LABOUR LAWS IN PAKISTAN

COURSE CODE MGMT-411

Unit 1: Introduction and Scope of Labour Laws

Introduction to Labour Laws

Labour laws, also known as employment laws, are regulations that govern the rights and
duties of workers and employers. These laws are designed to create a fair workplace
environment, ensuring that employees are treated justly and employers can operate
effectively.

Scope of Labour Laws

Labour laws cover a wide range of topics, including:

1. Employment Contracts: Legal agreements that define the terms of employment.

2. Wages and Benefits: Regulations concerning minimum wage, overtime pay, and
employee benefits.
3. Working Conditions: Safety standards and conditions in the workplace.
4. Discrimination and Harassment: Laws that protect workers from unfair treatment
based on race, gender, age, disability, etc.
5. Unionization: The rights of employees to form and join unions for collective
bargaining.
6. Termination and Layoffs: Rules regarding the lawful termination of employment
and severance pay.

History of Labour Laws

The development of labour laws can be traced back to the industrial revolution in the late
18th and early 19th centuries, which highlighted the need for regulations to protect workers.
As industries grew, so did concerns over:

 Working Conditions: Long hours, low wages, and unsafe environments led to public
outcry.
 Child Labour: The exploitation of children in factories prompted reforms.
 Trade Unions: Workers began to organize to demand better conditions.

Over time, various laws were enacted, such as the Factory Acts in the UK, the Fair Labor
Standards Act in the US, and similar legislation in other countries.

Emergence of Labour Unions

Labour unions emerged as a response to the need for collective bargaining and worker
representation. Key factors in their emergence include:

1. Economic Inequality: Workers sought to improve wages and working conditions

collectively.
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 2. Political Movements: The rise of socialist and labor movements advocated for
workers' rights.
3. Legal Recognition: Over time, many governments recognized the right to unionize,
leading to formal structures for collective negotiation.

Conclusion

Labour laws are crucial for ensuring fair treatment of employees and fostering a balanced
relationship between employers and workers. Understanding their history and scope helps to
appreciate the ongoing evolution of workplace rights and protections.

Unit 2: Constitutional Provisions Regarding Labour

Labour laws in many countries, including Pakistan, are influenced by constitutional

provisions that aim to protect workers' rights and promote social justice. Here’s an overview
of key legislations and their significance:

1. Constitutional Provisions

The Constitution typically includes articles that safeguard the rights of workers, promote fair
wages, ensure safe working conditions, and uphold the right to organize and form unions.
These provisions form the foundation for various labour laws.

Key Labour Legislations

2. Industrial Relations Ordinance 2012

 Purpose: Regulates industrial relations and promotes peaceful negotiation between

employers and employees.
 Key Features:
o Establishes mechanisms for the registration and functioning of trade unions.
o Outlines processes for collective bargaining and dispute resolution.
o Protects the rights of workers to engage in union activities.

3. Factories Act 1934

 Purpose: Ensures health, safety, and welfare of workers in factories.

 Key Features:
o Sets standards for working conditions, including ventilation, sanitation, and
working hours.
o Requires the appointment of safety officers and regular inspections.
o Mandates welfare facilities like canteens and restrooms.

4. Workmen's Compensation Act

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  Purpose: Provides financial compensation to workers injured in the course of
employment.
 Key Features:
o Establishes the employer's liability for workplace injuries and occupational
diseases.
o Details the compensation calculation based on wages and severity of the
injury.
o Simplifies the claims process for injured workers.

5. Industrial and Commercial Employment (Standing Orders) Ordinance 1968

 Purpose: Regulates the employment conditions in industrial and commercial sectors.

 Key Features:
o Mandates the formulation of standing orders (written rules) for employment.
o Addresses issues like termination of employment, grievance redressal, and
disciplinary procedures.
o Ensures transparency in employer-employee relationships.

6. Social Security Ordinance 1965

 Purpose: Provides social security benefits to workers.

 Key Features:
o Establishes a framework for health insurance, disability benefits, and pensions.
o Enforces contributions from employers and employees to the social security
fund.
o Aims to improve the welfare of workers and their families.

7. Payment of Wages Act 1936

 Purpose: Ensures timely and fair payment of wages to workers.

 Key Features:
o Regulates the payment of wages, including deductions and penalties.
o Sets timelines for wage payment to prevent exploitation.
o Provides mechanisms for workers to file complaints regarding wage disputes.

8. Companies Profit (Workers’ Compensation) Act

 Purpose: Allocates a portion of company profits for the welfare of workers.

 Key Features:
o Ensures that workers benefit from the financial success of the companies they
work for.
o Encourages companies to invest in employee welfare and development.

9. Employees Old Age Benefits Act 1978

 Purpose: Provides old-age benefits to employees.

 Key Features:
o Establishes a pension scheme for employees to support them post-retirement.
o Mandates contributions from both employers and employees.

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 o Aims to provide financial security and reduce poverty among retired workers.

Conclusion

The constitutional provisions and various acts play a crucial role in shaping labour rights and
protections. Understanding these laws is essential for both employers and employees to
ensure compliance and advocate for a fair and equitable workplace environment.

Unit 3: Trade Unions

Definition

Trade unions are organized groups of workers who come together to advocate for their
collective interests, primarily in relation to their employment conditions, wages, and rights.

Objectives

1. Collective Bargaining: To negotiate with employers for better wages, benefits, and
working conditions.
2. Representation: To represent workers in disputes and grievances, ensuring their
voices are heard.
3. Support and Services: To provide resources such as legal aid, training, and education
for members.

Types of Trade Unions

1. Craft Unions: Composed of skilled workers from a specific trade (e.g., electricians,
plumbers).
2. Industrial Unions: Include all workers within a particular industry, regardless of skill
level (e.g., all employees in the automotive sector).
3. General Unions: Open to workers from various trades and industries, often
representing a wide range of professions.

Functions

 Negotiating Contracts: Establishing collective agreements that outline wages, hours,

and working conditions.
 Advocating for Rights: Lobbying for labor laws and policies that protect workers.
 Organizing Activities: Mobilizing members for strikes, protests, or other forms of
collective action to achieve their goals.
 Providing Training: Offering workshops and resources to enhance skills and
knowledge among workers.

Legislation

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Trade unions operate under specific labor laws that govern their formation, operations, and
the rights of workers. These laws vary by country and often include:

 Right to Organize: Legal recognition of the right of workers to form unions.

 Collective Bargaining Rights: Laws that protect the ability of unions to negotiate on
behalf of workers.
 Protection Against Retaliation: Safeguards against employer retaliation for union
activities.

Challenges

 Anti-Union Sentiment: In some regions, there is significant opposition to

unionization efforts, often driven by employers.
 Legislative Restrictions: Some countries impose strict regulations that limit the
activities and powers of trade unions.
 Globalization: Increased competition and the movement of jobs can weaken unions
and their negotiating power.

Importance

Trade unions play a crucial role in advocating for fair labor practices, protecting workers'
rights, and promoting social justice. They have historically been instrumental in achieving
important labor reforms and improving working conditions.

Unit 4: Labour Courts in Pakistan

Overview

Labour courts in Pakistan are specialized judicial bodies established to resolve disputes
related to labor and employment. They play a vital role in ensuring justice for workers and
employers in labor matters.

Purpose

 Dispute Resolution: To address conflicts between employers and employees

regarding rights and responsibilities.
 Enforcement of Labour Laws: To interpret and enforce various labor laws and
regulations in Pakistan.

Jurisdiction

Labour courts handle a range of issues, including:

 Wage Disputes: Claims related to unpaid wages, overtime, and benefits.

 Unfair Dismissal: Cases involving wrongful termination or unfair disciplinary
actions.

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  Trade Union Matters: Disputes involving the rights of trade unions and their
members.
 Working Conditions: Complaints about unsafe or unhealthy working environments.

Structure

 Establishment: Labour courts are established under the Industrial Relations

Ordinance, 1969, and other relevant labor laws.
 Composition: Typically, each court consists of a presiding officer, who is often a
judge with expertise in labor law.
 Hierarchy: There is a hierarchical structure, with lower labour courts and appellate
courts to hear appeals against lower court decisions.

Procedures

1. Filing a Complaint: Aggrieved parties must file a complaint with the relevant labour
court, outlining their grievances.
2. Hearing: The court schedules hearings where both parties present their cases,
including evidence and witnesses.
3. Judgment: After considering the arguments, the court issues a ruling, which may
include orders for compensation or reinstatement.
4. Appeals: Decisions can often be appealed to higher courts if either party is
dissatisfied with the outcome.

Key Features

 Speedy Justice: Labour courts aim to provide prompt resolutions to disputes,

minimizing delays.
 Informal Procedures: The processes in labour courts are generally less formal than
in regular courts, making it more accessible for workers.
 Legal Representation: Parties may be represented by lawyers or union
representatives during proceedings.

Challenges

 Backlog of Cases: Many labour courts face significant backlogs, leading to delays in
justice.
 Awareness: There is often a lack of awareness among workers about their rights and
the mechanisms available for redress.
 Enforcement Issues: Even when judgments are made, enforcing those decisions can
be problematic, especially if employers refuse compliance.

Importance

Labour courts are essential for upholding workers' rights and ensuring fair treatment in the
workplace. They provide a legal framework for resolving conflicts, thus contributing to
industrial harmony and the protection of labor rights in Pakistan.

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Unit 5: International Labour Organization (ILO)

Overview

The International Labour Organization (ILO) is a specialized agency of the United Nations
that aims to promote social justice and fair labor standards globally. Established in 1919, the
ILO is unique for bringing together governments, employers, and workers to shape policies
and programs that improve labor conditions.

Objectives

1. Promote Rights at Work: Safeguard workers' rights and encourage decent working
conditions.
2. Enhance Employment Opportunities: Foster policies that lead to productive and
sustainable employment.
3. Improve Social Protection: Advocate for social security measures and protections
for all workers.
4. Strengthen Dialogue: Promote social dialogue between governments, employers, and
workers to enhance cooperation and consensus-building.

Structure

 International Labour Conference: The main decision-making body, where

representatives from member states convene annually to discuss labor issues and
adopt conventions and recommendations.
 Governing Body: The executive council responsible for setting the agenda of the ILO
and overseeing its work.
 International Labour Office: The secretariat that provides technical assistance and
research, and implements ILO programs.

Key Activities

 Setting International Standards: The ILO establishes international labor standards

through conventions and recommendations, covering various issues such as child
labor, forced labor, and workplace discrimination.
 Technical Assistance: Provides support to member states in implementing labor
standards and developing effective labor policies.
 Research and Publications: Conducts studies and publishes reports on global labor
trends, rights, and challenges.
 Capacity Building: Offers training and resources to enhance the skills and
knowledge of workers, employers, and governments.

Conventions and Recommendations

 Conventions: Legally binding agreements that member states ratify and are expected
to implement. Notable conventions include those on:
o Forced Labor (Convention No. 29)
o Freedom of Association (Convention No. 87)
o Elimination of Child Labour (Convention No. 138)

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  Recommendations: Non-binding guidelines that provide best practices for member
states.

Importance

 Global Framework: The ILO serves as a platform for countries to collaborate on

labor issues and share best practices.
 Advocacy for Rights: It plays a crucial role in promoting fundamental rights at work
and advancing social justice worldwide.
 Monitoring Compliance: The ILO monitors how member states adhere to
international labor standards, providing oversight and accountability.

Challenges

 Globalization: The rise of global supply chains can complicate enforcement of labor
standards.
 Changing Work Environments: Issues such as gig economy and remote work
present new challenges for labor rights and protections.
 Political Resistance: In some countries, there is resistance to adopting or enforcing
ILO standards due to political or economic considerations.

Conclusion

The ILO is a vital organization in the global effort to promote decent work and protect labor
rights. Its standards and programs aim to foster fair labor practices and social justice, making
it a cornerstone of international labor relations.