Paid & casual leaves law in Pakistan

1. Casual & Paid Leaves under
Pakistani Law

2. Applicable Labour Law Statutes & Governing laws:
The Industrial Relations Act, 2012.
The Industrial and Commercial Employment (Standing Orders) Ordinance,
1968.
The Factories Act, 1934.

3. Does it apply to Pavo-Technologies?
• Section 1 (4) (a) of the Industrial and Commercial Employment (Standing Orders) Ordinance, 1968
describes the organizations to whom, these laws are applicable, reproduced here as under;
(a) every industrial establishment or commercial establishment wherein;
(b) 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
(c) on any day during the preceding twelve months;]
Note:
If Pavo-Technologies has employed more than 20 employees on any day in the last year, then it comes in
the ambit of this Statute : Industrial and Commercial Employment (Standing Orders) Ordinance, 1968

4. Worker or workman defined
• The definition of Worker or Workman under the Section 2(xxxiii) of The Industrial
Relations Act, 2012 as stated as;
• “worker” and “workman” mean person not falling within the definition of
employer who is employed (including employment as a supervisor or as an
apprentice) in an establishment or industry for hire or reward either directly or
through a contractor whether the terms of employment are 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, discharged, retrenched, laid
off or otherwise removed from employment in connection with or as a
consequence of that dispute or whose dismissal, discharge, retrenchment, lay-
off, or removal has led to that dispute but does not include any person who is
employed mainly in managerial or administrative capacity.

5. Classification of workmen.
It is also explained under the Schedule of Standing Orders that who is included in the different categories of the
Workman, which is reproduced as hereunder;
(a) Workmen shall be classified as–
• (1) permanent,
• (2) probationers,
• (3) badlis,
• (4) temporary,
• (5) apprentices.
• (6) contract worker]

6. Clause No. 8 under the Schedule of Standing Orders Ordinance
8. Leave.
(1) Holidays and leave with pay shall be allowed as hereinafter specified: -
(a) annual holidays, festival holidays, casual leave and sick leave as provided for in Chapter IV-A of
the Factories Act, 1934 (XXV of 1934); and
(b) (b) other holidays in accordance with the law, contract, custom and usage.]
As clear from the above clause the Casual Leaves and Sick Leaves are referred to be governed by the
same manner as described under Chapter IV-A of the Factories Act, 1934. (Refer to next slide for
Chapter IV-A)

7. CHAPTER IV-A - Holidays with pay
• 49-A. Application of Chapter.
• 49-B. Annual holidays.
• 49-C. Pay during annual holidays.
• 49-D. Payment when to be made.
• 49-E. Power of Inspector to act for worker.
• 49-F. Power to make rules.
• 49-G. Exemption of factories from provisions of this Chapter.
• 49-H. Casual leave and sick leave.
• 49-I. Festival holidays.

8. 49-H: Casual leave and sick leave
49-H : Casual Leave and Sick Leave
(1) Every worker shall be entitled to casual leave with full pay for ten days in
a year.
(2) Every worker shall be entitled to sixteen days sick leave on half average
pay in a year.

9. Whether all workman or worker are entitled to the
casual leaves and sick leaves under 49-H?
• A word “Every Worker” used under the heading of Casual leaves and Sick leaves meant
including all kinds of Workmen within its meaning, and therefore all workmen whether they
be Probationary, Permanent and Contractual Employees shall be entitled to the Casual
leaves and Sick leaves under the 49-H of the Factories Act, 1934 read with Clause No. 8
under the Schedule of Standing Order, Ordinance, 1968.