:: Labour Law in Pakistan

We deal in the matters of appointment of an employees or employers, cases of Civil Servants, regarding workers or workmen, appointment and termination matters, cases about recruitment appointment, promotion and reversion to a lower grade or service, removal form service, matters of pension, gratuity and provident fund, all kinds of cases regarding service and employment.

Labour Law in Pakistan is very comprehensive and contains several Ordinances, Acts, Rules & Regulations and all other statutes relating to Industrial, Commercial and Labour Establishments which are widely scattered and inaccessible statutes. These different laws give authentic guide to the Employers, the Employees, the Trade Unions and the concerned Agencies to realize their respective responsibilities and to become aware of their prescribed legal rights to be asserted. Our Law Firm has the main object to provide the legal services concerning these Labour Laws to the Employers and the Employees for the smooth running of the business in order to achieve the target of higher productively, reasonable profits and better wages. The different Labour laws are spread as under which are alphabetically given below:

  • Apprenticeship Ordinance, Rules;

  • Boilers & Pressure Vessels Ordinance;

  • Children (Pledging) of Labour Act and Employment of Children Rules;

  • Companies Profit (Workers Participations) Act & Rules;

  • Cotton Cess Act, The Cotton Ginning and Pressing Factories Act and the Cotton Act;

  • Disabled Persons (Employment and Rehabilitation) Ordinance and Rules;

  • Dock Labourers Act, Regulations and Dock Workers Employment Regulation Act;

  • Employees Costs of Living (Relief) Act;

  • Employees Old Age Benefit Act and Rules;

  • Essential Personnel (Registration) Ordinance and Essential Services (Maintenance) Act;

  • Factories Act and Regulations & Rules;

  • Fatal Accident Act and Motor Vehicles Act and Ordinances and The Road Transport Worker Ordinance;

  • Hazardous Occupations Rules;

  • Immigrations Ordinance & Rules;

  • Industrial Relation Ordinance & Rules;

  • Industrial Statistics Act and Labour Welfare Statistics Rules;

  • Maternity Benefits Ordinance & Rules;

  • Merchant Shipping Ordinance;

  • Mines Act and Rules;

  • National Development Volunteer Program Act & Rules;

  • Pakistan Atomic Energy Commission Ordinance and the Compulsory Services in the Armed Service;

  • Payment of Wages Act, Procedure, Minimum Wages Rules;

  • Provisional Employees, Social Security Ordinance and Rules;

  • Railways Act and Railway Servants Rules;

  • Shops and Establishment Ordinance & Rules;

  • Tea Plantations Labour Ordinance;

  • Worker Children & Education Ordinance and Rules;

  • Worker Welfare Funds Ordinance & Rules and Housing and Plots Allotment Regulations;

  • Working Journalists Wages Board Rules and Newspaper Employees Condition and Services Act; and

  • Worksmen Compensation Act and Rules

From the above alphabetical list of related labour laws, we understand that there may be diverse nature of issues and we offer the following legal services:

  • Drafting & Vetting of Employment Contracts and Agreements;

  • Legal Notices & Replies;

  • Legal Opinion;

  • Cases before Labour Courts;

  • Cases before Labour Tribunals;

  • Cases before Social Security Courts and Appeals;

  • Cases before NIRC;

  • Cases before High Courts; and

  • Cases before Supreme Court

Labor Laws w.e.f. Fianace Act, 2008

Minimum Wages for Unskilled Workers Ordinance, 1969

1. Minimum wages for unskilled workers raised
Schedule, Column 2

The level of minimum wages for unskilled workers has been raised from the present Rs. 4,600 per month to Rs. 6,000 per month.

West Pakistan Industrial and Commercial Employment (Standing Orders) Ordinance, 1968

2. Short title, extent and commencement
Section 1, Sub-Section (1)

Sub-Section (1) of this Section has been amended by deleting the inappropriate words “West Pakistan” from the said Sub-section to make it appropriate.

Punishments – suspended workman entitled to full wages during suspension
Schedule, standing order 15, paragraph 5

Paragraph 5 of standing order 15 has been amended by deleting the words “subsistence allowance of not less than fifty per centum of wages. If the workman is found not guilty, he shall be deemed to have been on duty during the period of suspension and shall be entitled”. As a consequence of this deletion, a workman during his suspension of employment to be entitled to receive full wages as he would have received if he had not been suspended, instead of receiving subsistence allowance as aforesaid.

The Provisional Employees’ Social Security Ordinance, 1965

3. Definitions of eligible employees enlarged by raising wage limit
Section 2, Clause (8) Sub-clause (f)

The scope of the definition of “Employee” has been enlarged so as to expand the eligibility to benefits of social security. If a person employed on the wages does not exceed Rs. 10,000 per month under the existing provisions, a person is covered in the definition of “employee”, if his monthly wages does not exceed Rs. 5,000 per month. The proposed amendment will have the effect of expanding the number of employees for the benefits who were earlier not so entitled because of the maximum wages limit fixed at Rs. 5,000 per month for purposes of eligibility under this Ordinance.

Fixed rate payable under the self-assessment scheme raised
Section 2, Clause (25a), Section 20A, Sub-section (1)

The fixed rate payable under the “Self-assessment scheme” has been increased. Accordingly, instead of Rs. 210 per month per secured employee currently payable, the Act has raised it to RS. 360. By virtue of this amendment, if any employer whishes to avail the benefit of Self-assessment Scheme, he has to pay an increased amount of contribution of Rs.360 as aforesaid in respect of his employees secured under this Ordinance.

Amount and payment of contribution
Section 20, Sub-section (1)

That Act has removed the anomaly persisting in this Section with regard to the rate of payment of contribution by an employer in respect of each of his employees. With the amendment, an Employer will be required to pay contribution in respect of each employee at the rate not exceeding six percent of the wages of such employee. Accordingly, consequential amendment is also proposed in the proviso to this Section, whereby the bench mark for payment of contribution has been increased from “two hundred rupees per day” or “five thousand rupees per month” to “four hundred rupees per day” or “ten thousand rupees per month”.

Employees Old-age Benefits (EOB) Act, 1976 (XIV of 1976)

4. Applicability of EOB Extended
Section 1, Sub-section (4), Clause (i and ia)

The Act has made certain amendments to enlarge the existing scope of this Section by reducing the minimum number of employees employed by an industry or establishment, as the case may be, liable to pay EOB. Accordingly, in order to bring within its ambit more industries or establishments, with a view to providing benefits to the employees, EOB will be liable to be paid if five or more persons are employed instead of the present limit of ten persons. Accordingly, proviso to this Section has also been omitted.

Through a new amendment in Clause (ia), the minimum limit of employees has been reduced to five from six currently provided, for purposes of voluntary application of the provisions of the said Act.

Rate of Employer’s contribution reduced
Section 9, Sub-Section (1)

The Act has also amended this Section by reducing the rate of contribution payable monthly by an employer from the existing six percent of wages of an employee. Accordingly, the proposed amendment may facilitate in reducing the financial burden on the employer, although with the across the board increase in the prescribed minimum wages, the full benefit of this reduction may not be realized.

Old-age Pension
Section 22, Sub-section (1)

The Act has introduced a new proviso to this Section, whereby an employee insured under this Act on or after first day of July 2008 will not be entitled to receive monthly Old-age pension. Accordingly, by insertion of the new proviso to this Section, the financial burden of the Government on account of payment of Old-age pension would be reduced.

Act to apply to bank employees
Section 47, Sub-section (1)

The Act has enlarged the scope of this Section by proposing to omit the existing Clause (e) of this Section by virtue of which the Act shall now also apply to employees of a bank or a banking company. Accordingly, employees of a bank or a banking company may also now avail the benefits under this Act.

Schedule
Paragraph 2

The Act has also substituted the existing paragraph 2 of the Schedule and also proviso thereto, whereby the formula for calculation of monthly wages of an insured person has also been revised. Accordingly, in order to avail benefits under this Act, monthly wages shall now be computed on the basis of wages on which contributions were paid in respect of the last twelve calendar months. The minimum amount of Old-age pension or invalidity pension to an insured person and survivor’s pension has also been increased from 01 July 2008 from Rs.1,500 per month to Rs.2,000 per month.

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