Industrial relation employees relation knowledge box

Labor Laws Instructor: Muhammad Akram Chaudhry 1

INDUSTRIAL RELATION / EMPLOYEE’S RELATION


Goals for today• THINK:

– About basic principles that affect people and organizations

– About practices that HR professionals and leaders can use to implement these principles

• BEHAVE:– Do little things that make a difference

• FUN:– Enjoy the experience together


New Business Realities: Context of HR

• Technology– Connectivity: always connected– Accessibility: no boundaries– Ambiguity: uncertain future

• Industry/economic trends– Transparency: open book management– Adaptability: the need to change– Intensity: market conditions– Convergency: overlap of industries

• Demographics– Mobility: movement of talent globally– Diversity: globalization of work force– Spirituality: a need for trust and values

GLOBALIZATION

Fundamental Message:value is defined by the receiver more than the giver

Fundamental Message:value is defined by the receiver


What we want(values, beliefs, goals)

What we want(values, beliefs, goals)

What we do?Actions/behaviors

What we do?Actions/behaviors

Human resources Line management

Fundamental Message:value is defined by the receiver


HR professionals

HR actions that deliver value

coach

deliver and do

facilitate architect


Evolution of HR

30’s:: industrial relations40’s: staffing practices50’s: training/development 60’s: socio/technical systems; 70’s: compensation/rewards 80’s: organization design/communication90’s: partnership; HR strategy2000’s: adding value: how we are at the table, what do we do?

LEADING THROUGH HR

• The most recent HR trends have a track record of professional development which may be categorized in FOUR Broad Phases. Each phase has been influenced by radical management ideas which have defined the role of HR Manager in business organizations..


PHASE I – THE PHASE OF WELFARE & ADMINISTRATION (1900 to 1940’s)

The following Management ideas flourished in this phase:-

1923• Efficiency was the buzzword as enterprises applied the

scientific management methods of Federick Taylor, Frank Gilberth and others.

• Henry Ford’s, Mass production technique churning out Model Ts at increasingly lower prices.


• Alfred Sloan’s new structure for GM, Decentralized decisions, Centralized staff functions

• Mary Parker Follett saw the future of management: key words introducing such as, Group thinking coordination, power with, not power over.

• The human element Elton Mayo’s famous Hawnthorne studies find that, Human and social factors have a big impact on productivity.



1938

• Janes Mooney identifies hierarchy showing that, Organizations have a ladder of duties & responsibilities.

• Chester Bernard defined organization as a System of cooperative efforts with a common purpose in the function of the Executive.

• Emergence of Labour Laws for industrial workers.


PHASE 2 – WELFARE ADMINISTRATION STAFF ANDTRAINING : PERSONNEL MANAGEMENT, INDUSTRIAL RELATIONS 1940’s TO

MID 1970’s

The following management ideas flourished during this period:-

• Quantitative methods of analysis influenced decision marking in business.

• Henry Fayol’s Complete theory of “14 principles of management functions” (Planning controlling staffing….) published in English 33 years after Frenchman Henry Fayol wrote it (General & industrial management).


PHASE 2 – WELFARE ADMINISTRATION STAFF ANDTRAINING : PERSONNEL MANAGEMENT, INDUSTRIAL RELATIONS

1940’s TO MID 1970’s

1954

• Maslow’s theory of human needs hierarchy.• The rise of MBO Peter Draker: • “Managers should be driven by clear objectives” in

“The Practice of Management”.• Frederik Herzberg’s Theory of

Motivation.


1962

• Douglas Mc Gregor’s argument of Theory Y Management (Encouraging self direction) on Theory X (Encouraging authority).

• Organizational structure takes Centre Stage as Alfred Chandler& Drucker focus on big picture.

Likert’s concept of Leaders who developparticipative organizations get better results.


1940’s TO MID 1970’s


1940’s TO MID 1970’s

1967

• Peter Drucker introduce the knowledge workers and recognizes the growing up of knowledge workers.


PHASE 3 – HUMAN RESOURCE MANAGEMENT MID 1970’s – 1990’s

The following management ideas groomed in this.

1980

• What do managers do (Henry Mintzberg) finds that, Immediate tasks rather than long term thinking consume their days.

.


• Tom Peters’ In Search of Excellence: Research of 43 Excellent Companies’ identifying success factors behind their excellence. Within Productivity through People highlighted as key to organization excellence



May 1986 Wall Street Journal

• Peter Ducker’s article on “Goodbye to old personnel department” in which he predicted:

1. Personnel function will drastically change in years ahead.

2. New and different tasks

3. We will have to act as a line rather then staff function.

4. Employing different people.


5. Will have to redirect itself away from concern with cost of employees to concern with their yield as resource.

6. Personal Management & Org. Planning (OP) will have to come together.

7. PERSONAL MANAGEMENT: Treated organization as given and tried to provide people. Focused on supply

8. ORGANIZATION PLANNING: Fashioned impersonal boxes with functional titles. Focused on demand.

9. Both will have to come together Personnel function will have to concern itself with job design and job relations rather than simply try to supply people to fill predetermined slots



• PETER DRUCKER IDENTIFIED FOLLOWING FACTORS RESPONSIBLE FOR ABOVE CHANGE:

1. Changing technology, taking away functions of first line supervisors by automaton will need to redirect them to acquire new vision, new skills.

2. Shift in composition of workforce. Productivity of white collar workers, new challenge, restructuring of career ladders, compensation and recognition.

3. Changing age composition of professional and managerial functions.



1. Changing technology, taking away functions of first line supervisors by automaton will need to redirect them to acquire new vision, new skills.

2. Shift in composition of workforce. Productivity of white collar workers, new challenge, restructuring of career ladders, compensation and recognition.

3. Changing age composition of professional and managerial functions.

• The Credibility gap: The tug of war between HR and Line Managers.• Moving back or moving forward:- The HR linkage.


PHASE 4 STRATEGIC HUMAN RESOURCE MANGEMENT 2000 ONWARDS

• Influence of IT revolution in Strategic Decision Making.

• From “Do able” to “Deliverables”.

• Lagging indicators & Leading indicators as new parameters of organizational success.

• The Strategic Alignment and the HR Score Card.


– Dave Ulrich’s new mandate for HR Managers: The future Humane Resources Champions:

- As STRATEGIC PARTNER

- As ADMINISTRATIVE EXPERTS

- As EMPLOYEE CHAMPIONS

- As AGENTS OF CHANGE



• Charles Handy’s Productivity Challenge

Productivity

Three Times = Half the people + Double the Wages the Performance

Wealth = Productivity + Alchemy (Creative mind)

Happiness = Wealth + Humanity (Concern for people)


• The new challenge of Managing Talents.

• HR’s Leading Role as the Future CTOs (Chief Talent Officer): The Ladder to the Board Room

• Where are we? The HR leaders of Pakistan: Respond to the Wakeup Call


Labor Laws Instructor: Muhammad Akram Chaudhry

Business Environment and the Changing Workplaces at a Glance


Business Era

The Global EnvironmentReaction of Nations

Business Focus

within Organizations

Culture within Organizations

People Perspective Functional Importance within Organizations

Fortune 100

and their CEOs

1900s-1940s

Conflicts, Wars and Independence Movements

We don’t need your help. W e can do it ourselves.

Survival Lack of trust and survival of the fittest

Give them limited resources and control them tightly.

Accounting and Finance

Accounting and Finance

1940s-1950s

Industrialization (increased business opportunities, increased employment, etc.)

You can help, if you want to.

Growth while focusing on ways of increasing productivity

I can do without you.

Give them the resources, however, govern and administer their behavior.

Production and Engineering

Production and Engineering

1960s-1970s

Restricted international trade opportunities, Cross boundaries joint-ventures, international investment climate, growth of multi-national business organizations, establishment of international trade and peace organizations, relaxed immigration policies allowing international migration, etc.

Let me help you with your growth.

Cross-boundaries expansion and growth

I need your help.

People will work better if they are valued, managed and trained like other organizational resources...

Marketing Marketing

1980s andearly 90s

Information, communication and technological revolution, Fall of Berlin wall, End of communism International Standards, European Union, etc.

We can be more effective with mutual sharing and assistance.

Increased used of technology and standardization of systems procedures and processes for consistency in quality

We can’t do it alone. W e need each other.

People are emotional beings and critical for the success of any organization and their competence is the key to success in future. They must be respected, appreciated, nurtured, developed and empowered.

Technology Operations

Late

90sand Beyond

Globalization of the world economy, Free movement of infor mation, goods and services, etc. More inter border alliances like European Union, More single currency markets, etc.

We are all one and have the same objective. Then let’s work together for the common good.

Humanization of the organization for competitive advantage as no other competitive advantage is left with the easy availability and transfer of technology goods and services.

We are one and can only get the best if we pooled our resources and efforts together.

People are the most precious and important capital of the organization and the motivation of people will be the only success factor in the new age and it will reflect in the balance sheet of the organization.

Human Resources

Inspirational Human Resources with strong business acumen and ability to relate religion with business.


Changing Role of HR Function in the Workplace Business Era

HR Paradigm

Nature of HR Department

Role of HR Head

Background of HR Managers

Impact of HR Role

HR Role Positioning in organizations

1900s-1940s

Control andDiscipline.

Administration Department

Bull-dog Army and Police

Control at

workers’ level.

Supervisory or Junior Management depending on the size of operation

1940s-1950s

Ensure Compliance with organizational rules ad regulations.

Industrial Relations Department

Watch-dog Industrial Relations and Law

Compliance to organizational policies up to supervisory level.

Junior/Middle Management reporting to Admn. Or Finance head

1960s-1970s

Train and Manage.

Personnel Management Department

Trouble shooter and a coach

Personnel Management

Providing personnel policies and systems support to other functional heads.

Middle Management reporting to Operations

1980s andearly 90s

Develop and Motivate.

HR Department Business Partner

Psychology and Business

A line-manager providing HR related support to other colleagues in support departments and business units.

Senior Management reporting to directors/CEO.

Late

90sand Beyond

Educate and Inspire.

Human Capital Management Function

Clergy and an agent of change

Behavioral Sciences and Religion

Total Business and the society at large.

Advisory and Inspirational role providing expert advice to the board. Reporting to the Chairman/share-holders with the functional/line management responsibilities pushed down to business unit heads.

HR- Transaction to Transformation


Basic Human Resource Functions

Staffing

Maintenance Training & Development

Motivation

H R M


Shift of HR from Operational to Strategic Continuum

HR Business Partner Model



HR can help bring organizational excellence by means of four methods;

1. As Strategic Partner: HR should become a partner with the top management to help in strategy execution by aligning HR Systems with business strategy

2. As Administrative Expert: HR should add its expertise to achieve work excellence so that costs are cut and quality is maintained through efficient delivery of HR System



3. As Employee Champion: HR should represent the employees concerns to senior management as well as coordinate with employees to ensure their contribution through competence and commitment

4. As Change Leader: HR professionals should act as change leaders by contributing to process of change and help improve the organization’s capacity to do so

IR- Transformation

Pakistan Institute of Management

INTERNATIONAL LABOUR INTERNATIONAL LABOUR ORGANIZATIONORGANIZATION


Origins and history

The ILO was created in 1919, as part of the Treaty of Versailles that ended World War I, to reflect the belief that universal and lasting peace can be accomplished only if it is based on social justice.


The International Labour Organization

The international Labour Organization (ILO) is a United Nations specialized agency that aims to promote social justice and universally recognized human and labour rights. It is the only worldwide organization founded on a tripartite structure with equal representation of governments, employers and workers.


Origins and history

The Constitution was drafted between January and April, 1919, by the Labour Commission set up by the Peace Conference, which first met in Paris and then in Versailles. It resulted in a tripartite organization, the only one of its kind bringing together representatives of governments, employers and workers in its executive bodies.


Origins and historypreamble states:

1. Whereas universal and lasting peace can be established only if it is based upon social justice;

2. And whereas conditions of labour exist involving such injustice hardship and privation to large numbers of people as to produce unrest so great that the peace and harmony of the world are imperiled; and an improvement of those conditions is urgently required;

3. Whereas also the failure of any nation to adopt humane conditions of labour is an obstacle in the way of other nations which desire to improve the conditions in their own countries.


Origins and historyThe areas of improvement listed as per preamble are,

1. Regulation of the hours of work including the establishment of a maximum working day and week;

2. Regulation of labour supply, prevention of unemployment and provision of an adequate living wage;

3. Protection of the worker against sickness, disease and injury arising out of his employment;

4. Protection of children, young persons and women; 5. Provision for old age and injury, protection of the interests of workers

when employed in countries other than their own; 6. Recognition of the principle of equal remuneration for work of equal

value; 7. Recognition of the principle of freedom of association; 8. Organization of vocational and technical education, and other

measures.


Origins and history

Early days

“Working for social justice is our assessment of the past and our mandate for the future."

Juan Somavia, Director-General


INTERNATIONAL LABOUR INTERNATIONAL LABOUR STANDARDSSTANDARDS


International labour standards

International labour standards have been the principal means through which the international labour organization has acted since it was created in 1919. They take the form of conventions or recommendations.


Conventions

Conventions are international treaties that bind the member States which ratify them. By ratifying them, member States formally commit themselves to putting their provisions into effect, both in law and in practice.


Recommendations

Recommendations are not international treaties. They establish non-obligatory guiding principles for national policy and practice. They often supplement the provisions of Conventions.


Compliance

States that have ratified Conventions must periodically report on their application in law and in practice. They have a constitutional obligation to present reports on the measures they have taken to put those Conventions into effect. Employers organization and workers origination may present the organization with their comments on the application of convention ratified by their countries


Compliance

The reports are examined by the Committee of Experts on the Application of Conventions and Recommendations, a body independent of the Organization, whose own report is then discussed each year by a tripartite committee of the international Labour Conference.


Structure The International Labour Organization, which has its Headquarters in Geneva, Switzerland, accomplishes its work through three main bodies, all of which encompass the unique feature of the Organization, i.e. its tripartite structure. These bodies are:

• A General Assembly • The International Labour Conference;• An Executive Council • The Governing Body; • A permanent secretariat –the International Labour

Office.


a. The International Labour Conference

The Conference has several main tasks: it sets international labour standards and plays a very important role in supervising their application; it acts as a forum in which social and labour questions of importance to the entire world are discussed freely; it passes resolutions that provide guidelines for the ILO’s general policy and activities.


b. The Governing Body

The Governing Body meets three times a year, in March, June and November, in Geneva, Switzerland. It has 56 titular members: 28 represent governments, 14 represent employers and 14 represent workers. Ten of the government seats are permanently held by States of major industrial importance.


c. The International Labour Office

The International Labour Office in Geneva, Switzerland, is the Permanent secretariat of the Organization. It is the focal point for the overall activities that it prepares under the scrutiny of the Governing Body and under the leadership of a Director-General, elected by the Governing Body for a five- year renewable term.


OFFICIAL TITLES OF THE CONVENTIONS OFFICIAL TITLES OF THE CONVENTIONS ADOPTED ADOPTED

By The International Labour ConferenceBy The International Labour Conference


ILO -- Conventions1 — Hours of Work (Industry) Convention, 1919

2 — Unemployment Convention, 1919

3 — Maternity Protection Convention, 1919

4 — Night Work (Women) Convention, 1919 (shelved)

5 — Minimum Age (Industry) Convention, 1919

6 — Night Work of Young Persons (Industry) Convention, 1919

7 — Minimum Age (Sea) Convention, 1920

8 — Unemployment Indemnity (Shipwreck) Convention, 1920

9 — Placing of Seamen Convention, 1920

10 — Minimum Age (Agriculture) Convention, 1921

Conventions


ILO -- Conventions11 — Right of Association (Agriculture) Convention, 1921

12 — Workmen’s Compensation (Agriculture) Convention, 1921

13 — White Lead (Painting) Convention, 1921

14 — Weekly Rest (Industry) Convention, 1921

15 — Minimum Age (Trimmers and Stokers) Convention, 1921 (shelved)

16 — Medical Examination of Young Persons (Sea) Convention, 1921

17 — Workmen’s Compensation (Accidents) Convention, 1925

18 — Workmen’s Compensation (Occupational Diseases) Convention, 1925

19 — Equality of Treatment (Accident Compensation) Convention, 1925

20 — Night Work (Bakeries) Convention, 1925 (shelved)

Conventions


ILO -- Conventions21 — Inspection of Emigrants Convention, 1926 (shelved)

22 — Seamen’s Articles of Agreement Convention, 1926

23 — Repatriation of Seamen Convention, 1926

24 — Sickness Insurance (Industry) Convention, 1927

25 — Sickness Insurance (Agriculture) Convention, 1927

26 — Minimum Wage-Fixing Machinery Convention, 1928

27 — Marking of Weight (Packages Transported by Vessels) Convention, 1929

28 — Protection against Accidents (Dockers) Convention, 1929 (shelved)

29 — Forced Labour Convention, 1930

30 — Hours of Work (Commerce and Offices) Convention, 1930

Conventions


ILO -- Conventions31 — Hours of Work (Coal Mines) Convention, 1931 (withdrawn by the ILC – decision of 15

June 2000)

32 — Protection against Accidents (Dockers) Convention (Revised), 1932

33 — Minimum Age (Non-Industrial Employment) Convention, 1932

34 — Fee-Charging Employment Agencies Convention, 1933 (shelved)

35 — Old-Age Insurance (Industry, etc.) Convention, 1933 (shelved)

36 — Old-Age Insurance (Agriculture) Convention, 1933 (shelved)

37 — Invalidity Insurance (Industry, etc.) Convention, 1933 (shelved)

38 — Invalidity Insurance (Agriculture) Convention, 1933 (shelved)

39 — Survivors’ Insurance (Industry, etc.) Convention, 1933 (shelved)

40 — Survivors’ Insurance (Agriculture) Convention, 1933 (shelved)

Conventions


ILO -- Conventions41 — Night Work (Women) Convention (Revised), 1934 (shelved)

42 — Workmen’s Compensation (Occupational Diseases) Convention (Revised), 1934

43 — Sheet-Glass Works Convention, 1934 (shelved)

44 — Unemployment Provision Convention, 1934 (shelved)

45 — Underground Work (Women) Convention, 1935

46 — Hours of Work (Coal Mines) Convention (Revised), 1935 (withdrawn by the ILC – decision of 15 June 2000)

47 — Forty-Hour Week Convention, 1935

48 — Maintenance of Migrants’ Pension Rights Convention, 1935 (shelved)

49 — Reduction of Hours of Work (Glass-Bottle Works) Convention, 1935 (shelved)

50 — Recruiting of Indigenous Workers Convention, 1936 (shelved)

Conventions


ILO -- Conventions51 — Reduction of Hours of Work (Public Works) Convention, 1936 (withdrawn by the ILC

– decision of 15 June 2000)

52 — Holidays with Pay Convention, 1936

53 — Officers’ Competency Certificates Convention, 1936

54 — Holidays with Pay (Sea) Convention, 1936

55 — Shipowners’ Liability (Sick and Injured Seamen) Convention, 1936

56 — Sickness Insurance (Sea) Convention, 1936

57 — Hours of Work and Manning (Sea) Convention, 1936

58 — Minimum Age (Sea) Convention (Revised), 1936

59 — Minimum Age (Industry) Convention (Revised), 1937

60 — Minimum Age (Non-Industrial Employment) Convention (Revised), 1937 (shelved)

Conventions


ILO -- Conventions61 — Reduction of Hours of Work (Textiles) Convention, 1937 (withdrawn by the ILC – decision of 15

June 2000)

62 — Safety Provisions (Building) Convention, 1937

63 — Convention concerning Statistics of Wages and Hours of Work, 1938

64 — Contracts of Employment (Indigenous Workers) Convention, 1939 (shelved)

65 — Penal Sanctions (Indigenous Workers) Convention, 1939 (shelved)

66 — Migration for Employment Convention, 1939 (withdrawn by the ILC – decision of 15 June 2000)

67 — Hours of Work and Rest Periods (Road Transport) Convention, 1939 (shelved)

68 — Food and Catering (Ships’ Crews) Convention, 1946

69 — Certification of Ships’ Cooks Convention, 1946

70 — Social Security (Seafarers) Convention, 1946

Conventions


ILO -- Conventions71 — Seafarers’ Pensions Convention, 1946

72 — Paid Vacations (Seafarers) Convention, 1946

73 — Medical Examination (Seafarers) Convention, 1946

74 — Certification of Able Seamen Convention, 1946

75 — Accommodation of Crews Convention, 1946

76 — Wages, Hours of Work and Manning (Sea) Convention, 1946

77 — Medical Examination of Young Persons (Industry) Convention, 1946

78 — Medical Examination of Young Persons (Non-Industrial Occupations) Convention, 1946

79 — Night Work of Young Persons (Non-Industrial Occupations) Convention, 1946

80 — Final Articles Revision Convention, 1946

Conventions


ILO -- Conventions81 — Labour Inspection Convention, 1947

Protocol of 1995 to the Labour Inspection Convention, 1947

82 — Social Policy (Non-Metropolitan Territories) Convention, 1947

83 — Labour Standards (Non-Metropolitan Territories) Convention, 1947

84 — Right of Association (Non-Metropolitan Territories) Convention, 1947

85 — Labour Inspectorates (Non-Metropolitan Territories) Convention, 1947

86 — Contracts of Employment (Indigenous Workers) Convention, 1947 (shelved)

87 — Freedom of Association and Protection of the Right to Organise Convention, 1948

88 — Employment Service Convention, 1948

89 — Night Work (Women) Convention (Revised), 1948 Protocol of 1990 to the Night Work (Women) Convention (Revised), 1948

90 — Night Work of Young Persons (Industry) Convention (Revised), 1948

Conventions


ILO -- Conventions91 — Paid Vacations (Seafarers) Convention (Revised), 1949 (shelved)

92 — Accommodation of Crews Convention (Revised), 1949

93 — Wages, Hours of Work and Manning (Sea) Convention (Revised), 1949

94 — Labour Clauses (Public Contracts) Convention, 1949

95 — Protection of Wages Convention, 1949

96 — Fee-Charging Employment Agencies Convention (Revised), 1949

97 — Migration for Employment Convention (Revised), 1949

98 — Right to Organise and Collective Bargaining Convention, 1949

99 — Minimum Wage Fixing Machinery (Agriculture) Convention, 1951

100 — Equal Remuneration Convention, 1951

Conventions


ILO -- Conventions101 — Holidays with Pay (Agriculture) Convention, 1952

102 — Social Security (Minimum Standards) Convention, 1952

103 — Maternity Protection Convention (Revised), 1952

104 — Abolition of Penal Sanctions (Indigenous Workers) Convention, 1955 (shelved)

105 — Abolition of Forced Labour Convention, 1957

106 — Weekly Rest (Commerce and Offices) Convention, 1957

107 — Indigenous and Tribal Populations Convention, 1957

108 — Seafarers’ Identity Documents Convention, 1958

109 — Wages, Hours of Work and Manning (Sea) Convention (Revised), 1958

110 — Plantations Convention, 1958 Protocol of 1982 to the Plantations Convention, 1958

Conventions


ILO -- Conventions111 — Discrimination (Employment and Occupation) Convention, 1958

112 — Minimum Age (Fishermen) Convention, 1959

113 — Medical Examination (Fishermen) Convention, 1959

114 — Fishermen’s Articles of Agreement Convention, 1959

115 — Radiation Protection Convention, 1960

116 — Final Articles Revision Convention, 1961

117 — Social Policy (Basic Aims and Standards) Convention, 1962

118 — Equality of Treatment (Social Security) Convention, 1962

119 — Guarding of Machinery Convention, 1963

120 — Hygiene (Commerce and Offices) Convention, 1964

Conventions


ILO -- Conventions121 — Employment Injury Benefits Convention, 1964 [Schedule I amended in 1980]

122 — Employment Policy Convention, 1964

123 — Minimum Age (Underground Work) Convention, 1965

124 — Medical Examination of Young Persons (Underground Work) Convention, 1965

125 — Fishermen’s Competency Certificates Convention, 1966

126 — Accommodation of Crews (Fishermen) Convention, 1966

127 — Maximum Weight Convention, 1967

128 — Invalidity, Old-Age and Survivors’ Benefits Convention, 1967

129 — Labour Inspection (Agriculture) Convention, 1969

130 — Medical Care and Sickness Benefits Convention, 1969

Conventions


ILO -- Conventions131 — Minimum Wage Fixing Convention, 1970

132 — Holidays with Pay Convention (Revised), 1970

133 — Accommodation of Crews (Supplementary Provisions) Convention, 1970

134 — Prevention of Accidents (Seafarers) Convention, 1970

135 — Workers’ Representatives Convention, 1971

136 — Benzene Convention, 1971

137 — Dock Work Convention, 1973

138 — Minimum Age Convention, 1973

139 — Occupational Cancer Convention, 1974

140 — Paid Educational Leave Convention, 1974

Conventions


ILO -- Conventions151 — Labour Relations (Public Service) Convention, 1978

152 — Occupational Safety and Health (Dock Work) Convention, 1979

153 — Hours of Work and Rest Periods (Road Transport) Convention, 1979

154 — Collective Bargaining Convention, 1981

155 — Occupational Safety and Health Convention, 1981 Protocol of 2002 to the Occupational Safety and Health Convention, 1981

156 — Workers with Family Responsibilities Convention, 1981

157 — Maintenance of Social Security Rights Convention, 1982

158 — Termination of Employment Convention, 1982

159 — Vocational Rehabilitation and Employment (Disabled Persons) Convention, 1983

160 — Labour Statistics Convention, 1985

Conventions


ILO -- Conventions161 — Occupational Health Services Convention, 1985

162 — Asbestos Convention, 1986

163 — Seafarers’ Welfare Convention, 1987

164 — Health Protection and Medical Care (Seafarers) Convention, 1987

165 — Social Security (Seafarers) Convention (Revised), 1987

166 — Repatriation of Seafarers Convention (Revised), 1987

167 — Safety and Health in Construction Convention, 1988

168 — Employment Promotion and Protection against Unemployment Convention, 1988

169 — Indigenous and Tribal Peoples Convention, 1989

170 — Chemicals Convention, 1990

Conventions


ILO -- Conventions171 — Night Work Convention, 1990

172 — Working Conditions (Hotels and Restaurants) Convention, 1991

173 — Protection of Workers’ Claims (Employer’s Insolvency) Convention, 1992

174 — Prevention of Major Industrial Accidents Convention, 1993

175 — Part-Time Work Convention, 1994

176 — Safety and Health in Mines Convention, 1995

177 — Home Work Convention, 1996

178 — Labour Inspection (Seafarers) Convention, 1996

179 — Recruitment and Placement of Seafarers Convention, 1996

180 — Seafarers’ Hours of Work and the Manning of Ships Convention, 1996

Conventions


ILO -- Conventions181 — Private Employment Agencies Convention, 1997

182 — Worst Forms of Child Labour Convention, 1999

183 — Maternity Protection Convention, 2000

184 — Safety and Health in Agriculture Convention, 2001

185 — Seafarers’ Identity Documents Convention (Revised), 2003

— Maritime Labour Convention, 2006 [this Convention does not have a number]

187 — Promotional Framework for Occupational Safety and Health Convention, 2006

188 — Work in Fishing Convention, 2007

Conventions

Human Rights andLabor Rights in Pakistan

The part of Sustainability is "Social Equity” which Covers

Protection of Human / Labor rights under constitution of Pakistan

• Article 11 of the constitution prohibit all forms of slavery, forced labor and child labor.

• Article 17 provide for a fundamental right to exercise the freedom of association and the right to form union.

• Article 18 prescribes the rights of its citizen 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 provisions for securing just and human conditions of work, ensuring that children and women are not employed in vacations unsuited to their age or sex, and for maternity benefit for women in employment.

• LABOR POLICY 1955• LABOR POLICY 1959• LABOR POLICY 1969• LABOR POLICY 1972• LABOR POLICY 1999

• LABOR POLICY 2002• LABOR POLICY 2010

Labor Policies

Formation and amendments in Labor Laws are as per the recommendations in the labor policies. Recommendations are based on the tripartite consensus among all the parties.

1) Prohibition of slavery, forced labor, trafficking in human being;2) Freedom of assembly if peaceful, subject to reasonable

restrictions under the law and in the interest of public order;3) Freedom of association or unions subject to reasonable

restrictions under the law and in the interest of public order;4) Freedom of trade, business and profession;5) Freedom of expression;6) Equality of citizens, non-discrimination on the basis of gender

etc;7) Promotion of social justice and eradication of evil;8) Promotion of social and economic well being of the people.

Constitutional provisions in labor policies


MAIN FEATURES OF LABOR POLICY 2010

• Legal framework for the formation of trade union• Rationalization and consolidation of labor laws

– Laws relating to industrial relations.– Laws relating to employment and services conditions– Laws relating to occupational safety and health– Laws relating to human resource development– Laws relating to labour welfare and social security



• Universal / voluntary coverage• Issuance of smart cards• Wages• Woman empowerment and gender equality• Woman workers• Eradication of bonded labour• Construction labour• Contractual employee• Child labour• Agriculture labour• Health and safety



• Expansion in scope of workers welfare fund• Amendment in Social Security ordinance• Amendment in Employees’ Old-Age benefit Act • Skill development and employment• Employment• Person with disability• Export of man power


COMPLIANCE UNDER LABOR LAWS

There are three categories of laws, firstly, the law that regulates the relations between employer and employee; secondly those laws that provide for compulsory levies and thirdly those that provide for minimum standards for employees; the same are as follows:

• Labor Laws Setting Standards for Work Place;• Labor Laws regulating the Relation of Employer and

Employee • Labor Laws Assigning Levies; • Labor Laws Assigning Standards for Wages;

LABOUR LAWS1. Factories Act, 19342. Payment of Wages Act.

1936

7.Industrial Relations ACT , 2008

3.Apprenticeship ordinance, 1962

8.The Payment of Wages Act 1936

4.Provincial Employees Social Security Ordinance 1965

9.Cost Of Living Relief Act 1973.

5.Standing Orders Ordinance, 1968

10.The Minimum Wages Ordinance1961

6.Companies Profits (Workers Participation) Act, 1968

11.Employees Old Age Benefit Act 1976.

18th Constitutional Amendment

After 18th Amendment, matter related to welfare, labour and trade union etc are the subject of Province and the authority to legislate has been transferred to the Province. This was mentioned under the concurrent legislative list at item no. 26 & 27.

PROVINCIAL ASSEMBLY OF THE PUNJAB, NOTIFICATION DATED 11 FEBRUARY,

2012

PROVINCIAL LABOUR LAWSThe Punjab Bounded LabourSystem (Abolition)(Amendment) ACT 2012.

The Punjab Maternity Benefit(Amendment) Act 2012ACT XXII of 2012

The Employment (Record ofServices) (Amendment)ACT XI of 2011.

The Factories (Amendment) Act,2012 ACT XIV of 2012

The Punjab Workers Children(Education) (Amendment) Act, 2012

The Punjab Industrial Relations Act 2010 (XIX of 2010)

The Employment of Children(Amendment) Act 2011.ACT X of 2011

The Punjab Industrial &Commercial Employment(Standing Orders) Amendment)ACT 2012 ACT XXI of 2012.

The Road Transport Workers(Amendment) Act 2012.ACT XX 2012

The Minimum Wages(Amendment) ACT 2012.ACT XXIII of 2012Labor Laws Instructor: Muhammad Akram Chaudhry 84

What is industrial relation or employees relation?

• Relation between employer and workman of the organization / industry.

• Concept of Industrial Relations:The term ‘Industrial Relations’ comprises of two terms: ‘Industry’ and ‘Relations’. “Industry” refers to “any productive activity in which an individual (or a group of individuals) is (are) engaged”. By “relations” we mean “the relationships that exist within the industry between the employer and his workmen.”

Industrial Relations

• Industrial relations is used to denote the collective relationships between management and the workers. Traditionally, the term industrial relations is used to cover such aspects of industrial life as trade unionism, collective bargaining, workers’ participation in management, discipline and grievance handling, industrial disputes and interpretation of labor laws and rules and code of conduct


• Industrial Relations involve attempts at arriving at solutions – between the conflicting objectives and values;– between the profit motive and social gain; – between discipline and freedom, – between authority and industrial democracy; – between bargaining and co-operation; and – between conflicting interests of the individual, the

group and the community


• Industrial Relations affect not merely the interests of the two participants- labor and management, but also the economic and social goals to which the State addresses itself. To regulate these relations in socially desirable channels is a function, which the State is in the best position to perform

Factors of Industrial Relations

Industrial Relations encompasses all such factors that influence behavior of people at work. A few such important factors are below

1. Institution It includes government, employers, trade unions,

union federations or associations, government bodies, labor courts, tribunals and other organizations which have direct or indirect impact on the industrial relations systems.


2. Characters It aims to study the role of workers unions

and employers’ federations officials, shop stewards, industrial relations officers/ manager, mediator/conciliators / arbitrator, judges of labor court, tribunal etc.


3. Methods It focus on collective bargaining, workers’

participation in the industrial relations schemes, discipline procedure, grievance redressal machinery, dispute settlements machinery working of closed shops, union reorganization, organizations of protests through methods like revisions of existing rules, regulations, policies, procedures, hearing of labor courts, tribunals etc.

Factors of Industrial Relations4. Contents It includes matter pertaining to employment

conditions like – Pay / Wages – Hours of works – Leave with Pay – Health and safety – Disciplinary actions – Lay-off, dismissals retirements etc., laws relating to such

activities – Regulations governing labor welfare, social security, EOBI,

Workmen Compensation– Industrial relations issues concerning with workers’

participation in management, collective bargaining, etc.

Industrial Relations System• An Industrial Relations system consists of the whole gamut of

relationships between employees and employees and employers which are managed by the means of conflict and cooperation.

A sound Industrial Relations system is one in which relationships between management and employees (and their representatives) on the one hand, and between them and the State on the other, are more harmonious and cooperative than conflictual and creates an environment conducive to economic efficiency and the motivation, productivity and development of the employee and generates employee loyalty and mutual trust.

Main Actors in the IR System Three main Actors/Parties are directly involved in industrial relations:

• Employers: Employers possess certain rights vis-à-vis labors. They have the right to hire and fire them. Management can also affect workers’ interests by exercising their right to relocate, close or merge the factory or to introduce technological changes.

• Employees: Workers seek to improve the terms and conditions of their employment. They exchange views with management and voice their grievances. They also want to share decision making powers of management. Workers generally unite to form unions against the management and get support from these unions.

• Government: The central and state government influences and regulates industrial relations through laws, rules, agreements, awards of court . It also includes third parties, Labor courts and Applet tribunal.

Industrial Relations System

Scope of Industrial Relations

The concept of industrial relations has a very wide meaning and connotation. In the narrow sense, it means that the employer, employee relationship confines itself to the relationship that emerges out of the day to day association of the management and the labor. In its wider sense, industrial relations include the relationship between an employee and an employer in the course of the running of an industry and may project it to spheres, which may transgress to the areas of quality control, marketing, price fixation and disposition of profits among others.

Industrial Relations system The main issues involved in Industrial Relations include the

following:

• Collective bargaining

• Machinery for settlement of industrial disputes

• Standing orders ordinance

• Workers participation in management

• Unfair labor practices

Importance of Industrial Relations• Uninterrupted Production

The most important benefit of industrial relations is that this ensures continuity of production. This means, continuous employment for all from manager to workers. The resources are fully utilized, resulting in the maximum possible production. There is uninterrupted flow of income for all. Smooth running of an industry is of vital importance for several other industries; to other industries if the products are intermediaries or inputs; to exporters if these are export goods; to consumers and workers, if these are goods of mass consumption.

Importance of Industrial Relations

Reduction in Industrial Disputes Good industrial relations reduce the industrial

disputes. Disputes are reflections of the failure of basic human urges or motivations to secure adequate satisfaction or expression which are fully cured by good industrial relations. Strikes, lockouts, go-slow tactics, gherao and grievances are some of the reflections of industrial unrest which do not spring up in an atmosphere of industrial peace. It helps promoting co-operation and increasing production

Importance of Industrial RelationsHigh Morale

Good industrial relations improve the morale of the employees. Employees work with great zeal with the feeling in mind that the interest of employer and employees is one and the same, i.e. to increase production. Every worker feels that he is a co-owner of the gains of industry. The employer in his turn must realize that the gains of industry are not for him along but they should be shared equally and generously with his workers. In other words, complete unity of thought and action is the main achievement of industrial peace. It increases the place of workers in the society and their ego is satisfied. It naturally affects production because mighty co-operative efforts alone can produce great results.


Mental Revolution

The main object of industrial relation is a complete mental revolution of workers and employees. The industrial peace lies ultimately in a transformed outlook on the part of both. It is the business of leadership in the ranks of workers, employees and Government to work out a new relationship in consonance with a spirit of true democracy. Both should think themselves as partners of the industry and the role of workers in such a partnership should be recognized. On the other hand, workers must recognize employer’s authority. It will naturally have impact on production because they recognize the interest of each other.


Reduced Wastage

Good industrial relations are maintained on the basis of cooperation and recognition of each other. It will help increase production. Wastages of man, material and machines are reduced to the minimum and thus national interest is protected.

Importance of Industrial Relations Thus, it is evident that good Industrial Relations is the basis of

higher production with minimum cost and higher profits. It also results in increased efficiency of workers. New and new projects may be introduced for the welfare of the workers and to promote the morale of the people at work. An economy organized for planned production and distribution, aiming at the realization of social justice and welfare of the massage can function effectively only in an atmosphere of industrial peace. If the twin objectives of rapid national development and increased social justice are to be achieved, there must be harmonious relationship between management and labor.

Main objective of Industrial Relations The main objectives of industrial relations system are:

– To safeguard the interest of labor and management by securing the highest level of mutual understanding and good-will among all those sections in the industry which participate in the process of production.

– To avoid industrial conflict or strife and develop harmonious relations, which are an essential factor in the productivity of workers and the industrial progress of a country.

– To raise productivity to a higher level in an era of full employment by lessening the tendency to high turnover and frequency absenteeism.

Main objective of Industrial Relations• To establish and promote the growth of an industrial democracy based on

labor partnership in the sharing of profits and of managerial decisions, so that ban individuals personality may grow its full stature for the benefit of the industry and of the country as well.

• To eliminate or minimize the number of strikes, lockouts and gheraos by

providing reasonable wages, improved living and working conditions, said fringe benefits.

• To improve the economic conditions of workers in the existing state of industrial managements and political government.

• Socialization of industries by making the state itself a major employer

• Vesting of a proprietary interest of the workers in the industries in which they are employed.

What is industrial relation ordinance?

• The law relating to formation of trade union, regulation and improvement of relation between employer and workman and avoidance and settlement of any difference or dispute arising between them.

Basic function of industrial relation in the organization

• To coordinate and guide harmonial relationship with the CBA to maintain industrial peace in the organization.


• To maintain cordial relation with Government departments like labour department, social security and EOBI.


• To perform the role of occupier and has ultimate control over the affairs of the organization on legal and employee issues.


• To ensure implementation of all relevant labour laws with in the organization.

Conflict between IR and HR

• IR is essentially collective in out look i.e. relation between employer and CBA union or authorized representative of the workers / employees.

• HR can deal on individual basis.

Industrial relations pertains to the study and practice of collective bargaining, trade unionism, and labor-management relations,

Human resource management is a separate, largely

distinct field that deals with nonunion employment relationships and the personnel practices and policies of employers.

Conflict between IR and HR• IR has a large component of rule which govern the

employment relationship prescribed for instance by the state through laws, courts or tribunal or by the parties through collective bargaining.

• HR does not deal with such rules and procedures but with the best way of using human resource through range of initiative involving proper selection and recruitment, induction appraisal, training and development leadership and motivation etc.


• IR has both a Bipartite and Tripartite dimension.

• HR has less scope for Tripartite.


• IR: Pay / wages are largely based on job evaluation, condition are bargained and labour management relations are established through collective bargaining agent.

• HR: Pay and remuneration based on performance evaluation of the individual.


• IR is more on piece meal approach.

• HR is more on integrated approach, which predicts the corporate strategy of the organization.

Terms of Employment Negotiable Through CBA

Process of collective bargaining

Factors for Negotiations It includes matter pertaining to employment conditions

like – Pay / Wages / Allowances– Hours of works – Leave with Pay – Health , safety, environments and work place discipline – Disciplinary actions – Lay-off, termination and retrenchment etc., laws relating to

such activities – Regulations governing labor welfare, canteen, fair price shop,

social security, EOBI, Workmen Compensation, etc– Industrial relations issues concerning with workers’

participation in management, collective bargaining, etc.

Section-17. Unfair labour practices on the part of employers

Employer / Management can not

(f) compel or attempt to compel any office-bearer of the collective bargaining agent to arrive at a settlement by using intimidation, coercion, pressure, threat, confinement to a place, physical injury, disconnection of water, power and telephone facilities and such other methods;

Section18. Unfair labour practices on the part of workmen

CBA union / Workers can not

(d) compel or attempt to compel the employer to accept any demand by using intimidation, coercion, pressure, threat, confinement to, or ouster from a place, dispossession, assault, physical injury, disconnection of telephone, water or power facilities or such other methods; or

Section 34. Negotiations relating to differences and disputes

(1) If at any time, an Employer or a Collective Bargaining Agent finds that an industrial dispute has arisen or is likely to arise, the employer or the collective bargaining agent, may communicate his or its views in writing either to the Conciliator or to the other party and if the views are communicated to the Conciliator, a copy of the views shall also be sent to the other party.

(2) On receipt of the communication under sub-section (1), the Conciliator or the party receiving it, shall try to settle the dispute by bilateral negotiations within ten days of receipt of the communication or within such further period as may be agreed upon by the parties and, if the parties reach a settlement, a memorandum of settlement shall be recorded in writing and signed by both the parties and a copy thereof shall be forwarded to the conciliator and the authorities mentioned in clause (xxvii) of section 2.


(3) Where a settlement is not reached between the employer and the collective bargaining agent or, if the views of the employer or collective bargaining agent have been communicated under sub-section (1) to the Council, there is a failure of bilateral negotiations in the Council, the employer or the collective bargaining agent may, within seven days from the end of the period referred to in sub-section (2), serve on the other party to the dispute a notice of lock-out or strike in accordance with the provisions of this Act.


Section 35. Conciliator

The Government shall, by notification in the official Gazette, appoint as many persons as it considers necessary to be the conciliators for the purposes of this Act and shall specify in the notification the area within which, or the class of establishments or industries in relation to which, each one of them shall perform his functions.


Section 64. Penalty for unfair labour practices

(2) A person(Employer) who contravenes the provisions of section 17, he shall be liable to fine which may extend to thirty thousand rupees but not less than ten thousand rupees.

(3) A person(CBA Union) who contravenes the provisions of section 18, he shall be liable to pay fine which may extend to twenty thousand rupees but not less than five thousand rupees.


Section 65. Penalty for committing breach of settlement

A person who commits any breach of any term of any settlement, award or decision which is binding on him under this Act, he shall be punished–(a) for the first offence, with fine which may extend to twenty thousand rupees; and(b) for each subsequent offence; with fine which may extend to fifty thousand rupees.

Importance of collective bargaining

• Collective bargaining includes not only negotiations between the employers and unions but also includes the process of resolving labor-management conflicts. Thus, collective bargaining is, essentially, a recognized way of creating a system of industrial jurisprudence. It acts as a method of introducing civil rights in the industry, that is, the management should be conducted by rules rather than arbitrary decision making. It establishes rules which define and restrict the traditional authority exercised by the management.

Importance of collective bargaining• Importance to employees

• Collective bargaining develops a sense of self respect and responsibility among the employees.

• It increases the strength of the workforce, thereby, increasing their bargaining capacity as a group.

• Collective bargaining increases the morale and productivity of employees.

• It restricts management’s freedom for arbitrary action against the employees. Moreover, unilateral actions by the employer are also discouraged.

Importance of collective bargaining

• Effective collective bargaining machinery strengthens the trade unions movement.

• The workers feel motivated as they can approach the management on various matters and bargain for higher benefits.

• It helps in securing a prompt and fair settlement of grievances. It provides a flexible means for the adjustment of wages and employment conditions to economic and technological changes in the industry, as a result of which the chances for conflicts are reduced.

Importance of collective bargaining• Importance to employers

• It becomes easier for the management to resolve issues at the bargaining level rather than taking up complaints of individual workers.

• Collective bargaining tends to promote a sense of job security among employees and thereby tends to reduce the cost of labor turnover to management.

• Collective bargaining opens up the channel of communication between the workers and the management and increases worker participation in decision making.

• Collective bargaining plays a vital role in settling and preventing industrial disputes.

Importance of collective bargaining• Importance to society

• Collective bargaining leads to industrial peace in the country

• It results in establishment of a harmonious industrial climate which supports which helps the pace of a nation’s efforts towards economic and social development since the obstacles to such a development can be reduced considerably.

• The discrimination and exploitation of workers is constantly being checked.

• It provides a method or the regulation of the conditions of employment of those who are directly concerned about them.

Terms of Employment• Increase in Basic Pay• Revision of Pay Scale• Conveyance Allowance• House Rent Allowance• Attendance Allowance• Recreational Allowance• Night Shift Allowance• Shoes Allowance• Emergency Medical Allowance

Terms of Employment• Supervisory Allowance• Funeral Expenses• Long Services Awards• Packages Educational Scholarships• Annual Leaves Accumulation• Fair Price Shop Facility• Motor Cycle Loan• Hajj facility• Out Door Duty Meal Expenses


The Factories Act


Purpose of the ActThe purpose of the Act is to regulate and standardize the condition in factories falling under the Act. The categories regulated are,

• Basic standards for health and safety • Disposal of waste • Ventilation and temperature • Dust and fume • Overcrowding • Lighting • Availability of drinking water


Purpose of the Act

• Latrines and urinals• Spittoons• Compulsory vaccination • Provision of canteens • Precaution in case of fire • Fencing of machinery • Working hours. • Appointment of welfare officer


Purpose of the Act

• Work on or near machinery in motion• Employment of young persons on dangerous

machines• Striking gear and devices for cutting off power• Self-acting machines• Casing of new machinery• Prohibition of employment of women and

children near cotton openers


Purpose of the Act

• Cranes and other lifting machinery• Hoists and lifts• Revolving machinery• Pressure plant• Floors, stairs and means of access• Pits, sumps, opening in floors, etc• Excessive weights• Protection of eyes


Purpose of the Act• Power to require specifications of defective parts

or tests of stability• Safety of building, machinery and manufacturing

process• Precautions against dangerous fumes• Explosive or inflammable dust, gas, etc• Power to exclude children• Notice of certain accidents

This law is very comprehensive and covers almost all the aspect of a healthy working environment.


Applicability of the Act

The law applies to all factories employing 10 or more workers.


Definition of Factory

“Factory” means any premises, including the precincts thereof, whereon ** [ten] or more workers are working, or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on *** [or is ordinarily carried on whether with or without the aid of power] but does not include a mine, subject to the operation of the Mines Act, 1923 (IV of 1923);


Definition of Worker under the Act:

Means a person employed directly or indirectly or through an agency whether for wages or not, in any manufacturing process, or in cleaning any part of the machinery or premises used for a manufacturing process, but does not include any person solely employed in any other kind of work whatsoever, incidental to or connected with the subject of manufacturing process, but does not include any person solely employed in a clerical capacity in any room or place where no manufacturing process is being carried out.


The Shops and Establishments Ordinance, 1965


Purpose of the Ordinance

The purpose of this Ordinance is to provide basic standards relating to payment of wages, working hours, overtime, weekly holidays, sick leave, festival holidays, termination of employment and other ancillary matters.


Applicability

The law applies to all the establishments. However, the government may grant exemption to any establishment from the operation of the provision of this Ordinance.


Definition of Establishment

“Establishment” means a shop, commercial establishment, industrial establishment, private dispensary, maternity home, residential hotel, restaurant, eating house, café, cinema, theatre, circus, or other place of public amusement or entertainment, and such other establishments or class thereof as Government may, by notification in the official Gazette, declare to be establishments for the purposes of this Ordinance;


Definition of Commercial Establishment

“Commercial establishment” means an establishment which carries on any business, trade or profession or any work in connection with, or incidental or ancillary to, any business, trade or profession.


Definition of Industrial Establishment

“Industrial establishment” means a workshop or other establishment in which the work of making, altering, repairing, finishing or packing or otherwise treating any article or substance with a view to its use, sale, transport, delivery, or disposal is carried on, or where any such service is rendered to a customer, and includes such other class or classes of establishments as Government may, by notification in the official Gazette, declare to be the industrial establishments for the purposes of this Ordinance, but does not include a factory;


Definition of Shop

“Shop” means any premises used wholly or in part for the wholesale or retail sales of commodities or articles, either for cash or on credit, or where services are rendered to customers, and includes an office, a store room, godown, warehouse or place of work, whether in the same premises or otherwise, mainly used in connection with such trade or business;


Registration under the Act

Every establishment, under the Act, other than a one man shop and factories employing clerical staff within the factory premises, is required to be registered with the Deputy Chief Inspector for the area within which such establishment is situated.


THE WEST PAKISTAN INDUSTRIAL AND COMMERCIAL EMPLOYMENT (STANDING

ORDERS) ORDINANCE, 1968(W.P. Ordinance VI of 1968)


Short title, extent and commencement every industrial establishment or commercial establishment wherein 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 on any day during the preceding twelve months;


Classification of workmen

(a) Workmen shall be classified as–(1) permanent,(2) probationers,(3) badlis,(4) temporary,(5) apprentices.(6) contract worker


W.P. Industrial & Commercial Employment

ApplicabilityApplicable to all industrial and commercial establishment employing 20 or more workmen on any day during the preceding twelve months. However for smaller industries establishments employing between 20 to 49 workman on any day during the preceding twelve months four exemptions form the application of S.O 10-B,11,12(6) and (8), 15 have been granted, once the number of workmen is at 50 or more in any industrial establishment employed on any day of the preceding twelve moths, all provisions of the ordinance are applicable without any exception.

S.O.10-B Compulsory Group Insurance.

S.O.11 Stoppage of Work / Lay off.

S.O.12(6) & (8) Payment of Gratuity

S.O15 Punishment – From Misconduct, Enquiry Procedure, Disciplinary Actions (Final / Dismissal)

(Standing Orders) Ordinance 1968


[10-C. Payment of Bonus:-(1) Every employer making profit in any year shall pay 2[for that year within

three months of the closing] that year to the workmen who have been in his employment in that year for a continuous period of not less than ninety days a bonus in addition to the wages payable to such workmen.

(2) The amount of the bonus payable shall –(a) If the amount of the profit is not less than the aggregate of one month’s wages of the workmen employed, be not less than the amount of such aggregate, subject to the maximum of thirty

percent of such profit;

W.P. Industrial & Commercial Employment

(Standing Orders) Ordinance 1968

Cont..


3[Illustration 1.-- If the profit is Rs. 1,20,000.00 and the aggregate of the workmen is Rs. 30,000.00, the amount of bonus payable shall be not less than the aggregate of one month’s wages, that is to say, Rs. 30,000.00

Illustration 2.-- If the profit is Rs. 30,000.00 and the aggregate of one month’s wages of the workmen is also Rs. 30,000.00, the amount of bonus payable shall be not less than the thirty percent of the profit that is to say, Rs. 9,000.00].

(b) If the amount of the profit is less than the aggregate of referred to in paragraph (a), be not less than fifteen percent of such profit.

W.P. Industrial & Commercial Employment(Standing Orders) Ordinance 1968

Cont..

Disciplinary action in case of misconduct



Misconduct• Something done or omitted to be done, which a man

of Ordinary prudence would not have done or would not have omitted to do.

• Applicable: (S.O-15) General terms-20 or more workers commercial-20 or more.Industrial-50 or more. Compliance mandatory. Jurisdiction of Labour Court-Fair Enquiry.Punishment-quantem-commensurate with nature of fence.

Where Law not Applicable-natural Justice not to be condemned unheard whether a legal provision or not (S.C).


The following Acts and Omission shall be treated as misconduct

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.

e) Habitual absence without leave or absence without leave for more than ten day.

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) Frequent repetition of any act of omission.

k) Striking work or inciting others to strike in contravention of the provision of any law, or rule having the force of law.

l) Go – slow

The following Acts and Omission shall be treated as misconduct


THE PROVINCIAL THE PROVINCIAL EMPLOYEES’ SOCIAL EMPLOYEES’ SOCIAL

SECURITY ORDINANCE, SECURITY ORDINANCE, 19651965

(W.P. Ord. X of 1965) (W.P. Ord. X of 1965)


An Ordinance to introduce a scheme of Social Security for providing benefits to certain employees or their dependents in the event of sickness, maternity, employment, injury or death and for matters ancillary thereto


Provincial Employees Social Security

Benefits :Sickness: A condition requires / necessitates

medical treatment and absenteeism from work.

Maternity : Twelve weeks, not more than six weeks shall precede the expected date of confinement.

Death grant: Rs. 5000 / for funeral.Injury benefit: Daily rate of wages for a max 180

days.


Provincial Employees Social Security

Disablement pension: On expiration of injury benefit as per rates notified.

Disablement gratuity: Minor disablement rates notified.

Survivors Pension: Death as result of employment injury, payable to dependents.


Payment Schedule for Less Than 50 Employees

Fixed slab system for units employing up to 49 employees within the preview of Social Security.

• 01 To 10 Employees Rs. 10,000/- P.A.• 11 To 20 Employees Rs. 25,000/- P.A.• 21 To 50 Employees Rs. 50,000/- P.A.


ScheduleRate of Social Security Contribution as proportionate of the employee’s

Wages

Class of Class of EmployeesEmployees

Social Security ContributionsSocial Security ContributionsEmployer’s Employer’s ContributioContributio

nn

Employee’s Employee’s ContributioContributio

nn

TotalTotal

11 22 33 44RemuneratRemunerated at a ed at a wage up to wage up to Rs. 15000/-Rs. 15000/-

6%6% NilNil 6%6%


Revised Social Security Contributions underEmployees’ Social Security (Amendment) Ordinance, 2002 (CIV of 2002)

(October 29, 2002)

Type of Scheme

Max. Employer’s

Contributionpm

Max. Worker’s

Contributionpm

TotalContribution

pm

Normal of Regular Scheme[section 20 (1), proviso](6% of max. Rs. 15000/ wages per month or Rs 600/ per day)

Rs. 900 --N/A-- Rs. 900


EMPLOYEES' OLD‑AGE EMPLOYEES' OLD‑AGE BENEFITS ACT, 1976BENEFITS ACT, 1976


ACT No. XIV OF 1976

An Act to repeal and re enact the Law relating of ‑Old Age benefits for the persons employed in ‑industrial, commercial and other organizations.


Section-1. Short Title, Extent, Commencement and Application

It applies to every industry or establishment.(i) wherein Five or more persons are employed by the employer, directly or through any other person, whether on behalf of himself or any other person, or were so employed on any day during the preceding twelve months, and shall continue to apply to every such industry or establishment even if the number of persons employed therein is, at any time after this Act becomes applicable to it, reduced to less than Five; or


Section-1. Short Title, Extent, Commencement and Application

(i-a) wherein less than Five persons are employed if such industry or establishment voluntarily applies for application of this Act and this Act shall apply to such industry or establishment for the date of submission of an application by such industry or establishment; or (ii) which the Federal Government may, by notification in the official Gazette, specify in this behalf.


E.O.B.I.

BENEFITS• Old age pension: Male over Fifty Five years / female

over Fifty years. Contribution paid for not less than fifteen years.

• Old age grant: Not entitled for pension . Contribution less than 5 years but more than 2 years.

• Survivor pension: Death , 36 months insurable employment.

• Invalidity pension: Not less than 5 years contribution paid.


CONTRIBUTION

Type of Scheme Max. Employer’s Max. Worker’s Total contribution contribution contribution pm (sec. 9) pm (sec. 9-B) pm

Normal Scheme Rs. 400 Rs. 60 Rs. 460

(5% of max. Rs. 8,000/- wages)

Self-Assessment Scheme Rs. 400 Rs. 60 Rs. 460

(optional scheme, flat rate irrespectiveof employee’s wages, no inspection for two years)


Workmen compensationAct , 1923


Workmen’s Compensation Act 1923

• Applies: Workman employed on monthly wages not exceeding six thousand rupees.

• Compensation: Personal injury by accident in the course of employment. Total or partial disablement.– Partial disablement: Temporary reducing earning

capacity.– Total disablement: Incapacitates wholly capable of

doing at the time of accident.


Applicability

An Act to provide for the payment by certain classes of employers to their workmen of compensation for injury by accident. WHEREAS it is expedient to provide for the payment by certain classes of employers to their workmen of compensation for injury by accident; it is hereby enacted as follows :-


Workmen’s Compensation Act 1923

• Exceptions:– Drunk / Drugs influence.– Violation of rule securing safety– Willful removal of safety guard / device.

• Rate of compensation:– Rs. 200,000(Death and permanent total disablement)– Payment – deposit with the commission.– Compensation not to be assigned by operation of law.

• Notice and claim (S/10)• Report of fatal accident (S/10-B)• Penalties ( S/18 – A)


THE APPRENTICESHIP ORDINANCE

(LVI OF 1962)


Purpose of the Act

An ordinance to make provision for promoting, developing and regulating systematic apprenticeship programmes in the industries and for securing certain minimum standards of skill.


Applicability of the ordinance

The law is applicable to industrial establishments having fifty or more employees. It requires that an industrial establishment having more than fifty workers

must train apprentices in a proportion not less than 20% of persons employed.


The companies’ profits(Worker’s Participation)

Act(XII OF 1968)


The companies’ profits ActAn Act to provide for participation of workers in the profits of companies preamble


The companies’ profits ActThe Act applies to every company engaged in an industrial undertaking which satisfies any one of the following conditions:-

1) The number of workers employed by it at any time during a 50 year is or more.

2) The paid up capital of the company as on the last day of its accounting year is rupees 20 lakhs or more. This condition now applies only to companies

established before July 1, 2006. For the

companiestablishedthereafter the condition will be 5 millions rupees or more.


The companies’ profits Act3) The value of the fixed assets of the company (at cost) as on the last day of accounting year is rupees forty lakhs or more. This condition also now applies to companies established before July 1, 2006. For companies established thereafter the condition will be rupees twenty millions or more.

Every Company making profits in a year has to pay 5% of its net profit to the workers participation fund for distribution among the workers according to their entitlement.


Payments1-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.


Payments

-Not with standing anything contained in the scheme, no worker shall, in any one year, be entitled out of the annual allocation to units exceeding the amount of four times of the minimum wages for unskilled workers (8000 x 4 = 32000).


PAYMENT OF WAGES ACT, 1936

Act No. IV of 1936[23rd April, 1956]


An Act to regulate the payment of wages to certain classes of persons employed in Industry


Section-1. Short title, commencement and application

It applies in the first instance to the payment of wages to persons employed in any factory and to persons employed (otherwise than in a factory) upon any railway by a railway administration or, either directly or through a sub-contractor, by a person fulfilling a contract with a railway administration.


THE WEST PAKISTAN THE WEST PAKISTAN MINIMUM WAGES FOR MINIMUM WAGES FOR UNSKILLED WORKERS UNSKILLED WORKERS

ORDINANCE, 1969ORDINANCE, 1969 (W.P. Ordinance XX of 1969)(W.P. Ordinance XX of 1969)


An Ordinance to fix the minimum rates of wages for unskilled workers employed in certain commercial and industrial establishments in West Pakistan


Section-1. Short title, extent, commencement and application

(1) This Ordinance may be called the West Pakistan Minimum Wages for Unskilled Workers Ordinance, 1969.

(2) It extends to the whole of [Pakistan].

(3) It shall be deemed to have come into force on and from the first day of July, 1969.


Section-1. Short title, extent, commencement and application

(4) It shall apply to every commercial and industrial establishment wherein fifty or more persons are employed or were employed on any day during the preceding twelve months, but shall not apply to–(a) persons in the service of Pakistan, as defined in [Article 260 of the Constitution]; Substituted ibid., for “Article 242 of the Constitution of 1962.”


SCHEDULESee SECTION-3

AreaArea Rate of Rate of minimum minimum wages per wages per monthmonth

Deduction for Deduction for providing providing housing housing accommodationaccommodation

Deduction for Deduction for providing providing transporttransport

11 22 33 44Rs.Rs. Rs.Rs. Rs.Rs.

Province of Province of PunjabPunjab

9000 p.m.9000 p.m. 25 p.m. 25 p.m. 10 p.m. 10 p.m.

Province of Province of SindhSindh

8000 p.m.8000 p.m. 20 p.m.20 p.m. 5 p.m. 5 p.m.

Other Other Industrial Industrial AreaArea

8000 p.m.8000 p.m. 13 p.m.13 p.m. 2 p.m.2 p.m.

Contactors and contactors workers


Contractor Labor and Employer Liability

According to Law, the employer of the industrial and commercial establishment shall personally be held responsible for the proper and faithful observance of the Law, whether or not the Workmen of such establishment are employed through contractor.

To determine the real status of a worker, as to whether he is employee of an establishment or a contractor, the criteria is,

• Selection of a worker/employee.• administrative control over the worker, • power to reinstate and dismiss the contractor worker;• Payment of wages or other remuneration.• whether the contractor was a genuine person and had not

been set up merely to deny the worker of the benefits under the labor laws.

Contractor Labor and Employer Liability

Categories of Contracts

• Manpower Supply Contract• Job/Services Contract• Janitorial/House Keeping Services• Transport Services• Technical/Maintenance Services• Others Contractors

CONTRACT LABOUR AND EMPLOYER’S LIABILITY

Punjab INDUSTRIAL RELATIONS ACT,2010

“Worker” and “Workman” means any person not falling within the definition of employer who is employed (including employment as a supervisor or as an apprentice) in an established or industry for hire or reward either directly or through a Contractor Whether the terms of employment 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, discharge retrenched; laid-off or as a consequence of that dispute or whose dismissal, discharge, retrenchment, lay-off, or removal has led to that disrupt does not include any person who is employed mainly in managerial or administrative capacity.

FACTORIES ACT,1934

“Workers” means a person employed [directly or through an agency] whether for wages or not, in any manufacturing process, or in cleaning any part of the machinery or premises used for manufacturing process, or in any other kind of work whatsoever, incidental to or connected with the subject of manufacturing process, but does not include any person solely employed in a clerical capacity in any room or place where no manufacturing process is being carried on;

The system is recognized by Law:

A) Because in most of the enactment a worker or employee is defined as any person employed directly or through any other person; and

B) Section 29, of PIRA 2010 authorizes the Workers Management Council to fix terms and conditions of services of such workers

Jobs Usually Given on Contract- Reason

Reducing production cost and concentrating resources on core business activities e.g. the jobs are of loading / unloading security and janitorial services are given on contract for this reason

Recognition of Contractor Labor System

By virtue of Section 29 of the PIRA 2010, the Workers Management Council has been empowered to look after the “provision of minimum facilities for the workers employed through contractors as are not covered by the laws relating to the welfare of workers”.

Employment Relationship Test

a) The power of selecting of the employees;b) The payment of wages or others

remuneration;c) The right to control the method of doing

work; andd) The right of suspension or dismissal

Thanks

Industrial relation employees relation knowledge box

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