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In September 2002 the government adopted a new labour policy that aims
eventually to consolidate more than 50 existing labour laws into just seven. Of
these, a new Industrial Relations Ordinance 2002 (IRO 2002) was passed in October
2002 to replace the IRO 1969. The other six new laws being drafted are the Wages
Ordinance, the Condition of Employment Ordinance, the Human Resource
Development Ordinance, the Occupational Safety and Health Ordinance, the Labour
Welfare and Social Safety Ordinance, and the Reformation of Labour Judiciary
Ordinance; these are expected to be presented for parliamentary approval by the
end of 2004. The government also aims to reform the labour judiciary, improve
working conditions and strengthen democratic trade unionism. However, the trade
unions have strongly criticized both the policy and the IRO 2002.

The unions oppose the IRO 2002 on various grounds. They point out that it has
curtailed the power of courts to order the compulsory reinstatement of workers
after wrongful termination, allowing them instead to order only compensation.
Furthermore, courts may no longer send employers to prison; they may order fines
of up to only PRs50,000. Unions claim that their registration process has been made
more difficult. They also argue that a designated collective-bargaining agent could
previously have ordered a re-audit of the company's accounts and those unions
could have presented a panel of auditors from which the government would choose
one; this is no longer possible under the IRO 2002. The IRO 2002 has also curtailed
the power of the National Industrial Relations Commission, and proposes to abolish
the labour appellate tribunal. Several joint negotiating forums have been eliminated
and replaced with a workers' council that promises little. The government claims
that these moves are meant to improve dialogue and reduce litigation.

The IRO 2002 (like its predecessor, the IRO 1969) gives employees the right to
strike and employers the right to lock out, but it provides for more extensive
preliminary conciliation and arbitration proceedings than the IRO 1969. However,
the Essential Services Maintenance Act of 1952 restricts union activity in state-
administered sectors, including railways, postal services, telephone and affiliated
services, and airports and seaports. The IRO specifies the procedure to be followed
before a strike can legally be called, although its provisions are not always followed.
Certain actions are punishable as unfair labour practices: closure of an
establishment without prior permission from the labour court (except for power
failure, epidemic or civil commotion); illegal lockouts; illegal strikes; and slow-down

The Workmen's Compensation Act applies broadly to laborers earning less than
PRs5,000 per month and entitles them to compensation for injuries resulting from
on-the-job accidents. Employers are liable if incapacity lasts beyond a minimum of
seven days. This law was modified with retroactive effect from July 2001.

AN ORDINANCE to promote national reconciliation

WHEREAS it is expedient to promote national reconciliation, foster mutual trust and

confidence amongst holders of public office and remove the vestiges of political
vendetta and victimization, to make the election process more transparent and to
amend certain laws for that purpose and for matters connected therewith and
ancillary thereto;-

AND WHEREAS the National Assembly is not in session and the President is satisfied
that circumstances exist which render it necessary to take immediate action;

NOW, THEREFORE, in exercise of the powers conferred by clause (1) of Article 89 of

the Constitution of the Islamic Republic of Pakistan, the President is pleased to
make and promulgate the following Ordinance;-

1 Short title and commencement.

. (1) This Ordinance may be called the National Reconciliation
Ordinance, 2007.

(2) It shall come into force at once.

2 Amendment of section 494, Act V of 1898.

. In the Code of Criminal Procedure, 1898 (Act V of 1898), section 494 shall be
renumbered as sub-section (1) thereof and after sub-section (1) renumbered as
aforesaid, the following sub-section (2) and (3) shall be added, namely:-
(2) Notwithstanding anything to the contrary in sub-section(1), the Federal
Government or a Provincial Government may, before the judgment is
pronounced by a trial court, withdraw from the prosecution of any person
including an absconding accused who is found to be falsely involved for
political reasons or through political victimization in any case initiated
between 1st day of January, 1986 to 12th day of October, 1999 and upon such
withdrawal clause (a) and clause (b) of sub-section (1) shall apply.

(3) For the purposes of exercise of powers under sub-section (2) the Federal
Government and the Provincial Government may each constitute a Review
Board to review the entire record of the case and furnish recommendations as
to their withdrawal or otherwise.
(4) The Review Board in case of Federal Government shall be headed by a retired
judge of the Supreme Court with Attorney-General and Federal Law Secretary
as its members and in case of Provincial Government it shall be headed by a
retired judge of the High Court with Advocate-General and/or Prosecutor-
General and Provincial Law Secretary as its members.

(5) A review Board undertaking review of a case may direct the Public Prosecutor
or any other concerned authority to furnish to it the record of the case.

3 Amendment of section 39, Act LXXXV of 1976.

. (1) In the Representation of the People Act, 1976 (LXXXV of 1976), in section 39,
after sub-section (6), the following new sub-section (7) shall be added, namely:-
(7) After consolidation of results the Returning Officer shall give to such
contesting candidates and their election agents as are present during the
consolidation proceedings, a copy of the result of the count notified to the
Commission immediately against proper receipt and shall also post a copy
thereof to the other candidates and election agents.

4 Amendment of section 18, Ordinance XVIII of 1999.

. In the National Accountability Ordinance, 1999 (XVIII of 1999), hereinafter referred
to as the said Ordinance, in section 18, in clause (e), for the full stop at the end a
colon shall be substituted and thereafter the following proviso shall be added,
Provided that no sitting member of Parliament or a Provincial Assembly shall be
arrested without taking into consideration the recommendations of the Special
Parliamentary Committee on Ethics referred to in clause (aa) or Special
Committee of the Provincial Assembly on Ethics referred to in clause (aaa) of
section 24, respectively.

5 Amendment of section 24, Ordinance XVIII of 1999.

. In the said ordinance, in section 24,-
(i) in clause (a) for the full stop at the end a colon shall be substituted and
thereafter the following proviso shall be inserted, namely.-
Provided that no sitting member of Parliament or a Provincial Assembly shall
be arrested without taking into consideration the recommendations of Special
Parliamentary Committee on Ethics or Special Committee of the Provincial
Assembly on Ethics referred to in clause (aa) and (aaa), respectively, before
which the entire material and evidence shall be placed by the chairman, NAB.
; and
(ii) after clause (a), amended as aforesaid, the following new clauses (aa) and
(aaa) shall be inserted, namely;-
(aa) The Special Parliamentary Committee on Ethics referred to in the
proviso to clause (a) above shall consist of a chairman who shall be a
member of either House of Parliament and eight members each from
the National Assembly and Senate to be selected by the Speaker,
National Assembly and Chairman Senate, respectively, on the
recommendations of Leader of the House and Leader of the Opposition
of their respective Houses, with equal representation from both sides.
(aaa The Special Committee of the provincial Assembly on Ethics shall consist
) of a Chairman and eight members to be selected by the Speaker of the
Provincial Assembly on the recommendation of Leader of the House and
Leader of the Opposition, with equal representation from both sides.

6 Amendment of section 31A, Ordinance XVIII of 1999.

. In the said Ordinance, in section 31A, in clause (a), for the full stop at the end a
colon shall be substituted and thereafter the following new clause (aa) shall be
inserted, namely:-
(aa An order or judgment passed by the Court in absentia against an accused is
) void ab initio and shall not be acted upon.

7 Insertion of new section, Ordinance, XVIII of 1999.

. In the said Ordinance, after section 33, the following new section shall be inserted,
33A Withdrawal and termination of prolonged pending proceedings
. initiated prior to 12th October, 1999.
(1) Notwithstanding anything contained in this Ordinance or any other law
for the time being in force, proceedings under investigation or pending in
any court including a High Court and the Supreme Court of Pakistan
initiated by or on a reference by the National Accountability Bureau
inside or outside Pakistan including proceedings continued under section
33, requests for mutual assistance and civil party to proceedings
initiated by the Federal Government before the 12th day of October,
1999 against holders of public office stand withdrawn and terminated
with immediate effect and such holders of public office shall also not be
liable to any action in future as well under this Ordinance for acts having
been done in good faith before the said date;
Provided that those proceedings shall not be withdrawn and terminated
which relate to cases registered in connection with the cooperative
societies and other financial and investment companies or in which no
appeal, revision or constitutional petition has been filed against final
judgment and order of the Court or in which an appellate or revisional
order or an order in constitutional petition has become final or in which
voluntary return or plea bargain has been accepted by the Chairman,
National Accountability Bureau under section 25 or recommendations of
the Conciliation Committee have been accepted by the Governor, State
bank of Pakistan under section 25A.

(2) No action or claim by way of suit, prosecution, complaint or other civil or

criminal proceeding shall lie against the Federal, Provincial or Local
Government, the National Accountability Bureau or any of their officers
and functionaries for any act or thing done or intended to be done in
good faith pursuant to the withdrawal and termination of cases under
sub-section (1) unless they have deliberately misused authority in
violation of law.

Pakistanis labour laws trace their origination to legislation inherited from

India at the time of partition of the Indo-Pak subcontinent. The laws have
evolved through a continuous process of trial to meet the socio-economic
conditions, state of industrial development, population and labour force
explosion, growth of trade unions, level of literacy, Government’s
commitment to development and social welfare. To meet the above
named objectives, the government of the Islamic Republic of Pakistan has
introduced a number of labour policies, since its independence to mirror
the shifts in governance from martial law to democratic governance.

Under the Constitution labour is regarded as a ‘concurrent subject’, which

means that it is the responsibility of both the Federal and Provincial
Governments. However, for the sake of uniformity, laws are enacted by
the Federal Government, stipulating that Provincial Governments may
make rules and regulations of their own according to the conditions
prevailing in or for the specific requirements of the Provinces. The total
labour force of Pakistan is comprised of approximately 37.15 million
people, with 47% within the agriculture sector, 10.50% in the
manufacturing & mining sector and remaining 42.50% in various other