Useful tool for HRIR Professionals

2. Purpose of Training
• To improve the knowledge of Industrial laws applicable on Industrial
and Commercial Setup.
Objective
• To create an excellent industrial climate which is essential to attain the
excellence in all areas of operations and performance.
• To identify and co relate the incidents of indiscipline with Acts and
Omissions as defined under law.

3. • “Law is the command of the sovereign”
• Law is the right of one, obligation of other,
maintained by the law enforcing agencies.

4. “Ignorance of Law is no excuse”

5. What are Labour or Employment Laws ?
• Labour Laws or Employment Laws, is the body of
Laws, administrative rulings and precedents which
addresses the rights and restrictions on working
people and organizations.
• It mediates many aspects of industrial relationship
among Trade Unions, Employees and Employers.

6. Laws & Practices

7. Terms and Phrases
• Occupier
• CEO / Managing Director
• Company Secretary
• Manager
• Agent
• Employer
• Workman
• Inspector
• Unfair Labour Practice
• Collective Bargaining Agent
• Workers Management Council

8. Important Industrial Laws
 Punjab Environmental Protection Act 1997
 Contract Act 1872
 Industrial & Commercial Employment (standing Orders Ordinance)1968
 Factories Act, 1934
 Apprenticeship Ordinance, 1962
 Industrial Relations Act, 2012
 Workmen’s Compensation Act, 1923
 Companies Profit (workers’ participation) Act, 1968
 Employees’ Old-Age Benefit Act, 1976
 Employees Social Security Ordinance, 1965
 Disabled Persons (Employment and Rehabilitation) Ordinance, 1981
 Protection against Harassment of women at the Workplace Act, 2010

9. Industrial & Commercial Employment (standing Orders
Ordinance)1968
 Classification of Workmen
1. “Permanent” is a workman who has been engaged on work of
permanent nature likely to last more than nine months and has
satisfactorily completed a probationary period of three months in
the same or another occupation in the industrial or commercial
establishment, including breaks due to sickness, accident, leave,
lock-out, strike (not being an illegal lock-out or strike) or
involuntary closure of the establishment [and includes
a badli who has been employed for a continuous period of three
months or for one hundred and eighty-three days during any
period of twelve consecutive months.]
2. “Probationer” is a workman who is provisionally employed to fill a
permanent vacancy in a post and has not completed three months
service therein. If a permanent employee is employed as a
probationer in a higher post he may, at any time during the
probationary period of three months, be reverted to his old
permanent post.

10. Industrial & Commercial Employment (standing
Orders Ordinance)1968
3. “Badli” is a workman who is appointed in the post of a permanent
workman or probationer, who is temporarily absent.
4. “Temporary workman” is a workman who has been engaged for work
which is of an essentially temporary nature likely to be finished within a
period not exceeding nine months.
5. “Apprentice” is a person who is an apprentice within the meaning of
the Apprenticeship Ordinance, 1962 (LVI of 1962)].
6. “Contract” worker means a workman who works on contract basis for a
specific period of remuneration to be calculated on piece rate basis.

11. Industrial & Commercial Employment (standing
Orders Ordinance)1968
 Tickets
 Terms and conditions of service to be given in writing
 Publication of working time
 Publication of holidays and pay days
 Publication of wage rates
 Shift working
 Attendances and late coming
 Leave
 Payment of wages
 Compulsory Group Insurance
 Payment of bonus

12. Industrial & Commercial Employment (standing
Orders Ordinance)1968
 Stoppage of work
 Closure of establishment
 Termination of employment
 Procedure for retrenchment
 Re-employment of retrenched workmen
 Special provisions for construction workers
 Punishments
 Eviction from residential accommodation.
 Certificate of termination of service
 Liability of employer

13. Disciplinary Proceedings
under
Industrial & Commercial Employment (Standing Orders)
Ordinance, 1968

14. DISCIPLINE
&
DISCIPLINARY ACTION

15. The following ACTS & OMISSIONS are misconduct under Law.
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;
Contd…….
Misconducts

16. e. Habitual absence without leave or absence
without leave for more than ten days;
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. Striking work or inciting others to strike in
contravention of the provisions of law.
k. Go - slow

17. Steps in Disciplinary Proceedings
1. Act or Omission
2. Incident report
3. Charge Sheet
4. Inquiry Notice
5. Inquiry Proceedings
6. Findings of Inquiry
7. Final Verdict

18. Final Verdict
1. Fine upto 3% of wage after approval from Chief
inspector Factories, Punjab
2. Withholding of Increment or Promotion for a period
not exceeding one year
3. Reduction to a lower post
4. Dismissal

19. Case Study

20. Factories Act, 1934
• Notice of Occupation (Form “A”)
 Name of Occupier
 Name of Factory
 Name of Manager for purposes of the Factories Act
 Permanent Staff
 All type of labour including contractor’s labour

21. Factories Act, 1934
• The Inspecting Staff
 Chief Inspector
 Inspector
 Powers
o To enter in a factory for examination of premises, plant,
registers and taking necessary evidence.
 Inspection book (Form “C”)

22. Factories Act, 1934
• Health and Safety
 Disposal of Waste and Effluents
 Ventilation and Temperature
 Dust and Fume
 Artificial Humidification
 Overcrowding
 Lighting
 Drinking Water
 Latrine and Urinals
 Spittoons

23. Factories Act, 1934
• Health and Safety
 Precautions against Contagious Diseases
 Compulsory Vaccination and Inoculation
 Welfare Officer
 First Aid Box
 Precautions in Case of Fire
 Fencing of Machinery
 Work on or near Machinery in Motion
 Striking Gear and Devices for Cutting off Power
 Self-Acting Machine

24. Factories Act, 1934
• Health and Safety
 Casing of New Machinery
 Cranes and other Lifting Machinery
 Hoists and Lifts
 Revolving Machinery
 Pressure Plant
 Floors, Stairs and Means of Access
 Pits, Sumps, Opening in Floors
 Excessive Weights
 Protection of Eyes

25. Factories Act, 1934
• Health and Safety
 Safety of Building, Machinery and Manufacturing
Process
 Precautions against Dangerous Fumes
 Explosive or Inflammable Dust, Gas, etc
 Notice of Certain Incidents
 Certificate of Stability
 Hazardous Operations

26. Factories Act, 1934
• Working Hours and Holidays with Pay
 Weekly Hours
 Weekly Holiday
 Leaves
 Compensatory Holiday

27. Factories Act, 1934
• Supplement
 Display of factory notices
o Notice of Periods for Work
o Abstracts of this Act
o Conspicuous Place near the Main Entrance
o In English and Vernacular of the Majority of the
Workers.

28. Apprenticeship Ordinance, 1962
“apprenticeship”
A system of training in which an employer undertakes to employ a
person and to train him or have him trained systematically in an
apprenticeable trade.

29. Apprenticeship Ordinance, 1962
 Hiring of apprentice
 The apprentices shall normally to be taken once a year in the
month of June or December, or in case of individual employers
as indicated by the “Competent Authority”.
 Procedure of hiring
1. The vacancies shall be advertised.
2. Intimation given to Employment Exchange.
3. A written test shall be held.
4. A viva voce for written qualified candidates.
5. An aptitude test, if competent authority deem feasible and practicable.

30. Apprenticeship Ordinance, 1962
 Specification for hiring
 Age: minimum fifteen and maximum twenty years.
 Physical Status: every apprentice shall be physically fit at the time
of recruitment.
 Qualification: may vary trade to trade.
 Apprenticeship Contract
 The employer and apprentice shall enter into written contract.
 In case of the apprentice being minor, the contract shall be signed
by the parent/guardian as well as by such minor apprentice.
 The contract shall be prepared in triplicate, after registration
original shall be sent to apprentice, a copy sent to employer and a
copy retained by competent authority.

31. Apprenticeship Ordinance, 1962
 Monthly Stipend
 Employer shall pay monthly stipend to apprentices at the
following rates.
1st year = 50% of the wages
2nd year = 60% of the wages
3rd year = 70% of the wages
 If training exceeds three years the stipend shall be equal to
full wages of skilled workers.

32. Industrial Relations Act, 2012
To regulate formation of trade unions and trade
union activities, relations between employers and
workmen and the avoidance and settlement of any
differences or disputes arising between them and
ancillary matters.

33. Industrial Relations Act, 2012
 Unfair Labour Practices on part of Employers
 Discriminate or victimize any person for lawful trade union
activities
 Recruit new workman during strike or strike notice except with
permission of Conciliator
 Close down whole establishment in contravention of SO 11-A.
 Unfair Labour Practices on part of Employees
 Persuade a workman to join or refrain from joining a trade union
during working hours.
 Compel or attempt to compel the employer to accept any demand
by using intimidation, coercion, pressure threat, confinement,
assault, physical injury or such other methods.
 Go Slow

34. Industrial Relations Act, 2012
Settlement of Disputes
 Individual
 Grievance Notice
 Collective
 In writing Communication
 Negotiations
 Conciliator
 Arbitrator
 Strike and Lockout
 Awards and Settlements

35. Collective Bargaining Agreement

36. Industrial Relations Act, 2012
National Industrial Relations Commission (NIRC)
 Functions
 Benches
 Additional Powers over other labour tribunals
 Appeal

37. Industrial Relations Act, 2012
Breaches under IRA;
 Unfair Labour Practice
 Breach of Settlement
 Failing to implement settlement
 Discharging Officer of Trade Union in certain
circumstance
 Embezzlement or misappropriation of funds
 Obstructing inspector

38. Companies Profit (workers’ participation) Act,
1968
Purpose:
• To Provide for participation of Workers in the Profits of
Companies.
• Employers liability to deposit 5% of its profit with the
fund.
• Establishment of Fund.
• Management of Fund.
• Investment of Workers’ Participation Fund.
• Distribution & Disbursement of benefits to workers.

39. Companies Profit (workers’ participation)
Act, 1968
Categories
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.
Law is affected by 18th amendment.

40. Workers’ Welfare Fund Ordinance, 1971
• Contribution
• Two percent of total income
• Left over of 5%
• Provincial Worker Welfare Boards
• Utilization of Fund
• Talent Scholarships
• Marriage Grants
• Death Grants
• Housing
• Schooling

41. Employees’ Old-Age Benefit Act, 1976
Applicability
 It applied to every industry or establishment ;
Wherein five or more persons are employed by the
employer or through any other person during the
preceding twelve months.

42. Employees’ Old-Age Benefit Act, 1976
Contribution
• By an employer at the rate of five percent of wages.
• By an insured person at the rate of one percent of wages.
Employer’s Contribution = 400
Employee’s Contribution = 80
Total =480 per
month
Wage
• Presently EOBI is being calculated on Rs 8,000/- pm wage
Formula of Pension
Monthly wages (8,000) X Number of year’s of service / 50 = Monthly payable pension

43. Employees’ Old-Age Benefit Act, 1976
Benefits
• Old-Age pension
• An insured person shall be entitled to monthly old-age
pension if he is over sixty years of age or fifty five years in
case of a woman, and
• Contributions in respect of him were paid for not less than
fifteen years.
• Old-Age Grant
• A lump sum equal to his one month’s average monthly
wages for every completed year of service If ;
• not otherwise entitled to old-age pension
• after attaining the age of sixty years or fifty-five years in case of a
woman
• Contribution paid for less than fifteen years

44. Employees’ Old-Age Benefit Act, 1976
Benefits
• Survivor’s pension
• In case of the death of an insured person surviving
spouse or minor or parents shall be entitled to
pension if insurable employee died;
• in insurable employment and had completed thirty six
months of employment
• not in insurable employment and had completed five
years of employment
• Invalidity pension
• If insured person sustain invalidity.

45. Employees Social Security Ordinance, 1965
Purpose
 To provide benefits to certain employees or their dependents in the event
of Sickness, maternity, injury or death and for matters ancillary there to.
Applicability
 It shall apply only to such areas, classes of persons, industries or
establishments from such date and with regard to the provision of such
benefits as Government may, by notification, specify in this behalf.

46. Employees Social Security Ordinance, 1965
Organization
a. Governing Body
b. Employees’ Social Security intuitions
c. employees’ social security fund
Contributions
Six percent of wage upto 18,000 is payable by
employer

47. Employees Social Security Ordinance, 1965
Benefits
• OPD
• Hospitalization
• Leave with pay
• Travelling
• Death Grant/ Funeral
• Pension

48. Protection against Harassment of women
at the Workplace Act, 2010
An Act to make provisions for the Protection Against
Harassment of Women at the Workplace.
“harassment” means any unwelcome sexual advance, request for sexual favors or
other verbal or written communication or physical conduct of a sexual nature or
sexually demeaning attitudes, causing interference with work performance or creating
an intimidating, hostile or offensive work environment, or the attempt to punish the
complainant for refusal to comply to such a request or is made a condition for
employment;

49. Protection against Harassment of women
at the Workplace Act, 2010
“Employee” means a regular or contractual employee whether employed on daily,
weekly, monthly or hourly basis, and includes an intern or an apprentice.
“Accused” means an employee or an employer of an organization against whom
complaint has been made.
“Complainant” means a man or woman who has made a complaint to Ombudsman or
to the Inquiry Committee on being aggrieved by an act of harassment.

50. Protection against Harassment of women
at the Workplace Act, 2010
Inquiry Committee
• Management will appoint a three-member standing Inquiry Committee to handle
any complaints of sexual harassment.
• At least one member should be a woman.
Procedure of Inquiry
• Communication of Charges within three days
• Written defense within seven days
• Inquiry Report within thirty days
• Penalty within one week

51. Protection against Harassment of women
at the Workplace Act, 2010
Penalties
• Minor
a) Censure
b) Withholding of increment or promotion
c) Recovery of compensation
• Major
a) Reduction to lower post
b) Compulsory retirement
c) Removal from Service
d) Dismissal from Service
e) Fine

52. Protection against Harassment of women
at the Workplace Act, 2010
Appeal to Ombudsman
• Within thirty days
Representation to President or Governor
• Within thirty days
Responsibility of Employer
• Incorporate Code of Conduct
• Constitute an Inquiry Committee

53. Case Study

54. Thank You