Industrial relation employees relation knowledge box

Labor Laws Instructor: Muhammad Akram Chaudhry 1
INDUSTRIAL RELATION /
EMPLOYEE’S RELATION

Goals for today
• THINK:
– About basic principles that affect people and
organizations
– About practices that HR professionals and
leaders can use to implement these principles
• BEHAVE:
– Do little things that make a difference
• FUN:
– Enjoy the experience together

New Business Realities: Context of
HR
• Technology
– Connectivity: always connected
– Accessibility: no boundaries
– Ambiguity: uncertain future
• Industry/economic trends
– Transparency: open book management
– Adaptability: the need to change
– Intensity: market conditions
– Convergency: overlap of industries
• Demographics
– Mobility: movement of talent globally
– Diversity: globalization of work force
– Spirituality: a need for trust and values
G
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Fundamental Message:
value is defined by the receiver more than the giver

value is defined by the receiver

What we want
(values, beliefs, goals)
What we want
(values, beliefs, goals)
What we do?
Actions/behaviors
What we do?
Actions/behaviors
Human resourcesHuman resources Line managementLine management
value is defined by the receiver

HR
professionals
HR actions that deliver value
coach
deliver and do
facilitate architect

Evolution of HR
30’s:: industrial relations
40’s: staffing practices
50’s: training/development
60’s: socio/technical systems;
70’s: compensation/rewards
80’s: organization design/communication
90’s: partnership; HR strategy
2000’s: adding value: how we are at the table, what do we do?

LEADING THROUGH HR
• The most recent HR trends have a track record of
professional development which may be categorized
in FOUR Broad Phases. Each phase has been
influenced by radical management ideas which have
defined the role of HR Manager in business
organizations..

PHASE I – THE PHASE OF WELFARE & ADMINISTRATION (1900
to 1940’s)
The following Management ideas flourished in this
phase:-
1923
• Efficiency was the buzzword as enterprises applied the
scientific management methods of Federick Taylor, Frank
Gilberth and others.
• Henry Ford’s,
Mass production technique churning out Model Ts at
increasingly lower prices.

• Alfred Sloan’s new structure for GM, Decentralized
decisions, Centralized staff functions
• Mary Parker Follett saw the future of management: key
words introducing such as, Group thinking
coordination, power with, not power over.
• The human element Elton Mayo’s famous Hawnthorne
studies find that, Human and
social factors have a big impact on productivity.
PHASE I – THE PHASE OF WELFARE &
ADMINISTRATION (1900 to 1940’s)

PHASE I – THE PHASE OF WELFARE &
ADMINISTRATION (1900 to 1940’s)
1938
• Janes Mooney identifies hierarchy showing that,
Organizations have a ladder of duties & responsibilities.
• Chester Bernard defined
organization as a System of cooperative efforts with a
common purpose in the function of the Executive.
• Emergence of Labour Laws for industrial workers.

PHASE 2 – WELFARE ADMINISTRATION STAFF AND
TRAINING : PERSONNEL MANAGEMENT, INDUSTRIAL RELATIONS 1940’s TO
MID 1970’s
The following management ideas flourished during this period:-
• Quantitative methods of analysis influenced decision
marking in business.
• Henry Fayol’s Complete theory of “14 principles of
management functions” (Planning controlling staffing….)
published in English 33 years after Frenchman Henry Fayol
wrote it (General & industrial management).

TRAINING : PERSONNEL MANAGEMENT, INDUSTRIAL RELATIONS
1940’s TO MID 1970’s
1954
• Maslow’s theory of human needs hierarchy.
• The rise of MBO Peter Draker:
• “Managers should be driven by clear objectives” in
“The Practice of Management”.
• Frederik Herzberg’s Theory of
Motivation.

1962
• Douglas Mc Gregor’s argument of Theory Y Management
(Encouraging self direction) on Theory X (Encouraging
authority).
• Organizational structure takes Centre Stage as Alfred
Chandler& Drucker focus on big picture.
Likert’s concept of Leaders who develop
participative organizations get better results.
1940’s TO MID 1970’s

1940’s TO MID 1970’s
1967
• Peter Drucker introduce the knowledge workers and
recognizes the growing up of knowledge workers.

PHASE 3 – HUMAN RESOURCE MANAGEMENT
MID 1970’s – 1990’s
The following management ideas groomed in this.
1980
• What do managers do (Henry Mintzberg) finds that,
Immediate tasks rather than long term thinking consume
their days.
.

• Tom Peters’ In Search of Excellence: Research of 43
Excellent Companies’ identifying success factors
behind their excellence.
Within Productivity through People highlighted as
key to organization excellence
MID 1970’s – 1990’s

MID 1970’s – 1990’s
May 1986 Wall Street Journal
• Peter Ducker’s article on “Goodbye to old
personnel department” in which he predicted:
1. Personnel function will drastically change in years ahead.
2. New and different tasks
3. We will have to act as a line rather then staff function.
4. Employing different people.

5. Will have to redirect itself away from concern with cost of employees to
concern with their yield as resource.
6. Personal Management & Org. Planning (OP) will have to come together.
7. PERSONAL MANAGEMENT: Treated organization as given and tried to
provide people. Focused on supply
8. ORGANIZATION PLANNING: Fashioned impersonal boxes with functional
titles. Focused on demand.
9. Both will have to come together Personnel function will have to concern
itself with job design and job relations rather than simply try to supply
people to fill predetermined slots
MID 1970’s – 1990’s

MID 1970’s – 1990’s
• PETER DRUCKER IDENTIFIED FOLLOWING FACTORS RESPONSIBLE FOR
ABOVE CHANGE:
1. Changing technology, taking away functions of first line supervisors by
automaton will need to redirect them to acquire new vision, new skills.
2. Shift in composition of workforce. Productivity of white collar workers,
new challenge, restructuring of career ladders, compensation and
recognition.
3. Changing age composition of professional and managerial functions.

MID 1970’s – 1990’s
1. Changing technology, taking away functions of first line supervisors by
automaton will need to redirect them to acquire new vision, new skills.
2. Shift in composition of workforce. Productivity of white collar workers,
new challenge, restructuring of career ladders, compensation and
recognition.
3. Changing age composition of professional and managerial functions.
• The Credibility gap: The tug of war between HR and Line Managers.
• Moving back or moving forward:- The HR linkage.

PHASE 4 STRATEGIC HUMAN RESOURCE MANGEMENT
2000 ONWARDS
• Influence of IT revolution in Strategic Decision Making.
• From “Do able” to “Deliverables”.
• Lagging indicators & Leading indicators as new parameters of
organizational success.
• The Strategic Alignment and the HR Score Card.

– Dave Ulrich’s new mandate for HR Managers: The future Humane
Resources Champions:
- As STRATEGIC PARTNER
- As ADMINISTRATIVE EXPERTS
- As EMPLOYEE CHAMPIONS
- As AGENTS OF CHANGE
2000 ONWARDS

2000 ONWARDS
• Charles Handy’s Productivity Challenge
Productivity
Three Times = Half the people + Double the Wages
the Performance
Wealth = Productivity + Alchemy (Creative mind)
Happiness = Wealth + Humanity (Concern for
people)

• The new challenge of Managing Talents.
• HR’s Leading Role as the Future CTOs (Chief Talent Officer):
The Ladder to the Board Room
• Where are we? The HR leaders of Pakistan: Respond to the
Wakeup Call
2000 ONWARDS

Labor Laws Instructor: Muhammad Akram Chaudhry
Business Environment and the
Changing Workplaces at a Glance

Business
Era
The Global Environment
Reaction of
Nations
Business Focus
within
Organizations
Culture within
Organizations
People Perspective Functional
Importance
within
Organizations
Fortune 100
and their
CEOs
1900s-
1940s
Conflicts, Wars and
Independence Movements
We don’t
need your
help. W e
can do it
ourselves.
Survival Lack of trust
and survival of
the fittest
Give them limited
resources and control them
tightly.
Accounting and
Finance
Accounting
and Finance
1940s-
1950s
Industrialization (increased
business opportunities,
increased employment, etc.)
You can
help, if you
want to.
Growth while
focusing on ways of
increasing productivity
I can do without
you.
Give them the resources,
however, govern and
administer their behavior.
Production and
Engineering
Production
and
Engineering
1960s-
1970s
Restricted international
trade opportunities, Cross
boundaries joint-ventures,
international investment
climate, growth of multi-
national business
organizations,
establishment of
international trade and
peace organizations,
relaxed immigration
policies allowing
international migration, etc.
Let me help
you with
your growth.
Cross-boundaries
expansion and growth
I need your
help.
People will work better if
they are valued, managed
and trained like other
organizational resources...
Marketing Marketing
1980s
and
early 90s
Information, communication
and technological
revolution, Fall of Berlin
wall, End of communism
International Standards,
European Union, etc.
We can be
more
effective with
mutual
sharing and
assistance.
Increased used of
technology and
standardization of
systems procedures
and processes for
consistency in quality
We can’t do it
alone. W e need
each other.
People are emotional
beings and critical for the
success of any
organization and their
competence is the key to
success in future. They
must be respected,
appreciated, nurtured,
developed and empowered.
Technology Operations
Late
90s
and
Beyond
Globalization of the world
economy, Free movement of
infor mation, goods and
services, etc. More inter
border alliances like
European Union, More
single currency markets, etc.
We are all
one and
have the
same
objective.
Then let’s
work
together for
the common
good.
Humanization of the
organization for
competitive advantage
as no other
competitive
advantage is left with
the easy availability
and transfer of
technology goods and
services.
We are one
and can only
get the best if
we pooled our
resources and
efforts together.
People are the most
precious and important
capital of the organization
and the motivation of people
will be the only success
factor in the new age
and it will reflect in the
balance sheet of the
organization.
Human
Resources
Inspirational
Human
Resources
with strong
business
acumen and
ability to
relate religion
with business.

Changing Role of HR Function in the Workplace
Business
Era
HR
Paradigm
Nature of HR
Department
Role of HR
Head
Background
of HR
Managers
Impact of HR
Role
HR Role Positioning in
organizations
1900s-
1940s
Control and
Discipline.
Administration
Department
Bull-dog Army and
Police
Control at
workers’ level.
Supervisory or Junior Management
depending on the size of operation
1940s-
1950s
Ensure
Compliance
with
organization
al rules ad
regulations.
Industrial Relations
Department
Watch-dog Industrial
Relations
and Law
Compliance to
organizational
policies up to
supervisory level.
Junior/Middle Management
reporting to Admn. Or Finance
head
1960s-
1970s
Train and
Manage.
Personnel
Management
Department
Trouble
shooter and a
coach
Personnel
Management
Providing
personnel policies
and systems
support to other
functional heads.
Middle Management reporting to
Operations
1980s
and
early 90s
Develop and
Motivate.
HR Department Business
Partner
Psychology
and
Business
A line-manager
providing HR
related support
to other colleagues
in support
departments and
business units.
Senior Management reporting to
directors/CEO.
Late
90s
and
Beyond
Educate and
Inspire.
Human Capital
Management
Function
Clergy and
an agent of
change
Behavioral
Sciences
and Religion
Total Business and
the society at
large.
Advisory and Inspirational role
providing expert advice to the
board. Reporting to the
Chairman/share-holders with the
functional/line management
responsibilities pushed down to
business unit heads.

HR- Transaction to
Transformation

Basic Human Resource Functions
Staffing
Maintenance Training &
Development
Motivation
H R M

Shift of HR from Operational to
Strategic Continuum
HR Business Partner Model

HR can help bring organizational excellence by
means of four methods;
1. As Strategic Partner: HR should become a partner with
the top management to help in strategy execution by
aligning HR Systems with business strategy
2. As Administrative Expert: HR should add its expertise to
achieve work excellence so that costs are cut and quality
is maintained through efficient delivery of HR System

3. As Employee Champion: HR should represent the
employees concerns to senior management as well
as coordinate with employees to ensure their
contribution through competence and
commitment
4. As Change Leader: HR professionals should act as
change leaders by contributing to process of
change and help improve the organization’s
capacity to do so

Pakistan Institute of Management
INTERNATIONAL LABOURINTERNATIONAL LABOUR
ORGANIZATIONORGANIZATION

Origins and history
The ILO was created in 1919, as part of the
Treaty of Versailles that ended World War I, to
reflect the belief that universal and lasting
peace can be accomplished only if it is based
on social justice.

The International Labour Organization
The international Labour Organization (ILO) is
a United Nations specialized agency that aims
to promote social justice and universally
recognized human and labour rights. It is the
only worldwide organization founded on a
tripartite structure with equal representation
of governments, employers and workers.

Origins and history
The Constitution was drafted between
January and April, 1919, by the Labour
Commission set up by the Peace Conference,
which first met in Paris and then in Versailles.
It resulted in a tripartite organization, the only
one of its kind bringing together
representatives of governments, employers
and workers in its executive bodies.

Origins and history
preamble states:
1. Whereas universal and lasting peace can be established
only if it is based upon social justice;
2. And whereas conditions of labour exist involving such
injustice hardship and privation to large numbers of people
as to produce unrest so great that the peace and harmony
of the world are imperiled; and an improvement of those
conditions is urgently required;
3. Whereas also the failure of any nation to adopt humane
conditions of labour is an obstacle in the way of other
nations which desire to improve the conditions in their own
countries.

Origins and history
The areas of improvement listed as per preamble are,
1. Regulation of the hours of work including the establishment of a
maximum working day and week;
2. Regulation of labour supply, prevention of unemployment and
provision of an adequate living wage;
3. Protection of the worker against sickness, disease and injury arising out
of his employment;
4. Protection of children, young persons and women;
5. Provision for old age and injury, protection of the interests of workers
when employed in countries other than their own;
6. Recognition of the principle of equal remuneration for work of equal
value;
7. Recognition of the principle of freedom of association;
8. Organization of vocational and technical education, and other
measures.

Origins and history
Early days
“Working for social justice is our assessment
of the past and our mandate for the future."
Juan Somavia, Director-General

INTERNATIONAL LABOURINTERNATIONAL LABOUR
STANDARDSSTANDARDS

International labour standards
International labour standards have been the
principal means through which the
international labour organization has acted
since it was created in 1919. They take the
form of conventions or recommendations.

Conventions
Conventions are international treaties that
bind the member States which ratify them. By
ratifying them, member States formally
commit themselves to putting their
provisions into effect, both in law and in
practice.

Recommendations
Recommendations are not international
treaties. They establish non-obligatory guiding
principles for national policy and practice.
They often supplement the provisions of
Conventions.

Compliance
States that have ratified Conventions must
periodically report on their application in law
and in practice. They have a constitutional
obligation to present reports on the measures
they have taken to put those Conventions into
effect. Employers organization and workers
origination may present the organization with
their comments on the application of
convention ratified by their countries

Compliance
The reports are examined by the Committee
of Experts on the Application of Conventions
and Recommendations, a body independent
of the Organization, whose own report is then
discussed each year by a tripartite committee
of the international Labour Conference.

Structure
The International Labour Organization, which has its
Headquarters in Geneva, Switzerland, accomplishes
its work through three main bodies, all of which
encompass the unique feature of the Organization,
i.e. its tripartite structure. These bodies are:
• A General Assembly
• The International Labour Conference;
• An Executive Council
• The Governing Body;
• A permanent secretariat –the International Labour
Office.

a. The International Labour Conference
The Conference has several main tasks: it
sets international labour standards and plays
a very important role in supervising their
application; it acts as a forum in which social
and labour questions of importance to the
entire world are discussed freely; it passes
resolutions that provide guidelines for the
ILO’s general policy and activities.

b. The Governing Body
The Governing Body meets three times a
year, in March, June and November, in
Geneva, Switzerland. It has 56 titular
members: 28 represent governments, 14
represent employers and 14 represent
workers. Ten of the government seats are
permanently held by States of major
industrial importance.

c. The International Labour Office
The International Labour Office in Geneva,
Switzerland, is the Permanent secretariat of
the Organization. It is the focal point for the
overall activities that it prepares under the
scrutiny of the Governing Body and under
the leadership of a Director-General, elected
by the Governing Body for a five- year
renewable term.

OFFICIAL TITLES OF THE CONVENTIONSOFFICIAL TITLES OF THE CONVENTIONS
ADOPTEDADOPTED
By The International Labour ConferenceBy The International Labour Conference

ILO -- Conventions
1 — Hours of Work (Industry) Convention, 1919
2 — Unemployment Convention, 1919
3 — Maternity Protection Convention, 1919
4 — Night Work (Women) Convention, 1919 (shelved)
5 — Minimum Age (Industry) Convention, 1919
6 — Night Work of Young Persons (Industry) Convention, 1919
7 — Minimum Age (Sea) Convention, 1920
8 — Unemployment Indemnity (Shipwreck) Convention, 1920
9 — Placing of Seamen Convention, 1920
10 — Minimum Age (Agriculture) Convention, 1921
Conventions

ILO -- Conventions
11 — Right of Association (Agriculture) Convention, 1921
12 — Workmen’s Compensation (Agriculture) Convention, 1921
13 — White Lead (Painting) Convention, 1921
14 — Weekly Rest (Industry) Convention, 1921
15 — Minimum Age (Trimmers and Stokers) Convention, 1921 (shelved)
16 — Medical Examination of Young Persons (Sea) Convention, 1921
17 — Workmen’s Compensation (Accidents) Convention, 1925
18 — Workmen’s Compensation (Occupational Diseases) Convention, 1925
19 — Equality of Treatment (Accident Compensation) Convention, 1925
20 — Night Work (Bakeries) Convention, 1925 (shelved)
Conventions

ILO -- Conventions
21 — Inspection of Emigrants Convention, 1926 (shelved)
22 — Seamen’s Articles of Agreement Convention, 1926
23 — Repatriation of Seamen Convention, 1926
24 — Sickness Insurance (Industry) Convention, 1927
25 — Sickness Insurance (Agriculture) Convention, 1927
26 — Minimum Wage-Fixing Machinery Convention, 1928
27 — Marking of Weight (Packages Transported by Vessels) Convention, 1929
28 — Protection against Accidents (Dockers) Convention, 1929 (shelved)
29 — Forced Labour Convention, 1930
30 — Hours of Work (Commerce and Offices) Convention, 1930
Conventions

ILO -- Conventions
31 — Hours of Work (Coal Mines) Convention, 1931 (withdrawn by the ILC –
decision of 15 June 2000)
32 — Protection against Accidents (Dockers) Convention (Revised), 1932
33 — Minimum Age (Non-Industrial Employment) Convention, 1932
34 — Fee-Charging Employment Agencies Convention, 1933 (shelved)
35 — Old-Age Insurance (Industry, etc.) Convention, 1933 (shelved)
36 — Old-Age Insurance (Agriculture) Convention, 1933 (shelved)
37 — Invalidity Insurance (Industry, etc.) Convention, 1933 (shelved)
38 — Invalidity Insurance (Agriculture) Convention, 1933 (shelved)
39 — Survivors’ Insurance (Industry, etc.) Convention, 1933 (shelved)
40 — Survivors’ Insurance (Agriculture) Convention, 1933 (shelved)
Conventions

ILO -- Conventions
41 — Night Work (Women) Convention (Revised), 1934 (shelved)
42 — Workmen’s Compensation (Occupational Diseases) Convention (Revised),
1934
43 — Sheet-Glass Works Convention, 1934 (shelved)
44 — Unemployment Provision Convention, 1934 (shelved)
45 — Underground Work (Women) Convention, 1935
46 — Hours of Work (Coal Mines) Convention (Revised), 1935 (withdrawn by the ILC
– decision of 15 June 2000)
47 — Forty-Hour Week Convention, 1935
48 — Maintenance of Migrants’ Pension Rights Convention, 1935 (shelved)
49 — Reduction of Hours of Work (Glass-Bottle Works) Convention, 1935 (shelved)
50 — Recruiting of Indigenous Workers Convention, 1936 (shelved)
Conventions

ILO -- Conventions
51 — Reduction of Hours of Work (Public Works) Convention, 1936 (withdrawn by the
ILC – decision of 15 June 2000)
52 — Holidays with Pay Convention, 1936
53 — Officers’ Competency Certificates Convention, 1936
54 — Holidays with Pay (Sea) Convention, 1936
55 — Shipowners’ Liability (Sick and Injured Seamen) Convention, 1936
56 — Sickness Insurance (Sea) Convention, 1936
57 — Hours of Work and Manning (Sea) Convention, 1936
58 — Minimum Age (Sea) Convention (Revised), 1936
59 — Minimum Age (Industry) Convention (Revised), 1937
60 — Minimum Age (Non-Industrial Employment) Convention (Revised), 1937 (shelved)
Conventions

ILO -- Conventions
61 — Reduction of Hours of Work (Textiles) Convention, 1937 (withdrawn by the ILC – decision of
15 June 2000)
62 — Safety Provisions (Building) Convention, 1937
63 — Convention concerning Statistics of Wages and Hours of Work, 1938
64 — Contracts of Employment (Indigenous Workers) Convention, 1939 (shelved)
65 — Penal Sanctions (Indigenous Workers) Convention, 1939 (shelved)
66 — Migration for Employment Convention, 1939 (withdrawn by the ILC – decision of 15 June
2000)
67 — Hours of Work and Rest Periods (Road Transport) Convention, 1939 (shelved)
68 — Food and Catering (Ships’ Crews) Convention, 1946
69 — Certification of Ships’ Cooks Convention, 1946
70 — Social Security (Seafarers) Convention, 1946
Conventions

ILO -- Conventions
71 — Seafarers’ Pensions Convention, 1946
72 — Paid Vacations (Seafarers) Convention, 1946
73 — Medical Examination (Seafarers) Convention, 1946
74 — Certification of Able Seamen Convention, 1946
75 — Accommodation of Crews Convention, 1946
76 — Wages, Hours of Work and Manning (Sea) Convention, 1946
77 — Medical Examination of Young Persons (Industry) Convention, 1946
78 — Medical Examination of Young Persons (Non-Industrial Occupations) Convention, 1946
79 — Night Work of Young Persons (Non-Industrial Occupations) Convention, 1946
80 — Final Articles Revision Convention, 1946
Conventions

ILO -- Conventions
81 — Labour Inspection Convention, 1947
Protocol of 1995 to the Labour Inspection Convention, 1947
82 — Social Policy (Non-Metropolitan Territories) Convention, 1947
83 — Labour Standards (Non-Metropolitan Territories) Convention, 1947
84 — Right of Association (Non-Metropolitan Territories) Convention, 1947
85 — Labour Inspectorates (Non-Metropolitan Territories) Convention, 1947
86 — Contracts of Employment (Indigenous Workers) Convention, 1947 (shelved)
87 — Freedom of Association and Protection of the Right to Organise Convention, 1948
88 — Employment Service Convention, 1948
89 — Night Work (Women) Convention (Revised), 1948
Protocol of 1990 to the Night Work (Women) Convention (Revised), 1948
90 — Night Work of Young Persons (Industry) Convention (Revised), 1948
Conventions

ILO -- Conventions
91 — Paid Vacations (Seafarers) Convention (Revised), 1949 (shelved)
92 — Accommodation of Crews Convention (Revised), 1949
93 — Wages, Hours of Work and Manning (Sea) Convention (Revised), 1949
94 — Labour Clauses (Public Contracts) Convention, 1949
95 — Protection of Wages Convention, 1949
96 — Fee-Charging Employment Agencies Convention (Revised), 1949
97 — Migration for Employment Convention (Revised), 1949
98 — Right to Organise and Collective Bargaining Convention, 1949
99 — Minimum Wage Fixing Machinery (Agriculture) Convention, 1951
100 — Equal Remuneration Convention, 1951
Conventions

ILO -- Conventions
101 — Holidays with Pay (Agriculture) Convention, 1952
102 — Social Security (Minimum Standards) Convention, 1952
103 — Maternity Protection Convention (Revised), 1952
104 — Abolition of Penal Sanctions (Indigenous Workers) Convention, 1955 (shelved)
105 — Abolition of Forced Labour Convention, 1957
106 — Weekly Rest (Commerce and Offices) Convention, 1957
107 — Indigenous and Tribal Populations Convention, 1957
108 — Seafarers’ Identity Documents Convention, 1958
109 — Wages, Hours of Work and Manning (Sea) Convention (Revised), 1958
110 — Plantations Convention, 1958
Protocol of 1982 to the Plantations Convention, 1958
Conventions

ILO -- Conventions
111 — Discrimination (Employment and Occupation) Convention, 1958
112 — Minimum Age (Fishermen) Convention, 1959
113 — Medical Examination (Fishermen) Convention, 1959
114 — Fishermen’s Articles of Agreement Convention, 1959
115 — Radiation Protection Convention, 1960
116 — Final Articles Revision Convention, 1961
117 — Social Policy (Basic Aims and Standards) Convention, 1962
118 — Equality of Treatment (Social Security) Convention, 1962
119 — Guarding of Machinery Convention, 1963
120 — Hygiene (Commerce and Offices) Convention, 1964
Conventions

ILO -- Conventions
121 — Employment Injury Benefits Convention, 1964 [Schedule I amended in 1980]
122 — Employment Policy Convention, 1964
123 — Minimum Age (Underground Work) Convention, 1965
124 — Medical Examination of Young Persons (Underground Work) Convention, 1965
125 — Fishermen’s Competency Certificates Convention, 1966
126 — Accommodation of Crews (Fishermen) Convention, 1966
127 — Maximum Weight Convention, 1967
128 — Invalidity, Old-Age and Survivors’ Benefits Convention, 1967
129 — Labour Inspection (Agriculture) Convention, 1969
130 — Medical Care and Sickness Benefits Convention, 1969
Conventions

ILO -- Conventions
131 — Minimum Wage Fixing Convention, 1970
132 — Holidays with Pay Convention (Revised), 1970
133 — Accommodation of Crews (Supplementary Provisions) Convention, 1970
134 — Prevention of Accidents (Seafarers) Convention, 1970
135 — Workers’ Representatives Convention, 1971
136 — Benzene Convention, 1971
137 — Dock Work Convention, 1973
138 — Minimum Age Convention, 1973
139 — Occupational Cancer Convention, 1974
140 — Paid Educational Leave Convention, 1974
Conventions

ILO -- Conventions
151 — Labour Relations (Public Service) Convention, 1978
152 — Occupational Safety and Health (Dock Work) Convention, 1979
153 — Hours of Work and Rest Periods (Road Transport) Convention, 1979
154 — Collective Bargaining Convention, 1981
155 — Occupational Safety and Health Convention, 1981
Protocol of 2002 to the Occupational Safety and Health Convention, 1981
156 — Workers with Family Responsibilities Convention, 1981
157 — Maintenance of Social Security Rights Convention, 1982
158 — Termination of Employment Convention, 1982
159 — Vocational Rehabilitation and Employment (Disabled Persons) Convention, 1983
160 — Labour Statistics Convention, 1985
Conventions

ILO -- Conventions
161 — Occupational Health Services Convention, 1985
162 — Asbestos Convention, 1986
163 — Seafarers’ Welfare Convention, 1987
164 — Health Protection and Medical Care (Seafarers) Convention, 1987
165 — Social Security (Seafarers) Convention (Revised), 1987
166 — Repatriation of Seafarers Convention (Revised), 1987
167 — Safety and Health in Construction Convention, 1988
168 — Employment Promotion and Protection against Unemployment Convention,
1988
169 — Indigenous and Tribal Peoples Convention, 1989
170 — Chemicals Convention, 1990
Conventions

ILO -- Conventions
171 — Night Work Convention, 1990
172 — Working Conditions (Hotels and Restaurants) Convention, 1991
173 — Protection of Workers’ Claims (Employer’s Insolvency) Convention, 1992
174 — Prevention of Major Industrial Accidents Convention, 1993
175 — Part-Time Work Convention, 1994
176 — Safety and Health in Mines Convention, 1995
177 — Home Work Convention, 1996
178 — Labour Inspection (Seafarers) Convention, 1996
179 — Recruitment and Placement of Seafarers Convention, 1996
180 — Seafarers’ Hours of Work and the Manning of Ships Convention, 1996
Conventions

ILO -- Conventions
181 — Private Employment Agencies Convention, 1997
182 — Worst Forms of Child Labour Convention, 1999
183 — Maternity Protection Convention, 2000
184 — Safety and Health in Agriculture Convention, 2001
185 — Seafarers’ Identity Documents Convention (Revised), 2003
— Maritime Labour Convention, 2006 [this Convention does not have a
number]
187 — Promotional Framework for Occupational Safety and Health
Convention, 2006
188 — Work in Fishing Convention, 2007
Conventions

Human Rights and
Labor Rights in Pakistan
The part of Sustainability is "Social Equity” which Covers

Protection of Human / Labor rights under
constitution of Pakistan
• Article 11 of the constitution prohibit all forms of slavery, forced
labor and child labor.
• Article 17 provide for a fundamental right to exercise the freedom
of association and the right to form union.
• Article 18 prescribes the rights of its citizen to enter upon any
lawful profession or occupation and to conduct any lawful trade or
business
• Article 25 lays down the right to equality before the law and
prohibition of discrimination on the grounds of sex alone.
• Article 37(e) makes provisions for securing just and human
conditions of work, ensuring that children and women are not
employed in vacations unsuited to their age or sex, and for
maternity benefit for women in employment.

• LABOR POLICY 1955
Labor Policies
Formation and amendments in Labor Laws are as per the
recommendations in the labor policies. Recommendations
are based on the tripartite consensus among all the parties.

1) Prohibition of slavery, forced labor, trafficking in human being;
2) Freedom of assembly if peaceful, subject to reasonable
restrictions under the law and in the interest of public order;
3) Freedom of association or unions subject to reasonable
restrictions under the law and in the interest of public order;
4) Freedom of trade, business and profession;
5) Freedom of expression;
6) Equality of citizens, non-discrimination on the basis of gender
etc;
7) Promotion of social justice and eradication of evil;
8) Promotion of social and economic well being of the people.
Constitutional provisions in labor policies

MAIN FEATURES OF LABOR POLICY 2010
• Legal framework for the formation of trade union
• Rationalization and consolidation of labor laws
– Laws relating to industrial relations.
– Laws relating to employment and services conditions
– Laws relating to occupational safety and health
– Laws relating to human resource development
– Laws relating to labour welfare and social security

• Universal / voluntary coverage
• Issuance of smart cards
• Wages
• Woman empowerment and gender equality
• Woman workers
• Eradication of bonded labour
• Construction labour
• Contractual employee
• Child labour
• Agriculture labour
• Health and safety

• Expansion in scope of workers welfare fund
• Amendment in Social Security ordinance
• Amendment in Employees’ Old-Age benefit Act
• Skill development and employment
• Employment
• Person with disability
• Export of man power

COMPLIANCE UNDER LABOR LAWS
There are three categories of laws, firstly, the law that
regulates the relations between employer and employee;
secondly those laws that provide for compulsory levies and
thirdly those that provide for minimum standards for
employees; the same are as follows:
• Labor Laws Setting Standards for Work Place;
• Labor Laws regulating the Relation of Employer and
Employee
• Labor Laws Assigning Levies;
• Labor Laws Assigning Standards for Wages;

LABOUR LAWS
1. Factories Act, 1934
2. Payment of Wages Act.
1936
7.Industrial Relations ACT ,
2008
3.Apprenticeship ordinance,
1962
8.The Payment of Wages
Act 1936
4.Provincial Employees
Social Security Ordinance
1965
9.Cost Of Living Relief Act
1973.
5.Standing Orders
Ordinance, 1968
10.The Minimum Wages
Ordinance1961
6.Companies Profits
(Workers Participation)
Act, 1968
11.Employees Old Age
Benefit Act 1976.

18th
Constitutional Amendment
After 18th
Amendment, matter related to
welfare, labour and trade union etc are the
subject of Province and the authority to
legislate has been transferred to the Province.
This was mentioned under the concurrent
legislative list at item no. 26 & 27.

PROVINCIAL ASSEMBLY OF THE PUNJAB,
NOTIFICATION DATED 11 FEBRUARY,
2012

PROVINCIAL LABOUR LAWS
The Punjab Bounded Labour
System (Abolition)
(Amendment) ACT 2012.
The Punjab Maternity Benefit
(Amendment) Act 2012
ACT XXII of 2012
The Employment (Record of
Services) (Amendment)
ACT XI of 2011.
The Factories (Amendment) Act,
2012 ACT XIV of 2012
The Punjab Workers Children
(Education) (Amendment) Act, 2012
The Punjab Industrial Relations Act 2010
(XIX of 2010)
The Employment of Children
(Amendment) Act 2011.
ACT X of 2011
The Punjab Industrial &
Commercial Employment
(Standing Orders) Amendment)
ACT 2012 ACT XXI of 2012.
The Road Transport Workers
(Amendment) Act 2012.
ACT XX 2012
The Minimum Wages
(Amendment) ACT 2012.
ACT XXIII of 2012Labor Laws Instructor: Muhammad Akram Chaudhry 84

What is industrial relation or
employees relation?
• Relation between employer and workman of
the organization / industry.

• Concept of Industrial Relations:
The term ‘Industrial Relations’ comprises of
two terms: ‘Industry’ and ‘Relations’.
“Industry” refers to “any productive activity in
which an individual (or a group of individuals)
is (are) engaged”. By “relations” we mean
“the relationships that exist within the
industry between the employer and his
workmen.”

• Industrial relations is used to denote the collective
relationships between management and the
workers. Traditionally, the term industrial relations is
used to cover such aspects of industrial life as trade
unionism, collective bargaining, workers’
participation in management, discipline and
grievance handling, industrial disputes and
interpretation of labor laws and rules and code of
conduct

• Industrial Relations involve attempts at
arriving at solutions
– between the conflicting objectives and values;
– between the profit motive and social gain;
– between discipline and freedom,
– between authority and industrial democracy;
– between bargaining and co-operation; and
– between conflicting interests of the individual, the
group and the community

• Industrial Relations affect not merely the
interests of the two participants- labor and
management, but also the economic and
social goals to which the State addresses
itself. To regulate these relations in socially
desirable channels is a function, which the
State is in the best position to perform

Factors of Industrial Relations
Industrial Relations encompasses all such factors
that influence behavior of people at work. A few
such important factors are below
1. Institution
It includes government, employers, trade unions,
union federations or associations, government
bodies, labor courts, tribunals and other
organizations which have direct or indirect impact
on the industrial relations systems.

2. Characters
It aims to study the role of workers unions
and employers’ federations officials, shop
stewards, industrial relations officers/
manager, mediator/conciliators / arbitrator,
judges of labor court, tribunal etc.

3. Methods
It focus on collective bargaining, workers’
participation in the industrial relations
schemes, discipline procedure, grievance
redressal machinery, dispute settlements
machinery working of closed shops, union
reorganization, organizations of protests
through methods like revisions of existing
rules, regulations, policies, procedures,
hearing of labor courts, tribunals etc.

4. Contents
It includes matter pertaining to employment
conditions like
– Pay / Wages
– Hours of works
– Leave with Pay
– Health and safety
– Disciplinary actions
– Lay-off, dismissals retirements etc., laws relating to such
activities
– Regulations governing labor welfare, social security, EOBI,
Workmen Compensation
– Industrial relations issues concerning with workers’
participation in management, collective bargaining, etc.

Industrial Relations System
• An Industrial Relations system consists of the whole gamut of
relationships between employees and employees and
employers which are managed by the means of conflict and
cooperation.
A sound Industrial Relations system is one in which
relationships between management and employees (and
their representatives) on the one hand, and between them
and the State on the other, are more harmonious and
cooperative than conflictual and creates an environment
conducive to economic efficiency and the motivation,
productivity and development of the employee and generates
employee loyalty and mutual trust.

Main Actors in the IR System
Three main Actors/Parties are directly involved in industrial relations:
• Employers: Employers possess certain rights vis-à-vis labors. They have the
right to hire and fire them. Management can also affect workers’ interests by
exercising their right to relocate, close or merge the factory or to introduce
technological changes.
• Employees: Workers seek to improve the terms and conditions of their
employment. They exchange views with management and voice their
grievances. They also want to share decision making powers of management.
Workers generally unite to form unions against the management and get
support from these unions.
• Government: The central and state government influences and regulates
industrial relations through laws, rules, agreements, awards of court . It also
includes third parties, Labor courts and Applet tribunal.

Scope of Industrial Relations
The concept of industrial relations has a very wide meaning
and connotation. In the narrow sense, it means that the
employer, employee relationship confines itself to the
relationship that emerges out of the day to day association of
the management and the labor. In its wider sense, industrial
relations include the relationship between an employee and
an employer in the course of the running of an industry and
may project it to spheres, which may transgress to the areas
of quality control, marketing, price fixation and disposition of
profits among others.

Industrial Relations system
The main issues involved in Industrial Relations include the
following:
• Collective bargaining
• Machinery for settlement of industrial disputes
• Standing orders ordinance
• Workers participation in management
• Unfair labor practices

Importance of Industrial Relations
• Uninterrupted Production
The most important benefit of industrial relations is that this
ensures continuity of production. This means, continuous
employment for all from manager to workers. The resources
are fully utilized, resulting in the maximum possible
production. There is uninterrupted flow of income for all.
Smooth running of an industry is of vital importance for
several other industries; to other industries if the products
are intermediaries or inputs; to exporters if these are export
goods; to consumers and workers, if these are goods of mass
consumption.

Reduction in Industrial Disputes
Good industrial relations reduce the industrial
disputes. Disputes are reflections of the failure of
basic human urges or motivations to secure
adequate satisfaction or expression which are fully
cured by good industrial relations. Strikes, lockouts,
go-slow tactics, gherao and grievances are some of
the reflections of industrial unrest which do not
spring up in an atmosphere of industrial peace. It
helps promoting co-operation and increasing
production

High Morale
Good industrial relations improve the morale of the
employees. Employees work with great zeal with the feeling
in mind that the interest of employer and employees is one
and the same, i.e. to increase production. Every worker feels
that he is a co-owner of the gains of industry. The employer in
his turn must realize that the gains of industry are not for him
along but they should be shared equally and generously with
his workers. In other words, complete unity of thought and
action is the main achievement of industrial peace. It
increases the place of workers in the society and their ego is
satisfied. It naturally affects production because mighty co-
operative efforts alone can produce great results.

Mental Revolution
The main object of industrial relation is a complete mental
revolution of workers and employees. The industrial peace
lies ultimately in a transformed outlook on the part of both. It
is the business of leadership in the ranks of workers,
employees and Government to work out a new relationship in
consonance with a spirit of true democracy. Both should think
themselves as partners of the industry and the role of
workers in such a partnership should be recognized. On the
other hand, workers must recognize employer’s authority. It
will naturally have impact on production because they
recognize the interest of each other.

Reduced Wastage
Good industrial relations are maintained on the basis
of cooperation and recognition of each other. It will
help increase production. Wastages of man, material
and machines are reduced to the minimum and thus
national interest is protected.

Thus, it is evident that good Industrial Relations is the basis of
higher production with minimum cost and higher profits. It
also results in increased efficiency of workers. New and new
projects may be introduced for the welfare of the workers
and to promote the morale of the people at work. An
economy organized for planned production and distribution,
aiming at the realization of social justice and welfare of the
massage can function effectively only in an atmosphere of
industrial peace. If the twin objectives of rapid national
development and increased social justice are to be achieved,
there must be harmonious relationship between
management and labor.

Main objective of Industrial Relations
The main objectives of industrial relations system are:
– To safeguard the interest of labor and management by
securing the highest level of mutual understanding and
good-will among all those sections in the industry which
participate in the process of production.
– To avoid industrial conflict or strife and develop
harmonious relations, which are an essential factor in the
productivity of workers and the industrial progress of a
country.
– To raise productivity to a higher level in an era of full
employment by lessening the tendency to high turnover
and frequency absenteeism.

Main objective of Industrial Relations
• To establish and promote the growth of an industrial democracy based on
labor partnership in the sharing of profits and of managerial decisions, so
that ban individuals personality may grow its full stature for the benefit of
the industry and of the country as well.
• To eliminate or minimize the number of strikes, lockouts and gheraos by
providing reasonable wages, improved living and working conditions, said
fringe benefits.
• To improve the economic conditions of workers in the existing state of
industrial managements and political government.
• Socialization of industries by making the state itself a major employer
• Vesting of a proprietary interest of the workers in the industries in which
they are employed.

What is industrial relation ordinance?
• The law relating to formation of trade union,
regulation and improvement of relation
between employer and workman and
avoidance and settlement of any difference or
dispute arising between them.

Basic function of industrial relation in
the organization
• To coordinate and guide harmonial
relationship with the CBA to maintain
industrial peace in the organization.

the organization
• To maintain cordial relation with
Government departments like labour
department, social security and EOBI.

the organization
• To perform the role of occupier and has
ultimate control over the affairs of the
organization on legal and employee issues.

the organization
• To ensure implementation of all relevant
labour laws with in the organization.

Conflict between IR and HR
• IR is essentially collective in out look i.e.
relation between employer and CBA union or
authorized representative of the workers /
employees.
• HR can deal on individual basis.

Industrial relations pertains to the study and practice
of collective bargaining, trade unionism, and labor-
management relations,
Human resource management is a separate, largely
distinct field that deals with nonunion employment
relationships and the personnel practices and
policies of employers.

• IR has a large component of rule which govern the
employment relationship prescribed for instance by the
state through laws, courts or tribunal or by the parties
through collective bargaining.
• HR does not deal with such rules and procedures but
with the best way of using human resource through
range of initiative involving proper selection and
recruitment, induction appraisal, training and
development leadership and motivation etc.

• IR has both a Bipartite and Tripartite
dimension.
• HR has less scope for Tripartite.

• IR: Pay / wages are largely based on job
evaluation, condition are bargained and
labour management relations are established
through collective bargaining agent.
• HR: Pay and remuneration based on
performance evaluation of the individual.

• IR is more on piece meal approach.
• HR is more on integrated approach, which
predicts the corporate strategy of the
organization.

Terms of Employment
Negotiable Through CBA

Process of collective bargaining

Factors for Negotiations
It includes matter pertaining to employment conditions
like
– Pay / Wages / Allowances
– Hours of works
– Leave with Pay
– Health , safety, environments and work place discipline
– Disciplinary actions
– Lay-off, termination and retrenchment etc., laws relating to
such activities
– Regulations governing labor welfare, canteen, fair price shop,
social security, EOBI, Workmen Compensation, etc
– Industrial relations issues concerning with workers’
participation in management, collective bargaining, etc.

Section-17. Unfair labour practices on the part of
employers
Employer / Management can not
(f) compel or attempt to compel any office-
bearer of the collective bargaining agent to
arrive at a settlement by using intimidation,
coercion, pressure, threat, confinement to a
place, physical injury, disconnection of water,
power and telephone facilities and such other
methods;

Section18. Unfair labour practices on the part of
workmen
CBA union / Workers can not
(d) compel or attempt to compel the
employer to accept any demand by using
intimidation, coercion, pressure, threat,
confinement to, or ouster from a place,
dispossession, assault, physical injury,
disconnection of telephone, water or power
facilities or such other methods; or

Section 34. Negotiations relating to
differences and disputes
(1) If at any time, an Employer or a Collective
Bargaining Agent finds that an industrial
dispute has arisen or is likely to arise, the
employer or the collective bargaining agent,
may communicate his or its views in writing
either to the Conciliator or to the other party
and if the views are communicated to the
Conciliator, a copy of the views shall also be
sent to the other party.

(2) On receipt of the communication under sub-
section (1), the Conciliator or the party
receiving it, shall try to settle the dispute by
bilateral negotiations within ten days of
receipt of the communication or within such
further period as may be agreed upon by the
parties and, if the parties reach a settlement,
a memorandum of settlement shall be
recorded in writing and signed by both the
parties and a copy thereof shall be forwarded
to the conciliator and the authorities
mentioned in clause (xxvii) of section 2.

(3) Where a settlement is not reached between
the employer and the collective bargaining
agent or, if the views of the employer or
collective bargaining agent have been
communicated under sub-section (1) to the
Council, there is a failure of bilateral
negotiations in the Council, the employer or
the collective bargaining agent may, within
seven days from the end of the period
referred to in sub-section (2), serve on the
other party to the dispute a notice of lock-out
or strike in accordance with the provisions of
this Act.

Section 35. Conciliator
The Government shall, by notification in the
official Gazette, appoint as many persons as it
considers necessary to be the conciliators for
the purposes of this Act and shall specify in
the notification the area within which, or the
class of establishments or industries in
relation to which, each one of them shall
perform his functions.

Section 64. Penalty for unfair labour practices
(2) A person(Employer) who contravenes the provisions of
section 17, he shall be liable to fine which may extend to
thirty thousand rupees but not less than ten thousand rupees.
(3) A person(CBA Union) who contravenes the provisions of
section 18, he shall be liable to pay fine which may extend to
twenty thousand rupees but not less than five thousand
rupees.

Section 65. Penalty for committing
breach of settlement
A person who commits any breach of any term of
any settlement, award or decision which is binding
on him under this Act, he shall be punished–
(a) for the first offence, with fine which may extend
to twenty thousand rupees; and
(b) for each subsequent offence; with fine which
may extend to fifty thousand rupees.

Importance of collective bargaining
• Collective bargaining includes not only negotiations
between the employers and unions but also includes
the process of resolving labor-management conflicts.
Thus, collective bargaining is, essentially, a
recognized way of creating a system of industrial
jurisprudence. It acts as a method of introducing civil
rights in the industry, that is, the management
should be conducted by rules rather than arbitrary
decision making. It establishes rules which define
and restrict the traditional authority exercised by the
management.

• Importance to employees
• Collective bargaining develops a sense of self respect and responsibility among the
employees.
• It increases the strength of the workforce, thereby, increasing their bargaining
capacity as a group.
• Collective bargaining increases the morale and productivity of employees.
• It restricts management’s freedom for arbitrary action against the employees.
Moreover, unilateral actions by the employer are also discouraged.

• Effective collective bargaining machinery strengthens the
trade unions movement.
• The workers feel motivated as they can approach the
management on various matters and bargain for higher
benefits.
• It helps in securing a prompt and fair settlement of
grievances. It provides a flexible means for the adjustment of
wages and employment conditions to economic and
technological changes in the industry, as a result of which the
chances for conflicts are reduced.

• Importance to employers
• It becomes easier for the management to resolve issues at the bargaining level
rather than taking up complaints of individual workers.
• Collective bargaining tends to promote a sense of job security among employees
and thereby tends to reduce the cost of labor turnover to management.
• Collective bargaining opens up the channel of communication between the
workers and the management and increases worker participation in decision
making.
• Collective bargaining plays a vital role in settling and preventing industrial
disputes.

• Importance to society
• Collective bargaining leads to industrial peace in the country
• It results in establishment of a harmonious industrial climate which supports
which helps the pace of a nation’s efforts towards economic and social
development since the obstacles to such a development can be reduced
considerably.
• The discrimination and exploitation of workers is constantly being checked.
• It provides a method or the regulation of the conditions of employment of those
who are directly concerned about them.

Terms of Employment
• Increase in Basic Pay
• Revision of Pay Scale
• Conveyance Allowance
• House Rent Allowance
• Attendance Allowance
• Recreational Allowance
• Night Shift Allowance
• Shoes Allowance
• Emergency Medical Allowance

Terms of Employment
• Supervisory Allowance
• Funeral Expenses
• Long Services Awards
• Packages Educational Scholarships
• Annual Leaves Accumulation
• Fair Price Shop Facility
• Motor Cycle Loan
• Hajj facility
• Out Door Duty Meal Expenses

The Factories Act

Purpose of the Act
The purpose of the Act is to regulate and
standardize the condition in factories falling under
the Act. The categories regulated are,
• Basic standards for health and safety
• Disposal of waste
• Ventilation and temperature
• Dust and fume
• Overcrowding
• Lighting
• Availability of drinking water

Purpose of the Act
• Latrines and urinals
• Spittoons
• Compulsory vaccination
• Provision of canteens
• Precaution in case of fire
• Fencing of machinery
• Working hours.
• Appointment of welfare officer

Purpose of the Act
• Work on or near machinery in motion
• Employment of young persons on dangerous
machines
• Striking gear and devices for cutting off power
• Self-acting machines
• Casing of new machinery
• Prohibition of employment of women and
children near cotton openers

Purpose of the Act
• Cranes and other lifting machinery
• Hoists and lifts
• Revolving machinery
• Pressure plant
• Floors, stairs and means of access
• Pits, sumps, opening in floors, etc
• Excessive weights
• Protection of eyes

Purpose of the Act
• Power to require specifications of defective parts
or tests of stability
• Safety of building, machinery and manufacturing
process
• Precautions against dangerous fumes
• Explosive or inflammable dust, gas, etc
• Power to exclude children
• Notice of certain accidents
This law is very comprehensive and covers almost
all the aspect of a healthy working environment.

Applicability of the Act
The law applies to all factories employing 10
or more workers.

Definition of Factory
“Factory” means any premises, including the
precincts thereof, whereon ** [ten] or more workers
are working, or were 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 whether with or without the aid
of power] but does not include a mine, subject to the
operation of the Mines Act, 1923 (IV of 1923);

Definition of Worker under the Act:
Means a person employed directly or indirectly 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, but does not include any person solely
employed in any other kind of work whatsoever,
incidental to or connected with the subject of
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 out.

The Shops and Establishments
Ordinance, 1965

Purpose of the Ordinance
The purpose of this Ordinance is to provide
basic standards relating to payment of wages,
working hours, overtime, weekly holidays, sick
leave, festival holidays, termination of
employment and other ancillary matters.

Applicability
The law applies to all the establishments.
However, the government may grant
exemption to any establishment from the
operation of the provision of this Ordinance.

Definition of Establishment
“Establishment” means a shop, commercial
establishment, industrial establishment, private
dispensary, maternity home, residential hotel,
restaurant, eating house, café, cinema, theatre,
circus, or other place of public amusement or
entertainment, and such other establishments or
class thereof as Government may, by notification in
the official Gazette, declare to be establishments for
the purposes of this Ordinance;

Definition of Commercial Establishment
“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.

Definition of Industrial Establishment
“Industrial establishment” means a workshop or
other establishment in which the work of making,
altering, repairing, finishing or packing or otherwise
treating any article or substance with a view to its
use, sale, transport, delivery, or disposal is carried
on, or where any such service is rendered to a
customer, and includes such other class or classes of
establishments as Government may, by notification
in the official Gazette, declare to be the industrial
establishments for the purposes of this Ordinance,
but does not include a factory;

Definition of Shop
“Shop” means any premises used wholly or in
part for the wholesale or retail sales of
commodities or articles, either for cash or on
credit, or where services are rendered to
customers, and includes an office, a store
room, godown, warehouse or place of work,
whether in the same premises or otherwise,
mainly used in connection with such trade or
business;

Registration under the Act
Every establishment, under the Act, other
than a one man shop and factories employing
clerical staff within the factory premises, is
required to be registered with the Deputy
Chief Inspector for the area within which such
establishment is situated.

THE WEST PAKISTAN INDUSTRIAL AND
COMMERCIAL EMPLOYMENT (STANDING
ORDERS) ORDINANCE, 1968
(W.P. Ordinance VI of 1968)

Short title, extent and commencement
every industrial establishment or commercial
establishment wherein twenty 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;

Classification of workmen
(a) Workmen shall be classified as–
(1) permanent,
(2) probationers,
(3) badlis,
(4) temporary,
(5) apprentices.
(6) contract worker

W.P. Industrial & Commercial Employment
Applicability
Applicable to all industrial and commercial establishment employing 20 or
more workmen on any day during the preceding twelve months. However
for smaller industries establishments employing between 20 to 49
workman on any day during the preceding twelve months four
exemptions form the application of S.O 10-B,11,12(6) and (8), 15 have
been granted, once the number of workmen is at 50 or more in any
industrial establishment employed on any day of the preceding twelve
moths, all provisions of the ordinance are applicable without any
exception.
S.O.10-B Compulsory Group Insurance.
S.O.11 Stoppage of Work / Lay off.
S.O.12(6) & (8) Payment of Gratuity
S.O15 Punishment – From Misconduct, Enquiry Procedure,
Disciplinary Actions (Final / Dismissal)
(Standing Orders) Ordinance 1968

[10-C. Payment of Bonus:-
(1) Every employer making profit in any year shall pay 2[for that year within
three months of the closing] 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.
(2) The amount of the bonus payable shall –
(a) 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 thirty
percent of such profit;
Cont..

3[Illustration 1.-- If the profit is Rs. 1,20,000.00 and the aggregate of
the workmen is Rs. 30,000.00, the amount of bonus
payable shall be not less than the aggregate of one month’s
wages, that is to say, Rs. 30,000.00
Illustration 2.-- If the profit is Rs. 30,000.00 and the aggregate of one
month’s wages of the workmen is also Rs. 30,000.00, the amount
of bonus payable shall be not less than the thirty percent of the
profit that is to say, Rs. 9,000.00].
(b) If the amount of the profit is less than the aggregate of referred to
in paragraph (a), be not less than fifteen percent of such profit.
Cont..

Disciplinary action in case of
misconduct

Misconduct
• Something done or omitted to be done, which a man
of Ordinary prudence would not have done or would
not have omitted to do.
• Applicable: (S.O-15) General terms-20 or more
workers commercial-20 or more.Industrial-50 or
more. Compliance mandatory. Jurisdiction of Labour
Court-Fair Enquiry.Punishment-quantem-
commensurate with nature of fence.
Where Law not Applicable-natural Justice not to be
condemned unheard whether a legal provision or not
(S.C).

The following Acts and Omission
shall be treated as misconduct
a) Willful insubordination or disobedience, whether alone or in
combination with others, to any lawful and reasonable order of a
superior.
b) Theft, fraud, or dishonesty in connection with the employer’s
business or property.
c) Willful damage to or loss of employer’s goods or property.
d) Taking or giving bribes or any illegal gratification.
e) Habitual absence without leave or absence without leave for
more than ten day.
f) Habitual late attendance.

g) Habitual breach of any law applicable to the establishment.
h) Riotous or disorderly behavior during working hours at the
establishment or any act subversive of discipline.
i) Habitual negligence or neglect of work.
j) Frequent repetition of any act of omission.
k) Striking work or inciting others to strike in contravention of the
provision of any law, or rule having the force of law.
l) Go – slow
The following Acts and Omission
shall be treated as misconduct

THE PROVINCIALTHE PROVINCIAL
EMPLOYEES’ SOCIALEMPLOYEES’ SOCIAL
SECURITY ORDINANCE,SECURITY ORDINANCE,
19651965
(W.P. Ord. X of 1965)(W.P. Ord. X of 1965)

An Ordinance to introduce a scheme of Social
Security for providing benefits to certain
employees or their dependents in the event of
sickness, maternity, employment, injury or
death and for matters ancillary thereto

Provincial Employees
Social Security
 Benefits :
Sickness: A condition requires / necessitates
medical treatment and absenteeism
from work.
Maternity : Twelve weeks, not more than six weeks
shall precede the expected date of confinement.
Death grant: Rs. 5000 / for funeral.
Injury benefit: Daily rate of wages for a max 180
days.

Provincial Employees
Social Security
Disablement pension: On expiration of injury
benefit as per rates notified.
Disablement gratuity: Minor disablement
rates notified.
Survivors Pension: Death as result of
employment injury, payable to dependents.

Payment Schedule for Less Than 50
Employees
Fixed slab system for units employing up to 49
employees within the preview of Social
Security.
• 01 To 10 EmployeesRs. 10,000/- P.A.

Schedule
Rate of Social Security Contribution as proportionate of the
employee’s Wages
Class ofClass of
EmployeesEmployees
Social Security ContributionsSocial Security Contributions
Employer’sEmployer’s
ContributionContribution
Employee’sEmployee’s
ContributionContribution
TotalTotal
11 22 33 44
RemunerateRemunerate
d at a waged at a wage
up to Rs.up to Rs.
15000/-15000/-
6%6% NilNil 6%6%

Revised Social Security Contributions under
Employees’ Social Security (Amendment) Ordinance, 2002 (CIV of 2002)
(October 29, 2002)
Type of Scheme
Max.
Employer’s
Contribution
pm
Max.
Worker’s
Contribution
pm
Total
Contribution
pm
Normal of Regular Scheme
[section 20 (1), proviso]
(6% of max. Rs. 15000/
wages per month or Rs 600/
per day)
Rs. 900 --N/A-- Rs. 900

EMPLOYEES' OLD AGE‑EMPLOYEES' OLD AGE‑
BENEFITS ACT, 1976BENEFITS ACT, 1976

ACT No. XIV OF 1976
An Act
to repeal and re enact the Law relating of‑
Old Age benefits for the persons employed in‑
industrial, commercial and other
organizations.

Section-1. Short Title, Extent,
Commencement and Application
It applies to every industry or establishment.
(i) 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 or establishment even if the number of
persons employed therein is, at any time after this
Act becomes applicable to it, reduced to less than
Five; or

Section-1. Short Title, Extent,
Commencement and Application
(i-a) wherein less than Five persons are employed if
such industry or establishment voluntarily applies for
application of this Act and this Act shall apply to such
industry or establishment for the date of submission
of an application by such industry or establishment;
or
(ii) which the Federal Government may, by
notification in the official Gazette, specify in this
behalf.

E.O.B.I.
BENEFITS
• Old age pension: Male over Fifty Five years / female
over Fifty years. Contribution paid for not less than
fifteen years.
• Old age grant: Not entitled for pension . Contribution
less than 5 years but more than 2 years.
• Survivor pension: Death , 36 months insurable
employment.
• Invalidity pension: Not less than 5 years contribution
paid.

CONTRIBUTION
Type of Scheme Max. Employer’s Max. Worker’s Total
contribution contribution
contribution
pm (sec. 9) pm (sec. 9-B) pm
Normal Scheme Rs. 400 Rs. 60 Rs. 460
(5% of max. Rs. 8,000/- wages)
Self-Assessment Scheme Rs. 400 Rs. 60 Rs. 460
(optional scheme, flat rate irrespective
of employee’s wages, no inspection for two years)

Workmen compensation
Act , 1923

Workmen’s Compensation Act 1923
• Applies: Workman employed on monthly
wages not exceeding six thousand rupees.
• Compensation: Personal injury by accident in
the course of employment. Total or partial
disablement.
– Partial disablement: Temporary reducing earning
capacity.
– Total disablement: Incapacitates wholly capable of
doing at the time of accident.

Applicability
An Act to provide for the payment by certain
classes of employers to their workmen of
compensation for injury by accident.
WHEREAS it is expedient to provide for the
payment by certain classes of employers to
their workmen of compensation for injury by
accident; it is hereby enacted as follows :-

Workmen’s Compensation Act 1923
• Exceptions:
– Drunk / Drugs influence.
– Violation of rule securing safety
– Willful removal of safety guard / device.
• Rate of compensation:
– Rs. 200,000(Death and permanent total disablement)
– Payment – deposit with the commission.
– Compensation not to be assigned by operation of law.
• Notice and claim (S/10)
• Report of fatal accident (S/10-B)
• Penalties ( S/18 – A)

THE APPRENTICESHIP
ORDINANCE
(LVI OF 1962)

Purpose of the Act
An ordinance to make provision for
promoting, developing and regulating
systematic apprenticeship programmes in the
industries and for securing certain minimum
standards of skill.

Applicability of the ordinance
The law is applicable to industrial
establishments having fifty or more
employees. It requires that an industrial
establishment having more than fifty workers
must train apprentices in a
proportion not less than 20% of persons
employed.

The companies’ profits
(Worker’s Participation)
Act
(XII OF 1968)

The companies’ profits Act
An Act to provide for participation of workers
in the profits of companies preamble

The Act applies to every company engaged in an industrial undertaking which
satisfies any one of the following conditions:-
1) The number of workers employed by it at any time during a 50 year is or
more.
2) The paid up capitalof the company as on the last day of its accounting year
is rupees 20 lakhs or more. This condition now applies only to companies established
before July 1, 2006.
For the
companiestablishedthereafterthe
condition will be 5 millions rupees or
more.

3) The value of the fixed assets of the company (at
cost) as on the last day of accounting year is rupees
forty lakhs or more. This condition also now applies
to companies established before July 1, 2006. For
companies established thereafter the condition will
be rupees twenty millions or more.
Every Company making profits in a year has to
pay 5% of its net profit to the workers participation
fund for distribution among the workers according to
their entitlement.

Payments
1-Workers drawing average monthly wages not
exceeding Rs. 7,500.00
2-Workers drawing average monthly wages exceeding
Rs. 7500.00 but not exceeding Rs. 15,000.00
3-Workers drawing average monthly wages exceeding
Rs. 15,000.00.

Payments
-Not with standing anything contained in the scheme,
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
workers (8000 x 4 = 32000).

PAYMENT OF WAGES ACT,
1936
Act No. IV of 1936
[23rd April, 1956]

An Act to regulate the payment of wages to
certain classes of persons employed in
Industry

Section-1. Short title, commencement and
application
It applies in the first instance to the payment
of wages to persons employed in any factory
and to persons employed (otherwise than in a
factory) upon any railway by a railway
administration or, either directly or through a
sub-contractor, by a person fulfilling a
contract with a railway administration.

THE WEST PAKISTANTHE WEST PAKISTAN
MINIMUM WAGES FORMINIMUM WAGES FOR
UNSKILLED WORKERSUNSKILLED WORKERS
ORDINANCE, 1969ORDINANCE, 1969
(W.P. Ordinance XX of 1969)(W.P. Ordinance XX of 1969)

An Ordinance to fix the minimum rates of wages for
unskilled workers employed in certain commercial
and industrial establishments in West Pakistan

Section-1. Short title, extent,
commencement and application
(1) This Ordinance may be called the West
Pakistan Minimum Wages for Unskilled
Workers Ordinance, 1969.
(2) It extends to the whole of [Pakistan].
(3) It shall be deemed to have come into force
on and from the first day of July, 1969.

Section-1. Short title, extent,
commencement and application
(4) It shall apply to every commercial and industrial
establishment wherein fifty or more persons are
employed or were employed on any day during the
preceding twelve months, but shall not apply to–
(a) persons in the service of Pakistan, as defined in
[Article 260 of the Constitution];
Substituted ibid., for “Article 242 of the Constitution
of 1962.”

SCHEDULE
See SECTION-3
AreaArea Rate of minimumRate of minimum
wages perwages per
monthmonth
Deduction forDeduction for
providingproviding
housinghousing
accommodationaccommodation
Deduction forDeduction for
providingproviding
transporttransport
11 22 33 44
Rs.Rs. Rs.Rs. Rs.Rs.
Province ofProvince of
PunjabPunjab
9000 p.m.9000 p.m. 25 p.m.25 p.m. 10 p.m.10 p.m.
Province ofProvince of
SindhSindh
8000 p.m.8000 p.m. 20 p.m.20 p.m. 5 p.m.5 p.m.
OtherOther
Industrial AreaIndustrial Area
8000 p.m.8000 p.m. 13 p.m.13 p.m. 2 p.m.2 p.m.

Contactors and contactors
workers

Contractor Labor and Employer Liability
According to Law, the employer of the industrial
and commercial establishment shall personally be
held responsible for the proper and faithful
observance of the Law, whether or not the
Workmen of such establishment are employed
through contractor.

To determine the real status of a worker, as to whether he
is employee of an establishment or a contractor, the
criteria is,
• Selection of a worker/employee.
• administrative control over the worker,
• power to reinstate and dismiss the contractor worker;
• Payment of wages or other remuneration.
• whether the contractor was a genuine person and had not
been set up merely to deny the worker of the benefits
under the labor laws.
Contractor Labor and Employer Liability

Categories of Contracts
• Manpower Supply Contract
• Job/Services Contract
• Janitorial/House Keeping Services
• Transport Services
• Technical/Maintenance Services
• Others Contractors

CONTRACT LABOUR AND EMPLOYER’S LIABILITY
Punjab INDUSTRIAL RELATIONS ACT,2010
“Worker” and “Workman” means any person not falling
within the definition of employer who is employed
(including employment as a supervisor or as an apprentice)
in an established or industry for hire or reward either
directly or through a Contractor Whether the terms of
employment express or implied, and, for the purpose of
any proceedings under this Act in relation to an industrial
dispute includes a person who has been dismissed,
discharge retrenched; laid-off or as a consequence of that
dispute or whose dismissal, discharge, retrenchment, lay-
off, or removal has led to that disrupt does not include any
person who is employed mainly in managerial or
administrative capacity.

FACTORIES ACT,1934
“Workers” 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
manufacturing process, or in any other kind of
work whatsoever, incidental to or connected with
the subject of 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;

The system is recognized by Law:
A) Because in most of the enactment a worker or
employee is defined as any person employed
directly or through any other person; and
B) Section 29, of PIRA 2010 authorizes the Workers
Management Council to fix terms and conditions
of services of such workers

Jobs Usually Given on Contract- Reason
Reducing production cost and
concentrating resources on core business
activities e.g. the jobs are of loading /
unloading security and janitorial services
are given on contract for this reason

Recognition of Contractor Labor System
By virtue of Section 29 of the PIRA 2010,
the Workers Management Council has
been empowered to look after the
“provision of minimum facilities for the
workers employed through contractors
as are not covered by the laws relating to
the welfare of workers”.

Employment Relationship Test
a) The power of selecting of the employees;
b) The payment of wages or others
remuneration;
c) The right to control the method of doing
work; and
d) The right of suspension or dismissal

Industrial relation employees relation knowledge box

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