Labor Law: Presentation
Labor Law: Presentation
Labor Law
• Article 11 of the Constitution prohibits all forms of slavery, forced labor and child labor
• Article 17 provides for a fundamental right to exercise the freedom of association and the right to form
unions;
• Article 18 proscribes the right of its citizens 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 provision for securing just and humane conditions of work, ensuring that children
and women are not employed in vocations unsuited to their age or sex, and for maternity benefits for
women in employment.
Labor Legislation: Pakistan’s labor laws trace their origination to legislation inherited from India at the
time of partition of the Indo-Pak subcontinent. The laws have evolved through a continuous process of
trial to meet the socio-economic conditions, state of industrial development, population and labor force
explosion, growth of trade unions, level of literacy, Government’s commitment to development and social
welfare. To meet the above named objectives, the government of the Islamic Republic of Pakistan has
introduced a number of labor policies, since its independence to mirror the shifts in governance from
martial law to democratic governance. Under the Constitution labor is regarded as a ‘concurrent subject’,
which means that it is the responsibility of both the Federal and Provincial Governments. However, for
the sake of uniformity, laws are enacted by the Federal Government, stipulating that Provincial
Governments may make rules and regulations of their own according to the conditions prevailing in or for
the specific requirements of the Provinces.
The total labor force of Pakistan is comprised of approximately 37.15 million people, with 47% within
the agriculture sector, 10.50% in the manufacturing & mining sector and remaining 42.50% in various
other professions. Pakistan has ratified ILO and workplace inspection through Factories act 1934.
Contract of Employment: While Article 18 of the Constitution affords every citizen with the right to
enter upon any lawful profession or occupation, and to conduct any lawful trade or business, the
Industrial and Commercial Employment Ordinance was enacted in 1968 to address the relationship
between employer and employee and the contract of employment.
Termination of the Contract: The services of a permanent worker cannot be terminated for any reason
other than misconduct unless one month’s notice or wages in lieu thereof has been furnished by the
employer or by the worker if he or she so chooses to leave his or her service. All terminations of service
in any form must be documented in writing stating the reasons for such an act.
Working hours: Section 8 of the West Pakistan Shops and Establishments Ordinance, 1969 similarly,
limits week by week work hours at 48 hours. Likewise, no youngster, younger than 18, can be required or
allowed to work more than seven hours every day and 42 hours per week. Where the manufacturing plant
is an occasional one, a grown-up specialist will work close to fifty hours at whatever week and close to
ten hours at whatever day.
Paid Leave: As provided in the Factories Act, 1934, every worker who has completed a period of
twelve months continuous service in a factory shall be allowed, during the subsequent period of twelve
months, holidays for a period of fourteen consecutive days. If a worker fails in any one such period of
twelve months to take the whole of the holidays allowed to him or her, any holidays not taken by him or
her shall be added to the holidays allotted to him or her in the succeeding period of twelve months.
A worker shall be deemed to have completed a period of twelve months continuous service in a factory
notwithstanding any interruption in service during those twelve months brought about by sickness,
accident or authorized leave not exceeding ninety days in the aggregate for all three, or by a lock-out, or
by a strike which is not an illegal strike, or by intermittent periods of involuntary unemployment not
exceeding thirty days in the aggregate; and authorized leave shall be deemed not to include any weekly
holiday allowed under section 35 which occurs at beginning or end of an interruption brought about by
the leave.
Minimum Age and Protection of Young Workers: Article 11(3) of Pakistan's Constitution explicitly
denies the work of kids underneath the age of fourteen years in any processing plant, mine or other
dangerous business. The Factories Act, 1934 takes into account the work of kids between the ages of 14
and 18 years given that every juvenile acquires an endorsement of wellness from a confirming specialist.
Pay Issues: Wages are understood as the absolute compensation payable to a utilized individual on the
satisfaction of their agreement of business. It incorporates rewards and any whole payable for need of a
legitimate notification of release.
Labor Courts: Section 33 of the Industrial Relations Ordinance, 2002 permits any CBA or any employer
to apply to the Labor Court for the enforcement of any right guaranteed or secured by law or any award or
settlement. The Provincial Government derives its authority to establish as many Labor Courts as it
considers necessary under section 44 of the Ordinance. Each Labor Court is subject to jurisdictional
limitations derived by its geographical parameters or with respect to the industry or the classes of cases
allocated. Each Labor Court consists of one Presiding Officer appointed by the Provincial Government.
The Labor Court adjudicates industrial disputes which have been referred to or brought before it; inquires
into or adjudicates any matter relating to the implementation or violation of a settlement which is referred
to it by the Provincial Government; tries offenses under the Industrial Relations Ordinance; and exercises
and performs such other powers and functions conferred upon or assigned to it. While deliberating
offenses, the Labor Court follows as nearly as possible procedure as prescribed under the Code of
Criminal Procedure, 1898. For purposes of adjudicating and determining any industrial disputes, the
Labor Court is deemed to be a Civil Court and retains the same powers as are vested in such Court under
the Code of Civil Procedure, 1908 (Act V of 1908) including the enforcement of attendance and
examination under oath, the production of documents and material objects, and the issuance of
commissions for the examination of witnesses or documents.