Dear All,
I am looking for a forum or people on CiteHR where I can get information regarding Pakistan labor laws and HR/compliance in accordance with Pakistani laws. If people from Pakistan are here, kindly guide me on how I can obtain the desired information from this site.
With regards, Muhammad Tahir Khan
From Pakistan, Karachi
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4I am looking for a forum or people on CiteHR where I can get information regarding Pakistan labor laws and HR/compliance in accordance with Pakistani laws. If people from Pakistan are here, kindly guide me on how I can obtain the desired information from this site.
With regards, Muhammad Tahir Khan
From Pakistan, Karachi
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Dear asif, I am from karachi, as i have been searching people from pakistan to get some information as per pakistan labour laws and iso compliance matters, whereabout you from pakistan?
From Pakistan, Karachi
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From Pakistan, Karachi
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LABOUR POLICY
2002
MINISTRY OF LABOUR,
MANPOWER, AND OVERSEAS PAKISTANIS
BLOCK-B, PAK. SECRETARIAT
ISLAMABAD
Contents
Foreword 1
Background 8
Part I: Principles, Aims, and Objectives 11
Part II: Action Plan 18
Labour Policy_2002 1
FOREWORD
Since independence, four labor policies have been announced by the government in the years 1955, 1959, 1969, and 1972, which laid down the parameters for the growth of trade unionism; the protection of workers' rights; the settlement of industrial disputes; and the redress of workers' grievances. These policies also provided for compliance with international labor standards ratified by Pakistan.
Historically, the 1960s and the 1970s were a turbulent period in the history of Industrial Relations in Pakistan. Militant trade unions and equally intransigent managements were locked in endless disputes and conflicts over pay and working conditions. Strikes, go-slows, lockouts, and litigations were the most distinctive features of employer-employee relations. The concept of employers and employees working together in close cooperation to ensure productivity, profitability, and growth of businesses and security of employment was largely non-existent. There was no realization that job security and appropriate wages were critically dependent on profitability and continued competitiveness of businesses.
The atmosphere of mutual hostility and distrust, though considerably diminished, continues to bedevil industrial relations to this day. As a consequence, both the entrepreneur and labor, in fact the economy of the country as a whole, have suffered greatly. But, perhaps, labor has suffered most on account of increasing unemployment and declining real wages as both public and private sector businesses have increasingly resorted to cutbacks, relocation, closures, contract employment, and outsourcing in an effort to maintain profits and to counter pressure from trade unions. These difficulties have been compounded by exploding population and influx of Afghan refugees which have further aggravated unemployment and depressed the job market.
The progressive globalization of the economy is bringing forth even more formidable challenges and pressures. Successive governments, torn between conflicting desires for promoting welfare of the low-income classes and requirements of global competition, have had the unenviable task of balancing demands for better wages and decent working conditions on the one hand and maintaining business competitiveness on the other while at the same time ensuring increased revenues.
Today, however, a different scenario is emerging. Sobered by the negative experiences of adversarial industrial relations over the past decades, trade unions are increasingly discarding militancy while employers are recognizing the need and benefits of co-opting labor as partners-in-productivity. Both employers and trade unions are progressively getting involved in bilateral dialogue as there is a growing realization that the common interest of both employers and employees is best served by securing business profitability and growth. Enlightened elements within labor and employers' organizations have come together to form the Workers Employers Bilateral Council of Pakistan (WEBCOP) and issued a joint declaration to fully respect each other's rights. WEBCOP emphasizes the need for an organized and sustained dialogue between employer and labor organizations based on bilateralism where the government adopts the role of a facilitator.
The Constitution of the Islamic Republic of Pakistan and international labor standards render definite obligations upon the State for the realization of human rights for all citizens, equally for men and women, young and old, Muslims and non-Muslims. In acknowledgment of these obligations, a new Labor Policy has been formulated (as the first after 1972). This Policy will guide administrative, legal, and judicial actions of government, employers, and workers in realizing labor rights and their welfare along with promotion of social justice. The Government believes that such collective commitment to equity is necessary to achieve and sustain rapid economic growth in a globalized economy.
The Government's vision for a new Labor Policy focuses on dignity of labor, strengthening bilateralism, elimination of animosity and antagonism by fostering a trust-relationship between employer-employee and promoting social dialogue. The government is firmly of the view that both industrial growth and decent working conditions can be achieved only through peace and tranquility in the industrial sector. This is only possible if there is an awareness and understanding between workers and employers of their reciprocal rights and obligations with all-round commitment to higher productivity.
After an extensive tripartite dialogue and consultation, conducted over many months, a consensus has evolved regarding the future shape and course of industrial relations in Pakistan. In the light of this consensus, our Labor Policy has been developed within the following framework of Objectives and Initiatives:
1. Support to bilateral and tripartite mechanisms for policy formulation, self-regulation, and peaceful resolution of disputes.
2. Regulatory authority of government to be exercised only when bilateral mechanisms fail to resolve disputes.
3. Consolidation/simplification of labor laws.
4. Structural legislative changes to provide easy access to speedy justice in the labor sector.
5. Promotion of employees' social security and social insurance programs and improvement of labor welfare institutions namely; Workers Welfare Fund, Employees Old Age Benefit Institutions and Provincial Employees Social Security Institutions.
6. Progressive extension of labor laws and welfare measures to informal and unorganized sectors.
7. Special emphasis on workers' children education.
Labor Policy_2002 5
8. Combating child and bonded labor.
In order to attain these objectives and build upon these initiatives, concerted action by workers, employers, and government is necessary. On its part, the government pledges to take prompt and comprehensive actions.
The government is both proud and grateful to have based this Policy on broad-based consultations with workers and employers, especially through the national Tripartite Labor Conference held in July 2001. Only a sustained collective effort by workers and employers will ensure that the future governments renew commitment to this Policy by continuing with time-bound actions for achieving major objectives of this Policy.
The contribution and effort of the team at the Ministry of Labor led by the Secretary, Mr. Farhat Hussain as well as the inspiration provided by the Late Mr. Omar Asghar Khan is deeply acknowledged.
(OWAIS AHMED GHANI)
Minister for Labor, Manpower & Overseas Pakistanis
Islamabad
23.9.2002
Labor Policy_2002 6
Bilateralism is the core element of the new Labor Policy. The principles, objectives, and action program of the policy concentrate on the creation of a relationship of trust and cooperation between the employer and employee under the strategy of least intervention by the state. A visionary approach adopted in the Labor Policy is a focus on dignity of labor, a fair balance of bargaining power, and productivity-based work culture with fair and equitable distribution of gains and proceeds of the industry amongst employees, entrepreneurs, and the society at large.
Labor Policy_2002 7
The Cabinet accorded approval to the Labor Policy 2002 in its meeting held on 21.09.2002 under the Chairmanship of the Chief Executive of Pakistan, General Pervez Musharraf.
BACKGROUND
A fairly elaborate labor market regulatory and institutional framework was evolved during the British Rule in India prior to the independence of 1947. In the post-independence period, this system was adopted by Pakistan to regulate industrial relations. The crucial area of concern for the Government was to provide a strong base for industrialization and economic development.
At the time of partition, the law on the statute book to regulate relations between employers and employees was the Industrial Dispute Act, 1947. This pre-partition Central Act, for the first time recognized that workers have rights other than those conferred by contract and/or the ordinary law of the master and servant. This Act held the field till the promulgation of the Industrial Dispute Ordinance 1959 (IDO) enforced by the first martial law regime. The next piece of legislation was the West Pakistan Industrial Disputes Ordinance 1968 that repealed the IDO. The said legislation was replaced within a short time by the Industrial Relations Ordinance 1969 (IRO).
Landmark changes in the industrial relations system were made consequent upon the announcement of the third Labor Policy in 1969. This policy resulted in the introduction of legislation guaranteeing freedom of association and the right to collective bargaining in accordance with ILO Conventions 87 and 98 ratified by Pakistan. A system of equitable distribution of gains was put in place in the form of enactment of laws relating to workers' welfare and the minimum wage of workers. Further reforms in the system of labor legislation were made as a result of the fourth Labor Policy of 1972, which envisaged workers' participation in the management, extension in the scope of labor laws, enactment of laws relating to employees' old-age benefits, workers' children education, introduction of statutory bonus and group insurance schemes, establishment of quasi-judicial Labor Policy_2002 9 bodies namely; National Industrial Relations Commission and the procedure for redress of workers' individual grievances.
It was generally perceived by employers that the Labor Policies of 1969 and 1972 were heavily tilted in favor of labor. Consequently, the industrial relations balance was disturbed. Employers were further aggrieved by the 1970s Nationalization Policy. Several issues that surfaced as a consequence of the changes were: the employers' demand for the power of hire and fire; the role of outsiders in trade unionism; low productivity; multiplicity of trade unionism and endless litigation between workers and employers due to unfair labor practices.
In the subsequent years, the need was keenly felt to reform industrial relations in order to restore investors' confidence by bringing balance and harmony in employer-employee relationship. A number of efforts were made by successive governments in this direction. Three tripartite labor conferences were held in the years 1977, 1980, and 1988 and two commissions namely; Labor Commission of 1978 and Labor Welfare Commission of 1987 were set up for suitable recommendations to address the issues. Also, two Task Forces, one on social security and the other on labor were formed in 199
From India, Indore
Acknowledge(0)Amend(0)
2002
MINISTRY OF LABOUR,
MANPOWER, AND OVERSEAS PAKISTANIS
BLOCK-B, PAK. SECRETARIAT
ISLAMABAD
Contents
Foreword 1
Background 8
Part I: Principles, Aims, and Objectives 11
Part II: Action Plan 18
Labour Policy_2002 1
FOREWORD
Since independence, four labor policies have been announced by the government in the years 1955, 1959, 1969, and 1972, which laid down the parameters for the growth of trade unionism; the protection of workers' rights; the settlement of industrial disputes; and the redress of workers' grievances. These policies also provided for compliance with international labor standards ratified by Pakistan.
Historically, the 1960s and the 1970s were a turbulent period in the history of Industrial Relations in Pakistan. Militant trade unions and equally intransigent managements were locked in endless disputes and conflicts over pay and working conditions. Strikes, go-slows, lockouts, and litigations were the most distinctive features of employer-employee relations. The concept of employers and employees working together in close cooperation to ensure productivity, profitability, and growth of businesses and security of employment was largely non-existent. There was no realization that job security and appropriate wages were critically dependent on profitability and continued competitiveness of businesses.
The atmosphere of mutual hostility and distrust, though considerably diminished, continues to bedevil industrial relations to this day. As a consequence, both the entrepreneur and labor, in fact the economy of the country as a whole, have suffered greatly. But, perhaps, labor has suffered most on account of increasing unemployment and declining real wages as both public and private sector businesses have increasingly resorted to cutbacks, relocation, closures, contract employment, and outsourcing in an effort to maintain profits and to counter pressure from trade unions. These difficulties have been compounded by exploding population and influx of Afghan refugees which have further aggravated unemployment and depressed the job market.
The progressive globalization of the economy is bringing forth even more formidable challenges and pressures. Successive governments, torn between conflicting desires for promoting welfare of the low-income classes and requirements of global competition, have had the unenviable task of balancing demands for better wages and decent working conditions on the one hand and maintaining business competitiveness on the other while at the same time ensuring increased revenues.
Today, however, a different scenario is emerging. Sobered by the negative experiences of adversarial industrial relations over the past decades, trade unions are increasingly discarding militancy while employers are recognizing the need and benefits of co-opting labor as partners-in-productivity. Both employers and trade unions are progressively getting involved in bilateral dialogue as there is a growing realization that the common interest of both employers and employees is best served by securing business profitability and growth. Enlightened elements within labor and employers' organizations have come together to form the Workers Employers Bilateral Council of Pakistan (WEBCOP) and issued a joint declaration to fully respect each other's rights. WEBCOP emphasizes the need for an organized and sustained dialogue between employer and labor organizations based on bilateralism where the government adopts the role of a facilitator.
The Constitution of the Islamic Republic of Pakistan and international labor standards render definite obligations upon the State for the realization of human rights for all citizens, equally for men and women, young and old, Muslims and non-Muslims. In acknowledgment of these obligations, a new Labor Policy has been formulated (as the first after 1972). This Policy will guide administrative, legal, and judicial actions of government, employers, and workers in realizing labor rights and their welfare along with promotion of social justice. The Government believes that such collective commitment to equity is necessary to achieve and sustain rapid economic growth in a globalized economy.
The Government's vision for a new Labor Policy focuses on dignity of labor, strengthening bilateralism, elimination of animosity and antagonism by fostering a trust-relationship between employer-employee and promoting social dialogue. The government is firmly of the view that both industrial growth and decent working conditions can be achieved only through peace and tranquility in the industrial sector. This is only possible if there is an awareness and understanding between workers and employers of their reciprocal rights and obligations with all-round commitment to higher productivity.
After an extensive tripartite dialogue and consultation, conducted over many months, a consensus has evolved regarding the future shape and course of industrial relations in Pakistan. In the light of this consensus, our Labor Policy has been developed within the following framework of Objectives and Initiatives:
1. Support to bilateral and tripartite mechanisms for policy formulation, self-regulation, and peaceful resolution of disputes.
2. Regulatory authority of government to be exercised only when bilateral mechanisms fail to resolve disputes.
3. Consolidation/simplification of labor laws.
4. Structural legislative changes to provide easy access to speedy justice in the labor sector.
5. Promotion of employees' social security and social insurance programs and improvement of labor welfare institutions namely; Workers Welfare Fund, Employees Old Age Benefit Institutions and Provincial Employees Social Security Institutions.
6. Progressive extension of labor laws and welfare measures to informal and unorganized sectors.
7. Special emphasis on workers' children education.
Labor Policy_2002 5
8. Combating child and bonded labor.
In order to attain these objectives and build upon these initiatives, concerted action by workers, employers, and government is necessary. On its part, the government pledges to take prompt and comprehensive actions.
The government is both proud and grateful to have based this Policy on broad-based consultations with workers and employers, especially through the national Tripartite Labor Conference held in July 2001. Only a sustained collective effort by workers and employers will ensure that the future governments renew commitment to this Policy by continuing with time-bound actions for achieving major objectives of this Policy.
The contribution and effort of the team at the Ministry of Labor led by the Secretary, Mr. Farhat Hussain as well as the inspiration provided by the Late Mr. Omar Asghar Khan is deeply acknowledged.
(OWAIS AHMED GHANI)
Minister for Labor, Manpower & Overseas Pakistanis
Islamabad
23.9.2002
Labor Policy_2002 6
Bilateralism is the core element of the new Labor Policy. The principles, objectives, and action program of the policy concentrate on the creation of a relationship of trust and cooperation between the employer and employee under the strategy of least intervention by the state. A visionary approach adopted in the Labor Policy is a focus on dignity of labor, a fair balance of bargaining power, and productivity-based work culture with fair and equitable distribution of gains and proceeds of the industry amongst employees, entrepreneurs, and the society at large.
Labor Policy_2002 7
The Cabinet accorded approval to the Labor Policy 2002 in its meeting held on 21.09.2002 under the Chairmanship of the Chief Executive of Pakistan, General Pervez Musharraf.
BACKGROUND
A fairly elaborate labor market regulatory and institutional framework was evolved during the British Rule in India prior to the independence of 1947. In the post-independence period, this system was adopted by Pakistan to regulate industrial relations. The crucial area of concern for the Government was to provide a strong base for industrialization and economic development.
At the time of partition, the law on the statute book to regulate relations between employers and employees was the Industrial Dispute Act, 1947. This pre-partition Central Act, for the first time recognized that workers have rights other than those conferred by contract and/or the ordinary law of the master and servant. This Act held the field till the promulgation of the Industrial Dispute Ordinance 1959 (IDO) enforced by the first martial law regime. The next piece of legislation was the West Pakistan Industrial Disputes Ordinance 1968 that repealed the IDO. The said legislation was replaced within a short time by the Industrial Relations Ordinance 1969 (IRO).
Landmark changes in the industrial relations system were made consequent upon the announcement of the third Labor Policy in 1969. This policy resulted in the introduction of legislation guaranteeing freedom of association and the right to collective bargaining in accordance with ILO Conventions 87 and 98 ratified by Pakistan. A system of equitable distribution of gains was put in place in the form of enactment of laws relating to workers' welfare and the minimum wage of workers. Further reforms in the system of labor legislation were made as a result of the fourth Labor Policy of 1972, which envisaged workers' participation in the management, extension in the scope of labor laws, enactment of laws relating to employees' old-age benefits, workers' children education, introduction of statutory bonus and group insurance schemes, establishment of quasi-judicial Labor Policy_2002 9 bodies namely; National Industrial Relations Commission and the procedure for redress of workers' individual grievances.
It was generally perceived by employers that the Labor Policies of 1969 and 1972 were heavily tilted in favor of labor. Consequently, the industrial relations balance was disturbed. Employers were further aggrieved by the 1970s Nationalization Policy. Several issues that surfaced as a consequence of the changes were: the employers' demand for the power of hire and fire; the role of outsiders in trade unionism; low productivity; multiplicity of trade unionism and endless litigation between workers and employers due to unfair labor practices.
In the subsequent years, the need was keenly felt to reform industrial relations in order to restore investors' confidence by bringing balance and harmony in employer-employee relationship. A number of efforts were made by successive governments in this direction. Three tripartite labor conferences were held in the years 1977, 1980, and 1988 and two commissions namely; Labor Commission of 1978 and Labor Welfare Commission of 1987 were set up for suitable recommendations to address the issues. Also, two Task Forces, one on social security and the other on labor were formed in 199
From India, Indore
Acknowledge(0)Amend(0)
21. About one-half of the employed labor force is engaged in the agriculture sector. An inter-ministerial committee shall be constituted to formulate a package of labor welfare measures for the employees in the agriculture sector. The committee shall make recommendations, in the first instance, for the provision of certain benefits to the workers in corporate agriculture farming.
Informal Sector and Home-based Workers
22. About two-thirds of the non-agriculture employed labor force in Pakistan is in the informal sector. A large number, especially women, are engaged in home-based work. Currently, the labor in the informal as well as the home-based sector is not covered by any labor welfare legislation. The Labor Policy aims at the gradual extension of coverage of labor welfare laws to the workers of the informal/home-based sector.
Seasonal Workers
23. The seasonal workers are generally not benefiting from labor welfare laws. The Government will take steps to extend appropriate social protection to them.
Regulation of Contract Work
24. The rights of contract labor in an establishment will be protected through a written agreement between the employer and the contractor, laying down responsibilities and liabilities of either or both of them in this regard. A system of licensing for contractors will be introduced so that contract workers are covered by labor laws and qualify for labor welfare measures.
Rights of Workers in the Event of Privatization
25. The Government shall take appropriate measures to protect the rights of workers in the event of privatization of public sector units.
Challenge of Globalization
26. Globalization is a challenge for developing countries. An inter-ministerial committee shall be formed to address issues such as social accountability arising out of globalization.
Labor Welfare Levies
27. Different channels are operating at present for the collection of labor welfare levies and distribution of corresponding benefits to the employees. Measures will be taken to streamline the collection of levies and distribution of benefits to save both workers and employers from inconvenience.
Section 2-A and 27-B
28. Section 2-A in the Service Tribunal Act, 1973, excludes the workers in the public sector from the purview of labor laws/labor courts. Section 27-B in the Banking Companies Ordinance, 1962, prohibits a non-employee from holding the office in the executive of a trade union. These provisions have been resisted by the workers and their organizations. The Government will address the legitimate concerns of all stakeholders.
Human Resource Development
29. In order to meet the challenges of a globalized economy, an educated and skilled labor force has a critical role to play. There is an urgent need to strengthen programs of workers' training and re-skilling in new and multiple trades for facilitating entry into the labor market, both nationally and internationally. The role of Skill Development Councils (already established) shall be strengthened in this context.
Occupational Safety and Health
30. Occupational safety and health of labor is required to be given the highest priority. A law covering all workplaces will be enacted, and a National Tripartite Occupational Safety and Health Council will be established to meet the objective of providing adequate safety and ensuring compensation to workers.
Labor Research
31. Research in labor-related disciplines and labor administration training is necessary for the improvement of the system and the upgrading of personnel. Measures shall be taken to promote research and training activities on the most modern lines to meet present-day requirements. This will be achieved by reorganizing the existing research and training institutes.
Labor Market Information System (LMIS)
32. The formulation and implementation of policies need to be based on comprehensive, reliable data and timely information on the characteristics of the labor force and various features of the job market. The Labor Market Information System (LMIS) will provide, on a continuous basis, information on employment/unemployment, job market requirements, and future projections regarding the evolution of the job market.
Part-II
ACTION PLAN
Industrial Relations
33. The law relating to industrial relations will be revised in the light of provisions of the Constitution of the Islamic Republic of Pakistan and International Labor Standards to make it fully consistent with the internationally recognized rights of labor. Some of the salient features of the new Industrial Relations Ordinance are as under:
(i) A Tripartite Board of Conciliators shall be constituted to conciliate in industrial disputes where more than one establishment is involved or industry-wise trade union or a trade union at the national level is a party.
(ii) On the failure of conciliation proceedings in industrial disputes in a public utility service, the dispute shall be referred for arbitration to a Board of Arbitrators.
(iii) The phrase "notice of strike or lockout" shall be substituted with the "notice of conciliation".
(iv) The tenure of a CBA shall be extended from two to three years.
(v) Joint Management Board and Works Council shall be replaced by a single body, namely Joint Works Council.
(vi) Conviction of criminal offenses of a heinous nature such as theft, physical assault, murder, attempt to murder, etc., shall be made the basis of disqualification of a person from being a member or office-bearer of a trade union.
(vii) The penalty of imprisonment shall be dispensed with under the law relating to industrial relations. The amount of fines shall, however, be enhanced suitably to make the law deterrent.
(viii) The terms "employer", "establishment", and "industry" shall be redefined.
34. In the context of industrial relations, more emphasis will be placed on the promotion of bilateralism. The Government will take the following measures in this regard:
(i) Support and strengthen initiatives/mechanisms for bilateral cooperation such as WEBCOP based on a trust relationship between employers and labor leading to greater efficiency and productivity.
(ii) Workers and employers will be encouraged to evolve bipartite codes of conduct at the national level and at the level of the industry to promote a trust relationship and resolve issues bilaterally.
(iii) The role of the state to act as a facilitator will be strengthened.
(iv) District Tripartite Labor Committees will be set up in pursuance of the Devolution Power Plan to coordinate with different agencies at the District level to ensure the implementation of labor laws and different schemes of the Government relating to labor welfare.
Consolidation and Rationalization of Labor Laws
35. Currently, there are a large number of Labor Laws and Rules & Regulations covering a variety of subjects relating to industrial relations. Most of these laws are complex and overlapping in scope and content. It is proposed to consolidate them into the following six categories:
a) Law relating to industrial relations.
b) Law relating to employment conditions.
c) Law relating to wages.
d) Law relating to human resource development.
e) Law relating to occupational safety and health.
f) Law relating to labor welfare and social safety net.
Labor Judiciary
36. The status of the Labor Court will be upgraded and given the jurisdiction to adjudicate in labor cases as the court of first instance. The Labor Appellate Tribunals will be abolished, and the appeal against the order of the Labor Court shall lie in the High Court.
37. To harmonize labor-employer relationship, a Labor Court, while determining the case relating to the termination of a workman, shall also have the power to award equitable compensation to the aggrieved workers in lieu of reinstatement in service.
National Industrial Relations Commission shall be revamped, and its functions and performance will be reviewed.
Conditions of Employment
39. The consolidated law relating to conditions of employment shall be made applicable to every industrial and commercial establishment employing 10 or more workers.
40. The law will, however, provide flexible working hours to the business community to meet the needs of society.
41. Pakistan has ratified ILO Convention 182, which seeks to prohibit and eliminate the worst forms of child labor. A child under the Convention has been defined as a person below the age of 18 years. Relevant provisions in the new law will be incorporated to give effect to Convention 182.
42. The rights of the contract labor in an establishment shall be protected by providing for an agreement to be recorded in writing by the employer with the contractor laying down responsibilities and liabilities of either or both of them in that respect.
43. Employers will be encouraged to engage workers on contract for peripheral, casual, and temporary jobs. A licensing system for contractors shall be introduced in this regard.
44. The fees for the registration of shops and establishments as prescribed under the law shall be reviewed, revised, and refixed.
Wages
45. The Federal Government shall review every three years the minimum wages of workers in consultation with the National Tripartite Minimum Wage Council in keeping with economic conditions in the country.
46. Pakistan has ratified Convention 100 concerning equal pay for men and women for work of equal value. A fair wage clause in respect of male and female workers will be introduced in the law to give effect to the Convention.
Occupational Safety and Health
47. The laws relating to occupational safety and health and working conditions shall be consolidated and updated in the light of the latest developments in industry and technology.
48. A National Occupational Safety and Health Council shall be established to set OSH standards and review them periodically to make the same up-to-date to meet the needs of the industry.
Transport Workers
49. The existing law relating to transport workers needs to be updated with a view to providing better protection to transport workers along with safeguarding the interests of the transporters.
Human Resource Development
50. A need-based vocational training and human resource development program shall be launched to provide vocational training in multiple trades for new entrants in the labor market and on-job workers.
51. The law relating to apprenticeship, vocational training, rehabilitation of disabled persons, etc., shall be consolidated and reenacted as a law namely, the Human Resource Development Ordinance, to meet the challenges of new technology and present and future requirements of the industry. The role of Skill Development Councils shall be clearly defined under the new law.
52. The institutional arrangement to associate employers and workers in human resource development including planning and management of vocational training through the Skill Development Councils
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Informal Sector and Home-based Workers
22. About two-thirds of the non-agriculture employed labor force in Pakistan is in the informal sector. A large number, especially women, are engaged in home-based work. Currently, the labor in the informal as well as the home-based sector is not covered by any labor welfare legislation. The Labor Policy aims at the gradual extension of coverage of labor welfare laws to the workers of the informal/home-based sector.
Seasonal Workers
23. The seasonal workers are generally not benefiting from labor welfare laws. The Government will take steps to extend appropriate social protection to them.
Regulation of Contract Work
24. The rights of contract labor in an establishment will be protected through a written agreement between the employer and the contractor, laying down responsibilities and liabilities of either or both of them in this regard. A system of licensing for contractors will be introduced so that contract workers are covered by labor laws and qualify for labor welfare measures.
Rights of Workers in the Event of Privatization
25. The Government shall take appropriate measures to protect the rights of workers in the event of privatization of public sector units.
Challenge of Globalization
26. Globalization is a challenge for developing countries. An inter-ministerial committee shall be formed to address issues such as social accountability arising out of globalization.
Labor Welfare Levies
27. Different channels are operating at present for the collection of labor welfare levies and distribution of corresponding benefits to the employees. Measures will be taken to streamline the collection of levies and distribution of benefits to save both workers and employers from inconvenience.
Section 2-A and 27-B
28. Section 2-A in the Service Tribunal Act, 1973, excludes the workers in the public sector from the purview of labor laws/labor courts. Section 27-B in the Banking Companies Ordinance, 1962, prohibits a non-employee from holding the office in the executive of a trade union. These provisions have been resisted by the workers and their organizations. The Government will address the legitimate concerns of all stakeholders.
Human Resource Development
29. In order to meet the challenges of a globalized economy, an educated and skilled labor force has a critical role to play. There is an urgent need to strengthen programs of workers' training and re-skilling in new and multiple trades for facilitating entry into the labor market, both nationally and internationally. The role of Skill Development Councils (already established) shall be strengthened in this context.
Occupational Safety and Health
30. Occupational safety and health of labor is required to be given the highest priority. A law covering all workplaces will be enacted, and a National Tripartite Occupational Safety and Health Council will be established to meet the objective of providing adequate safety and ensuring compensation to workers.
Labor Research
31. Research in labor-related disciplines and labor administration training is necessary for the improvement of the system and the upgrading of personnel. Measures shall be taken to promote research and training activities on the most modern lines to meet present-day requirements. This will be achieved by reorganizing the existing research and training institutes.
Labor Market Information System (LMIS)
32. The formulation and implementation of policies need to be based on comprehensive, reliable data and timely information on the characteristics of the labor force and various features of the job market. The Labor Market Information System (LMIS) will provide, on a continuous basis, information on employment/unemployment, job market requirements, and future projections regarding the evolution of the job market.
Part-II
ACTION PLAN
Industrial Relations
33. The law relating to industrial relations will be revised in the light of provisions of the Constitution of the Islamic Republic of Pakistan and International Labor Standards to make it fully consistent with the internationally recognized rights of labor. Some of the salient features of the new Industrial Relations Ordinance are as under:
(i) A Tripartite Board of Conciliators shall be constituted to conciliate in industrial disputes where more than one establishment is involved or industry-wise trade union or a trade union at the national level is a party.
(ii) On the failure of conciliation proceedings in industrial disputes in a public utility service, the dispute shall be referred for arbitration to a Board of Arbitrators.
(iii) The phrase "notice of strike or lockout" shall be substituted with the "notice of conciliation".
(iv) The tenure of a CBA shall be extended from two to three years.
(v) Joint Management Board and Works Council shall be replaced by a single body, namely Joint Works Council.
(vi) Conviction of criminal offenses of a heinous nature such as theft, physical assault, murder, attempt to murder, etc., shall be made the basis of disqualification of a person from being a member or office-bearer of a trade union.
(vii) The penalty of imprisonment shall be dispensed with under the law relating to industrial relations. The amount of fines shall, however, be enhanced suitably to make the law deterrent.
(viii) The terms "employer", "establishment", and "industry" shall be redefined.
34. In the context of industrial relations, more emphasis will be placed on the promotion of bilateralism. The Government will take the following measures in this regard:
(i) Support and strengthen initiatives/mechanisms for bilateral cooperation such as WEBCOP based on a trust relationship between employers and labor leading to greater efficiency and productivity.
(ii) Workers and employers will be encouraged to evolve bipartite codes of conduct at the national level and at the level of the industry to promote a trust relationship and resolve issues bilaterally.
(iii) The role of the state to act as a facilitator will be strengthened.
(iv) District Tripartite Labor Committees will be set up in pursuance of the Devolution Power Plan to coordinate with different agencies at the District level to ensure the implementation of labor laws and different schemes of the Government relating to labor welfare.
Consolidation and Rationalization of Labor Laws
35. Currently, there are a large number of Labor Laws and Rules & Regulations covering a variety of subjects relating to industrial relations. Most of these laws are complex and overlapping in scope and content. It is proposed to consolidate them into the following six categories:
a) Law relating to industrial relations.
b) Law relating to employment conditions.
c) Law relating to wages.
d) Law relating to human resource development.
e) Law relating to occupational safety and health.
f) Law relating to labor welfare and social safety net.
Labor Judiciary
36. The status of the Labor Court will be upgraded and given the jurisdiction to adjudicate in labor cases as the court of first instance. The Labor Appellate Tribunals will be abolished, and the appeal against the order of the Labor Court shall lie in the High Court.
37. To harmonize labor-employer relationship, a Labor Court, while determining the case relating to the termination of a workman, shall also have the power to award equitable compensation to the aggrieved workers in lieu of reinstatement in service.
National Industrial Relations Commission shall be revamped, and its functions and performance will be reviewed.
Conditions of Employment
39. The consolidated law relating to conditions of employment shall be made applicable to every industrial and commercial establishment employing 10 or more workers.
40. The law will, however, provide flexible working hours to the business community to meet the needs of society.
41. Pakistan has ratified ILO Convention 182, which seeks to prohibit and eliminate the worst forms of child labor. A child under the Convention has been defined as a person below the age of 18 years. Relevant provisions in the new law will be incorporated to give effect to Convention 182.
42. The rights of the contract labor in an establishment shall be protected by providing for an agreement to be recorded in writing by the employer with the contractor laying down responsibilities and liabilities of either or both of them in that respect.
43. Employers will be encouraged to engage workers on contract for peripheral, casual, and temporary jobs. A licensing system for contractors shall be introduced in this regard.
44. The fees for the registration of shops and establishments as prescribed under the law shall be reviewed, revised, and refixed.
Wages
45. The Federal Government shall review every three years the minimum wages of workers in consultation with the National Tripartite Minimum Wage Council in keeping with economic conditions in the country.
46. Pakistan has ratified Convention 100 concerning equal pay for men and women for work of equal value. A fair wage clause in respect of male and female workers will be introduced in the law to give effect to the Convention.
Occupational Safety and Health
47. The laws relating to occupational safety and health and working conditions shall be consolidated and updated in the light of the latest developments in industry and technology.
48. A National Occupational Safety and Health Council shall be established to set OSH standards and review them periodically to make the same up-to-date to meet the needs of the industry.
Transport Workers
49. The existing law relating to transport workers needs to be updated with a view to providing better protection to transport workers along with safeguarding the interests of the transporters.
Human Resource Development
50. A need-based vocational training and human resource development program shall be launched to provide vocational training in multiple trades for new entrants in the labor market and on-job workers.
51. The law relating to apprenticeship, vocational training, rehabilitation of disabled persons, etc., shall be consolidated and reenacted as a law namely, the Human Resource Development Ordinance, to meet the challenges of new technology and present and future requirements of the industry. The role of Skill Development Councils shall be clearly defined under the new law.
52. The institutional arrangement to associate employers and workers in human resource development including planning and management of vocational training through the Skill Development Councils
From India, Indore
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Dear Mr. Dubey and Atif,
Thank you for your cooperation. This information is very helpful for me in understanding labor policy. I work as a social compliance officer and have always played a secondary role. I am interested in learning about the salary structure, group insurance criteria, Sessi, EOBI detailed manual, etc.
For instance, if a person is hired at the age of 59 and a half years, will he be eligible for EOBI? Many employers prefer a work council within the organization rather than forming a union. I am also interested in understanding other related issues such as how to establish a living wage structure.
As a low-paid employee, I am unable to pursue different courses. I have turned to this forum to gather as much information as possible. I hope you understand my situation.
Regards,
Tahir
From Pakistan, Karachi
Acknowledge(0)Amend(0)
Thank you for your cooperation. This information is very helpful for me in understanding labor policy. I work as a social compliance officer and have always played a secondary role. I am interested in learning about the salary structure, group insurance criteria, Sessi, EOBI detailed manual, etc.
For instance, if a person is hired at the age of 59 and a half years, will he be eligible for EOBI? Many employers prefer a work council within the organization rather than forming a union. I am also interested in understanding other related issues such as how to establish a living wage structure.
As a low-paid employee, I am unable to pursue different courses. I have turned to this forum to gather as much information as possible. I hope you understand my situation.
Regards,
Tahir
From Pakistan, Karachi
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