Employees

Workers
Independent contractors

Differ in terms of rights

employees
Contract
Can it be oral?

Terms of employment and dismissal

Implied by statute

 Test of employment:
Control test

Integration test
Economic reality: ( tax deduction, equipment,

personal financial risk)

Mutuality of obligation

 Multiple test:
Person has to turn up for work when expected?

Yes
Has to do what organization tells him?
Yes
Expected to do personally?
Yes
He is an emplyee

workers
Agency
Short term casual workers

Minimum wages, equal pay, non discrimination

Independent contractors
Plumber , cab driver

 Contract of services vs. contract for services

Car vateters case:

Contract described them as independent worker

Pay their own taxes
Purchased insurance
Uniform
Materials
But
Turned up on work on daily basis
Do as told
Integrated into business
Subject to control

 The area of law that covers all aspects of employer and

employee relationships except the negotiation process

covered by labor law and collective bargaining.
Aim: Most employment laws were established to protect the

rights of employees.
Covers:

all phases of the employer and employee relationship,

including, but not limited to, wages, benefits, employment
management rights and work-place safety

 worker who is in the pay roll is considered

as employee and one on contractual basis is labour.

Labor Law:
Labor law is about collective action on the part of

workers to bring about change in working conditions

and pay by forming unions for the purpose of
collective bargaining with employers.

History:
14th Century England's Master and Servant Law.

Because of a shortage of workers caused by the Black

Plague coupled with Parliament's concern about idle
people, laws were passed to suppress wages, tie
workers to a single master for a period of time and fix
the social status of the worker for life.

 Clayton Act of 1914 (US) established the right of employees

to organize and stated,

"The labor of a human being is not a commodity or article of
commerce."
The Railway Labor Act forbade employers from
discriminating against unions
forced them to bargain collectively with unions.
join unions, strike and provided for arbitration of disputes
between the unions and the employer.

Islam upholds upholding the

dignity of labour.
A worker is a friend of God.
Jabir (R.A.)
Ali (R.A)
Umar (R.A)

 Your servants are your brethren upon whom Allah has

given you authority. So, if one has one's brethren

under one's control, one should feed them with the
like of what one eats and clothe them with the like of
what one wears. You should not overburden them with
what they cannot bear, and if you do so, help them in
their hard job. (Bukhari)

 The wages of labour must be paid to him before the

sweat dries upon his body.

It is the duty of employer to take only such work from
the employees, which they can do easily. They should
not be made to work so that their health is impaired.
Never has anyone eaten a better thing than when he
eats of his own hands.

Labour day---

st
1

MAY

 Chicago 400,000 were out on strike. A newspaper of

that city reported that "no smoke curled up from the

tall chimneys of the factories and mills, and things had
assumed a Sabbath-like appearance".
Protests
Bomb--- bullets
Rigged jury anarchists
Death sentences
600,000 working people turned out for their funeral.

Speech of one of the anarchists

If you think that by hanging us you can stamp out the

labour movement... the movement from which the

downtrodden millions, the millions who toil in misery
and want, expect salvation - if this is your opinion, then
hang us! Here you will tread on a spark, but there and
there, behind you - and in front of you, and everywhere,
flames blaze up. It is a subterranean fire. You cannot
put it out".

 international demonstrations on the 1890 anniversary

of the Chicago protests. May Day was formally

recognized as an annual event at the International's
second congress 1891.

Labour laws and Islam

The Hadith says that Allah will be an opponent on the

Day of Judgement of one who employs a worker and

takes full work from him but does not pay him for his
labor. (Bukhari)
recommended that workers should be treated kindly
in order not to be made to feel inferior.
Prophet (PBUH)s kind treatment towards his servant

PAKISTAN EMPLOYMENT LAWS

Labour is a concurrent subject, under the Pakistani
Constitution: that means that both Federal and

Provincial Government are responsible for that.

labour force of Pakistan

47%within the agriculture sector,
10.50% in the manufacturing mining sector and

42.50% in various other professions

Constitution protection
Article 11 of the Constitution prohibits all forms of slavery,

forced labour and child labour;

Article 17 provides for a fundamental right to exercise the
freedom of association and the right to form unions;
Article 18 proscribes the right of its citizens to enter upon any
lawful profession or occupation and to conduct any lawful trade
or business;
Article 25 lays down the right to equality before the law and
prohibition of discrimination on the grounds of gender alone;
Article 37(e) makes provision for securing just and humane
conditions of work, ensuring that children and women are not
employed in vocations unsuited to their age or gender, and for
maternity benefits for women in employment.

Industrial and Commercial

Employment Ordinance,1968
relationship between employer and employee and the

contract of employment.
applies to all industrial and commercial
establishments throughout the country employing 20
or more workers
provides for : issue a formal appointment letter at the
time of employment of each worker.

 The obligatory contents of each labour contract

main terms and conditions of employment,
nature

tenure of appointment,
pay allowances and other fringe benefits admissible,
terms and conditions of appointment

 workers in other establishments, domestic servants,

farm workers or casual labour engaged by contractors,

their labour contracts are generally unwritten and can
be enforced through the courts on the basis of oral
evidence or past practice.

termination of contract
permanent worker
cannot be terminated for any reason other than

misconduct unless one months notice or wages in lieu

thereof has been furnished by the employer or by the
worker if he or she so chooses to leave his or her
service.
Other categories of workers are not entitled to notice
or pay in lieu of notice.

 All terminations of service in any form must be

documented in writing stating the reasons for such an

act.

Factories Act, 1934- working hours

adult employee, (18 year old) ---nine hours a day and

48 hours a week.
young person--- seven hours a day and 42 hours a
week.
no worker shall be required to work continuously for
more than six hours--- interval of at least one hour.
During Ramadan--- special reduced working hours
are observed in manufacturing, commercial and
service organizations.

Paid Leave
Annual fourteen consecutive days after a year---If not

taken, added to next year

10 days casual leave with full pay
further 16 days sick or medical leave on half pay.
festival holidays with pay as declared by the
Federal/Provincial Government.

Child Labour
Employment of Children Act, 1991
Constitution of the Country also protects the rights of

children and states:

"No child below the age of fourteen shall be engaged in
any factory or mine or in any other hazardous
employment. All forms of forced labour and human
trafficking are prohibited."

 Article 11(3) expressly prohibits the employment of

children below the age of fourteen years in any factory,

mine or other hazardous employment.
the Constitution makes Principle of Policy of the State
of Pakistan to
1. protect the child,
2. provide free and compulsory education
3. securing just and human conditions of work,
ensuring that children and women are not employed
in vocations unsuited to their age or gender.

 Employment of children between the ages of 14 and

18 ---certificate of fitness from a certifying surgeon.

Equality
Article 38 --- equality in the form of securing the well-

being of the people, irrespective of gender, caste, creed

or race,

Article: 38 Promotion of social and

economic well-being of the people
secure the well-being of the people,

irrespective of gender, caste, creed or race, by

raising their standard of living, by preventing the
concentration of wealth and means of production and
distribution in the hands of a few to the detriment of
general interest and by ensuring equitable adjustment of
rights between employers and employees, and landlords
and tenants;
(b) provide for all citizens, within the available resources
of the country, facilities for work and adequate livelihood
with reasonable rest and leisure;
(c) provide for all persons employed in the service of
Pakistan or otherwise, social security by compulsory social
insurance or other means;

 (d) provide basic necessities of life, such as food,

clothing, housing, education and medical relief, for

all such citizens, irrespective of sex, caste, creed or
race, as are permanently or temporarily unable to
earn their livelihood on account of infirmity,
sickness or unemployment;
(e) reduce disparity in the income and earnings of
individuals, including persons in the various classes of
the service of Pakistan; 1[ ]
(f) eliminate riba as early as possible

wage periods
wage periods not exceeding one month.
Wages should be paid on a working day within seven

days of the end of the wage period, or within ten days

if 1,000 or more persons are employed.
The wages of a person discharged should be paid not
later than the second working day after his or her
discharge.

Workers' Representation in the

Enterprise
Industrial Relations Ordinance, 2002 (IRO 2002),
Joint Works Council (Article 24 of the IRO 2002).
A Joint Works Council must be set up in any

establishment employing fifty persons or more.

no more than ten members, forty per cent of which are
workers representatives.

 improvement in production, productivity and efficiency

provision of minimum facilities for those of the workers

employed through contractors who are not covered by the

laws relating to welfare of workers.
promoting settlement of differences through bilateral
negotiations,
promoting safety and health for the workers,
encouraging vocational training within the establishment,
facilitating good and harmonious working conditions in
the establishment,
provision of educational facilities for children of workers.

Trade Union
Freedom of association--- Article 17 of the Pakistani

Constitution--- reasonable restrictions imposed by

law in the interest of sovereignty or integrity of
Pakistan, public order or morality

Registration of trade unions

requirements, listed in Article 6 of the IRO 2002.
benefits:
1. legal existence as separate from its members.
2. their membership contingent on the size of the

industry/trade to which they belong.

3. draw up their constitutions and rules
4. elect their representatives in full freedom,
5. to organize their administration and activities and to
formulate their programmes.

Collective Bargaining Agent (CBA).

CBA is a registered trade union elected by secret

ballot.
entitled to
1. undertake collective bargaining with the employer or
employers on matters connected with employment,
non-employment, the terms of employment or any right
guaranteed or secured to it or any worker by or under
any law, or any award or settlement

 Collective agreements are thus formulated by the CBA.

The agreements may contain matters such as the

facilities in the

 Collective agreements :
wages and salaries, hours of work, holiday entitlement

and pay, level of performance, job grading, lay-offs,

retrenchment, sick pay, pension and retirement
schemes.
agreements should invariably be in writing and should
be drafted
establishment for trade union activities
procedures for settling collective disputes including
grievances and disciplinary procedures.

Collective Labour Disputes

Step 1:
employer or a Collective Bargaining Agent finds that

an industrial dispute has arisen or is likely to arise,

they may communicate their views in writing to the
other party. Upon receipt of the communication, the
other party has fifteen days (or more if agreed) to try
and settle the dispute by bilateral negotiations.

 Step 2:
within fifteen further days, serve a notice of

conciliation on the other party, with a copy to the

Conciliator and to the Labour Court.
If the dispute is settled before the Conciliator, or a
tripartite Board of Conciliators, a report is sent to the
Provincial or Federal Government, with the
memorandum of settlement.

Step 3: Arbitration
award within a period of 30 days or a period agreed

upon by the parties. The award of the arbitrator is final

and valid for a period not exceeding two years.
A copy of the award is sent to the provincial or Federal
Government, for publication in the official Gazette.

Strikes and Lock-outs:

Labour right to strike providing due notice to their

employer within seven days,

employer has the right declare a lock-out after the
delay of notice of conciliation has expired.
Right to make application to the Labour Court for
adjudication of the dispute.

 federal and/or the Provincial Government may, by

order in writing, prohibit strike or lock-out if

It lasts for more than fifteen days,
to a dispute which the Commission is competent to
adjudicate and determine
occurs within the public utility services sector the

And can
refer the dispute to the Commission or the Labour
Court

Illegal strikes and lock-outs

Labour Court can require the employer or CBA or the registered

trade union concerned, to appear before the Court.

The Court may, within 10 days, order the strike or lockout to be
stopped.
contravention of the order of the Court by the employer and if
the Court is satisfied that the pursuance of the lock-out is
causing serious hardship to the community or is prejudicial to
the national interest, it may order the attachment of the factory
and the appointment of an official receiver, who will exercise the
powers of management and may do all such acts as are necessary
for conducting business.
In case of contravention of the order of the Court by the workers,
the Labour Court may pass orders of dismissal against the
striking workers, or cancel the registration of the trade union
that committed such contravention.

Settlement of Individual Labour

Disputes
Article 46 of the IRO
a worker may bring his or her grievance in respect of

any right guaranteed or secured by or under any law or

any award or settlement to the notice of the employer
in writing, either him or herself or Collective
Bargaining Agent, within one month of the day on
which cause of such grievance arises.
employer must within fifteen days of the grievance,
communicate his or her decision in writing to the
worker

 If the employer fails to communicate a decision within

the specified period

Or
if the worker is dissatisfied with such decision
Can take the matter to the Labour Court within a

period of two months

Labour Courts
section 44 of the Ordinance ---Provincial Government

derives its authority to establish as many Labour

Courts as it considers necessary under
jurisdictional limitations
1. geographical parameters
2. with respect to the industry
3. the classes of cases allocated.
Each Labour Court consists of one Presiding Officer
appointed by the Provincial Government.

 While deliberating offenses, the Labour Court follows as

nearly as possible procedure as prescribed under the Code

of Criminal Procedure, 1898.

industrial disputes, the Labour Court is deemed to be a

Civil Court and retains the same powers as are vested in

such Court under the Code of Civil Procedure, 1908 such
as:
1. enforcement of attendance
2. examination under oath,
3. the production of documents and material objects,
4. the issuance of commissions for the examination of
witnesses or documents.

award or decision of a Labour Court is

1. produced in writing
2. delivered in open Court with two copies subsequently
forwarded to the Provincial Government.
3. Upon receipt, the Provincial Government within a period
of one month publishes the award or decision in the
Official Gazette*.
* A public journal is a periodical publication that records the
business and proceedings of a government

 The IRO 2002 abolished the Labour Appellate Tribunal.

an appeal to the High Court (Article 48 of the IRO 2002).
The High Court, may
1. vary or modify an award
2. on its own motion at any time, call for the record of any

case or proceedings in which a Labour Court within its

jurisdiction has passed an order, for the purpose of
satisfying itself as to the correctness, legality, or propriety
of such order, and may pass such order, in relation
thereto as it thinks fit, provided that the order does not
adversely affect any person without giving such
person a reasonable opportunity of being heard.

 Factories Act, 1934 Regulates the working conditions in

factories, employing 10 or more workers

Payment of Wages Act, 1936 Determines the mode of
payment of salaries and wages to the industrial workers
Minimum Wages Ordinance, 1961 Specifies the minimum
wage to be paid to different categories of workers
West Pakistan Industrial & Commercial Employment
(S.O.) Ordinance, 1968 Provides the framework and
guidelines for the service rules of industrial and
commercial workforce

 Employment Record of Service Act, 1951Provides guidelines for

the maintenance of service records of workers in industries

Canteen Rules, 1959It envisages provision of a canteen facility,
where 250 or more workers are employed
Hazardous Occupations Rules, 1978 Gives guidelines for
protection of workers against certain hazardous occupations in
the factories
Employment of Children Act, 1991Regulates the employment of
children
Maternity Benefit Ordinance, 1959Provides certain facilities to
those female employees, who are expectant
Road Transport Workers Ordinance, 1961Provides guidelines for
welfare of transport workers