Mastering Labour Practices forHR Business Partners

By

Tafveez AminPhD-OB & Marketing (University of Wales), MBA – MKT (USA), MBA-

HRM (PK), CMILT – UK, CIPD – UK, Six Sigma Black Belt

tafveezamin@yahoo.com0307 2228857

What is Employee Relation• Employee Relations involves the body of work concerned with maintaining

employer-employee relationships that contribute to satisfactory productivity, motivation, and morale. Essentially, Employee Relations is concerned with preventing and resolving problems involving individuals which arise out of or affect work situations.

• Advice is provided to supervisors on how to correct poor performance and employee misconduct. In such instances, progressive discipline and regulatory and other requirements must be considered in effecting disciplinary actions and in resolving employee grievances and appeals. Information is provided to employees to promote a better understanding of management's goals and policies. Information is also provided to employees to assist them in correcting poor performance, on or off duty misconduct, and/or to address personal issues that affect them in the workplace. Employees are advised about applicable regulations, legislation, and bargaining agreements. Employees are also advised about their grievance and appeal rights and discrimination and whistleblower protections.

FIRST LABOUR POLICY – 1955(Announced on 15th August 1955)

• Raise the standard of living and working conditions of workers and ensure them reasonable return for their labour;

• Provide social security for all workers by means of social insurance or otherwise to the extent the

economic conditions permit; • Ensure that factories have proper standing orders and the systems of workers committees and

joint consultative committees in the interest of efficiency and production, labour officers and similar organizations for looking after the welfare of labour and for permitting laborers to bring their legitimate grievances to the notice of the employers;

• Take steps to see that the workers are properly fed, clothed, housed, better educated, given

technical training and provided with amenities which may help to make them useful to the state and lead a happier existence;

• Encourage healthy trade unionism and collective bargaining for Industrial peace and progress.

REVISED LABOUR POLICY – 1959(Declared on 4th February 1959)

• The policy of the Government of Pakistan in the field of labour shall be based on ILO

convention and recommendations ratified by Pakistan.

• Government of Pakistan believes that the growth of healthy trade union is essential for the growth of a stable social structure wherein there will be Industrial and social peace, ensuring greater production and equitable distribution of wealth.

• Government of Pakistan believes that sound and healthy relationship between the

employers and employees is prerequisite of increased productivity. • The Government of Pakistan believes that industrial peace is essential for economic

progress. It discourages agitations and tension in industrial and commercial undertakings and other fields of human endeavor. Government believes in the settlement of disputes between the management and labour through constitutional means, such as joint consultation, voluntary arbitration, conciliation, mediation and adjudication.

• Government of Pakistan believes that simultaneously with the stepping up of production, suitable measures, should be adopted for providing social amenities to workers of all categories. Calculated to meet, as for as possible, their requirement of health, education, recreation, housing wage and similar other need in relation to their work.

• Government of Pakistan will take suitable measures for removing unemployment in the country. • The state will continue to maintain non-fee charging employment agencies and work on a program of employment

information. • Government of Pakistan would give due importance to research and collection of statistics concerning working and

living conditions of the workers and will also encourage the same by private enterprise of employees and employers.

• Government of Pakistan would take suitable steps to ensure proper employment of seamen in the country and

outside. It will take steps to ensure to the regularity of employment fair wages and social amenities. • The Government of Pakistan believes that social welfare is not the responsibility of the state alone. Private

industrial organization should also pool their reserves in a cooperative manner to provide for social amenities. Government may consider the desirability of imposing welfare cess in commercial, industrial and other private establishments in order to raise adequate funds to organize welfare measures for the employees.

• Government of Pakistan will welcome scientific and technological assistance in the labour and employment and

employment field from friendly countries.

LABOUR POLICY – 1969(Announced on 5th July 1969)

• Freedom of association so that the workers are able to form trade unions of their own free choice and select their representative through secret ballot.

• Strengthen the scope of collective bargaining by conceding the right to strike. • A fair and equitable living minimum wage. • Consolidation and simplification of labour laws, strictly in accord with ratified conventions of ILO. • Review of the schedule of essential and public utility services to reduce them to barest minimum. • Effective implementation of labour laws (existing as well as new) for protecting the right of the

workers including the minimum wage. • Uniform application of labour laws without discrimination between public and private sector. • Relating the wage structure to productivity by increasing workers stake in quality and quantity of

production.

LABOUR POLICY – 1972(Announced by the Prime Minister Mr. Zulfiqar Ali

Bhutto on 10th February 1972)

• Workers will be given effective participation in the management of industry. Workers’ representatives will be associated with management to the extent of 20% at factory level. This will be progressively increased.

• Workers will have the authority to appoint an auditor to inspect any accounts, records, premises stores of a factory. This auditor will be paid by the management.

• The share of workers in the annual profits will be raised from 2% to 4%. If the workers increase productivity, they will receive an additional 10% of the increased profits.

• Shop stewards will be elected in each shop or department of a factory to represent the interest of the workers.

• The procedure for the redress of grievances will be streamlined.

• The law relating to settlement of industrial disputes will be reformed to provide expeditious settlement. The works council will be strengthened and the scope of its functions widened.

• It will be made obligatory for the unions to hold secret ballot before resorting to strikes.• It will be made necessary to state reasons explicitly in every order of termination of service. • The payment of bonus will be made compulsory. The amount of bonus will be linked with profits.

• The payment of wages act and the W.P industrial and commercial employment (Standing Orders) ordinance will be extended to labour under contractors.

• The nominees of workers, management and provincial governments will be associated to activate the workers welfare fund.

• Free education up to metric will be provided to one child of each worker.

• The levy of 2% of a worker’s wages for providing him medical facilities will be abolished.

• Compulsory group insurance for workers against death and injury when off duty will be introduced old age pension will also be provided for all workers at certain age.

• Social security scheme will be extended to domestic servants.• The laws relating to safety and compensation in the event of death and injury will be revised. Increased

rate of compensation will be provided.

• Certain violation of labour laws will be made cognizable offence but bail able.

• Workers’ movement will be promoted along progressive lines. A Quasi-Judicial authority will be set up to strengthen the trade union movement.

• The prices of essential items will be stabilized before increasing minimum wages.

• Gheraos and Jalaos will be not allowed.

FURTHER LABOUR REFORMS – 1972(Announced on 23rd August 1972)

• The Factories Act, has been made applicable to establishments employing ten (10) or more workers.

• The number of holidays has also been increased

• The Act will be amended to provide better health and safety measures.

• Government has now decided to extend the labour laws to the whole of Baluchistan province and to the Malakand division in NWFP.

• The workmen’s compensation Act, 1923, will be amended to cover the workers receiving monthly wages up to RS. 1000/-.

• The rate of gratuity has been increased to 20 days wages and will also be applicable to piece rated workers.

• No employer will be allowed close down his establishment without prior approval of labour court.

• The Labour Court will be required to decide individual cases within seven (7) days.

• The “Badly” workers with three months’ service will be entitled to the rights of permanent workers.

LABOUR POLICY– 2002

• Background:- – September 2000 – commission of labor laws forwarded report to Government

which included;– Laws related to IR– Laws related to wages– Laws relating to employment conditions– Laws related to HRD

• a. On job training• b. Vocational training• c. Apprenticeship• d. Education sess

– Laws related to OSH– Laws related to welfare and social protection– 2nd IRO issued in 2002

• POLICY FOUNDATIONS• Fundamental rights concerning labour as laid down in the Constitution

of The Islamic Republic of Pakistan and International Labour Standards as enunciated in ILO conventions ratified by Pakistan provide necessary framework for evolving a sound and stable mechanism for ensuring core labour rights. The labour laws and the system of labour administration in Pakistan will thus be brought inconformity with these standards to meet National objectives and international obligations.

• Bilateralism• Bilateral Codes of Conduct• Consolidation of labour Laws• Promotion of Healthy Trade Unionism• Strengthening Social Dialogue Mechanism• Labour Judiciary• Social Safety Net• Elimination of Gender Discrimination• Workers’ Children Education

• Elimination of Child Labour and Bonded Labour• Workers in the Agriculture Sector• Informal Sector and Home-Based Workers• Seasonal Workers• Regulation of Contract Work• Rights of Workers in the Event of Privatization• Challenge of Globalization• Labour Welfare Levies• Section 2-A and 27-B• Human Resource Development• Occupational Safety and Health• Labour Research• Labour Market Information System (LMIS)

IRA – 2008

• IRA 2008 introduced in Apr 2008, PM Gilani’s announcement of repeal (IRO 2002) during inaugural speech.

• IRA 2008 expired Apr 2010

SINDH INDUSTRAIL RELATIONS ACT – 2010[Karachi, July 5th 2010]

• THE INDUSTRIAL RELATIONS ACT 2008 (Act # IV of 2008) IS HEREBY REVIVED WITHH EFFECT FROM 1ST MAY 2010 AS IF IT HAD NEVER BEEN REPEALED.

• AMENDMENT OF SECTION 87 OF ACT # IV OF 2008 In the IRA 2008, on revival, in section 87 sub-section (3) shall be omitted.

(this act [IRA 2008] unless repealed earlier, stand repealed on 30th April 2010)

EMPLOYEE RELATIONSFostering Good Employee Relations

What Managers Must Do

• Fair Treatment & Recognition of Employees• Listen to Employees concerns & feelings• Must Keep Employees informed of Organization’s Policies &Strategies• Must have policies that encourage employees to discuss problems &

communicate important info to Managers• Keep Employees informed about changes in the business & the effect

of such changes• Effectively enforce Employee Relations Program• Managers & HR Specialists must work in partnership

• Fair Treatment & Recognition of Employees

• Listen to Employees concerns & feelings

• Must Keep Employees informed of Organization’s Policies &Strategies

• Must have policies that encourage employees to discuss problems & communicate important info to Managers

• Keep Employees informed about changes in the business & the effect of such changes

• Effectively enforce Employee Relations Program

• Managers & HR Specialists must work in partnership

INDUSTRIAL RELATIONS OVERVIEW

• Industrial Relations encompasses relationship between Management & Workers,

particularly group of workers represented by a Union

Industrial Relations - Defined:-

• “Employer-employee relationships, covered specifically under Collective Bargaining & Industrial Relations Laws”

• Industrial Relations Process is regulated by ‘’Collective Bargaining’’ • For effective day to day handling of Labor-Management relations, Managers need to

understand the basics of Labor Relations & Labor Laws.

INDUSTRIAL RELATIONS Working With Organized Labor

• Relationship between Managers & their Employees changes in a unionized organization • The Law requires managers to meet & confer with elected union representatives when

making decisions that effect:

– Pay– Hours of Employment– Working Conditions

• When unionized employees are dissatisfied with pay, hours of employment & working

conditions, the CBA pressure is applied to respond to employee performances, which may result in strike & closure of business

• HR Specialists in labor relations can help managers develop tactics & strategies to work

constructively with the union & its representatives.

Union – Management Relationship Ground Realities

• Harmonious working relations between Labor & Management are critical to Organizations • Traditionally both parties have assumed a win/lose, adversarial posture towards each other • Union-management relationship is usually characterized by bitterness, hostility & mutual

antagonism, rather than cooperation • Like true enemies, either may be willing to place itself in peril to deprive the other of Victory • Legally each group is equally powerful in terms of influencing outcome & therefore neither

can impose its will unilaterally on the other • This must change if Pakistani firms are to remain competitive, both in local and international

markets • Union & Management must learn to accommodate one another’s needs, rather than

repudiate them

SEVEN WAYS TO TAKE AWAY UNION ISSUES

• Treat all employees with dignity & respect • Protect employees from harassment / humiliation • Be consistent in treatment of different employees • Solve employee problems • Ensure due process in performance management • Provide business-related information • Accommodate special circumstances where appropriate / possible

Elements of an Ideal Union – Management Relationship

• Mutual Trust & Respect • Honesty in dealing with one another • Effective Communication within/between the two groups • Problem Solving • Timely resolution of grievances • Consistency in contract implementation • Good supervision – in terms of work & contract administration

UNFAIR LABOR PRACTICES – BY WORKMAN

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

• Compel or attempt to compel any member of a body, bipartite or tripartite or of any composition, relating to the functioning of the industry or is in place for the benefit of workers, to accept any demand by using intimidation, coercion, pressure, threat, confinement or ouster from a place, dispossession, assault, physical injury or by such other methods; or

• Carry any arms or weapons within the premises of an employer without any legal authority• Commence, continue, instigate or incite others to take part in or expend or supply money or

otherwise act in furtherance or support of an illegal strike or adopt go-slow measures; or• Persuade a workman to join or refrain from joining a trade union during work hours; or• Intimidate any person to become, or refrain from becoming, or to continue to be or to cease

to be a member or office-bearer of a trade union; or• Induce any person to refrain from becoming, or cease to be a member or office-bearer of a

trade union by intimidating or conferring or offering to confer any advantage on or by procuring or offering to procure any advantage for such person or any other person; or

• Impose any condition in a contract of employment seeking to restrain the right of a person who is a party to such contract to join a trade union or continue his membership of a trade union; or

• Refuse to employ or refuse to continue to employ any person on the ground that such person is or is not, a member or office bearer of a trade union; or

• • Discriminate against any person in regard to any employment, promotion, condition

or employment or working condition on the ground that such person is or is not, a member or office bearer of a trade union; or

• Dismiss, discharge, remove from employment or transfer a workman or injure him in respect of his employment by reason that the workman- (i) is or proposes to become a member or office-bearer of a trade union; or (ii) participates in the promotion, formation or activities of a trade union;

• Induce any person to refrain from becoming, or to cease to be a member or office-bearer of a trade union, by conferring or offering to confer any advantage on, or by procuring or offering to procure any advantage for such person or any other person; or

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

• Interfere with or in any way influence the balloting provided for in Section 20 (CBA); or

• Recruit any workman during the period of notice of strike under Section 31 (Strike & Lockout) or during the currency of a strike which is not illegal except where the Conciliator has, being satisfied that complete cessation of work is likely to cause serious damage to the machinery or installations, permitted temporary employment of a limited number of workmen in the section where the damage is likely to occur; or

• Close down the whole of an establishment in contravention of Standing Order 11A of the Industrial and Commercial Employment (Standing Orders) Ordinance, 1968; or

• Commence, continue, instigate or incite others to take part in, or expend or supply money or otherwise act in furtherance or support of an illegal lockout

THE THREE PHASES OF LABOR RELATIONS PROCESS

• Union Organization • The Key issues that Managers confront in union organizing campaign are:

– Union Solicitation– Pre-election Conduct– Certification Election

• During Pre-election period, Managers must avoid any impression of influencing

• Collective Bargaining• If Union organizing results in certification, the next step is Collective Bargaining resulting in

Labor Contract/Settlement for 2-3 years period• Four important issues related to Collective Bargaining:• Bargaining Behavior• Bargaining Power• Bargaining Topics• Impasses in Bargaining• Contract Administration• Involves application & enforcement of Labor Contract/Settlement in workplace

GUIDELINES FOR INTEGRATIVE BARGAINING

• Attempt to understand the other negotiator’s real needs & objectives • Create a free flow of information • Emphasize the commonalities & minimize the differences between the parties • Search for solutions that meet both parties goals & objectives • Develop flexible responses to the other negotiator’s proposals

NEGOTIATIONNegotiation – ‘’Definition’’

• Negotiation occurs when someone else has what you want; & you are prepared to bargain for it - & vice

versa

Negotiating Successfully • To negotiate successfully, you need a game plan – your ultimate Aim & a Strategy• For success of your game plan - thorough preparation is required before commencement of negotiation• Attempt to reconcile what constitutes a good result for you, what constitutes a good result for the other

party• Successful Negotiation does not result in a winner & a loser. The process should end with a satisfied

conclusion for both sides (Win / Win) Successful Negotiation – Core Skills • Ability to define a range of objectives, yet be flexible about some of them• Ability to prepare well• Ability to prioritize clearly• Ability to listen to & question other party• Ability to explore possibilities of a wide range of options

Negotiation – 4 stages • Stage 1 - Preparing for Negotiation

– Setting Objectives– Defining Strategy– Assembling Data

• Stage 2 – Opening– Open realistically & move moderately– Challenge other side’s positions as it stands– Explore Attitudes, ask questions & observe behavior– Above all, listen in order to assess other side’s strengths & weaknesses, their tactics & extent to which they are bluffing– In the opening stage – no concessions of any kind– Be non-committal about proposals

• Stage 3 – Bargaining– Gap is narrowed between the initial positions– Parties attempt to persuade each other that their case is strong enough– Tactics recommended to be employed:-– Conditional Proposals – if you do this, we will consider doing that– Never make one-sided concessions – trade-off– Negotiate on whole package– Keep issue open to extract max benefits from potential trade-off

• Stage 4 – Closing– When & how to close – a matter of judgment– Various closing techniques:

• Minor concession to trade-off against an Agreement to Settle• Splitting the differences or bringing in something new• Summarizing what has happened to date• Emphasizing max concessions made & final position has been reached

COLLECTIVE BARGAINING – TWO TACTICS

• Integrative Bargaining focuses on convincing

the other party that, the Benefits of Agreeing with the Proposed Terms would be very high

• Distributive Bargaining focuses on convincing the other party that, the Cost of Disagreeing with the Proposed Terms would be very high

COLLECTIVE BARGAINING – PROCESS

Three distinct, thought related functions:

• Bargainers state their bargaining position • Probe weaknesses in opposite side’s bargaining

positions • Adjust or confirm original estimates

COLLECTIVE BARGAINING – CONVENTIONS

• Regardless of tone & tenor during bargaining process, both parties strive for a Settlement • To shake opponent’s confidence & self-possession, sometimes attacks, harsh words & controlled loss of temper is used • Off-the-record discussion – means of probing attitudes / intentions & smoothing way to a Settlement • Each side remains prepared to move from original stated position • Alternate Offers & Counter Offers – steadily leading to a Settlement • Concessions, once made, cannot be withdrawn • Firm Offers, must not be withdrawn • Conditional Offers, may be reviewed • Except dead-lock, third party is not brought in • Final Agreement / Settlement – implemented without trickery / amendments

NEGOTIATIONS – Do’s & Don'tsDos

• Start by visualizing possible gains, not losses• Identify issues open to compromise & remain prepared for compromise in negotiations• Be flexible – it is a sign of strength, not of weakness• Be aware – opposite party may have a hidden agenda• Keep negotiating strategy simple & flexible• Hide tempers & frustrations during negotiations• Always keep a wall clock in negotiation / meeting room• Learn to trust your instincts about other party’s body languages• Take a laptop computer to access any required data• Stress need for an Agreement from the very outset• Put forward a proposal with as little emotion as possible• Never undermine the dignity of the opposing party• Use humor when appropriate, without being over clever• Stalling tactics if at all, should be subtly & sparingly used• Indicate to opposite party – every concession made is a major loss to you• For considering new proposals ask for a break• Fully record agreements finalized at the close of negotiation• After a walkout contact the other party immediately• Pay close attention to other party’s proposals

DONT’s

• Never walk out of negotiation in a rage• Do not run a negotiation over two hours, without a

break• Do not reveal all your tactics at once• Avoid negotiations on major issues, at the end of the

day• Do not concede ground, without receiving something

in return• Be assertive, but not Aggressive while closing a deal• Avoid temptation to respond with “an eye for an eye”

LABOUR LAWS

LABOUR LAWS ARE ENACTED TO: •

• Protect workers from exploitation• Promote labour welfare• Preserve industrial Preace

WITH A VIEW OF ACHIEVING:

• Productivity• Satisfaction & Commitment of workers• Political stability

LABOUR LAWS

Number & Nature of labour laws are voluminous and varied. However, for discussion, we may classify them as labour laws relating to:

• Industrial Relations• Fixation & Payment of Wages• Employment and its condition• Occupational Safety & Health• Human Resources Development• Special, Categories E.G Women, Children, Disabled persons, Essential services

STRATEGIC INDUSTRIAL RELATIONS

INDUSTRIAL RELATIONS IN PERSPECTIVE

• History of I.R is the history of Industrialization • Mass production by machines • Detachment of tools from artisans • Migration from rural to urban areas • Break-up of traditional family • Emergence of nucleolus family • Cash – Nexus • The industrial way of life • Industrialization is not simply an economic phenomenon its is rather a new way of life.

INDUSTRIAL RELATIONS

FACTORS IN THE EVOLUTION • Economic and Social Setting• Socio-Economic System• Level of Economic Development• Size of Industrial undertaking• Political system • National Policy• Legislation• Political parties support • Impact of workers’ & employers’ organization (Degree of freedom allowed to them) • Development of systematic study of social problems • International action

I.RCOMPOSITION & TRENDS

• I.R are essentially HR

• Modern IR are the out-come of mass production

• IR relate to social, economic and political well-being of workers

OBJECTIVES

• Equitable distribution of wealth

• Dignity of labour

• Determination of right and duties

SCOPE

• Fundamentally terms of employment & conditions of work

• Economic & social well-being

Dynamic with the changing time

STRUCTURE & STYLE

• Essentially BI-Lateral

• But tripartite at time

• Union :

• Democratic• Bureaucratic• Charismatic

Employer : • Owner• Opportunist• Professional

DETERMINANTS

• Technology• Nature of labour force• Nature of product – market• Social ideology• Political constraints

DYNAMICS OF I.R

• Forces which interact with the existing institutions which make changes in the institutions or some time create new institution.

• I.R includes relationship between

• Management and workers’ organization• Management and group of workers• Management and the managed• Employer and the individual employee

• Unions are essentially based in urban areas so they exercise powerful influence on the

management and the government. • Unions, though in minority, the sympathetic element supports them ( Media, HR activists etc) • Charismatic leadership cannot sustain a movement • Unions are helpful too

I.R SYSTEMS

• Paternalistic• Socialistic• Legalistic• Bilateral

I.R TRENDS• Radical

• Participation

• Irresponsibleness

• Political / ideological onslaught

• Globalization

• Social (Clause) issue

• Core standards

• Re-definition of IR roles in 21st century

INDUSTRIAL RELATIONS ACT

2010

Objective

• AN ACT TO CONSOLIDATE THE LAW RELATING TO: • FORMATION OF UNIONS • IMPROVEMENT OF RELATIONS BETWEEN EMPLOYERS &

WORKMEN • AVOIDING & SETLLEMENT OF ANY DIFFERENCE OR DISPUTE

Scope 1. It may be called Industrial Relation ACT of 20102. It extends to the whole of Pakistan3. It shall apply to persons employed in any establishment of Industry but

not apply to persons employed

• In the police• In any of the Defence services• In any services or installation connected with or incidental to the armed forces• In the administration of the state other than those employed as workmen by the railway

and Pakistan post• Security staff of PIA staff drawing wages in pay group not lower than grade V by

notification• PCPS or SPL• Institution for treatment or care of sick, infirm, destitute or mentally unfit person not run

on commercial basis• Watch & ward, security or fire service staff of oil refinery, airport or seaport• Security & fire service staff of establishment in gas or LPG

Employer

• In relation to an establishment means any person or body of persons, whether incorporated or not, who or which employs workmen in the establishment under a contract of employment and includes:-

• An heir, successor or assign of such person or body;• Any person responsible for the management, supervision and control of

the establishment;• In relation to an establishment run by or under the authority of any

department of the Federal Government or Provincial Government, the authority appointed in this behalf or, where no authority is appointed, the head of the department;

• In relation to any establishment run by or on behalf of a local authority, the officer appointed in this behalf or where no officer is so appointed, the chief executive officer of the authority;

• In relation to any other establishment, the proprietor of such establishment and every director, manager secretary, agent or officer or person concerned with the management of the affairs thereof

FOLLOWING CATEGOREIS OF EMPLOYEES ARE HELD WORKMEN

1. Security Office 2. Account Officer 3. Bank Manager – Having no power of hire or fire4. Officer Grade I, II & III5. Sub-Editor6. Driver7. Quality Checker8. Sub-Engineers9. Chowkidar10. Gardeners, helpers of Irrigation Dept11. Chief Accountant12. Grade III officer of bank having power of attorney but never exercised /used the same

at any occasion13. Purchase Manager also performing manual and clerical functions having neither

administrative privileges nor any supervisory capacity.14. Accountant

• Metter supervisor, Petitioner company dismissed employee from service for allegedly installing a gas meter at a consumer premises. Employee filed grievance petition before labour Court which accepted the petition and set aside the dismissal order holding that the charge against the employee could not be proved. Appellate Tribunal dismissed appeal of employer company. Employer contended that employee was not a worker or workman as he was employed in supervisory capacity and that provision of Industrial Relations Ordinance, 2002 read with Industrial and Commercial Employment (Standing Orders) Ordinance, 1968 were not applicable to employees’ case validity. Employer company did not prove the employment of employee in managerial or administrative capacity. Employer had no power to hire and fire or make administrative decisions. Nomenclature of meter supervisor alone did not, ipso facto, exclude the employee from category / ambit of worker and workman. None of the attributes of an ‘employer’ as defined in clause (x) S.2 of the Industrial Relations Ordinance. 2002 were conferred on employee who was entrusted with manual job of installing gas meters on premises for which gas connections were sanctioned by Petitioner Company. Provisions of Industrial Relations Ordinance, 2002 were fully attracted to the case of employee. Charges against employee were not proved during inquiry proceedings. Employer-company could not point out any non-reading or misreading of evidence. Findings of fact recorded by forums below did not warrant interference of High Court in constitutional jurisdiction under Art. 199 of the Constitution Petition was dismissed.

FOLLOWING CATEGOREIS OF EMPLOYEES ARE HELD NOT WORKMEN

1. Officer Grade II & III2. Salesman3. Assistant purchase Manager4. Marketing Officer5. Employees recommended leave application of subordinates,

checked travelling voucher & pay rolls6. Personnel officer signing agreement on behalf of management.7. Chemist8. Supervising the work done by the contractor9. Assistant security officer

• Territory Manager Employee originally was appointed as Sales Officer in the establishment and subsequently he was given designation as “Territory Manager”. Later on, services of the employee were terminated and the employee filed grievance petition against that order. Employers converted the assertions made by the employee in his grievance petition contending that as employee had been appointed in the establishment in the Managerial Staff, he was not a workman and his grievance petition was not maintainable. Labor court however declared employee as ‘workman’ and accepted his grievance petition full back benefits. Employers filed appeal against judgment of the Labour Court chiefly on ground that employee was not at all a workman as he was appointed as an officer in the Management staff and his job was of a Territory Manager in the life science business; and his main job was to promote the sales of Pharmaceutical products of the establishment. Acid test for the determination as to whether an employee was a workman or not, was the nature of duties performed by him. Employee would be workman, if the duties performed by him were manual or clerical in nature and not otherwise. Sale promotion officer/employee was expected to display the quality of initiative, intelligence and correct speculation; and foe doing that he was given some independence in his line of action. Such employee was expected to use his mental faculties to find new avenues of sales promotion. Work of salesmen was of different category from manual work or clerical work and thus would not fall within the definition of “workman”. Employee, in circumstances was not a workman and Labour Court had no jurisdiction to entertain and try the grievance petition. Impugned order passed by the Labour Court, was set aside, in circumstances.

3. TRADE UNIONS AND FREEDOM OF ASSOCIATIONS

Trade unions and freedom of association..• Subject to the provision of this Act and notwithstanding any other law for the time being in force;

• Workmen, without distinction whatsoever, shall have the right to establish and subject to the rules of the organization concerned, to join international associations of their own choice without previous authorization;

• Provided that in the establishment where women are also employed the Trade Union shall include the women in the executive of the said trade union with the same proportion in which they are employed in the establishment:

• Provided further that no worker shall be entitled to be a member of more than one trade union at any one time

and on joining another union the earlier membership shall automatically stand cancelled; • Employer; without distinction whatsoever, shall have the right to establish and, subject only to the rules of the

organization concerned, to join international associations of their own choice without previous authorization;• Every trade union and employers association shall frame its own constitution and rules to elect its

representatives in full freedom to organize its administration and activities and to formulate its programmes; and• Workers and employers organizations shall have the right to establish and join federations and confederations

and any such organization, federation or confederation shall have the right to affiliate with international organizations and confederations of workers and employer;

4. Registrar of trade unions

For the purpose of this Act the Government shall, by notification in the official gazette, appoint registrar of Trade Unions who shall be assisted by one or more Joint Registrars.

5. Powers and functions of Registrar

Registrar, and the Joint Registrars, as the case may be, shall have the following powers and functions:-

a. The registration of trade unions under this Act and the maintenance of a registrar for the purpose;

b. To lodge, or authorize any person to lodge complaints with the Commission for action including prosecution, against trade unions, employers, workers or other persons for any alleged offence or any unfair labour practice or violation of any provision of the Act or for expending the funds of a trade union in contravention of the provisions of its constitution

c. The determination of the question as to which one of the trade unions in an establishment or an industry is entitled to be certified as the collective bargaining agent in relation to that establishment or industry

d. To inspect the accounts and record of the registered trade unions as he deems fit either by himself or through any officer subordinate to him and to authorize him in writing in this behalf; and

e. Such other powers and function as may be prescribed.

6. Application for registration

• Any trade union may, under the signature of its President and the Secretary, apply to Registrar for registration of the trade union under this Act.

• Provided that there shall be at least two trade union under this Act.

7. Requirements for application

Every application for registration of Trade Union shall be made to the Registrar and shall accompanied by (a)A statement showing1) The name of the trade union and the address of its Head Office.2) Date of formation of the union3) The titles, names, ages, addresses and occupations of the officers of the trade union4) Statement of total paid membership5) The name of the establishment or group of establishments, or the industry, as the case may be, to

which the trade union relates of workers employed therein6) The names and addresses of the registered trade unions in the establishment group of establishments

or industry, as the case may be to which the union relates; and7) In case of a federation of trade unions, the names, addresses and registration number of member-

unions

(b) Three copies of the constitution of the trade union together with a copy of the resolution by the members of the trade union adopting such constitution bearing the signature of the Chairman of the meeting;

© A copy of the resolution by the members of the trade union authorizing its President and Secretary to apply for its registration; and

(d) In case of a federation of trade union a copy of the resolution for its registration from each of the constituent unions agreeing to become a member of the federation.

8. Requirements for registration

a. The name and address of the trade unionb. The objects for which the trade union has been formed;c. The purposes for which the general funds of the union

shall be utilized;d. The number of persons forming the executive which shall

not exceed the prescribed limit and shall include not less than seventy five percent from amongst the workmen actually engaged or employed in the establishment or establishments or the industry for which the trade union has been formed:

Provided that the condition of being employed in any establishment or an industry as aforesaid shall not apply to the remaining twenty five percent of the members of such executives;

a. The conditions under which a member shall be entitled to any benefit assured by the

constitutional of the trade union and under which any fine or forfeiture may be imposed on him;

b. The maintenance of a list of the members of the trade union and of adequate facilities for the inspection thereof by the officers and members of the trade union;

c. The manner in which the constitution shall be amended varied or rescinded;d. The safe custody of the funds of the trade union, its annual audit, the manner of

audit and adequate facilities for inspection of the accounts books by the officers and members of the trade

e. The manner in which the trade union may be dissolved;f. The manner of election of officers by the general body of the trade union and the

term, not exceeding two years, for which an officer may hold office upon his election or re-election;

g. The procedure for expressing no confidence in any officer of the trade union;h. The meeting of the executive and of the general body of the trade union so that the

executive shall meet at least once in every three months and the general body at least once a year.

(2) Without prejudice to the provisions of sub-section (1), a trade union of workmen shall not be entitled to registration under this Act(a) unless all its members are workmen actually engaged or employed in the industry with which the trade union is connected;

Explanation:- For the purpose of this clause, a dismissed, terminated or retrenched worker, whose dismissal, termination or retrenchment is pending adjudication before a court of competent jurisdiction, shall be deemed to be an employed worker of that establishment, and

(b) where there are two or more registered trade unions in the establishment, group of establishments or industry with which the trade union is connected, unless it has as its members not less than one-fifth of the total number of workmen employed in such establishment, group of establishments or industry, as the case may be.

9.Registration

1. On receipt of application for registration, the Registrar shall ensure compliance of section 7

and 8 of this Act, and issue the registration certificate in the prescribed for within seven days.2. In case the application has been rejected or a certificate of re registration has not been issued

within a period of seven days as provided in sub-section (1), as the case may be, the trade union may appeal to the Commission who for reasons to be stated in its judgment, may pass an order directing the Registrar to register the trade union and to issue a certificate of registration or may dismiss the appeal.

3. Notwithstanding anything contained in any other provision of this Ordinance, every alteration made in the constitution of a registered trade union and every change of its officers shall be notified by registered post by the trade union to the Registrar within fifteen days of such change.

4. The Registrar may refuse to register such change or alteration it is in contravention of any of the provisions of this Act, or it is in violation of the constitution of the trade union.

5. Subject to the provision of sub-section (4) every inclusion or exclusion of any constitution unit of a federation of trade unions shall be notified by registered post by the federation to the Registrar within fifteen days of such inclusion or exclusion.

6. In case there is a dispute in relation to the change of officers of a trade union, or any trade union is aggrieved by the refusal of the Registrar under sub-section (4), the Registrar may, after satisfying himself that a dispute exists, hold fresh elections under his supervision.

41 – STRIKES AND LOCKOUT

Notice of strike or lock-out• The period of a notice of lock-out or strike

given under sub-section (3) of section 35 shall fourteen days.

42. Strike and lock-out

(1) If no settlement is arrived at during the course of cancellation proceedings and the parties to the dispute do not agree to refer it an arbitrator under section 40, the workmen may go on strike or, as the case may be, the employer may declare a lock-out, on the expiration of the period of the notice under section 41 or upon a declaration by the Conciliator that the conciliation proceedings have failed, whichever is the later.

(2) The party raising a dispute may at any time either before or after the commencement of a strike or lock-out make an application to the Commission for adjudication of the dispute.

(3) Where a strike or lock-out lasts for more than thirty days, the Government may be order in writing, prohibit the strike or lock-out:

Provided that the Government may, with respect to any other strike or lock-out relating to a dispute which the Commission is competent to adjudicate and determine, by order in writing, prohibit a strike or lock-out at any time before the expiry of thirty days, if it is satisfied that the continuance of such a strike or lock-out is causing serious hardship to the community or is prejudicial to the national interest.

(4) In any case in which the Government prohibits a strike or lock-out, it shall forthwith refer the dispute to the Commission.

(5) The Commission shall, after giving both the parties to the dispute an opportunity of being heard, make such order as it deems fit as expeditiously as possible but not exceeding thirty days from the date on which the dispute referred to it:

Provided that the Commission may also make an interim order on any matter is dispute:

Provided further that any delay by the Commission in making an order shall not affect the validity of any order made by it.

An award of the Commission shall be for such period as may be specified in the award which shall not be more than two years.

43. Illegal strikes and lock-out

(1) A strike or lock-out shall be illegal if:

a. it is declared; commenced or continued without giving to the other party to the dispute, in the prescribed manner, a notice of strike or lock-out or before the date of strike or lock-out specified such notice, or in contravention of section 46;

b. it is declared, commenced or continued in consequence of an industrial dispute raised in a manner other than that provided in section 34;

c. it is continued in contravention of an order made under section 42, section 45, or section 61 sub-section (6) of section 44; or

d. it is declared, commenced or continued during the period in which a settlement or award is in operation in respect of any of the matters covered by a settlement or award.

(2) A lock-out declared in consequence of an illegal strike and strike declared in consequence of an illegal lockout shall not be deemed to be illegal.

(S.O ( Amendment Act, 2012)10-C Payment of bonus

1. Every employer making profit in any year shall pay 3{for that year

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

2. The amount of the bonus payable shall –

– If the amount of the profit is not less than the aggregate of one month’s wages

of the month’s wages of the workman employed, be not less than the amount of such aggregate, subject to the maximum of thirty percent of such profit.

11- STOPPAGE OF WORK• The employer may, at any time, in the event of fire, catastrophe, break-down of machinery or stoppage

of power supply, epidemics, civil commotion or other cause beyond his control, stop any section of sections of the establishment, wholly or partially for any period or periods or without notice.

• In the event of such stoppage during working hours, the workmen affected shall be notified by notices put up on the notice board in the departments concerned or in the office of the employer, as soon as practicable, when work will be resumed and whether they are to remain or leave their place of work. The workmen shall not ordinarily be required to remain for more than two hours after the commencement of the stoppage.

• If the period of detention does not exceed one hour, the workmen so detained shall not be paid for the period of detention. If the period of detention exceeds on hour, the workmen so detained shall be entitled to receive wages for the whole of the time during which they are detained as a result of the stoppage. In the case of piece rate workers, the average daily earning for the previous months shall be taken to be the daily wage. Wherever practicable reasonable notice shall be given of resumption of normal work.

• In cases where workmen are laid off on account of failure of plant, a temporary curtailment of production or any stoppage of work for reasons mentioned to clause (I), they shall be paid by the employer an amount equal to one half of their daily wages during the first fourteen days of lay off as compensation. When however, the workmen have to be laid-off for an indefinite period beyond the above mentioned fourteen days, their services may be terminated after giving them due notice or pay in lieu thereof.

• The employer may in the event of a strike affecting either wholly or partially any section or department of the establishment close down, either wholly or partially, such section or department and any other section or department affected any such closing down. The fact of such closure shall be notified by notices put on the notice board in the section or department concerned and in the time keeper’s office, if any, as soon as practicable. The workmen concerned shall also be notified by a general notice, prior to resumption of work as to when work will be resumed.

20 – LIABILITY OF EMPLOYER

• The employer of the industrial and commercial establishment shall personally be held responsible for the proper an faithful observance of the Standing Orders, whether or not the workmen of such establishment employed through contractors.

Synopsis

• Employee employed by contractor, employer was not responsible to ensure the enforcement of court order. • Relationship of employer and employee.• Appeal had been filed by the employer against decision passed by the Labour Court, whereby grievance

application filed by applicant was accepted and he was ordered to be reinstated in service with full back benefits.

• Applicant who was not in possession of any document to establish employment of employer, had himself admitted in his cross examination that he was not employee of the employer.

• Grievance application filed by the applicant against the employer, was not maintainable on that ground. Labour court despite holding that applicant was not the employee of the employer, but of the contractor, ordered the employer to ensure that order of labour Court was to be enforced by the contractor. No such liability was allowed as even if in the Labour Court the contractor was impleaded as one of the respondents in grievance application, employer could not be liable to any order passed against the separate legal entity. Standing Order 2o of the Industrial and Commercial Employment (Standing Orders) Ordinance, 1968 was not applicable as no evidence was available to establish that applicant was employed by the employer company through the contractor, Decision of the Labour Court was set aside, in circumstances. (2011 PLC 78)

COMPLIANCE

Certifying Surgeon and Persons Authorized to ExerciseThe Functions of a Certifying Surgeon

• 11 (1) A Certifying Surgeon or a practitioner authorized under section 12 to exercise the powers of a Certifying Surgeon after charging a fee of rupees two per person shall :

• Examine any child or adolescent desirous of being employed in a factory;

• Examine any child or person in respect of whom a notice has been served upon the Manager and who is desirous of being re-employed.

• On the request of an Inspector, examine any person produce before him;• And issue a certificate regarding the age and the fitness or otherwise of

such child, adolescent or other person to work in a factory.

Health and Safety(Section 13 and 14)

• In every factory a register in Form “F” shall be

maintained for entering into it the dates on which lime washing, painting or varnishing is carried out.

Ventilation, Temperature, Dust and Fume and Artificial Humidification

(Section 15, 16 and 17)

• In every room of a factory ventilating openings

shall be provided in the proportion of five square feet for each person required or permitted to work in such room and the openings shall be such as to admit a continuous supply of fresh air:

Overcrowding and Lighting(Sections 18,19 and 33 (i))

• 40 (I) the particulars of each room of the factory, in which workers are regularly employed shall be entered in Form “I” which shall be shown to the Inspector when so required.

Drinking Water(section 20)

• 41 (I) in every factory there shall be provided

free of charge for the use of the employees of the factory a supply of water fit for drinking at the rate of one gallon per day for every person employed in the factory.

Provision for Washing Accommodation and Latrines and Urinals

(Section 21)

• 44 (1) every factory shall be provided with urinals and latrines as specified in sub-rules (2) and (3).

• (2)The urinals and latrines on non – flush system accommodation shall be on the scale given

below:- • (i) Latrines Number of latrines

(a) where the number of persons employed does

Not exceeds 50. 5(b)where the number of person employed exceeds 50

5 for the first 50 and 2 addititional seats for every 50 persons or any less number in excess of the first fifty.

• 46 the walls of the latrines, unless made of corrugated iron, shall be lime washed inside and outside and outside at least twice a year, the dates of such washing being noted in Form “F” and the inside walls up to a height of three feet from the floor shall be made of non-absorbent impermeable material.

Hygiene Card and Compulsory Vaccination and Inoculation

(Section 23 and 23-A)

(1) Every factory shall provide to every worker Hygiene Card in Form – I with following particulars :-

a. Name of worker with parent’s nameb. Designationc. Card Nod. Date of examination whether suffering from diseasee. Signature of Doctorf. Thumb impression of workerg. The fee for examination under sub-section (I) of section 23 shall be rupees two per worker.

(2)the fee for examination under sub-section (1) of section 23 shall be rupees two per worker. (3)Each worker in a factory shall be vaccinated and inoculated as under:-(4)Small pox – Every two years(5)Cholera and typhoid – Every year(6)The vaccinations and inoculations shall be arranged by the Factory manager.

Welfares Officers Qualification, Duties and Terms of Condition

(Section 24-A)

Precautions against Fire(Section 25)

Fencing(Section 26, 31 and 33-(3)]

Protection of persons attending to Machinery or Boilers

• 67. All important pulleys shall be provided with belt hangers or perches.• 68. Suitable string gear shall be provided and used to move driving traps on all fast and loose pulleys.• 69. Lubrication of bearings or gear wheels or replacing or adjusting of belts shall be done only be experienced

and specially trained persons.• 70. Service platforms and gangways shall be provided for overhead shafting and where required by the Inspector,

shall be securely fenced with guard rails and the boards.• 71. No transmission machinery in motion shall be cleaned with cotton waste, rags or similar material held in the

hand.• 72. Every shafting ladder shall be fitted with either hoops or some effective non-skid device.• 73. (I) No person engaged in oiling or adjusting belts or in any work whatsoever within reach of unfenced

transmission machinery shall be allowed to work whilst wearing loosely fitting clothes.• Explanation• Boiler Suit, Shorts, Tightly fitting short worn inside the shorts, Lion cloth, vest (banyan), Sweater, Cap, Turban

without hanging ends.• (2) Every person required or engaged to oil or adjust belts or to do any work whatsoever within reach of any

unfenced transmission machinery shall be provided by the manager free of cost with light loin-cloth or shorts.• 74. Safe and convenient access shall be provided to all bearings.• 75 (I) All water level gauge glasses of boilers of which the maximum pressure exceeds 100 lbs per square inch

shall be securely guarded.• (2) No additional weight shall be placed on the safety value of any boiler unless written authority has been

received from the boiler Inspector to do so.• 76. All sizing cylinders, kiers, digesters, steam jacketed pans and other vessels worked under pressure shall be

fitted with safety valves pressure gauges.

Cranes and Other Lifting Machinery(Section 33)

• 77. a register shall be maintained by the Factory Manager, for every examination of a lifting

machine containing the following particulars:-• • (a) the distinguishing number of mark, if any, and a description sufficient to identify the lifting

machine.• (b) the safe working load or loads in the case of a crane with a variable operating radius, including

a crane, derricking jib, and the safe working load at various radii of the jib, trolly, or crab is to be stated.

• © particulars of any defect found in the lifting machine, or in any automatic indicator with the machine is fitted, in either case affects the safety of the machine.

• (d)The repairs, if any, required, either• Immediately, or• Within a specified time (which must be stated), to enable the lifting machine to continue

to be used with safety (if no such repairs are required the word “None” is to be entered) • The name and address of the person carrying out the examination and the date of the examination.• The address of the factory and the name of the Occupier.

Protection of Eyes(Section 33 - G)

Precautions against Dangerous Fumes(Section 33- K)

Accidents(Section 33-N)

Procedure in Appeals(Section 33-P)

Provision of Shelters during Rest, Certificate of Stability and First Aid(Section 33 - Q)

• 93. in any building or part of a building which is erected or made use of as a factory after

the commencement of the Act, no work on any manufacturing process with the aid of power shall be commenced until a certificate of stability of the building or part of the building, as the case may be, in Form “K” signed by a person possessing the qualifications specified in sub-rule (4) has been approved by the Chief Inspector.

• Such certificate shall be sent through the Inspector authorized in this behalf and shall be accompanied by the plans if the building or part thereof which is erected or made use of as a factory, showing its extent and construction and the position of machinery, plant and tanks.

• No addition or alternation shall be made to such building or part thereof or such machinery, plant or tanks, unless a fresh certificate in respect of such addition or alternation has been approved in the manner specified in sub-rule (I)

• The certificate shall be signed by a person who is:-– A member of the Royal Institute of British Architects; or– A member of the Indian Institute of Architects; or– An Associate Member of the Civil Engineers; or– A member of the Institution of Structural Engineers, or who possesses such qualification as the

Chief Inspector may approve.

Holidays with pay(Section 49-F)

• 106 (I) the employer shall maintain a holiday with pay register in Form “Q” and make return in Form “R” not later than 1st March of the year subsequent to that to which it relates:

• 107 (I) the employer shall provide each workers with

a book called “Holiday Book” in Form “S”.

Display of Factory Notices(Section 76)

• 121. the abstract of the Act and of the Rules made there under shall be in the form given in Appendix III

Returns(Section 77)

• 122. Submission of returns under section 77. – The

manager shall furnish the following returns to the chief Inspector on or before the date specified in respect of each return”-

– on or before the fifteenth of January each year, an annual return in duplicate in form “U”

– a half yearly return in form “V” for the half year ending 30th of June and the 31st of December on or before the 15th of July and 15th of January, respectively following half year to which it relates:

Service ContractContents of a Service Contract

Service contract are drafted in the same way as other agreements. The terms of employment should be definitely fixed and clearly expressed and nothing should be left to presumptions. They are required to be both affirmative (describing the acts and duties to be performed) as well as negative (putting restrictions on the acts of the employee during &/or after the term of employment). It is therefore necessary to make provision for (1) the time or period of employment; (2) the remuneration and other perquisites, if any, including pay, allowances, commission, rent free house, conveyance, etc; (3) duties of employment; (4) powers of the employee; (5) leave and the terms on which it will be granted; (6) modes and grounds of determining the employment during the term; and (7) restrictive covenants.

• Period of Service• Remuneration• Leave• Determination of Employment• Transfer from one Employer to Another• Agreements in Restraint of Trade• Effect of Labour laws

Format (MGT Category)

• PRIVATE AND CONFIDENTIAL: September 26, 2011• • • Ms. XYZ• D/O XYZ• Address• • • Dear Ms. XYZ• • With reference to your application and your subsequent interviews, we are pleased to offer you employment with this Company in the position of Floor

Champion in management cadre on the following terms and conditions:• • 1) Your monthly salary and allowances payable monthly in arrear will be as follows:• •

• BASIC SALARY 4,700• UTILITIES 0,470• HOUSE RENT 2,115• SUPLEMENTARY PAY 1,081• COVETANCE ALLOWANCE 0,470• CASH / TARGET ALLOWANCE 3,000• --------------------------------• TOTAL GROSS SALARY 11,836• --------------------------------•

• (2) Your employment may be terminated, without assigning any reason, either by you giving the Company 30 days notice in writing or by the Company giving you 30 days notice in writing or on payment by either side one month's salary in lieu of notice. Provided, however, that in the event the termination of your services is due to misconduct, of which the Company shall be the sole judge, no notice by the Company will be required to be given and no salary in lieu of notice will be payable.

(3) You agree to be bound by the Company's rules, regulations and policies as amended,

modified or adopted from time to time. (4) You agree to perform, observe and conform to such duties and instructions as may from

time to time be assigned or communicated to you by the Company. (5) You may be transferred by the Company at any time to any place in Pakistan at any job /

designation. (6) You agree to subscribe, with effect from the date of your employment, to the Company's

Contributory Group Health Plan for medical benefits. The details, as currently applicable, are given in the attached brochure. This plan may be amended from time to time by the Company.

(7) After completion of one year's service, but less than five completed years of service, you

will be eligible for 15 working days vacation after each completed year of service. After completion of 5 year's service, or more, you will be eligible for 22 working days vacation after each completed year of service.

(8) You undertake that you will not, at any time either during the continuance of your

employment with the Company, or thereafter, divulge or use any information which you may acquire in the course of your employment in any manner which may be directly or indirectly detrimental to the interest of the Company.

(9) Any notice required to be given under the terms of this letter of appointment shall be deemed sufficiently served by being sent by post

to the address of the Company or your address, as the case may be, at the respective addresses contained in this letter or as formally amended from time to time.

(10) This letter of appointment shall be governed by the laws of Pakistan. (11) Your employment will commence from the date of your reporting for duty which shall not be later than September 26, 2011, failing

which this letter of appointment will become ineffective. (12) This offer of employment is conditional upon your notifying us your acceptance of the foregoing terms and conditions by signing the

attached duplicate of this letter at the place indicated at the bottom thereon and returning the same to us on or before October 10, 2011, and our obtaining satisfactory responses on your background & reference checks.

Very truly yours,

Head of HR

I confirm that the terms and conditions of employment set out above are hereby accepted by me. Signature: ______________________________ Date : ______________________________

Format (Worker Category)

15th November 2011XYZD/XYZAddress Dear Mr.XYZ,

Reference your application dated October 29, 2011 and your subsequent interview with us, we have pleasure in offering you employment with this company in the position of Associate in pay Group- II subject to the following terms and conditions:

1. You will be on probation for a period of three months.2. During the period of probation your employment may be terminated at any time by either the company or yourself without

notice.3. After satisfactory completion of the period of probation you will be confirmed as a regular employee and thereafter your

employment may be terminated in accordance with law.4. You agree to be bound by the company’s rules and regulations as amended with or without notice from time to time.5. You agree to perform, observe and conform to such duties & instructions as may from time to time be assigned or

communicated to you the company including training programmers’ as they may apply to you and your job.6. You may be transferred by the company at any time to any place in Pakistan.7. You agree to subscribe, with effect from the date of your employment, to the company’s contributory group insurance plan

for medical benefits.8. You agree to subscribe to the company’s contributory retirement/separation benefit plans in accordance with the rules and

regulations as in force, from time to time in connection there with.9. Your monthly basic salary payable in arrear will be RS. 8,000.00 (Eight Thousand Only) plus admissible allowances.10. After completion of one year’s service, you will be eligible for 21 calendar days vacation for each completed year of service.11. You agree to be bound by the company’s rules and regulations governing leave and other benefits as amended with or

without notice from time to time for whatsoever reason.12. You undertake that you will not at any time either during the continuance of your employment with the company, or

thereafter, divulge or use any information which you may acquire in the course of your employment in any manner which may be directly or indirectly detrimental to the interests of the company.

13 . Any notice required to be given under the terms of this letter of appointment shall be deemed sufficiently served by being sent by post to the address of the company or you address, as the case may be, at the respective addresses contained in this letter or as formally amended from time to time.

14. This letter of appointment shall be governed by the laws of Pakistan.15. Your employment will commence from the date of your reporting for duty which shall not be later

than November 15, 2011 failing which this letter of appointment will become ineffective.16. This offer of employment is also conditional upon your notifying us your acceptance of the

foregoing terms and condition by signing the attached duplicate of this letter at the place indicated at the bottom thereon and returning the same to us on or before November 15, 2011 and (2) our obtaining satisfactory reference from your present and previous employers.

Very truly your,

XYZHead of HR

I confirm that the terms and conditions of employment set out above are hereby accepted by me.

Signature

Address

Date

Charge-Sheet Enquiry & Punishment

SCOPE

• Employer has a right to charge-sheet, conduct enquiry

and punish workmen for any misconduct committed.• This right is not unfettered and has to be exercised

according to charge-sheet, enquiry and punishment procedure contained in the Standing Order 15 of the West Pakistan Industrial and Commercial Employment (Standing Order) Ordinance, 1968

• Since many dismissal orders have not been upheld by courts when complying with this procedure.

STANDING ORDER 15

• This law provides punishments for workmen guilty of misconduct

or other omissions.• Clause (3) of SO 15 of West Pakistan Industrial and Commercial

Employment (Standing Order) Ordinance, 1968 specifies the acts and omissions which constitute misconduct.

• Clause (1) certain other acts and omissions (not amounting to misconduct) punishable with fine are contained in this clause.

• Clause (2) Punishment specified in this clause.• Clause (4) One of the important provision in this clause provides

that “that the employer shall institute independent inquiries before dealing with the charges against a workman”

Step 1 • Inform the workman/ manager in writing of the alleged misconduct within one month of the date of

misconduct or of the date on which the alleged misconduct comes to the notice of the employer through

• Charge sheet,• Show cause notice or• Explanation

Charge Sheet • Charge sheet should be divided into three parts

NARRATIVE• Giving all relevant details of the alleged act or omission with particular reference to the date time and

place at which it took place and the manner in which it was committed.

SUBSTANTIVE• The misconduct to which the act or omission amounts and the clause of standing order 15 (3) under which

it falls.

OPPORTUNITY TO EXPLAIN• It must give an opportunity to the workman to explain the circumstances against him and at the same time

putting him on notice about the impending action.

STEP 1Format Of Show Cause Notice

Lahore______ January 2006(Name of Employee)DesignationEmployee CodeDepartmentOrganization Re: Show Cause Notice / Charge Sheet

This is with reference to your absence from duties on January 13, 14 & 15, 2006 without any information or prior approval. It is reported by your departmental head that you were absent from duties on above mentioned days without any information or prior approval.

This constitutes a misconduct within the meaning of Standing Order 15(3)(b) and (h) of Industrial and Commercial Employment (Standing Order) Ordinance, 1968.

You are, therefore, called upon in writing within seven days of the receipt of this show cause notice as to why disciplinary action should not be taken against you under the aforesaid law. In case no reply is received from you within the time mentioned above, it will be presumed that you have nothing to say in your defence and the matter will be decided ex-parte.

The management has also decided to suspend your services for two (02) days starting from date of this notice. You will report to Administration department after this period i.e. on Wednesday January ___, 2006

____________________Factory Manager or HR Manager

STEP 2

• Reasonable time and opportunity to explain circumstances alleged against the workman

STEP 3

• Institution of independent Enquiry if

explanation of the workman in regard to the alleged misconduct not found satisfactory or the workman fails to submit his explanation without reasonable excuse within the given time

Meaning, Scope And Object Of Enquiry

• Originally a fact finding investigatory.• Independence of Enquiry officer and shifting the function of producing

evidence to the management or department.• The concept of management or departmental representative/ presenting

officer/prosecutor• Producing/ adducing all evidence in the presence of the delinquent and his

right to cross-examine the witnesses and to examine and comment on the documents produced against him.

• The right of the delinquent to produce witnesses and documents in his defence.• The right of the management or DR to cross examine the delinquent and his

witnesses.• Assistance of the delinquent specially if he is not literate.• Application of the technicalities of trial in a court of Law.

Requirements Of Proper Enquiry

• The enquiry must not be conducted in a manner as if the onus is on the workman to establish his innocence.

• Charge must be proved by evidence of prosecution.• Prosecution cannot succeed by weaknesses of defence.• Evidence of prosecution to be recorded first.• Complainant should be the first person to be examined on behalf of prosecution.• All witnesses should be examined in presence of the workman.• The workman should be given a fair opportunity to cross-examine witnesses deposing

against him.• Workman to be given a fair opportunity to produce his own witnesses and adduce any

other relevant evidence he might choose in support of his defence.• No material should be relied upon against the workman without giving him an

opportunity to explain the same. 2004 PLC (CS) 688 (Yasmin Rashid vs. Chief Sec.)• Enquiry officer to give reasons for his conclusion if he finds the workman guilty of the

charge.• Evidence to be strictly construed.• Maintaining record of Enquiry.

Correct Procedure Of Recording Statements In Enquiry Proceedings

• The statements of the accused and all witnesses shall be recorded in

first person as they narrate what they saw or heard or felt.• The statement of the accused and all witnesses in the examination

in chief shall be recorded in the narrative and not in questions and answers forms. The questions asked and the answers given in cross-examination may be recorded in questions and answers forms.

• The statement of the accused that he does not want to cross examine a witness shall be recorded in writing and got signed by the accused at the end of the main statement of that witness.

• The Enquiry Officer shall write his report properly giving reasons for his conclusions or findings.

Assistance Of Co-worker • Co-worker not allowed to cross examine prosecution witness—

enquiry vitiated • (1982 PLC 728—Appellate Tribunal)• When accused himself cross-examined witnesses. Enquiry

Officer not allowing co-worker to cross examine witnesses, in circumstances, did not cause prejudice to accused (1985 PLC 389—Tribunal) in this case the accused workman asked 29 questions from first witness and 25 questions from second witness. It was held that the main point for consideration in such a case should be whether the refusal has caused prejudice to the workmen.

• Assistance of co-worker to accused mandatory only if desired by accused.

• (1986 PLC 159- Tribunal)

Enquiry officer to control Enquiry

• In an enquiry it may not be necessary for the enquiry officer to call all witnesses whom the parties may desire to be called. He would be perfectly justified in declining to call any witness whose evidence in his view is repetitive or irrelevant and not of any assistance. It is also open to the enquiry officer to limit the right to cross-examination where he feels that it is not required for compliance with the principles of natural justice.Supreme Court of India

Enquiry - Suggested Procedure

• Reading out charge to the workman, asking whether he admits the charge or defends himself• Examination of the complainant and opportunity to the workman to cross-examine him.• Examination of witnesses in support of the charge one by one and giving opportunity to the workman to

cross-examine every one of them.• Recording of evidence, in examination and cross-examination both, in narrative form.• Evidence of each witness both in examination and cross examination to be signed by witness and

countersigned by E.O. at least.• E.O. not to cross examines any witness but may ask questions for the purpose of examinations. Such

questions and answers be preferably recorded in questions and answers form.• After examination of witnesses in support of the charge the accused workman to be asked to enter

upon his defence.• Evidence of workman in his defence and opportunity to prosecution to cross-examine him.• Examination of other witnesses of defence, one by one and opportunity to the prosecution to cross-

examine each witness.• After examination of witnesses for the defence a declaration signed by the accused that he has no more

evidence to offer.• If a document is produced by any party it has to be proved first. The person who wrote the document or

who has signed it or who is familiar with the writing on signature of writer or signatory has to be called as witness if the writer or signatory is not available. If the document is supposed to be in the custody of some person, that person should also be called as witness.

• If the enquiry officer visits any place or premises necessary for arriving at proper finding it must be in the presence of the accused and his objections and views recorded in writing.

• Enquiry officer can put questions for clarification- AIR 1975 SC 2125

Composite Enquiry

• Normally there should be a separate Enquiry for every separate charge especially when the acts or omissions in question are not alleged to have been committed in the course of the same transaction.

• The holding of a composite Enquiry on more than one charge will, however, not be objectionable if it is conducted in a manner that the employee concerned has full opportunity to defend himself against each charge, without any prejudice caused to him in the process and to produce his own evidence as well. (1976 PLC 376)

Joint Enquiry

• Enquiry against several persons accused of the same act or omission alleged to have

been committed during the course of the same transaction, or of different acts or omissions but alleged to have been committed during the course of the same transaction, will not be the objectionable if the principles of natural justice are fully observed i.e. the witnesses against all the accused persons are examined in their presence, each of the accused person is given an opportunity to cross examine the witnesses deposing against him, to produce his own evidence and that nothing is taken into account against any of the accused without giving him an opportunity to explain the same (1973 PLC 45)

• In the case of a joint Enquiry the charge against every accused is to be proved

individually. The theory of conspiracy is not applicable to industrial adjudication. (AIR 1960 SC 160)

Enquiry Report

BRIEF NARRATION

• The report should start with a brief narration of why and against whom the enquiry was initiated.PROSECUTION CASE

• The narration shall be followed by a brief description of the prosecution’s case with main points of evidence adduced in support of the charge.DEFENCE VERSION

• After the case of the prosecution is stated, the report shall highlight the defence version together with plea, if any, raised by the workman and the main points of evidence adduced on behalf of the defence.

FINDINGS

• The findings of the enquiry officer with reasons.• A mere statement to the effect that on the basis of the evidence adduced by the

prosecution the workman is found guilty of the charge will not be enough• The enquiry officer shall arrive at his conclusion in a logical way after discussing

the evidence adduced by the parties and the reasons for his conclusion.• The findings of the enquiry officer shall be confined to the misconduct alleged in

the charge sheet or borne out by the circumstances alleged in the charge sheet.• Finding a workman guilty of an act or omission neither mentioned in the charge

sheet nor borne out by the circumstances alleged in the charge sheet will render the order of dismissal based thereon and bad in law.

• Evidence of the prosecution about an act or omission not mentioned in the charge sheet may however be admitted for the purpose of proving the involvement of the workman in the misconduct with which he is currently charged or to counter his plea if any but not for the purpose of giving a finding thereon.

Writing An Enquiry Report

• Brief narration• Prosecutions case• Defence version• Findings

Enquiry Report

Enquiry report Miss. __________________ I was appointed as inquiry officer vide letter number _______dated _________ by (Authorised) for investigation of charges contained in charge sheet dated 27 Feb. 2012, issued to Ms .____________ , floor champion quality reception. I commenced the inquiry proceeding on 6 march 2012 at 3;30 pm in conference room as per date, time and place mentioned in the inquiry letter dated 5 march 2012, issued to accuse Ms ._________. In the inquiry proceeding beside the accused floor champion ___________, Mr ____________, AMQ was also present in capacity of Management representative. I read over the charge mentioned in the charge sheet and explained to Ms. ___________in urdu and asked her that whether she accepts the charges mentioned in the show cause notice or not. Ms ____________ in reply to my question, not accepted the charge and nor admitted the fact. After this I started the proceeding and also recorded the statement of Ms._________. Afterwards I requested to Management Representative, if he wants to cross examine than he can proceed, Management Representative asked more than 6 questions in which she accepted all charges mentioned in the show cause, letter dated 27 Feb. 2012. I also gave opportunity to accused Ms. ____________ for cross questioning which she not accepted.Complainant submitted request to IO to allow witnesses he produced 2 x witnesses and their statement is attached with the Inquiry report.

Conclusive remarks by IO of Inquiry proceeding:-

During the cross examination session by the MR I found at 3 occasions she accepted the charges mentioned in the show cause letter dated 27th Feb 2012. As per this inquiry I found that all charges mentioned in the show cause letter dated 27/2/2012 are true and found her guilty.

Gratuity Under The Law

• Gratuity is a benefit for past service, It is now regulated by Law

• Till 24th May 1972 payment of gratuity was on voluntary basis by an employer

• In disputed cases demand of workman for gratuity was adjudicated by a Labour Court on the merits of each case under the IRO 1969.

• On and from 24th May 1972, the labor laws (Amendment) Act, 1972 on 7th September 1972) made payment of gratuity a statutory obligation of employers by making a provision to this effect in Standing Order 12 (6) of the West Pakistan Industrial and Commercial Employment (Standing Orders) Ordinance 1968.

• Standing Order 12 relates to termination of employment and clauses (6), (7) and (8) thereof concern payment of gratuity.

Clause 6 of Standing Order 12

Where a workman resigns from service or his services are terminated by the employer, for any reason other than misconduct, he / she shall, in addition to any other benefit to which he may be entitled under this Ordinance or in accordance with the terms of his employment or any custom, usage or any settlement or an award of a Labour Court under the Industrial Relations Ordinance 1969 (XXIII of 1969), be paid gratuity equivalent to thirty days wages, calculated on the basis of wages admissible to him in the last month of service if he is a fixed-rated workman or the highest pay drawn by him during the last twelve months if he is a piece-rated workman for every completed year of service or any part thereof in excess of six months.

Clause 7 of Standing Order 12

A workman shall be entitled to receive the amount standing to his credit in the provident fund, including the contributions of the employer to such fund, even if he resigns or is dismissed from service.

Clause 8 of Standing Order 12

where a workman dies while in service of the employer, his / her dependent shall be paid gratuity in accordance with the provision of clause (6)