ACKNOWLEDGEMENT

In the name of Allah, the Most Gracious and the Most Merciful Alhamdulillah, all

praises to Allah for the strengths and His blessing in completing this report. This

dissertation would not have been possible without the guidance and the help of

several individuals who in one way or another contributed and extended their

valuable assistance in the preparation and completion of this study. Special

appreciation goes to our supervisor, Ma’am Mehreen Khalil, for her supervision

and constant support. Your invaluable help of constructive comments and

suggestions throughout the report work have contributed to the success of this

research.

Not forgotten, our thanks to staff of PTCL Regional office Multan, for their

support and knowledge regarding this topic.

Sincere thanks to our Parents and all our friends for their kindness and moral

support during our study. Thanks for the friendship and memories.

For any errors or inadequacies that may remain in this work, of course, the

responsibility is entirely our own.

Regards

Dedication

We dedicate this report to our Parents and teachers whose support and guidance made us what we are today…

And

All those who helped us throughout the process...

And

This Report is dedicated to those students who are looking for early victories in their professional life…

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IntroductionThe traditional relationship between the employee and the employer is that of ‘Master and Servant’, which is governed by terms of the contract between the two parties. Unfortunately, the terms of employment contract are usually not expressed explicitly in Pakistan. Lack of explicit terms of contract will likely lead to disputes and subsequent unrest. The government adopts measures to avoid exploitation of the weaker party – the workers through their laws and roles. In our country, following different laws protects the employees at workplace.

Labor LegislationLabor law (also called employment law) is the body of laws, administrative rulings, and precedents which address the legal rights of, and restrictions on, working people and their organizations. As such, it mediates many aspects of the relationship between trade unions

Pakistan’s labor laws trace their origin to legislation inherited from India at the time of partition of the Indo-Pak subcontinent. The laws have evolved through a continuous process to meet the socio-economic conditions, state of industrial development, population and labor force growth, growth of trade unions, level of literacy, social welfare needy these objectives, the government shifts in labor policies have reflected the difference of political orientation of the different regimes.

While the legislation has gone through amendments at frequent time, the spirit of all acts of legislation was almost the same – creating an environment that is conducive for promoting economic growth while safeguarding the interests of the workers. In broad terms, the provisions of the labor laws include:

Contract of Employment – provision of an explicit contract of employment.

Termination of the Contract – specifying the notice period for termination.

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Employee termination can be difficult. Pakistani laws establish procedures for terminating employees, although unions-especially in the public sector-can resist lay-offs. Either the employer or the employee may terminate employment upon serving one month of notice or (for an employer) granting one month of salary. Hourly paid workers who are retrenched must be given either two weeks' notice or two weeks' wages.

Working Time and Rest Time – Provides a compulsory weekly rest time.

Working hours – provides the maximum number of hours an employee can work in day (including over time). Under the Factories Act, 1934, no adult employee who is 18, can be required or permitted to work in any establishment in excess of nine hours a day and 48 hours a week.  Similarly, no young person, under the age of 18, can be required or permitted to work in excess of seven hours a day and 42 hours a week. The Factories Act, which governs the conditions of work of industrial labor, applies to factories, employing ten or more workers. The Provincial Governments are further empowered to extend the provisions of the Act, to even five workers.

If the factory is operated on a seasonal basis, an adult worker shall work no more than fifty hours in any week and no more than ten hours in any day. A seasonal factory under the Factories Act is defined as a factory exclusively engaged in one or more of the following manufacturing processes, namely, cotton ginning, cotton or cotton jute pressing, the manufacture of coffee, indigo, rubber, sugar or tea. The law further provides that no worker shall be required to work continuously for more than six hours, unless he or she has had an interval for rest or meals of at least one hour. During Ramadan (fasting month), special reduced working hours are observed

Paid Leave – includes various types of leave e.g. sick leave, maternity leave etc

Minimum Age and Protection of Young Workers – 18 years is the stipulated minimum age workers.

Equality – employers to give fair and equal treatment of genders. Pay Issues (bonuses, minimum wages etc) Trade Union and Employers Association Regulation – Right granted to

employees as well as to employers for forming their associations and the rules to govern those associations.

Workers’ Representation in the Enterprise – workers are given the right to participate in decision making by participation in joint work councils.

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Collective Bargaining and Agreements – rules defining the formulation of Collective Bargaining Agents and the modes operandi for safe guarding the interests of the workers as groups.

Collective Labor Disputes – procedures for disputes resolution are laid down.

Strikes and Lockouts – procedures for strike and lock out by employees and employers respectively are explicitly defined.

Labor Courts – various types of courts are established for adjudication.

Employment laws of PakistanFactories Act, 1934:Regulates the working conditions in factories, employing 10 or more workers

Payment of Wages Act, 1936 : Determines the mode of payment of salaries and wages to the industrial workers

Employment Record of Service Act, 1951:Provides guidelines for the maintenance of service records of workers in industries

Maternity Benefit Ordinance, 1959:Provides certain facilities to those female employees, who are expectant

Canteen Rules, 1959: It envisages provision of a canteen facility, where 250 or more workers are employed

Provincial Employees Social Security Ordinance, 1965:This Act has been designed to provide comprehensive medical cover to employees and their family members, including parents and to provide financial assistance in case of sickness and employment injuries.

The Social Security scheme is implemented on the basis of contribution. The main source of income is the Social Security Contribution, which is collected under Section 70 of the Ordinance from the employers of the notified industrial and commercial establishment.

Employees earning wages up to PKR 10,000 are required to contribute to the Social Security Ordinance. Employer’s contribution is currently capped at 6%.

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Industrial and Commercial Employment (Standing Orders) Ordinance 1968:The Act specifies that every industrial or commercial establishment, where 20 or more workers are employed, is required to comply with the conditions of the employment of workmen and other matters contained in the standing orders.  An amount equal to the wages of the workers has to be paid during the period of suspension.

The standing orders cover the following matters relating to the employment of the workforce:

Compulsory payment of bonus if the employer is making a profit. Compulsory insurance of permanent workman against death, injury or

disability not covered under the workmen compensation Act 1923. Terms and conditions concerning the stoppage of work, the closure of the

business, terms relating to termination of employment, governing payment of gratuity or other termination benefits.

Details of attendance, shift working times, holiday entitlement, terms of wages and group incentives schemes.

Working time and Holiday Entitlement in written form. Classification of employees into permanent, temporary, seasonal,

probationer roles etc

The Minimum Wages for Unskilled Workers Ordinance 1969:Minimum wages for unskilled workers should not be less than PKR 6,000.

West Pakistan Shops and Establishment Ordinance 1969: This act provides for the wages, leaves, holidays, working hours, overtime, and maintenance leave for employees. It applied to all shops and establishments

Workers Welfare Fund Ordinance 1971:Under this Act, an industrial establishment which has a total income of more than PKR 500,000 or more is required under the income tax provisions to pay 2% of its total income to the workers welfare fund ordinance.

The fund is applied to:

The financing of projects concerned with the establishment of housing estates or construction of houses for workers

The financing of other welfare measures including education training, re-skilling and apprenticeship for the welfare of workers

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Employees Cost of Living Relief Act 1973: This act entitles the employee a cost of living allowance equal to PKR 100 per month to be paid by the employer.

Employees Old Age Benefits Act 1976: The Act is applicable to every industry or establishment where five or more persons are employed. This statute intends to provide security and benefits for old age to employees of industrial, commercial or other organizations covered by it. Recent amendments have extended the applicability of this act for employees of the banking sector.

Hazardous Occupations Rules, 1978:Gives guidelines for protection of workers against certain hazardous occupations in the factories.

Employment of Children Act, 1991: Regulates the employment of children.

Industrial Relations Ordinance, 2002It provides framework for the industrial relations between management and the workers. It regulates trade union activities.

Industrial Relations Ordinance 2008This regulation relates to the formation of trade unions, the relations between management and the workforce in avoiding and settling industrial disputes arising between them or related matters.

 

Common Types of Ethical Issues within Organizations

Ethical conflicts occur when there is a question between right and wrong. Ethical issues are often a battle between greed and moral conscience.

Organizational ethics are rules and standards that guide workplace behavior and moral principles. Many organizations establish a "code of ethics" that sets company expectations regarding ethical issues such as privacy, conflict of interest, discrimination and harassment and workplace diversity. Human resources

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personnel are charged with setting standards that promote ethical behavior in the workplace.

Though the ethical dilemmas faced by certain companies may be specific to their industry or company, other types of ethical issues are common to all types of companies. Handling ethical decisions with wisdom is especially important for small businesses, given the potentially devastating effects these companies may face if such issues aren't handled correctly.

1. Employee Behavior Employees who make decisions on their own often face ethical dilemmas. From large corporations to small businesses, individuals involved in all types of business often face ethical issues stemming from employee behavior. For example, whether an employee can spend work time checking personal email accounts, how a manager deals with claims of harassment and to what extent a manager can "groom" a certain employee for a promotion are all examples of ethical issues regarding employee behavior. There are legal consequences for some unethical employee behavior Small business owners can help to prevent ethical problems stemming from employee behavior by drafting a clear, attorney-reviewed set of standards that dictate behavior policies for employees at all levels.

2. Discrimination and Harassment Human resources professionals must ensure the organization remains compliant with anti-discrimination and harassment laws. Employee discrimination and harassment on the basis of race, gender or religion is an important issue organizations face today.HR representatives develop training and awareness programs to prevent discrimination and harassment in the workplace.

3. Diversity Workplace diversity encompasses the various qualities, characteristics and experiences that distinguish one worker from another. These characteristics can be differences in race, gender, age, social status or other traits that make an individual unique. Treating a person differently because of these differences poses an ethical issue. HR personnel implement policies that promote diversity in the workplace and welcome the differences of the entire workforce.

4. Health and Safety One area of ethical consideration for employers is how to balance expense control with the health and safety interests of employees. Manufacturing plants

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and other workplaces where employees use dangerous equipment or engage in physically demanding work should have strong safety standards that not only meet federal requirements, but that also makes eliminating accidents a priority. Even standard office workplaces pose health risks to employees who are asked to sit or stand all day. Unfortunately, certain organizations opt to cut corners on safety controls, equipment and training to save money. This is both unethical and potentially damaging in the long run if major accidents occur.

5. Technology Advancements in technology and the growth of the Internet in the early 21st century have produced a swing of ethical dilemmas for companies. Company leaders have to balance the privacy and freedom of workers while also maintaining standards that require that company technology use is for legitimate business purposes. Certain companies go so far as to monitor all online use and email communication from employee computers and work accounts. A company may have this right, but its leaders need to understand the potential concern about privacy and autonomy among employees.

6. Fair Working Conditions There are a number of ethical issues business people must consider about employee working conditions. Companies are generally expected to provide fair working conditions for their employees in the business environment, but being responsible with employee treatment typically means higher labor costs and resource utilization. Fair pay and benefits for work are more obvious elements of a fair workplace. Another important element is provision of a nondiscriminatory work environment, which again may have costs involved for diversity management and training.

7. Supplier/Customer Relations In addition employees and business owners must consider the ethical issues involved with their relationships between suppliers and customers. Business owners in particular must consider whether it is ethical to do business with suppliers who have unethical practices. When dealing with customers or clients, business people must ensure that they use their information correctly, do not falsely advertise a product or service, and do not intentionally do sub-standard work.

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8. Small Business Ethics Although there are ethical issues like discrimination that apply to all areas of business, each business area has its own ethical concerns. For example, business people who act as consultants must ensure they are giving sound advice. In the area of small business, some major ethical issues result from hiring, firing and dealing with employees. For example, conflicts of interest may cause ethical issues in small businesses, especially if they are family run. When personal family issues interfere with business decisions, this is a conflict of interest and an ethical concern.

9. Whistle-Blowing

Whistle-blowing is typically a last option for an employee who encounters unethical practices. The choice to blow the whistle is a risky one that may cost an employee his job. It is, therefore, essential for an employee to first deal with the matter internally by reporting unethical practices to the leadership levels in the organization. It is also important to have substantial evidence and to have other employees as witnesses to the unethical behavior in question.

Ethical Discrimination in the WorkplaceIt's never ethical to discriminate in the workplace. Ethical discrimination may result in the breeding of ill feelings at work, as well as reduced productivity. To eliminate these ramifications, small-business owners need to put forth increased effort in restricting ethical discrimination in the employment sector.

Discrimination PoliciesDiscrimination based on a person's ethnicity, race or culture may obvious itself in a number of ways in the workplace. For example, when the policies for a business discriminate against persons of certain ethnicities or races, or when an individual receives unequal treatment due to his ethnicity, this is known as disparate impact and disparate treatment, respectively. This may include grouping employees based on race and having differing standards on promotions, punishment, and hiring and placement of employees based on ethnicity, race or cultural orientation.

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Discrimination ReportsAn individual who suffers workplace discrimination based on her ethnicity can report these actions through the Equal Employment Opportunity Commission office for proper address. She must file a charge of discrimination stating the nature of the discrimination act, her contacts and her employer's contacts. She may also consult a lawyer to direct her on legal actions.

Compensation for DiscriminationThe Equal Employment Opportunity Commission investigates the alleged discrimination issue and decides whether to settle the claim with the parties or present the case in court. Once the commission or the court rules in favor of an employee in a discriminatory case, it determines the compensation to be awarded to the employee. This may be in the form of payment fees, job hiring and placement, reinstatement or a promotion. In cases where the plaintiff suffered emotional distress or monetary expenses such as medical fees for stress-related issues --- e.g., high blood pressure --- the court may award damages. The court may also issue an order to the employer to design an exercise in the workplace to address discrimination practices and prevent retaliation against the employee by individuals who took part in discriminatory actions.

Types of Ethical Practices Employees Adhere to in the Workplace

Ethics in the workplace can relate to any situation. Employee ethics cover a diverse landscape of practices all of which the small business owner must be aware. Company policies and mission, employer behavior and actions provide a working template for employees to use as they conduct their day-to-day business. Business values and ethics policies guide employee ethical practices.

1. Justice PracticesThe Golden Rule is a concise guide for just practices in the workplace. Small business owners can collaborate with staff in defining what constitutes justice. Apply that definition to every sector and situation in a small business operation. Criteria for justice apply to all people and all situations. Employees put ethical guidance for justice on the job into practice by treating each other and all clients

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and customers fairly and equally. Anti-discrimination laws are examples of just employee practices.

2. Integrity Practices Integrity requires the courage to do what is right despite popular opinion. Employees who practice integrity in the workplace support what is morally right and what the business represents to its staff and to its customer base. Members of a sales staff, for example, truthfully represent a product line or services. They keep their word to their clients because it is the right thing to do and because their word is the company's word. Integrity requires consistent practice.

3. Confidentiality and Privacy Practices

Confidentiality and privacy laws and practices play a role in every business. A healthy work culture displays respect for employee privacy. Employees practice confidentiality by refraining from gossip about colleagues' private issues. Employees of small healthcare businesses abide by privacy laws as a matter of daily operations.

4. Self-Control Practices

When challenging situations arise, employees who can control their emotions and actions exhibit ethical behavior in the workplace. Self-control prevents difficult situations from escalating into conflicts that disrupt workflow and threaten staff morale. Employees with self-control and discipline may strive to stay on top of their workload. When they avoid backlogs, they help their colleagues to maintain a steady work pace and they contribute to the overall productivity of the business.

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How to Motivate Ethical Behavior in the Workplace???

Step 1

Analyze your current work environment and the existing company values, mission, goals and ethical policies. Note any misleading wording or failure to communicate company initiatives to each employee, including new hires.

Step 2

Solicit the input of each employee about any ethical issues she feels she faces or that others may face. Your employee will be more likely to adhere to a policy she helped create in some way. She is also likely to be pleased that you are concerned about an ethical work environment because ethical companies are better able to care for the needs of their employees.

Step 3

Gain the support of top management to rephrase any unclear goals and to add or develop an ethics program in your company based on the feedback you get from your workforce and your own careful research into common ethical issues in your industry. Study other organizations as examples.

Step 4

Provide ethics training in the form of employees responding to hypothetical situations that may arise or scenarios you know take place in other companies. Many employees don't understand which activities are unethical because certain practices become standard in workplace and get ingrained in the culture. Employees will be empowered to make better decisions when ample training is provided.

Step 5

Clearly define the repercussions for wrongdoing. Not only should they be explained during ethics training and employee evaluations, but these policies

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should clearly be posted on the company's intranet or in the break room. Employees should all sign off on the ethics policy; workers are more inclined to follow something if the punishment for not doing so is effectively explained.

Step 6

Provide a hotline or other anonymous reporting system that will help employees communicate breaches of your ethics plan. An employee is more likely to say something if he knows there is an established, easy way for him to report something. An employee is also more likely to adhere to behavior policies when he knows any other worker can report him if he doesn't.

Step 7

Provide encouragement and protection to any employee who comes forth to report wrongdoing in person. Workers may have a tendency to look down on employees who "tell on" coworkers, however, the accurate, well-intentioned reporting of unethical behavior should be supported.

Step 8

Set up ongoing workshops and mandatory meetings that discuss emerging ethics issues. Not only should leaders train workers about new problems, managers should also solicit continual feedback and ideas from the workforce. Your work environment can change without a moment's notice so it is important for employees to be able to communicate these changes as well as get up-to-date information on how to behave. A worker can only follow the policies she knows and she will be more motivated if she has a clear understanding of the company's wishes.

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How to Handle Ethical Issues in the WorkplaceThe cautious handling of workplace ethics issues can resolve personal and business dilemmas. Morality and values-based dilemmas in the workplace are, at best, difficult to handle when employees have to choose between what’s right and what’s wrong according to their own principles. Forward-thinking employers who implement workplace ethics policies are usually well-prepared for the potential conflicts of interest that arise due to the diversity of opinion, values and culture in the workforce. However, handling ethical issues in the workplace requires a steady and cautious approach to matters which can potentially be dangerous or illegal.

Step 1

Develop a workplace policy based on your company’s philosophy, mission statement and code of conduct. Incorporate the policy into your performance management program to hold employees accountable for their actions and alert them to their responsibilities to uphold professional standards throughout their job performance and interaction with peers and supervisors. Revise your employee handbook to include the policy and provide copies of the revised handbook to employees. Obtain signed acknowledgement forms from employees that indicate they received and understand the workplace ethics policy.

Step 2

Provide workplace ethics training to employees. Utilize varied instruction methods to engage employees in learning how to address and resolve ethical dilemmas. Experiential learning, or role-play, is an effective way to facilitate workplace ethics training. Examples of workplace ethics simulations involve scenarios about the misappropriation of company funds, personal values related to improper workplace relationships and the organization’s compliance with regulatory controls.

Step 3

Designate an ombudsperson in charge of handling employees’ informal concerns pertaining to workplace ethics. Consider whether your organization also needs an ethics hotline, which is a confidential service employees may contact whenever they encounter workplace dilemmas that put them into uncomfortable or

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threatening positions. Confidential hotlines are an effective way to assure employees’ anonymity, which is a concern for employees whose alerts are considered “whistle blowing” actions.

Step 4

Research federal, state and municipal labor and employment laws pertaining to whistle blowing. Refrain from making employment decisions, such as termination or suspension, in connection with whistle blowing or an employee’s right to protected activity under whistle blowing laws or public policy. Seek legal advice for employee reports of workplace ethics issues that increase your organization’s liability under federal, state or municipal employment law. Under the Texas Whistleblower Act, for example, public-sector employees may be entitled to damages if an employer engages in retaliatory actions based on an employee who, in good faith, files a complaint related to workplace ethics. The Act grants "[a] public employee who claims that his suspension, termination, or other adverse personnel action was in retaliation for his good faith reporting of violations of the law the right to sue for damages and other relief."

Step 5

Apply your workplace policy consistently when addressing workplace issues and employee concerns about workplace ethics. Use the same business principles in every circumstance, regardless of the perceived seriousness or the level of employees involved. Communicate the same expectations for all employees – whether they are in executive positions or front-line production roles – and approach every issue with equal interpretation of the company policy.

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Employee Rights Issues at PTCL

Just Cause Termination

PESHAWAR: The Peshawar High Court (PHC) has reprimanded Pakistan Telecommunication Corporation Limited (PTCL) authorities for ill-treatment of one of its employees, while hearing a writ petition filed by PTCL authorities on Tuesday. The case was filed against decision of the Labour Court which ordered the reinstatement of ShakilaMushtaq, a contract-based key punch operator and to give her all the back benefits.  According to Mushtaq, she was terminated in 2006 and was reinstated on December 13, 2008. “I have been regularized by the Labour Tribunal but still I have not been paid my back benefits since 2006,” she said. Counsel for the PTCL informed the court that Shakila was never their regular employee and was removed in 2006; therefore, the administration was not liable to give back benefits to her. The court dismissed the writ petition and ordered PTCL to pay Rs0.1 million in compensation to Mushtaq.

Published in The Express Tribune, March 7th, 2012.

Ethical Perspective: Employees have a right not to b terminated arbitrarily or without just cause.

Right of Pension and Medical Allowance

PTCL Retired Employees (Pensioners) Protest in Front of Multan, M Garh, and Karachi etc. Press Club on January 11, 2010

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However this issue is resolved after the announcement in Federal Budget 2010-2011 that Pensioners or retired employees of civil and military will receive 15% to 20% increase in pension and 20% to 25% of total pension drawn as a medical allowance.Islamabad (Wednesday, December 21, 2011) – In Islamabad High Court (IHC) Islamabad, Honorable judges has announced the decision of the appeals registered by PTCL pensioners. The Court accepted their appeals/applications regarding Pension increase (as per Federal Govt announcement, Medical allowance, widows/family pensions and minimum limit of pension of PTCL pensioners.Nawa-e-waqt (December 21, 2011)

Downsizing and Employee Right

The PTCL had introduced a Voluntary Separation Scheme (VSS) which entitled its employees to receive early retirement benefits provided he had completed a minimum of 20 years of service. When these employees applied for early retirement, they were denied the benefit of VSS by PTCL for not completing the required length of service.

The employees wrote a letter to a judge of the Hyderabad Bench of the SHC, saying that they had completed 20 years of service from the date of their appointment, but they were wrongly denied the VSS benefits.

The letter was converted into a petition and notices were issued to the authorities concerned.

Ethical Perspective: Since August 1988, employees have the moral right- when companies decide to close or downsize, employees have the right to be compensated for the costs of retiring, transferring and relocating.

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Discrimination:

The PTCL argued that the length of service of these employees could be considered only from the date of successful completion of training and not from the date of their initial appointment.

But the employees cited the case of Mrs Rubina Khadim, a telephone operator, who was granted the benefits on the basis of the date of her appointment and not that of completion of training.

They submitted that in their case, the PTCL had pursued a policy of discrimination which warranted interference by the court.

The Hyderabad bench allowed the petition and ordered the PTCL to extend the benefit of VSS to them.

HR & Work Force Concerns:

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This is not, however, their only loss. After taking over, Etisalat was keen to shed excess labor. Almost 32,000 employees reportedly left under the voluntary separation programme (VSS), and the government has borne 256 million dollars of the cost of payouts to those choosing to leave. Additionally, it seems that VSS led to many of the best employees exiting the company, which created a veritable human resource crisis at PTCL.

Network maintenance and operation, as well as customer care, seem to have suffered. A PTCL official, who does not want to be named, claims that many of the best linesmen and other technical hands have left and that hundreds of thousands of connections have been lost as a result.

In the case of PTCL, privatization both parties miserably failed to comply with the key standards and structures of corporate governance in Pakistan. The role of auditors and officials responsible for the appraisal of assets of PTCL including Ufone and PakNet was ambiguous and below international standards. The sale of 26% share of PTCL along with the management control is considered as financial blunder in the privatization history of Pakistan. The study clearly elucidate that there was no need for the hasty privatization of PTCL.

Ethical Perspective:

PTCL needed was just proper corporate governance through accountability, transparency, integrity, corporate ethics and executive control.

PTCL Plans to Relieve 10000 Employees in Next Financial Year

PTCL plans to relieve 10,000 employees in next financial year to relieve the burden of over employment, to cut down the cost and optimization of employee’s efficiency.However the sources disclosed that at least 3000 employees shall be dismissed from service on the charges of misconduct and promoting unionism. PTCL has prepared the list of 3000 employees who have/ had been involved in such activities at any level will be terminated. For this, the legal department of PTCL is engaging lawyers across Pakistan who will be dealing the anticipated cases against PTCL from these to be terminated employees. On this plan, PTCL shall save billions of rupees to be given to these employees through Golden Hand Shake (a senior official said on the request to not disclose the name). 

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However, PTCL shall also offer golden hand shake/or volunteer retirement to 7000 employees. The package for these employees is being finalized.

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