrial
and other private establishments in order to raise adequate funds to organize welfare measures for the
employees.
• Government of Pakistan will welcome scientific and technological assistance in the labour and
employment and employment field from friendly countries.
8. LABOUR POLICY – 1969
(Announced on 5th July 1969)
• Freedom of association so that the workers are able to form trade unions of their own free
choice and select their representative through secret ballot.
• Strengthen the scope of collective bargaining by conceding the right to strike.
• A fair and equitable living minimum wage.
• Consolidation and simplification of labour laws, strictly in accord with ratified conventions of
ILO.
• Review of the schedule of essential and public utility services to reduce them to barest
minimum.
• Effective implementation of labour laws (existing as well as new) for protecting the right of
the workers including the minimum wage.
• Uniform application of labour laws without discrimination between public and private sector.
• Relating the wage structure to productivity by increasing workers stake in quality and
quantity of production.
9. LABOUR POLICY – 1972
(Announced by the Prime Minister Mr. Zulfiqar Ali
Bhutto on 10th February 1972)
• Workers will be given effective participation in the management of industry. Workers’
representatives will be associated with management to the extent of 20% at factory level. This will
be progressively increased.
• Workers will have the authority to appoint an auditor to inspect any accounts, records, premises
stores of a factory. This auditor will be paid by the management.
• The share of workers in the annual profits will be raised from 2% to 4%. If the workers increase
productivity, they will receive an additional 10% of the increased profits.
• Shop stewards will be elected in each shop or department of a factory to represent the interest of
the workers.
• The procedure for the redress of grievances will be streamlined.
• The law relating to settlement of industrial disputes will be reformed to provide expeditious
settlement. The works council will be strengthened and the scope of its functions widened.
• It will be made obligatory for the unions to hold secret ballot before resorting to strikes.
• It will be made necessary to state reasons explicitly in every order of termination of service.
• The payment of bonus will be made compulsory. The amount of bonus will be linked with profits.
10. • The payment of wages act and the W.P industrial and commercial employment (Standing Orders)
ordinance will be extended to labour under contractors.
• The nominees of workers, management and provincial governments will be associated to activate the
workers welfare fund.
• Free education up to metric will be provided to one child of each worker.
• The levy of 2% of a worker’s wages for providing him medical facilities will be abolished.
• Compulsory group insurance for workers against death and injury when off duty will be introduced old age
pension will also be provided for all workers at certain age.
• Social security scheme will be extended to domestic servants.
• The laws relating to safety and compensation in the event of death and injury will be revised. Increased
rate of compensation will be provided.
• Certain violation of labour laws will be made cognizable offence but bail able.
• Workers’ movement will be promoted along progressive lines. A Quasi-Judicial authority will be set up to
strengthen the trade union movement.
• The prices of essential items will be stabilized before increasing minimum wages.
• Gheraos and Jalaos will be not allowed.
11. FURTHER LABOUR REFORMS – 1972
(Announced on 23rd August 1972)
• The Factories Act, has been made applicable to establishments employing ten (10) or more
workers.
• The number of holidays has also been increased
• The Act will be amended to provide better health and safety measures.
• Government has now decided to extend the labour laws to the whole of Baluchistan province and
to the Malakand division in NWFP.
• The workmen’s compensation Act, 1923, will be amended to cover the workers receiving monthly
wages up to RS. 1000/-.
• The rate of gratuity has been increased to 20 days wages and will also be applicable to piece rated
workers.
• No employer will be allowed close down his establishment without prior approval of labour court.
• The Labour Court will be required to decide individual cases within seven (7) days.
• The “Badly” workers with three months’ service will be entitled to the rights of permanent workers.
12. LABOUR POLICY– 2002
• Background:-
– September 2000 – commission of labor laws forwarded report to
Government which included;
– Laws related to IR
– Laws related to wages
– Laws relating to employment conditions
– Laws related to HRD
• a. On job training
• b. Vocational training
• c. Apprenticeship
• d. Education sess
– Laws related to OSH
– Laws related to welfare and social protection
– 2nd IRO issued in 2002
13. • POLICY FOUNDATIONS
• Fundamental rights concerning labour as laid down in the
Constitution of The Islamic Republic of Pakistan and International
Labour Standards as enunciated in ILO conventions ratified by
Pakistan provide necessary framework for evolving a sound and
stable mechanism for ensuring core labour rights. The labour laws
and the system of labour administration in Pakistan will thus be
brought inconformity with these standards to meet National
objectives and international obligations.
• Bilateralism
• Bilateral Codes of Conduct
• Consolidation of labour Laws
• Promotion of Healthy Trade Unionism
• Strengthening Social Dialogue Mechanism
• Labour Judiciary
• Social Safety Net
• Elimination of Gender Discrimination
• Workers’ Children Education
14. • Elimination of Child Labour and Bonded Labour
• Workers in the Agriculture Sector
• Informal Sector and Home-Based Workers
• Seasonal Workers
• Regulation of Contract Work
• Rights of Workers in the Event of Privatization
• Challenge of Globalization
• Labour Welfare Levies
• Section 2-A and 27-B
• Human Resource Development
• Occupational Safety and Health
• Labour Research
• Labour Market Information System (LMIS)
15. IRA – 2008
• IRA 2008 introduced in Apr 2008, PM Gilani’s
announcement of repeal (IRO 2002) during
inaugural speech.
• IRA 2008 expired Apr 2010
16. SINDH INDUSTRAIL RELATIONS ACT – 2010
[Karachi, July 5th 2010]
• THE INDUSTRIAL RELATIONS ACT 2008 (Act # IV of
2008) IS HEREBY REVIVED WITHH EFFECT FROM
1ST MAY 2010 AS IF IT HAD NEVER BEEN
REPEALED.
• AMENDMENT OF SECTION 87 OF ACT # IV OF
2008 In the IRA 2008, on revival, in section 87
sub-section (3) shall be omitted.
(this act [IRA 2008] unless repealed earlier, stand
repealed on 30th April 2010)
17. EMPLOYEE RELATIONS
Fostering Good Employee Relations
What Managers Must Do
• Fair Treatment & Recognition of Employees
• Listen to Employees concerns & feelings
• Must Keep Employees informed of Organization’s Policies
&Strategies
• Must have policies that encourage employees to discuss problems
& communicate important info to Managers
• Keep Employees informed about changes in the business & the
effect of such changes
• Effectively enforce Employee Relations Program
• Managers & HR Specialists must work in partnership
18. • Fair Treatment & Recognition of Employees
• Listen to Employees concerns & feelings
• Must Keep Employees informed of Organization’s Policies &Strategies
• Must have policies that encourage employees to discuss problems &
communicate important info to Managers
• Keep Employees informed about changes in the business & the effect of
such changes
• Effectively enforce Employee Relations Program
• Managers & HR Specialists must work in partnership
19. INDUSTRIAL RELATIONS
OVERVIEW
• Industrial Relations encompasses relationship between Management &
Workers, particularly group of workers represented by a Union
Industrial Relations - Defined:-
• “Employer-employee relationships, covered specifically under Collective
Bargaining & Industrial Relations Laws”
• Industrial Relations Process is regulated by ‘’Collective Bargaining’’
• For effective day to day handling of Labor-Management relations, Managers need
to understand the basics of Labor Relations & Labor Laws.
20. INDUSTRIAL RELATIONS
Working With Organized Labor
• Relationship between Managers & their Employees changes in a unionized
organization
• The Law requires managers to meet & confer with elected union representatives
when making decisions that effect:
– Pay
– Hours of Employment
– Working Conditions
• When unionized employees are dissatisfied with pay, hours of employment &
working conditions, the CBA pressure is applied to respond to employee
performances, which may result in strike & closure of business
• HR Specialists in labor relations can help managers develop tactics & strategies to
work constructively with the union & its representatives.
21. Union – Management Relationship
Ground Realities
• Harmonious working relations between Labor & Management are critical to Organizations
• Traditionally both parties have assumed a win/lose, adversarial posture towards each other
• Union-management relationship is usually characterized by bitterness, hostility & mutual
antagonism, rather than cooperation
• Like true enemies, either may be willing to place itself in peril to deprive the other of Victory
• Legally each group is equally powerful in terms of influencing outcome & therefore neither
can impose its will unilaterally on the other
• This must change if Pakistani firms are to remain competitive, both in local and international
markets
• Union & Management must learn to accommodate one another’s needs, rather than
repudiate them
22. SEVEN WAYS TO TAKE AWAY UNION
ISSUES
• Treat all employees with dignity & respect
• Protect employees from harassment / humiliation
• Be consistent in treatment of different employees
• Solve employee problems
• Ensure due process in performance management
• Provide business-related information
• Accommodate special circumstances where appropriate / possible
23. Elements of an Ideal Union –
Management Relationship
• Mutual Trust & Respect
• Honesty in dealing with one another
• Effective Communication within/between the two groups
• Problem Solving
• Timely resolution of grievances
• Consistency in contract implementation
• Good supervision – in terms of work & contract administration
24. UNFAIR LABOR PRACTICES – BY
WORKMAN
• Compel or attempt to compel the employer to accept any demand by using
intimidation, coercion, pressure, threat, confinement or ouster from a
place, dispossession, assault, physical injury, disconnection of telephone, water or power
facilities or by such other methods; or
• Compel or attempt to compel any member of a body, bipartite or tripartite or of any
composition, relating to the functioning of the industry or is in place for the benefit of
workers, to accept any demand by using
intimidation, coercion, pressure, threat, confinement or ouster from a
place, dispossession, assault, physical injury or by such other methods; or
• Carry any arms or weapons within the premises of an employer without any legal authority
• Commence, continue, instigate or incite others to take part in or expend or supply money or
otherwise act in furtherance or support of an illegal strike or adopt go-slow measures; or
• Persuade a workman to join or refrain from joining a trade union during work hours; or
• Intimidate any person to become, or refrain from becoming, or to continue to be or to cease
to be a member or office-bearer of a trade union; or
• Induce any person to refrain from becoming, or cease to be a member or office-bearer of a
trade union by intimidating or conferring or offering to confer any advantage on or by
procuring or offering to procure any advantage for such person or any other person; or
25. • Impose any condition in a contract of employment seeking to restrain the right of
a person who is a party to such contract to join a trade union or continue his
membership of a trade union; or
• Refuse to employ or refuse to continue to employ any person on the ground that
such person is or is not, a member or office bearer of a trade union; or
•
• Discriminate against any person in regard to any
employment, promotion, condition or employment or working condition on the
ground that such person is or is not, a member or office bearer of a trade union; or
• Dismiss, discharge, remove from employment or transfer a workman or injure him
in respect of his employment by reason that the workman- (i) is or proposes to
become a member or office-bearer of a trade union; or (ii) participates in the
promotion, formation or activities of a trade union;
• Induce any person to refrain from becoming, or to cease to be a member or office-
bearer of a trade union, by conferring or offering to confer any advantage on, or by
procuring or offering to procure any advantage for such person or any other
person; or
• Compel or attempt to compel any office-bearer of a collective bargaining agent to
arrive at a settlement by using
intimidation, coercion, pressure, threat, confinement to a place, physical
injury, disconnection of water, power or telephone facilities of by such other
methods; or
26. • Interfere with or in any way influence the balloting
provided for in Section 20 (CBA); or
• Recruit any workman during the period of notice of strike
under Section 31 (Strike & Lockout) or during the currency
of a strike which is not illegal except where the Conciliator
has, being satisfied that complete cessation of work is likely
to cause serious damage to the machinery or
installations, permitted temporary employment of a limited
number of workmen in the section where the damage is
likely to occur; or
• Close down the whole of an establishment in contravention
of Standing Order 11A of the Industrial and Commercial
Employment (Standing Orders) Ordinance, 1968; or
• Commence, continue, instigate or incite others to take part
in, or expend or supply money or otherwise act in
furtherance or support of an illegal lockout
27. THE THREE PHASES OF LABOR
RELATIONS PROCESS
• Union Organization
• The Key issues that Managers confront in union organizing campaign are:
– Union Solicitation
– Pre-election Conduct
– Certification Election
• During Pre-election period, Managers must avoid any impression of influencing
• Collective Bargaining
• If Union organizing results in certification, the next step is Collective Bargaining resulting in Labor
Contract/Settlement for 2-3 years period
• Four important issues related to Collective Bargaining:
• Bargaining Behavior
• Bargaining Power
• Bargaining Topics
• Impasses in Bargaining
• Contract Administration
• Involves application & enforcement of Labor Contract/Settlement in workplace
28. GUIDELINES FOR INTEGRATIVE
BARGAINING
• Attempt to understand the other negotiator’s real needs & objectives
• Create a free flow of information
• Emphasize the commonalities & minimize the differences between the
parties
• Search for solutions that meet both parties goals & objectives
• Develop flexible responses to the other negotiator’s proposals
29. NEGOTIATION
Negotiation – ‘’Definition’’
• Negotiation occurs when someone else has what you want; & you are prepared to bargain for it - &
vice versa
Negotiating Successfully
• To negotiate successfully, you need a game plan – your ultimate Aim & a Strategy
• For success of your game plan - thorough preparation is required before commencement of
negotiation
• Attempt to reconcile what constitutes a good result for you, what constitutes a good result for the
other party
• Successful Negotiation does not result in a winner & a loser. The process should end with a satisfied
conclusion for both sides (Win / Win)
Successful Negotiation – Core Skills
• Ability to define a range of objectives, yet be flexible about some of them
• Ability to prepare well
• Ability to prioritize clearly
• Ability to listen to & question other party
• Ability to explore possibilities of a wide range of options
30. Negotiation – 4 stages
• Stage 1 - Preparing for Negotiation
– Setting Objectives
– Defining Strategy
– Assembling Data
• Stage 2 – Opening
– Open realistically & move moderately
– Challenge other side’s positions as it stands
– Explore Attitudes, ask questions & observe behavior
– Above all, listen in order to assess other side’s strengths & weaknesses, their tactics & extent to which they
are bluffing
– In the opening stage – no concessions of any kind
– Be non-committal about proposals
• Stage 3 – Bargaining
– Gap is narrowed between the initial positions
– Parties attempt to persuade each other that their case is strong enough
– Tactics recommended to be employed:-
– Conditional Proposals – if you do this, we will consider doing that
– Never make one-sided concessions – trade-off
– Negotiate on whole package
– Keep issue open to extract max benefits from potential trade-off
• Stage 4 – Closing
– When & how to close – a matter of judgment
– Various closing techniques:
• Minor concession to trade-off against an Agreement to Settle
• Splitting the differences or bringing in something new
• Summarizing what has happened to date
• Emphasizing max concessions made & final position has been reached
31. COLLECTIVE BARGAINING – TWO
TACTICS
• Integrative Bargaining focuses on convincing
the other party that, the Benefits of Agreeing
with the Proposed Terms would be very high
• Distributive Bargaining focuses on convincing
the other party that, the Cost of Disagreeing
with the Proposed Terms would be very high
32. COLLECTIVE BARGAINING – PROCESS
Three distinct, thought related functions:
• Bargainers state their bargaining position
• Probe weaknesses in opposite side’s bargaining
positions
• Adjust or confirm original estimates
33. COLLECTIVE BARGAINING –
CONVENTIONS
• Regardless of tone & tenor during bargaining process, both parties strive for a Settlement
• To shake opponent’s confidence & self-possession, sometimes attacks, harsh words & controlled loss of temper is
used
• Off-the-record discussion – means of probing attitudes / intentions & smoothing way to a Settlement
• Each side remains prepared to move from original stated position
• Alternate Offers & Counter Offers – steadily leading to a Settlement
• Concessions, once made, cannot be withdrawn
• Firm Offers, must not be withdrawn
• Conditional Offers, may be reviewed
• Except dead-lock, third party is not brought in
• Final Agreement / Settlement – implemented without trickery / amendments
34. NEGOTIATIONS – Do’s & Don'ts
Dos
• Start by visualizing possible gains, not losses
• Identify issues open to compromise & remain prepared for compromise in negotiations
• Be flexible – it is a sign of strength, not of weakness
• Be aware – opposite party may have a hidden agenda
• Keep negotiating strategy simple & flexible
• Hide tempers & frustrations during negotiations
• Always keep a wall clock in negotiation / meeting room
• Learn to trust your instincts about other party’s body languages
• Take a laptop computer to access any required data
• Stress need for an Agreement from the very outset
• Put forward a proposal with as little emotion as possible
• Never undermine the dignity of the opposing party
• Use humor when appropriate, without being over clever
• Stalling tactics if at all, should be subtly & sparingly used
• Indicate to opposite party – every concession made is a major loss to you
• For considering new proposals ask for a break
• Fully record agreements finalized at the close of negotiation
• After a walkout contact the other party immediately
• Pay close attention to other party’s proposals
35. DONT’s
• Never walk out of negotiation in a rage
• Do not run a negotiation over two hours, without a
break
• Do not reveal all your tactics at once
• Avoid negotiations on major issues, at the end of the
day
• Do not concede ground, without receiving something
in return
• Be assertive, but not Aggressive while closing a deal
• Avoid temptation to respond with “an eye for an eye”
36. LABOUR LAWS
LABOUR LAWS ARE ENACTED TO:
•
• Protect workers from exploitation
• Promote labour welfare
• Preserve industrial Preace
WITH A VIEW OF ACHIEVING:
• Productivity
• Satisfaction & Commitment of workers
• Political stability
37. LABOUR LAWS
Number & Nature of labour laws are voluminous and varied.
However, for discussion, we may classify them as labour laws relating
to:
• Industrial Relations
• Fixation & Payment of Wages
• Employment and its condition
• Occupational Safety & Health
• Human Resources Development
• Special, Categories E.G Women, Children, Disabled persons, Essential services
39. INDUSTRIAL RELATIONS IN
PERSPECTIVE
• History of I.R is the history of Industrialization
• Mass production by machines
• Detachment of tools from artisans
• Migration from rural to urban areas
• Break-up of traditional family
• Emergence of nucleolus family
• Cash – Nexus
• The industrial way of life
• Industrialization is not simply an economic phenomenon its is rather a new way of life.
40. INDUSTRIAL RELATIONS
FACTORS IN THE EVOLUTION
• Economic and Social Setting
• Socio-Economic System
• Level of Economic Development
• Size of Industrial undertaking
• Political system
• National Policy
• Legislation
• Political parties support
• Impact of workers’ & employers’ organization (Degree of freedom allowed to them)
• Development of systematic study of social problems
• International action
41. I.R
COMPOSITION & TRENDS
• I.R are essentially HR
• Modern IR are the out-come of mass production
• IR relate to social, economic and political well-being of workers
OBJECTIVES
• Equitable distribution of wealth
• Dignity of labour
• Determination of right and duties
SCOPE
• Fundamentally terms of employment & conditions of work
• Economic & social well-being
Dynamic with the changing time
42. STRUCTURE & STYLE
• Essentially BI-Lateral
• But tripartite at time
• Union :
• Democratic
• Bureaucratic
• Charismatic
Employer :
• Owner
• Opportunist
• Professional
DETERMINANTS
• Technology
• Nature of labour force
• Nature of product – market
• Social ideology
• Political constraints
43. DYNAMICS OF I.R
• Forces which interact with the existing institutions which make changes in the institutions or some
time create new institution.
• I.R includes relationship between
• Management and workers’ organization
• Management and group of workers
• Management and the managed
• Employer and the individual employee
• Unions are essentially based in urban areas so they exercise powerful influence on the
management and the government.
• Unions, though in minority, the sympathetic element supports them ( Media, HR activists etc)
• Charismatic leadership cannot sustain a movement
• Unions are helpful too
44. I.R SYSTEMS
• Paternalistic
• Socialistic
• Legalistic
• Bilateral
I.R TRENDS
• Radical
• Participation
• Irresponsibleness
• Political / ideological onslaught
• Globalization
• Social (Clause) issue
• Core standards
• Re-definition of IR roles in 21st century
46. Objective
• AN ACT TO CONSOLIDATE THE LAW RELATING TO:
• FORMATION OF UNIONS
• IMPROVEMENT OF RELATIONS BETWEEN EMPLOYERS
& WORKMEN
• AVOIDING & SETLLEMENT OF ANY DIFFERENCE OR
DISPUTE
47. Scope
1. It may be called Industrial Relation ACT of 2010
2. It extends to the whole of Pakistan
3. It shall apply to persons employed in any establishment of
Industry but not apply to persons employed
• In the police
• In any of the Defence services
• In any services or installation connected with or incidental to the armed forces
• In the administration of the state other than those employed as workmen by
the railway and Pakistan post
• Security staff of PIA staff drawing wages in pay group not lower than grade V
by notification
• PCPS or SPL
• Institution for treatment or care of sick, infirm, destitute or mentally unfit
person not run on commercial basis
• Watch & ward, security or fire service staff of oil refinery, airport or seaport
• Security & fire service staff of establishment in gas or LPG
48. Employer
• In relation to an establishment means any person or body of
persons, whether incorporated or not, who or which employs workmen in
the establishment under a contract of employment and includes:-
• An heir, successor or assign of such person or body;
• Any person responsible for the management, supervision and control of
the establishment;
• In relation to an establishment run by or under the authority of any
department of the Federal Government or Provincial Government, the
authority appointed in this behalf or, where no authority is appointed, the
head of the department;
• In relation to any establishment run by or on behalf of a local
authority, the officer appointed in this behalf or where no officer is so
appointed, the chief executive officer of the authority;
• In relation to any other establishment, the proprietor of such
establishment and every director, manager secretary, agent or officer or
person concerned with the management of the affairs thereof
49. FOLLOWING CATEGOREIS OF EMPLOYEES ARE
HELD WORKMEN
1. Security Office
2. Account Officer
3. Bank Manager – Having no power of hire or fire
4. Officer Grade I, II & III
5. Sub-Editor
6. Driver
7. Quality Checker
8. Sub-Engineers
9. Chowkidar
10. Gardeners, helpers of Irrigation Dept
11. Chief Accountant
12. Grade III officer of bank having power of attorney but never exercised /used the
same at any occasion
13. Purchase Manager also performing manual and clerical functions having neither
administrative privileges nor any supervisory capacity.
14. Accountant
50. • Metter supervisor, Petitioner company dismissed employee from service for
allegedly installing a gas meter at a consumer premises. Employee filed grievance
petition before labour Court which accepted the petition and set aside the
dismissal order holding that the charge against the employee could not be proved.
Appellate Tribunal dismissed appeal of employer company. Employer contended
that employee was not a worker or workman as he was employed in supervisory
capacity and that provision of Industrial Relations Ordinance, 2002 read with
Industrial and Commercial Employment (Standing Orders) Ordinance, 1968 were
not applicable to employees’ case validity. Employer company did not prove the
employment of employee in managerial or administrative capacity. Employer had
no power to hire and fire or make administrative decisions. Nomenclature of
meter supervisor alone did not, ipso facto, exclude the employee from category /
ambit of worker and workman. None of the attributes of an ‘employer’ as defined
in clause (x) S.2 of the Industrial Relations Ordinance. 2002 were conferred on
employee who was entrusted with manual job of installing gas meters on premises
for which gas connections were sanctioned by Petitioner Company. Provisions of
Industrial Relations Ordinance, 2002 were fully attracted to the case of employee.
Charges against employee were not proved during inquiry proceedings. Employer-
company could not point out any non-reading or misreading of evidence. Findings
of fact recorded by forums below did not warrant interference of High Court in
constitutional jurisdiction under Art. 199 of the Constitution Petition was
dismissed.
51. FOLLOWING CATEGOREIS OF
EMPLOYEES ARE HELD NOT WORKMEN
1. Officer Grade II & III
2. Salesman
3. Assistant purchase Manager
4. Marketing Officer
5. Employees recommended leave application of
subordinates, checked travelling voucher & pay rolls
6. Personnel officer signing agreement on behalf of
management.
7. Chemist
8. Supervising the work done by the contractor
9. Assistant security officer
52. • Territory Manager Employee originally was appointed as Sales Officer in the
establishment and subsequently he was given designation as “Territory Manager”.
Later on, services of the employee were terminated and the employee filed
grievance petition against that order. Employers converted the assertions made by
the employee in his grievance petition contending that as employee had been
appointed in the establishment in the Managerial Staff, he was not a workman and
his grievance petition was not maintainable. Labor court however declared
employee as ‘workman’ and accepted his grievance petition full back benefits.
Employers filed appeal against judgment of the Labour Court chiefly on ground
that employee was not at all a workman as he was appointed as an officer in the
Management staff and his job was of a Territory Manager in the life science
business; and his main job was to promote the sales of Pharmaceutical products of
the establishment. Acid test for the determination as to whether an employee was
a workman or not, was the nature of duties performed by him. Employee would
be workman, if the duties performed by him were manual or clerical in nature and
not otherwise. Sale promotion officer/employee was expected to display the
quality of initiative, intelligence and correct speculation; and foe doing that he was
given some independence in his line of action. Such employee was expected to use
his mental faculties to find new avenues of sales promotion. Work of salesmen was
of different category from manual work or clerical work and thus would not fall
within the definition of “workman”. Employee, in circumstances was not a
workman and Labour Court had no jurisdiction to entertain and try the grievance
petition. Impugned order passed by the Labour Court, was set aside, in
circumstances.
53. 3. TRADE UNIONS AND FREEDOM OF
ASSOCIATIONS
Trade unions and freedom of association..
• Subject to the provision of this Act and notwithstanding any other law for the time being in force;
• Workmen, without distinction whatsoever, shall have the right to establish and subject to the rules of the
organization concerned, to join international associations of their own choice without previous
authorization;
• Provided that in the establishment where women are also employed the Trade Union shall include the
women in the executive of the said trade union with the same proportion in which they are employed in
the establishment:
• Provided further that no worker shall be entitled to be a member of more than one trade union at any one
time and on joining another union the earlier membership shall automatically stand cancelled;
• Employer; without distinction whatsoever, shall have the right to establish and, subject only to the rules of
the organization concerned, to join international associations of their own choice without previous
authorization;
• Every trade union and employers association shall frame its own constitution and rules to elect its
representatives in full freedom to organize its administration and activities and to formulate its
programmes; and
• Workers and employers organizations shall have the right to establish and join federations and
confederations and any such organization, federation or confederation shall have the right to affiliate with
international organizations and confederations of workers and employer;
54. 4. Registrar of trade unions
For the purpose of this Act the Government
shall, by notification in the official
gazette, appoint registrar of Trade Unions who
shall be assisted by one or more Joint
Registrars.
55. 5. Powers and functions of Registrar
Registrar, and the Joint Registrars, as the case may be, shall have the following
powers and functions:-
a. The registration of trade unions under this Act and the maintenance of a
registrar for the purpose;
b. To lodge, or authorize any person to lodge complaints with the Commission for
action including prosecution, against trade unions, employers, workers or other
persons for any alleged offence or any unfair labour practice or violation of any
provision of the Act or for expending the funds of a trade union in contravention
of the provisions of its constitution
c. The determination of the question as to which one of the trade unions in an
establishment or an industry is entitled to be certified as the collective
bargaining agent in relation to that establishment or industry
d. To inspect the accounts and record of the registered trade unions as he deems fit
either by himself or through any officer subordinate to him and to authorize him
in writing in this behalf; and
e. Such other powers and function as may be prescribed.
56. 6. Application for registration
• Any trade union may, under the signature of
its President and the Secretary, apply to
Registrar for registration of the trade union
under this Act.
• Provided that there shall be at least two trade
union under this Act.
58. 8. Requirements for registration
a. The name and address of the trade union
b. The objects for which the trade union has been
formed;
c. The purposes for which the general funds of the
union shall be utilized;
d. The number of persons forming the executive which
shall not exceed the prescribed limit and shall include
not less than seventy five percent from amongst the
workmen actually engaged or employed in the
establishment or establishments or the industry for
which the trade union has been formed:
59. Provided that the condition of being employed in any establishment or an industry
as aforesaid shall not apply to the remaining twenty five percent of the members
of such executives;
a. The conditions under which a member shall be entitled to any benefit assured by
the constitutional of the trade union and under which any fine or forfeiture may
be imposed on him;
b. The maintenance of a list of the members of the trade union and of adequate
facilities for the inspection thereof by the officers and members of the trade
union;
c. The manner in which the constitution shall be amended varied or rescinded;
d. The safe custody of the funds of the trade union, its annual audit, the manner of
audit and adequate facilities for inspection of the accounts books by the officers
and members of the trade
e. The manner in which the trade union may be dissolved;
f. The manner of election of officers by the general body of the trade union and
the term, not exceeding two years, for which an officer may hold office upon his
election or re-election;
g. The procedure for expressing no confidence in any officer of the trade union;
h. The meeting of the executive and of the general body of the trade union so that
the executive shall meet at least once in every three months and the general
body at least once a year.
60. (2) Without prejudice to the provisions of sub-section (1), a trade
union of workmen shall not be entitled to registration under this
Act
(a) unless all its members are workmen actually engaged or
employed in the industry with which the trade union is connected;
Explanation:-
For the purpose of this clause, a dismissed, terminated or
retrenched worker, whose dismissal, termination or retrenchment
is pending adjudication before a court of competent
jurisdiction, shall be deemed to be an employed worker of that
establishment, and
(b) where there are two or more registered trade unions in the
establishment, group of establishments or industry with which the
trade union is connected, unless it has as its members not less than
one-fifth of the total number of workmen employed in such
establishment, group of establishments or industry, as the case may
be.
61. 9.Registration
1. On receipt of application for registration, the Registrar shall ensure compliance of section 7
and 8 of this Act, and issue the registration certificate in the prescribed for within seven
days.
2. In case the application has been rejected or a certificate of re registration has not been
issued within a period of seven days as provided in sub-section (1), as the case may be, the
trade union may appeal to the Commission who for reasons to be stated in its
judgment, may pass an order directing the Registrar to register the trade union and to issue
a certificate of registration or may dismiss the appeal.
3. Notwithstanding anything contained in any other provision of this Ordinance, every
alteration made in the constitution of a registered trade union and every change of its
officers shall be notified by registered post by the trade union to the Registrar within
fifteen days of such change.
4. The Registrar may refuse to register such change or alteration it is in contravention of any
of the provisions of this Act, or it is in violation of the constitution of the trade union.
5. Subject to the provision of sub-section (4) every inclusion or exclusion of any constitution
unit of a federation of trade unions shall be notified by registered post by the federation to
the Registrar within fifteen days of such inclusion or exclusion.
6. In case there is a dispute in relation to the change of officers of a trade union, or any trade
union is aggrieved by the refusal of the Registrar under sub-section (4), the Registrar
may, after satisfying himself that a dispute exists, hold fresh elections under his
supervision.
62. 41 – STRIKES AND LOCKOUT
Notice of strike or lock-out
• The period of a notice of lock-out or strike
given under sub-section (3) of section 35 shall
fourteen days.
63. 42. Strike and lock-out
(1) If no settlement is arrived at during the course of cancellation proceedings and the parties to the dispute do not agree to
refer it an arbitrator under section 40, the workmen may go on strike or, as the case may be, the employer may declare a
lock-out, on the expiration of the period of the notice under section 41 or upon a declaration by the Conciliator that the
conciliation proceedings have failed, whichever is the later.
(2) The party raising a dispute may at any time either before or after the commencement of a strike or lock-out make an
application to the Commission for adjudication of the dispute.
(3) Where a strike or lock-out lasts for more than thirty days, the Government may be order in writing, prohibit the strike or
lock-out:
Provided that the Government may, with respect to any other strike or lock-out relating to a dispute which the Commission
is competent to adjudicate and determine, by order in writing, prohibit a strike or lock-out at any time before the expiry of
thirty days, if it is satisfied that the continuance of such a strike or lock-out is causing serious hardship to the community or
is prejudicial to the national interest.
(4) In any case in which the Government prohibits a strike or lock-out, it shall forthwith refer the dispute to the Commission.
(5) The Commission shall, after giving both the parties to the dispute an opportunity of being heard, make such order as it
deems fit as expeditiously as possible but not exceeding thirty days from the date on which the dispute referred to it:
Provided that the Commission may also make an interim order on any matter is dispute:
Provided further that any delay by the Commission in making an order shall not affect the validity of any order made by it.
An award of the Commission shall be for such period as may be specified in the award which shall not be more than two
years.
64. 43. Illegal strikes and lock-out
(1) A strike or lock-out shall be illegal if:
a. it is declared; commenced or continued without giving to the other party
to the dispute, in the prescribed manner, a notice of strike or lock-out or
before the date of strike or lock-out specified such notice, or in
contravention of section 46;
b. it is declared, commenced or continued in consequence of an industrial
dispute raised in a manner other than that provided in section 34;
c. it is continued in contravention of an order made under section 42, section
45, or section 61 sub-section (6) of section 44; or
d. it is declared, commenced or continued during the period in which a
settlement or award is in operation in respect of any of the matters covered
by a settlement or award.
(2) A lock-out declared in consequence of an illegal strike and strike
declared in consequence of an illegal lockout shall not be deemed to be
illegal.
65. (S.O ( Amendment Act, 2012)
10-C Payment of bonus
1. Every employer making profit in any year shall pay 3{for that year
within the 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 day’s a bonus in addition
to the wages payable to such workmen.
2. The amount of the bonus payable shall –
– If the amount of the profit is not less than the aggregate of one
month’s wages of the month’s wages of the workman employed, be
not less than the amount of such aggregate, subject to the maximum
of thirty percent of such profit.
66. 11- STOPPAGE OF WORK
• The employer may, at any time, in the event of fire, catastrophe, break-down of machinery or
stoppage of power supply, epidemics, civil commotion or other cause beyond his control, stop any
section of sections of the establishment, wholly or partially for any period or periods or without
notice.
• In the event of such stoppage during working hours, the workmen affected shall be notified by
notices put up on the notice board in the departments concerned or in the office of the
employer, as soon as practicable, when work will be resumed and whether they are to remain or
leave their place of work. The workmen shall not ordinarily be required to remain for more than
two hours after the commencement of the stoppage.
• If the period of detention does not exceed one hour, the workmen so detained shall not be paid for
the period of detention. If the period of detention exceeds on hour, the workmen so detained shall
be entitled to receive wages for the whole of the time during which they are detained as a result of
the stoppage. In the case of piece rate workers, the average daily earning for the previous months
shall be taken to be the daily wage. Wherever practicable reasonable notice shall be given of
resumption of normal work.
• In cases where workmen are laid off on account of failure of plant, a temporary curtailment of
production or any stoppage of work for reasons mentioned to clause (I), they shall be paid by the
employer an amount equal to one half of their daily wages during the first fourteen days of lay off
as compensation. When however, the workmen have to be laid-off for an indefinite period beyond
the above mentioned fourteen days, their services may be terminated after giving them due notice
or pay in lieu thereof.
• The employer may in the event of a strike affecting either wholly or partially any section or
department of the establishment close down, either wholly or partially, such section or department
and any other section or department affected any such closing down. The fact of such closure shall
be notified by notices put on the notice board in the section or department concerned and in the
time keeper’s office, if any, as soon as practicable. The workmen concerned shall also be notified by
a general notice, prior to resumption of work as to when work will be resumed.
67. 20 – LIABILITY OF EMPLOYER
• The employer of the industrial and commercial establishment shall personally be held responsible for the
proper an faithful observance of the Standing Orders, whether or not the workmen of such establishment
employed through contractors.
Synopsis
• Employee employed by contractor, employer was not responsible to ensure the enforcement of court order.
• Relationship of employer and employee.
• Appeal had been filed by the employer against decision passed by the Labour Court, whereby grievance
application filed by applicant was accepted and he was ordered to be reinstated in service with full back
benefits.
• Applicant who was not in possession of any document to establish employment of employer, had himself
admitted in his cross examination that he was not employee of the employer.
• Grievance application filed by the applicant against the employer, was not maintainable on that ground.
Labour court despite holding that applicant was not the employee of the employer, but of the contractor,
ordered the employer to ensure that order of labour Court was to be enforced by the contractor. No such
liability was allowed as even if in the Labour Court the contractor was impleaded as one of the
respondents in grievance application, employer could not be liable to any order passed against the
separate legal entity. Standing Order 2o of the Industrial and Commercial Employment (Standing Orders)
Ordinance, 1968 was not applicable as no evidence was available to establish that applicant was employed
by the employer company through the contractor, Decision of the Labour Court was set aside, in
circumstances. (2011 PLC 78)
68. COMPLIANCE
Certifying Surgeon and Persons Authorized to Exercise
The Functions of a Certifying Surgeon
• 11 (1) A Certifying Surgeon or a practitioner authorized under section
12 to exercise the powers of a Certifying Surgeon after charging a fee
of rupees two per person shall :
• Examine any child or adolescent desirous of being employed in a
factory;
• Examine any child or person in respect of whom a notice has been
served upon the Manager and who is desirous of being re-employed.
• On the request of an Inspector, examine any person produce before
him;
• And issue a certificate regarding the age and the fitness or otherwise
of such child, adolescent or other person to work in a factory.
69. Health and Safety
(Section 13 and 14)
• In every factory a register in Form “F” shall be
maintained for entering into it the dates on
which lime washing, painting or varnishing is
carried out.
70. Ventilation, Temperature, Dust and Fume
and Artificial Humidification
(Section 15, 16 and 17)
• In every room of a factory ventilating openings
shall be provided in the proportion of five
square feet for each person required or
permitted to work in such room and the
openings shall be such as to admit a
continuous supply of fresh air:
71. Overcrowding and Lighting
(Sections 18,19 and 33 (i))
• 40 (I) the particulars of each room of the
factory, in which workers are regularly
employed shall be entered in Form “I” which
shall be shown to the Inspector when so
required.
72. Drinking Water
(section 20)
• 41 (I) in every factory there shall be provided
free of charge for the use of the employees of
the factory a supply of water fit for drinking at
the rate of one gallon per day for every person
employed in the factory.
73. Provision for Washing Accommodation
and Latrines and Urinals
(Section 21)
• 44 (1) every factory shall be provided with urinals and latrines as specified in sub-rules (2) and (3).
• (2)The urinals and latrines on non – flush system accommodation shall be on the scale given
below:-
• (i) Latrines
Number of latrines
(a) where the number of persons employed does
Not exceeds 50. 5
(b)where the number of person employed exceeds
50
5 for the first 50 and 2 addititional seats for
every 50 persons or any less number in
excess of the first fifty.
• 46 the walls of the latrines, unless made of corrugated iron, shall be lime washed inside and
outside and outside at least twice a year, the dates of such washing being noted in Form “F” and
the inside walls up to a height of three feet from the floor shall be made of non-absorbent
impermeable material.
74. Hygiene Card and Compulsory Vaccination and
Inoculation
(Section 23 and 23-A)
(1) Every factory shall provide to every worker Hygiene Card in Form – I with following
particulars :-
a. Name of worker with parent’s name
b. Designation
c. Card No
d. Date of examination whether suffering from disease
e. Signature of Doctor
f. Thumb impression of worker
g. The fee for examination under sub-section (I) of section 23 shall be rupees two per worker.
(2)the fee for examination under sub-section (1) of section 23 shall be rupees two per
worker.
(3)Each worker in a factory shall be vaccinated and inoculated as under:-
(4)Small pox – Every two years
(5)Cholera and typhoid – Every year
(6)The vaccinations and inoculations shall be arranged by the Factory manager.
78. Protection of persons attending to Machinery
or Boilers
• 67. All important pulleys shall be provided with belt hangers or perches.
• 68. Suitable string gear shall be provided and used to move driving traps on all fast and loose pulleys.
• 69. Lubrication of bearings or gear wheels or replacing or adjusting of belts shall be done only be
experienced and specially trained persons.
• 70. Service platforms and gangways shall be provided for overhead shafting and where required by the
Inspector, shall be securely fenced with guard rails and the boards.
• 71. No transmission machinery in motion shall be cleaned with cotton waste, rags or similar material held
in the hand.
• 72. Every shafting ladder shall be fitted with either hoops or some effective non-skid device.
• 73. (I) No person engaged in oiling or adjusting belts or in any work whatsoever within reach of unfenced
transmission machinery shall be allowed to work whilst wearing loosely fitting clothes.
• Explanation
• Boiler Suit, Shorts, Tightly fitting short worn inside the shorts, Lion cloth, vest
(banyan), Sweater, Cap, Turban without hanging ends.
• (2) Every person required or engaged to oil or adjust belts or to do any work whatsoever within reach of
any unfenced transmission machinery shall be provided by the manager free of cost with light loin-cloth or
shorts.
• 74. Safe and convenient access shall be provided to all bearings.
• 75 (I) All water level gauge glasses of boilers of which the maximum pressure exceeds 100 lbs per square
inch shall be securely guarded.
• (2) No additional weight shall be placed on the safety value of any boiler unless written authority has been
received from the boiler Inspector to do so.
• 76. All sizing cylinders, kiers, digesters, steam jacketed pans and other vessels worked under pressure shall
be fitted with safety valves pressure gauges.
84. Provision of Shelters during Rest, Certificate of Stability and
First Aid
(Section 33 - Q)
• 93. in any building or part of a building which is erected or made use of as a
factory after the commencement of the Act, no work on any manufacturing
process with the aid of power shall be commenced until a certificate of stability of
the building or part of the building, as the case may be, in Form “K” signed by a
person possessing the qualifications specified in sub-rule (4) has been approved by
the Chief Inspector.
• Such certificate shall be sent through the Inspector authorized in this behalf and
shall be accompanied by the plans if the building or part thereof which is erected
or made use of as a factory, showing its extent and construction and the position
of machinery, plant and tanks.
• No addition or alternation shall be made to such building or part thereof or such
machinery, plant or tanks, unless a fresh certificate in respect of such addition or
alternation has been approved in the manner specified in sub-rule (I)
• The certificate shall be signed by a person who is:-
– A member of the Royal Institute of British Architects; or
– A member of the Indian Institute of Architects; or
– An Associate Member of the Civil Engineers; or
– A member of the Institution of Structural Engineers, or who possesses such qualification as
the Chief Inspector may approve.
85. Holidays with pay
(Section 49-F)
• 106 (I) the employer shall maintain a holiday with
pay register in Form “Q” and make return in Form
“R” not later than 1st March of the year
subsequent to that to which it relates:
• 107 (I) the employer shall provide each workers
with a book called “Holiday Book” in Form “S”.
86. Display of Factory Notices
(Section 76)
• 121. the abstract of the Act and of the Rules
made there under shall be in the form given in
Appendix III
87. Returns
(Section 77)
• 122. Submission of returns under section 77. – The
manager shall furnish the following returns to the chief
Inspector on or before the date specified in respect of
each return”-
– on or before the fifteenth of January each year, an annual return in
duplicate in form “U”
– a half yearly return in form “V” for the half year ending 30th of June and
the 31st of December on or before the 15th of July and 15th of
January, respectively following half year to which it relates:
88. Service Contract
Contents of a Service Contract
Service contract are drafted in the same way as other agreements. The terms of
employment should be definitely fixed and clearly expressed and nothing should
be left to presumptions. They are required to be both affirmative (describing the
acts and duties to be performed) as well as negative (putting restrictions on the
acts of the employee during &/or after the term of employment). It is therefore
necessary to make provision for (1) the time or period of employment; (2) the
remuneration and other perquisites, if any, including
pay, allowances, commission, rent free house, conveyance, etc; (3) duties of
employment; (4) powers of the employee; (5) leave and the terms on which it will
be granted; (6) modes and grounds of determining the employment during the
term; and (7) restrictive covenants.
• Period of Service
• Remuneration
• Leave
• Determination of Employment
• Transfer from one Employer to Another
• Agreements in Restraint of Trade
• Effect of Labour laws
89. Format
(MGT Category)
• PRIVATE AND CONFIDENTIAL: September 26, 2011
•
•
• Ms. XYZ
• D/O XYZ
• Address
•
•
• Dear Ms. XYZ
•
• With reference to your application and your subsequent interviews, we are pleased to offer you employment with this Company in the
position of Floor Champion in management cadre on the following terms and conditions:
•
• 1) Your monthly salary and allowances payable monthly in arrear will be as follows:
•
•
• BASIC SALARY 4,700
• UTILITIES 0,470
• HOUSE RENT 2,115
• SUPLEMENTARY PAY 1,081
• COVETANCE ALLOWANCE 0,470
• CASH / TARGET ALLOWANCE 3,000
• --------------------------------
• TOTAL GROSS SALARY 11,836
• --------------------------------
•
• (2) Your employment may be terminated, without assigning any reason, either by you giving the Company 30 days notice in
writing or by the Company giving you 30 days notice in writing or on payment by either side one month's salary in lieu of notice.
Provided, however, that in the event the termination of your services is due to misconduct, of which the Company shall be the sole
judge, no notice by the Company will be required to be given and no salary in lieu of notice will be payable.
90. (3) You agree to be bound by the Company's rules, regulations and policies as
amended, modified or adopted from time to time.
(4) You agree to perform, observe and conform to such duties and instructions as may
from time to time be assigned or communicated to you by the Company.
(5) You may be transferred by the Company at any time to any place in Pakistan at any
job / designation.
(6) You agree to subscribe, with effect from the date of your employment, to the
Company's Contributory Group Health Plan for medical benefits. The details, as
currently applicable, are given in the attached brochure. This plan may be
amended from time to time by the Company.
(7) After completion of one year's service, but less than five completed years of
service, you will be eligible for 15 working days vacation after each completed
year of service. After completion of 5 year's service, or more, you will be eligible
for 22 working days vacation after each completed year of service.
(8) You undertake that you will not, at any time either during the continuance of your
employment with the Company, or thereafter, divulge or use any information
which you may acquire in the course of your employment in any manner which
may be directly or indirectly detrimental to the interest of the Company.
91. (9) Any notice required to be given under the terms of this letter of appointment shall be deemed sufficiently served by being sent by post
to the address of the Company or your address, as the case may be, at the respective addresses contained in this letter or as formally
amended from time to time.
(10) This letter of appointment shall be governed by the laws of Pakistan.
(11) Your employment will commence from the date of your reporting for duty which shall not be later than September 26, 2011, failing
which this letter of appointment will become ineffective.
(12) This offer of employment is conditional upon your notifying us your acceptance of the foregoing terms and conditions by signing the
attached duplicate of this letter at the place indicated at the bottom thereon and returning the same to us on or before October
10, 2011, and our obtaining satisfactory responses on your background & reference checks.
Very truly yours,
Head of HR
I confirm that the terms and conditions of employment set out above are hereby accepted by me.
Signature: ______________________________
Date : ______________________________
92. Format
(Worker Category)
15th November 2011
XYZ
D/XYZ
Address
Dear Mr.XYZ,
Reference your application dated October 29, 2011 and your subsequent interview with us, we have pleasure in offering you
employment with this company in the position of Associate in pay Group- II subject to the following terms and conditions:
1. You will be on probation for a period of three months.
2. During the period of probation your employment may be terminated at any time by either the company or yourself
without notice.
3. After satisfactory completion of the period of probation you will be confirmed as a regular employee and
thereafter your employment may be terminated in accordance with law.
4. You agree to be bound by the company’s rules and regulations as amended with or without notice from time to
time.
5. You agree to perform, observe and conform to such duties & instructions as may from time to time be assigned or
communicated to you the company including training programmers’ as they may apply to you and your job.
6. You may be transferred by the company at any time to any place in Pakistan.
7. You agree to subscribe, with effect from the date of your employment, to the company’s contributory group
insurance plan for medical benefits.
8. You agree to subscribe to the company’s contributory retirement/separation benefit plans in accordance with the
rules and regulations as in force, from time to time in connection there with.
9. Your monthly basic salary payable in arrear will be RS. 8,000.00 (Eight Thousand Only) plus admissible allowances.
10. After completion of one year’s service, you will be eligible for 21 calendar days vacation for each completed year of
service.
11. You agree to be bound by the company’s rules and regulations governing leave and other benefits as amended with
or without notice from time to time for whatsoever reason.
12. You undertake that you will not at any time either during the continuance of your employment with the
company, or thereafter, divulge or use any information which you may acquire in the course of your employment in
any manner which may be directly or indirectly detrimental to the interests of the company.
93. 13 . Any notice required to be given under the terms of this letter of appointment shall be deemed
sufficiently served by being sent by post to the address of the company or you address, as the
case may be, at the respective addresses contained in this letter or as formally amended from
time to time.
14. This letter of appointment shall be governed by the laws of Pakistan.
15. Your employment will commence from the date of your reporting for duty which shall not be
later than November 15, 2011 failing which this letter of appointment will become ineffective.
16. This offer of employment is also conditional upon your notifying us your acceptance of the
foregoing terms and condition by signing the attached duplicate of this letter at the place
indicated at the bottom thereon and returning the same to us on or before November 15, 2011
and (2) our obtaining satisfactory reference from your present and previous employers.
Very truly your,
XYZ
Head of HR
I confirm that the terms and conditions of employment set out above are hereby accepted by me.
Signature
Address
Date
95. SCOPE
• Employer has a right to charge-sheet, conduct enquiry
and punish workmen for any misconduct committed.
• This right is not unfettered and has to be exercised
according to charge-sheet, enquiry and punishment
procedure contained in the Standing Order 15 of the
West Pakistan Industrial and Commercial Employment
(Standing Order) Ordinance, 1968
• Since many dismissal orders have not been upheld by
courts when complying with this procedure.
96. STANDING ORDER 15
• This law provides punishments for workmen guilty of misconduct or
other omissions.
• Clause (3) of SO 15 of West Pakistan Industrial and Commercial
Employment (Standing Order) Ordinance, 1968 specifies the acts
and omissions which constitute misconduct.
• Clause (1) certain other acts and omissions (not amounting to
misconduct) punishable with fine are contained in this clause.
• Clause (2) Punishment specified in this clause.
• Clause (4) One of the important provision in this clause provides
that “that the employer shall institute independent inquiries before
dealing with the charges against a workman”
97. Step 1
• Inform the workman/ manager in writing of the alleged misconduct within one month of the date
of misconduct or of the date on which the alleged misconduct comes to the notice of the employer
through
• Charge sheet,
• Show cause notice or
• Explanation
Charge Sheet
• Charge sheet should be divided into three parts
NARRATIVE
• Giving all relevant details of the alleged act or omission with particular reference to the date time
and place at which it took place and the manner in which it was committed.
SUBSTANTIVE
• The misconduct to which the act or omission amounts and the clause of standing order 15 (3)
under which it falls.
OPPORTUNITY TO EXPLAIN
• It must give an opportunity to the workman to explain the circumstances against him and at the
same time putting him on notice about the impending action.
98. STEP 1
Format Of Show Cause Notice
Lahore______ January 2006
(Name of Employee)
Designation
Employee Code
Department
Organization
Re: Show Cause Notice / Charge Sheet
This is with reference to your absence from duties on January 13, 14 & 15, 2006 without any information or prior approval. It is
reported by your departmental head that you were absent from duties on above mentioned days without any information or prior
approval.
This constitutes a misconduct within the meaning of Standing Order 15(3)(b) and (h) of Industrial and Commercial Employment
(Standing Order) Ordinance, 1968.
You are, therefore, called upon in writing within seven days of the receipt of this show cause notice as to why disciplinary action should
not be taken against you under the aforesaid law. In case no reply is received from you within the time mentioned above, it will be
presumed that you have nothing to say in your defence and the matter will be decided ex-parte.
The management has also decided to suspend your services for two (02) days starting from date of this notice. You will report to
Administration department after this period i.e. on Wednesday January ___, 2006
____________________
Factory Manager or HR Manager
99. STEP 2
• Reasonable time and opportunity to explain
circumstances alleged against the workman
100. STEP 3
• Institution of independent Enquiry if
explanation of the workman in regard to the
alleged misconduct not found satisfactory or
the workman fails to submit his explanation
without reasonable excuse within the given
time
101. Meaning, Scope And Object Of
Enquiry
• Originally a fact finding investigatory.
• Independence of Enquiry officer and shifting the function of producing
evidence to the management or department.
• The concept of management or departmental representative/ presenting
officer/prosecutor
• Producing/ adducing all evidence in the presence of the delinquent and
his right to cross-examine the witnesses and to examine and comment on
the documents produced against him.
• The right of the delinquent to produce witnesses and documents in his
defence.
• The right of the management or DR to cross examine the delinquent and
his witnesses.
• Assistance of the delinquent specially if he is not literate.
• Application of the technicalities of trial in a court of Law.
102. Requirements Of Proper Enquiry
• The enquiry must not be conducted in a manner as if the onus is on the workman
to establish his innocence.
• Charge must be proved by evidence of prosecution.
• Prosecution cannot succeed by weaknesses of defence.
• Evidence of prosecution to be recorded first.
• Complainant should be the first person to be examined on behalf of prosecution.
• All witnesses should be examined in presence of the workman.
• The workman should be given a fair opportunity to cross-examine witnesses
deposing against him.
• Workman to be given a fair opportunity to produce his own witnesses and adduce
any other relevant evidence he might choose in support of his defence.
• No material should be relied upon against the workman without giving him an
opportunity to explain the same. 2004 PLC (CS) 688 (Yasmin Rashid vs. Chief Sec.)
• Enquiry officer to give reasons for his conclusion if he finds the workman guilty of
the charge.
• Evidence to be strictly construed.
• Maintaining record of Enquiry.
103. Correct Procedure Of Recording
Statements In Enquiry Proceedings
• The statements of the accused and all witnesses shall be recorded
in first person as they narrate what they saw or heard or felt.
• The statement of the accused and all witnesses in the examination
in chief shall be recorded in the narrative and not in questions and
answers forms. The questions asked and the answers given in cross-
examination may be recorded in questions and answers forms.
• The statement of the accused that he does not want to cross
examine a witness shall be recorded in writing and got signed by
the accused at the end of the main statement of that witness.
• The Enquiry Officer shall write his report properly giving reasons for
his conclusions or findings.
104. Assistance Of Co-worker
• Co-worker not allowed to cross examine prosecution
witness—enquiry vitiated
• (1982 PLC 728—Appellate Tribunal)
• When accused himself cross-examined witnesses. Enquiry
Officer not allowing co-worker to cross examine
witnesses, in circumstances, did not cause prejudice to
accused (1985 PLC 389—Tribunal) in this case the accused
workman asked 29 questions from first witness and 25
questions from second witness. It was held that the main
point for consideration in such a case should be whether
the refusal has caused prejudice to the workmen.
• Assistance of co-worker to accused mandatory only if
desired by accused.
• (1986 PLC 159- Tribunal)
105. Enquiry officer to control Enquiry
• In an enquiry it may not be necessary for the enquiry
officer to call all witnesses whom the parties may
desire to be called. He would be perfectly justified in
declining to call any witness whose evidence in his
view is repetitive or irrelevant and not of any
assistance. It is also open to the enquiry officer to limit
the right to cross-examination where he feels that it is
not required for compliance with the principles of
natural justice.
Supreme Court of India
106. Enquiry - Suggested Procedure
• Reading out charge to the workman, asking whether he admits the charge or defends himself
• Examination of the complainant and opportunity to the workman to cross-examine him.
• Examination of witnesses in support of the charge one by one and giving opportunity to the
workman to cross-examine every one of them.
• Recording of evidence, in examination and cross-examination both, in narrative form.
• Evidence of each witness both in examination and cross examination to be signed by witness and
countersigned by E.O. at least.
• E.O. not to cross examines any witness but may ask questions for the purpose of examinations.
Such questions and answers be preferably recorded in questions and answers form.
• After examination of witnesses in support of the charge the accused workman to be asked to enter
upon his defence.
• Evidence of workman in his defence and opportunity to prosecution to cross-examine him.
• Examination of other witnesses of defence, one by one and opportunity to the prosecution to
cross-examine each witness.
• After examination of witnesses for the defence a declaration signed by the accused that he has no
more evidence to offer.
• If a document is produced by any party it has to be proved first. The person who wrote the
document or who has signed it or who is familiar with the writing on signature of writer or
signatory has to be called as witness if the writer or signatory is not available. If the document is
supposed to be in the custody of some person, that person should also be called as witness.
• If the enquiry officer visits any place or premises necessary for arriving at proper finding it must be
in the presence of the accused and his objections and views recorded in writing.
• Enquiry officer can put questions for clarification- AIR 1975 SC 2125
107. Composite Enquiry
• Normally there should be a separate Enquiry for every
separate charge especially when the acts or omissions
in question are not alleged to have been committed in
the course of the same transaction.
• The holding of a composite Enquiry on more than one
charge will, however, not be objectionable if it is
conducted in a manner that the employee concerned
has full opportunity to defend himself against each
charge, without any prejudice caused to him in the
process and to produce his own evidence as well.
(1976 PLC 376)
108. Joint Enquiry
• Enquiry against several persons accused of the same act or omission alleged to
have been committed during the course of the same transaction, or of different
acts or omissions but alleged to have been committed during the course of the
same transaction, will not be the objectionable if the principles of natural justice
are fully observed i.e. the witnesses against all the accused persons are examined
in their presence, each of the accused person is given an opportunity to cross
examine the witnesses deposing against him, to produce his own evidence and
that nothing is taken into account against any of the accused without giving him an
opportunity to explain the same
(1973 PLC 45)
• In the case of a joint Enquiry the charge against every accused is to be proved
individually. The theory of conspiracy is not applicable to industrial adjudication.
(AIR 1960 SC 160)
109. Enquiry Report
BRIEF NARRATION
• The report should start with a brief narration of why and
against whom the enquiry was initiated.
PROSECUTION CASE
• The narration shall be followed by a brief description of the
prosecution’s case with main points of evidence adduced in
support of the charge.
DEFENCE VERSION
• After the case of the prosecution is stated, the report shall
highlight the defence version together with plea, if
any, raised by the workman and the main points of
evidence adduced on behalf of the defence.
110. FINDINGS
• The findings of the enquiry officer with reasons.
• A mere statement to the effect that on the basis of the evidence adduced
by the prosecution the workman is found guilty of the charge will not be
enough
• The enquiry officer shall arrive at his conclusion in a logical way after
discussing the evidence adduced by the parties and the reasons for his
conclusion.
• The findings of the enquiry officer shall be confined to the misconduct
alleged in the charge sheet or borne out by the circumstances alleged in
the charge sheet.
• Finding a workman guilty of an act or omission neither mentioned in the
charge sheet nor borne out by the circumstances alleged in the charge
sheet will render the order of dismissal based thereon and bad in law.
• Evidence of the prosecution about an act or omission not mentioned in
the charge sheet may however be admitted for the purpose of proving the
involvement of the workman in the misconduct with which he is currently
charged or to counter his plea if any but not for the purpose of giving a
finding thereon.
111. Writing An Enquiry Report
• Brief narration
• Prosecutions case
• Defence version
• Findings
112. Enquiry Report
Enquiry report Miss. __________________ I was appointed as inquiry officer vide letter number
_______dated _________ by (Authorised) for investigation of charges contained in charge sheet dated 27 Feb.
2012, issued to Ms .____________ , floor champion quality reception. I commenced the inquiry proceeding on 6
march 2012 at 3;30 pm in conference room as per date, time and place mentioned in the inquiry letter dated 5
march 2012, issued to accuse Ms ._________. In the inquiry proceeding beside the accused floor champion
___________, Mr ____________, AMQ was also present in capacity of Management representative.
I read over the charge mentioned in the charge sheet and explained to Ms. ___________in urdu and asked her
that whether she accepts the charges mentioned in the show cause notice or not. Ms ____________ in reply to
my question, not accepted the charge and nor admitted the fact. After this I started the proceeding and also
recorded the statement of Ms._________. Afterwards I requested to Management Representative, if he wants to
cross examine than he can proceed, Management Representative asked more than 6 questions in which she
accepted all charges mentioned in the show cause, letter dated 27 Feb. 2012. I also gave opportunity to accused
Ms. ____________ for cross questioning which she not accepted.Complainant submitted request to IO to allow
witnesses he produced 2 x witnesses and their statement is attached with the Inquiry report.
Conclusive remarks by IO of Inquiry proceeding:-
During the cross examination session by the MR I found at 3 occasions she accepted the charges mentioned in the
show cause letter dated 27th Feb 2012. As per this inquiry I found that all charges mentioned in the show cause
letter dated 27/2/2012 are true and found her guilty.
114. • Gratuity is a benefit for past service, It is now regulated
by Law
• Till 24th May 1972 payment of gratuity was on
voluntary basis by an employer
• In disputed cases demand of workman for gratuity was
adjudicated by a Labour Court on the merits of each
case under the IRO 1969.
• On and from 24th May 1972, the labor laws
(Amendment) Act, 1972 on 7th September 1972) made
payment of gratuity a statutory obligation of employers
by making a provision to this effect in Standing Order
12 (6) of the West Pakistan Industrial and Commercial
Employment (Standing Orders) Ordinance 1968.
• Standing Order 12 relates to termination of
employment and clauses (6), (7) and (8) thereof
concern payment of gratuity.
115. Clause 6 of
Standing Order 12
Where a workman resigns from service or his services are
terminated by the employer, for any reason other than
misconduct, he / she shall, in addition to any other benefit
to which he may be entitled under this Ordinance or in
accordance with the terms of his employment or any
custom, usage or any settlement or an award of a Labour
Court under the Industrial Relations Ordinance 1969 (XXIII
of 1969), be paid gratuity equivalent to thirty days
wages, calculated on the basis of wages admissible to him
in the last month of service if he is a fixed-rated workman
or the highest pay drawn by him during the last twelve
months if he is a piece-rated workman for every completed
year of service or any part thereof in excess of six months.
116. Clause 7 of
Standing Order 12
A workman shall be entitled to receive the
amount standing to his credit in the provident
fund, including the contributions of the
employer to such fund, even if he resigns or is
dismissed from service.
117. Clause 8 of
Standing Order 12
where a workman dies while in service of the
employer, his / her dependent shall be paid
gratuity in accordance with the provision of
clause (6)
