28 INDUSTRIAL RELATIONS Industrial Relational Ordinance, 2002 The law relating to industrial relations in Pakistan is contained in the Industrial

Relations Ordinance, 2002.It extends to the whole of Pakistan and came into force at once. It consists of 83 sections along with two schedules (sec.1) Application of Ordinance. According to Section I, (4) the Industrial Relations Ordinance applies to all persons employed in any establishment or group of establishments or industry. However, it shall not apply to any person employed in; 1. Police, Defence Services of Pakistan, and Services or installations connected with Armed Forces of Pakistan. 2. Pakistan Security Printing Corporation, Security Papers Limited or Pakistan Mint. 3. Administration of state, other than those employed as workmen by Railways, Post, Telegraph and Telephone Departments 4. Establishment maintained for the treatment of care of sick, infirm, destitute and mentally unfit persons excluding those run on commercial basis. 5. Established for payment of employees old age pensions or for workers welfare

Watch and Ward, Security, Finance Service staff of an oil refinery, establishment engaged in production, transmission, distribution of natural gas, liquefied petroleum gas, petroleum Products, Sea Port, or an Air Port. Definitions. The definitions of important terms are as under (Sec.2): 1. Arbitrator. An arbitrator is a person appointed by the mutual consent of both the parties to a dispute for the purpose of investigation and settlement of the disputes submitted to him. Sec.2 (1). 2. Award. The award means the determination by a labour court, Arbitrator, or an Appellate Court of competent jurisdiction of any industrial dispute or any matter relating thereto and includes an interim award.Sec.2 (II). 3. Association. Association means any organization of employers formed primarily for furthering and defending the interests and rights of employers. (Sec.2 (III). 4. Conciliator Conciliator means a person appointed by: (a) Federal Government in respect of disputes, which the commission is competent to adjudicate and
6.

determine (b) Provincial Government in respect of other dispute. (Sec.2 (ix). 5. Employer. Employer means any person or body pf person, whether incorporated or not who or which employs workmen in the establishment under a contract of employment and includes the following; i. An heir, successor or assign as the case may be, of such person or body as aforesaid; ii. Any person responsible for the direction, administration, management and control of the establishment; iii. The authority, in relation to an establishment or group of establishments run by or under the authority of any department of federal Government or a Provincial Government appointed in this behalf or, where no authority is appointed, the head of department; iv. The office bearer in relation to an establishment run by or on behalf of local authority, appointed in this behalf or whereon officer is so appointed, the chief executive, office bearer of the authority;

The proprietor, of any establishment and every director, manager, secretary, agent or office-bearer or person concerned with the management of the affairs thereof. vi. A contractor or any establishment of contractor who are which undertakes to procure the labour or services of workmen for use by another person or in another establishment for any purpose what so ever and for payment an any form and on any basis what so ever; vii. Officer bearers of department of division of the Federal or Provincial or local authority who belong to the managerial, secretarial or directional cadre or categories of supervisors or agent. 6.Establishment Establishment means any office, firm, factory, society, undertaking, company shop or premises or enterprise in which workmen are employed for the purpose of carrying on an industry (Sec.2 (xi) 5.Illegal Lock out Illegal lock out means a lock out declared, commenced or continued otherwise than in accordance with the provisions of this Ordinance. (Sec.2 (xiv)
v.

6.Illegal Strike Illegal strike mean a strike declared, commenced or continued otherwise than in accordance with the provisions of this Ordinance. (Sec.2 (xv) 7.Industrial Dispute. Industrial dispute means any dispute of difference between employers and workmen or between workmen and workmen which is concerned with the employment or non-employment or the terms of employment or the conditions of work; and is not in respect of the enforcement of any right guaranteed or accrued to workers by or under any law, other than this Ordinance, or any award or settlement for the time being in force. (Sec.2 (xvi) 8.Industry. Industry mean any business, trade manufacture, calling, service, occupation or employment engaged in an organized economic activity of producing goods or services for sale excluding those set up exclusively for charitable purposes operating, through public or private donations where charitable purpose includes provision of education, medical care emergency relief and other needs of the poor and indigent. 9.Lock out. Lock out mean the closing of a place of employment or part of such place or the suspension of work, wholly or partly, by an employer, or refusal,

absolute or conditional, by an employer to continue to employ any number of workmen employed by him where such closing, suspension or refusal occurs in connection with an industrial dispute or in intended for the purpose of compelling workmen employed to accept certain terms an conditions of or effecting employment. (Sec.2 (xx). 10. Settlement Settlement means a settlement arrived at in the course of a conciliation proceedings, and includes an agreement between an employer the collective bargaining agent or workmen, as the case may be arrived at otherwise than in the course of such proceedings, where the agreement is in writing and has been signed by the parties there to in such manner and many be prescribed and a copy there of has been sent to the provisional Government, the Conciliator and such other persons as may be prescribed. (Sec.2 (xxvi). 11.Strike Strike means cessation of work by a body of persons employed in any establishment acting in combination or a concerted refusal or refusal under a common understanding of any number of persons who have been so employed to continue to work or to accept employment. (Sec 2 (xxviii) 12.Worker and Workman.

Worker and workman means any and all persons not falling within the definition of employer who is employed in a establishment or industry for remuneration or reward either directly or through a contractor, whether the terms of employment be express or implied, and for the purpose of any proceeding under this Ordinance in relation to an industrial dispute includes a person who has been dismissed, discharged, retrenched, laid-off or otherwise removed from employment in connection with or as a consequence of that dispute or whose dismissal, discharge, retrenchment, lay off, or removal has led to that dispute but does not include any person who is employed mainly in a managerial or administrative capacity..Sec.2 (xx) TRADE UNIONS AND FREDDDOM OF ASSOCIATION. The workers have the right to form and join any trade union of their choice within the establishment or industry they are employed in according to the rules. Within the establishment or industry they are employed in according to the rules. However, no worker shall be entitled to be a member of more than one trade union at any one time. If any person joins another union, his membership shall stand automatically cancelled. (Sec.3) (1) (a)

Similarly, the employers shall have the right to form or join any association of their choice and their association shall have the right to draw- up their constitution and rules, elect freely their representative, organize their administration and activities and formulate their program. (Sec.3 (1) (b) These trade unions of workers and associations of employer shall have the right to form and join federation, of trade unions and associations. Such federation and confideration shall have the right to affiliate with international organizational and confederations of workers and employers. (Sec.3 (1) (c). Every CBA union shall have to affiliate with any federation at the national level registered with NIRC with in two months after its determinations as CBA or promulgation of their ordinance which ever is earlier. Definition of Trade Union According to section 3(2), the workers and employers and their respective bodies shall abide by all federal and provincial laws. Trade Union means any combination of workers formed primarily for the purpose of furthering and defending the interests and rights of workers in any industry or establishment and includes an industry-wise federation of two or more collective bargaining agent unions and a federation at the national level of ten or

more collective bargaining agent unions. (Sec.2 (xxix) REGISTRATION OF TRADE UNION. The procedure of registration of trade union is as under: Application for Registration Any trade union may, under the signatures of its President and General Secretary, apply for registration of the trade union under this Ordinance (Sec.4). Requirements for Application. 1. According to Section 5, the application for registration of trade union shall be accompanied by a statement showing: a) The name of the trade union and address of its head office. b) The date of formation of trade union. c) The titles, names, ages, addresses and occupations of the office bearers of the trade union. d) The statement of total paid membership. e) The name of establishment, group of establishments or the industry, as the case may be, to which the trade union relates along with a statement of the total number of workers employed there in. f) The names and address of the registration number of member trade unions. in

establishment , group of establishment or industry, as the case many be with the trade union relates g) The names, addresses and registration number of member trade unions, in case the application is made by a federation of trade unions. 2. 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 signatures of the Chairman of the meeting. 3. A copy of the resolution by the members of the trade union authorizing its President and the General Secretary to apply for its registration. 4. A cop of the resolution from each of the constituent trade unions agreeing to become a member of the federation or confederation of a trade unions where such application is made by a federation or confederation. Requirements for Registration. According to section 6 (1) to obtain registration of a trade union under the IRO. The constitution of every trade union shall provide the following matters: 1. The name and address of the trade union. 2. The objects for which the trade union has been formed.

The purposes for which the general funds of the trader union shall be applicable. 4. The number of persons forming the executive which shall not exceed the amongst the workmen actually engaged or employed in the establishment or establishments o the industry for which the trade union has been formed. 5. The conditions under which a member shall be entitled to any benefit assured by the constitution of the trade union and under which any fine or forfeiture may be imposed on him. 6. The maintenance of a list of the members of the trade union and of members of the trade union. 7. The manner, in which the constitution shall be amended, varied or rescinded. 8. The safe custody or funds of the trade union, its annual audit, the manner of audit and adequate facilities for inspection of the account books by the office-bearers and members of trade union. 9. The manner in which the trade union may be dissolved 10. The manner of election of office-bearers by the general body of the trade union and the term not exceeding 3 years, for which an office bearer may hold office upon his election or re-election through secret ballot
3.

11. The

procedure for expressing want of confidence in any office bearer of the trade union. 12. The meetings of the executives and of the general body of the trade union, so that the executive shall meet at least once in every four months and general body at least once every year. Certificate of Registration. According to Section 9, the registrar on being satisfied that the requirements of law have been fulfilled, shall register the trade union and issue a requirements of law have been fulfilled, shall register the trade union and issue a certificate of registration within a period of 15 days from the date of receipt of the application. Under intimation to the concerned employer. A certificate so issued is conclusive evidence of the fact that the trade union has been duly registered. Maintenance of Register. According to Section 8, every registered trade union shall maintain the following registers. a) A register of members showing particulars of subscriptions paid by each member. b) An accounts book showing receipt and expenditure c) A minute book for recording the proceedings of meetings

Cancellation of Registration. The registration of the trade union shall be cancelled by the labour court or registrar on the following grounds: 1. Cancellation by labour Court The Lobour Court shall cancel the registration of trade union on any complaint in writing by the Registrar on the following grounds. (Sec.12) a) If the trade union has been registered in contravention of any of the provisions of this Ordinance or the rules; or b) If the trade union has violated any of the provisions of its constitution; or c) If trade union has made in its constitution any provision which is inconsistence with this Ordinance or the rules. d) If disqualified person has been elected as an office-bearer of the trade union. 2. Cancellation by Registrar The registration of trade union shall be cancelled by the Registrar by giving reasons for such cancellation in writing if after holding an inquiry he finds that any trade union: a) Has dissolved itself or has ceased to exist b) Has not been a contestant in a referendum for the determination of a collective bargaining agent.

Has not applied for determination of collective bargaining agent. Within two months of its registration as another union or promulgation of this Ordinance which ever is earlier provided there does not already exist a collective bargaining agent determined in an establishment or group of establishments or industry. d) Has secured less than 15% of polled votes per final list of voters, during a referendum for the determination of CBA. 3.Appeal against cancellation of registration Any trade union aggrieved by a decision given a) By the Labour Court may appeal to high court. b)By the registrar may appeal to the Labour Court (Sec.13) c) UNFAIR LABOUR PRACTICES
c)

Unfair labour practices may be on the part of employers, and the workers. Unfair Labour Practices of Employers. According to section 63 (1) the following actions of the employer, association of employees or any person on behalf of either shall be unfair labour practices on the part of the employer: a) Impose any condition in a contract of employment seeking to restrain the right of a

b)

c)

d)

e)

f)

person who is a party to such contract to join a trade union or continue his membership of a trade union; 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 trade union. Discriminate against any person in regard to any employment, promotion, condition of employment or working condition on the ground that such person is or is not, a member or office-bearer of a trade union Dismiss, discharge, remove from employment or transfer a workman or wants to become a member or office bearer of trade union or participate 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. Compel or attempt to compel any officebearer of a CBA to arrive at a settlement by using intimidation, coercion, pressure, threat, confinement to a place, physical

g) h)

i)

j)

injury, and disconnection of water, power or telephone facilities or by such other methods. Interfere with or in any way influence the balloting provided for in section 20. Recruit any workman during the period of notice of strike under section 31 or during the currency of a strike, which is not illegal except where the cause serious damage to the machinery or installation, permitted temporary employment of a limited number of workmen in the section where the damage is likely to occur. Close down of an the whole establishment in contravention of industrial and commercial Employment (Standing Orders) Ordinance 1968, 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.

Unfair Labour Practices of Workmen. According to Section 64, the following actions of workmen, trade union of workmen or any of its members or office-bearers of a trade union shall be unfair labour practices on the part of workmen. 1. Persuade a workman to join or refrain from joining a trade union during working hours.

2.

3.

4.

5.

6.

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

7.

8.

Carry any arms or weapons within the premises of an employer without any legal authority. Interfere with a ballot held under section 20 by the exercise of undue influence, intimidation, impersonation or bribery through its executive or through any person acting on its behalf.

Penalty for Unfair Labour Practices Every person responsible for unfair labour practice on the part of employer shall be punishable with fine, which may extend to Rs.30, 000. (Sec.65 (2). Any person responsible for unfair labour practice on the part of workmen shall be liable to a fine, which may extend to Rs.20, 000 (Sec.65 (3). COLLECTIVE BARGAINING AGENT Definition. It is trade union of workmen of an industry, which is either declared or elected when there is more then one registered trade union in an industry. It acts as agent of the workmen in the establishment or the industry in the matter of collective bargaining. Determination According to section 20, the C.B.A is determined as follows. 1.Where one union Where there is only one registered trade union in an establishment or a group of establishments or

industry, of such trade union shall if it is not less than one-third of the total number of workmen employed in such establishment or group of establishments or industry then on the application of such trade union, the registrar shall certify that trade union to be the collective bargaining agent of that establishment. (Sec.20 (1) 2.Where more unions Where in an establishment, there are more than one registered trade unions each having membership of not less than one-third of the workmen employed in that establishment, then upon the applications from such trade unions, the registrar shall proceed to hold secret ballot within fifteen days to determine a collective bargaining agent. If only one trade union expresses the desire to be the certified collective bargaining agent, and there is no response from any other trade union of the establishment to desiring, then registrar shall certify the trade union, as collective bargaining agent , which has made the application. The Registrar may, in the case of large establishment having its branches in more than one town, hold the secret ballot within thirty days from the making of the application (Sec.20 (2) para-2) 3.Notice to Union On receipt of an application the Registrar shall by notice in writing call upon every registered

trade union in the establishment to which the application relates. (Sec.20 (3). a) To indicate whether it desires to be a contestant in the secret ballot to be held for determining the CBA. (Sec.20 (3)(a). b) To submit to him with in the time specified in a notice, a list of its members showing their parentage, age section or department, the place in which he is employed, ticket number, the date of his becoming a member etc. (Sec.20 (3) (b). 4.List of Voters a) Every employer shall within 15 days submit a list of all workers employed in the establishment and a separate list of workers whose period of employment is less than three months showing the full particulars will be submitted. (Sec.20 (4). b) Every employer shall provide such facilities for verification of the list submitted by him. (Sec.20 (4)(b). 5.Submission of list of voters The registrar shall after verification of the lists, prepare a list of voters who are members of any contesting trade union. He shall at least four days prior to the date of poll send to each contesting trade union, a certified comply of list of voters. (Sec.20 (5). Every workman who is a member of any of the contesting trade unions and whose name appears in the

list of voter shall be entitled to vote at the poll to determine the CBA. (Sec.20 (6). Every employer shall provide facilities in his establishment for the conduct the poll. He shall not interfere and influence the voting (Sec.20 (7). No person shall canvass for vote within a radius hundred yards of the polling station. (Sec.20 (8). 6. Conduct of Poll For the purpose of conducting the a poll, the Registrar shall: a) Fix the date of the poll and intimate to the contesting trade unions and to every employer four days prior to such date. b) At the polling station set up ballot boxes which shall be sealed in the presence of the representatives of the contesting trade union as to receive the ballot paper. c) Conduct the poll at the poling station at which the representatives of the unions shall have the right to be present. d) After the conclusion of the poll and in the presence of the representative of the trade unions, open the ballot boxes and count the votes. e) After the conclusion of the count, certify the trade union, which has received the highest number of votes to be CBA. However, no trade union shall be certified to be CBA unless the number of votes received by it is not

less than 1/3 of the total numbers of workmen employed in such establishment. It is further provided that if no trade union secures such number of votes in first poll, a second poll shall be held between the two trade unions, which secured the highest votes in the first, poll and the union, which secure a majority of the votes at second poll, shall be CBA. Rights and Duties According to section 20(13), the rights and duties of the collective bargaining agent are as under: a) To undertake collective bargaining with the employer with respect to matters connected with employment, nonb)To represent any workman in any proceedings. c) To give notice and to declare a strike under the rules. d)To nominate representatives of workmen on the Boards of Provident Funds and Workers Participation Fund. e) To nominate shop steward to provide a link between the workers and management f) To nominate representatives of the management committee. g)To appoint auditors to audit the accounts of the company from workers point of view.

LABOUR COURT Constitution Provincial Government in consultation with the Chief Justice of the respective High Court establishes the required number of labour courts in the province. The establishment of Labour courts is notified in the Officials Gazette, indicating their territorial jurisdiction. Each labour court is presided over by a judge to be called Presiding Officer. Such presiding officer must be qualified to be a judge or additional judge of the High court or District Judge or additional District Judge. (Sec.44)(1,2,3) Functions. According to section 44(40 a labour court has the following functions. a) It shall adjudicate and determine an industrial dispute referred to it. b)It shall enquire into or adjudicate any matter relating to implementation or violation of a settlement, which is referred to it by the provincial Government. c) It shall try offence under the IRO and all other offences under any other law specified bye the Provincial Government. d)It shall exercise and perform such other powers and functions, which are assigned to it under the law. Procedure and Powers

The labour court shall follow a summary procedure. In the matter of an industrial dispute, it is deemed to be a civil court. (Sec.45 (1). It has the following powers. 1. Enforce the attendance of any person and examine him on oath. 2. Compel the production of documents and material objects. 3. Issue commissions for the examination of witnesses or documents (Sec.45. (2) Award and Decision The award or decision of the Labour Court shall be given in writing and delivered in the open court. Two copies of the award or decision shall be sent to the provincial government for publication in the official gazette The provincial government shall within a period of one month from the receipt of the copies of the award or decision, publish it in the official Gazette. (Sec.47 (1,2) The award is appeasable to the High court within thirty days of its delivery to the concerned party. The decision of high court in such appeal will be final. (Sec.47 (3) NATIONAL INDUSTRTIAL RELATIONS COMMISSION Constitution For the adjudication of industrial disputes in which industry wise trade unions or federations are parties,

and any other industrial disputes, which in the opinion of the Federal Government are of national importance, the federal Government is authorized to constitute the National Industrial Relations Commission, usually called the N.I.R.C. (Sec.49) The N.I.R.C. consists of 8 members including the chairman. The federal Government appoints them. The qualification and terms and conditions of service for appointment as Chairman, and Member of the Commission shall be determined bye the Federal Government. Function and Powers. According to section 49(4) the following are the functions and the powers of the commission. 1. To decide and determine industrial dispute where an industry-wise trade union or federation is a party, and also any other industrial dispute which the Federal Government regards as of national importance and refers to commission. 2. To register industry-wise trade unions, federations of such trade unions and federations at the national level. 3. To determine the collective bargaining agents amongst industry-wise trade unions, federations and federation at the national level 4. To promote the formation of trade unions of worker within an industry having establishments

in one or more provinces and the formation of a federation of such unions. 5. To try offences in respect of matters relating to any of its functions. 6. To deal with cases of unfair practices on the part of the employer, workmen and to take measures to prevent an employer or workmen from committing an unfair labour practice. 7. To advise Government, industry-wise trade unions and federations in regard to education of workers is the essentials of trade unionism, including education in respect of their rights and duties and the secure the provision of facilities required therefore. 8. To promote the formation of federation at the national level 9. To exercise other powers and functions, which Federal Government may by notification in the official Gazette, assign to it from time to time. 10. The Commission may, on the application of a party or on its own motion, initiate prosecution, trial or proceedings of take action with regard to any matter relating to its functions (Sec.49 (5) (a). 11. The commission may on the application of the party or on its own motion, with draw, any case of unfair labour practice fro the labour courts (Sec.49 (5) (b). Finality of Order

The order passed by the Commission or any of its Benches shall not be called in question in any court, and such orders, decisions, judgment or sentence passes bye the Commission shall be final. (Sec.53). Workers Participation In Management For the workers participation in management the following bodies have formed. Shop Stewards The following are the rules regarding shop stewards Formation In every establishment in which fifty or more workmen are employed a shop steward from workers in a shop, section or department of the establishment shall: a) Be nominated by CBA where there is a CBA in the establishment. b)Be elected at a secret ballot where there is no CBA in the establishment. (Sec.23 (1). Role of employer The employer shall provide all facilities for the holding of the ballot and shall not interfere with or influence the voting. (Sex.23 (2). Period of office A shop steward shall hold office for period of one year from the date of his nomination or election as the case may be. (Sec.23 (3)

Functions A shop stewards shall act as a link between the worker and employer, assist in the improvement of arrangements for physical working conditions and production work in the shop, section, or department for which he elected and help workers in settlement of their problems relating to work or individual grievance of a workmen. Joint Works Council The law relating to jointly works council is as under: Formation Every establishment which employs fifty persons or more, shall set-up a Joint Works Council consisting of not more than then members in which workers participation shall be to the extent of forty percent and the convener of the council shall be from the management. (Sec.24 (a). The employers representatives on the Joint Works council shall be from amongst the directors or their nominees or senior executives and the workers representatives shall be the office-bearers of CBA or their nominees or from workers elected in the prescribed manner in case there is no CBA. (Sec.24)(2). Functions The Joint Works council shall deal with the following matter, namely:

a) Improvement in production, productivity and efficiency. b)Provision of minimum facilities for such of the workers employed through contractors as are not covered by the laws relating to welfare of worker. c) Promotion settlement of different through bilateral negotiations. d)Promoting conditions of safety and health for the workers. e) Encouraging vocational training within the establishment. f) Taking measures for facilitating good and harmonious working conditions in the establishment. g)Provision of educational facilities for children of workmen. (Sec.24 (3) h)The joint work council may collect informations about the working of the establishment from its management. (Sec.24 (4) Settlement of industrial disputes The following is the procedures for settlement of industrial disputes. a) If at any time an employer or a CBA finds that an industrial dispute has arisen or is likely to arise, the employer or, as the case may be, the CBA may communicate his views in writing to the other party. (Sec.25 (1).

b)On receipt of the communication under subsection (1) the other party receiving it shall try to settle the dispute bye bilateral negotiations within fifteen days of the receipt of the communication or within such further period as may be agreed upon by the parties and, if the parties reach a settlement, a memorandum of settlement shall be recorded a writing and signed by both the a parties and a copy there of shall be forwarded to the Conciliator and the authorities specified in clause (xxvi) of section 2.(Sec.25(2) c) Where a settlement is not reached between the employer and CBA, the employer or the CBA may within fifteen days from the end of the period serve on the other party to the dispute a notice of conciliation, in accordance with the provisions of this Ordinance. (Sec.25)(3). ILLEGAL STRIKES AND LOCK- OUTS The law relating to an illegal strike and lockout is as under (Sec.38) 1. A strike or lock out shall be illegal if, it is declared, commenced or continued without giving notice to the other party to a dispute in the prescribed manner a notice of conciliation or in. 2. A strike declared by a C.B.A., which has not been registered, shall be illegal strike.

3. If a lockout is declared by an employer before the expiry of period of notice o lock out, it is illegal 4. If a settlement or award is in existence on any matter, a lock out or strike declared on the same issue shall be illegal

29 LABOUR IN FACTORIES Factories Act 1934 The law relating to workers employed in factories is contained in Factories Act, 1934. It extends to the whole of Pakistan. It consists of 82 sections. This Act regulates health, safety, welfare , working conditions , working hours , employment of young persons, leave and other provisions relating to labour employed in the factories. Definitions.

Section 2 of the Factories Act, 1934 defines the different terms as follows:Adolescent An adolescent means a person who has completed his fifteenth year but has not completed hi seventeenth year. Sec.2 (a) Adult An adult means a person who has completed his seenteenth year.Sec.2 (b) Child. A child means a person who has not completed his fifteenth year. Sec.2(c) Day. A day means a period of 24 hours beginning at mid night. Sec.2 (d) Power Power means electrical energy and any other from of energy, which mechanically transmitted and is not generated bye human or animal agency Sec.2 (f) Manufacturing Process It means any process for making, altering, repairing, ornamenting, finishing or packing, or other wise treating any Article or substance with a view to its use, sale, transport, delivery or disposal, or for pumping oil, water or sewage or for generating, transferring or transmitting power Sec.2 (g).

Worker A worker means a person who is employed to do any of the work connected with the manufacturing process or working within the premises where a manufacturing process is carried out. Thus a person employed on cleaning the floor of the room where the manufacturing process is carried on falls within the category of worker. But persons who are connected with clerical job and work in a place where no manufacturing process is carried on are not workers. (Sec.2 (h) Factory A factory means any premises including the precincts there of where ten or more workers are working or where working on any day of the proceeding twelve months, in which manufacturing process is being ordinarily carried on, with or without the aid of power but does not include mine (Sec.2 (i)) Machinery Machinery includes all plants where by power is generated, transformed, transmitted or applied (Sec.2 (k) Occupier Occupier mean the person who has unlimited control over the affairs of the factory where the affairs of a factory are entrusted to managing agent, such agent shall be deemed to be the occupier of the factory (Sec.2 (1)

Relay Where work of the same kind is carried out by two or more sets of workers working during different periods of the day, each of such sets is called relay. (Sec.2 (m) Shift Shift is the different period or periods of work during which two sets of workers work (Sec.2 (m) INSPECTOR Appointment The provincial government is authorized to appoint the inspector. Every district magistrate works as an inspector of factory in his district. The inspector can exercise his powers within his district. Any person who is interested in any industry cannot be appointed for the post and if he already holds the post he cannot retain it. Sec.10 Powers of Inspector According to section 11, the powers of inspector are as under: 1. He can enter any premise, which is used as factory or by the existing circumstances can be deemed a factory 2. He can make necessary examination of the premises, plants and of any prescribed registers.

3. He can take on the spot or otherwise such evidence of any person as may be necessary. 4. He can exercise such other powers as may be necessary for the purpose of the act. Duties of Inspector, According to section11, the duties of inspector are as under: 1. He can operate within the assigned local limits, (Sec.10 (1) 2. He can act as subordinate to specified authority (Sec.10 (7) 3. He can prohibit the employment of any person (Sec.33) 4. He can direct the manager to prevent admission of a child who can not be lawfully employed (Sec.33M) CHIEF INSPECTOR Appointment According to section 10 (2) the provincial government may appoint any person as a chief inspector. The chief inspector in addition to the powers conferred on him shall exercise the powers of an inspector throughout the province. Every chief inspector shall be public servant and be subordinate to such authority as the provincial government may specify Sec.10 (7)

CERTIFYING SURGEON Appointment As it is necessary that the workers of a factory shall have good health and be fit for the work of the factory, the provincial government may appoint a registered medical practitioner as a certifying surgeon for the local limits as many assigned to him. The certifying surgeon may delegate his powers to another registered medical practitioner for issuing certificates of fitness for employment for three months only (Sec .12) Health Workers It is duty of owner of the factory to keep good working, conditions in order to protect the health of the workers. The factories Act provides the following provisions in this respect 1. Cleanliness The employer is required to keep the factory premises neat and clean by daily sweeping, weekly washing, every 14 months white washing, every 5 years repairing and arranging proper drainage. (Sec.13) 2. Disposal of water and Effluents Every employer is bound to take proper and effective measures for the disposal of wastes and effluents resulting from the manufacturing process carried on in the factory (Sec.14) 3. Ventilation and Temperature

It is legally required that in every room in which manufacturing process is carried on , proper arrangement should be made by providing adequate ventilation for circulation of fresh air and proper machinery should be taken to keep the temperature of the room at such a degree that it should not effect the health of the workers adversely (Sec.15). 4. Dust and Fumes Proper measures may be adopted to avoid the accumulation of dust and fumes and their inhalation by the workers to safe guard their health from the injurious effect in every room where due to manufacturing process, dust and fumes or any other impurity of that nature is created (Sec.16) 5. Artificial Humidification. Where the manufacturing process creates so much heat that it consume all the moisture present in the atmosphere, proper and effective arrangement must be made to create humidity necessary to save the human skin from cracking and also for keeping the room cool (Sec.17) 6. Overcrowding In a factory no workroom should be overcrowd to an extent injurious to the health of the workmen working theyre in. In every workroom there must be 500 cubic feet of space for every worker. Provision of lesser space will be considered a

contravention of the law and the employer will have to under go the punishment provided in this regard. (Sec.18) 7. Lighting Sufficient and suitable lighting, natural or artificial or both or required to be provided and maintained. In case of failure of an ordinary electric system, emergency lighting of special points in work room and passages are required to be maintained in such a manner that these will function automatically (Sec.19) 8. Drinking Water Suitable points, which are conveniently situated for all workers employed in a factory, are required to be provided and maintained for sufficient supply of wholesome drinking water. In every factory where more than 250 workers are ordinarily employed, provision shall be made for cooling the drinking water during the hot weather. (Sec. 20) 9.Latrines and Urinals Sufficient latrines and urinals are required to be provided separately for male and females. These should be adequately lighted and ventilated and these are required to be maintained in a clean and sanitary condition at all times, with suitable detergence or disinfectance or with both (sec.21) 10.Spittoons. Sufficient number of spittoons are required to be provided at convenient places and should be

maintained with a clean and hygienic conditions. (Sec.21) 11.Precautions against Contagious or infections Disease. The factory doctor will ensure that each worker in a factory is not suffering from any contagious or infectious disease. The fee of examination of workers shall be borne by the occupier of the factory. 12.Vaccination and inoculation. Each worker in a factory is required to be vaccinated and inoculated against such diseases. The expenses of such vaccination and inoculation shall be borne by the occupier of the factory. (Sec.23-A) Safety of Workers The Factories act has imposed the duty upon an employer of a factory to comply with the provisions with regard to the safety of the workers. The provisions regarding safety are as under: 1.Precautions against Fire. Every factory must provide exists for escape in case of fire. The doors of the factory shall not be locked, while the factory is in operation and all doors must open outward. Alarms shall be ready to warn workers in case of fire (Sec. 25) 2.Fencing of Machinery All dangerous type of machines shall be fenced so as to ensure safety of the workers working on such machines. Every screw, bolt, shaft, spindle wheel

and pinion, and all spur toothed and friction gearing in motion shall be securely fenced. (Sec.26) 3.Machinery in Motion While machinery is in motion, an examination can only be carried out be a trained male adult worker, wearing tight fitting clothing. The name of such a worker has been recorded in the register (Sec.27) 4.Employment on Dangerous Machine A child or adolescent shall not be allowed to work on a machine specified as dangerous by the provisional government, unless he has been fully instructed and is under supervision of a person with through knowledge and experience of the machine (Sec.28) 5.cutting of Power There shall be suitable stinking gear or other mechanical appliances to be used for moving driving belts to and from fast and loose pulleys, which from part of the transmission machinery. There shall also be maintained and used in every workroom some efficient mean of cutting off the power promptly from the running machinery (Sec.29) 6.Self Acting Machine In any factory traversing part of a self acting machine and the material carried on it , shall not be allowed to run within a distance of 18 inches from any fixed

structure, if the space over which it runs is a space over which a person is liable to pass (Sec .30) 7.Casing of New Machinery If a new machinery is intended to be driven by mechanical power, the requirements as to the sinking of the set screws and guarding of gearings etc must be complied with (Sec.31) 8.Cotton Openers. No women or child is allowed to be employed in any part of a factory for pressing cotton in which a cotton opener is at work. They are allowed where the delivery end is situated and there is a partition wall, which is up to the roof, and there is not door opening in the partition wall (Sec.32 9. Cranes and Lifting Machinery. All parts of cranes and other lifting machines must be of good construction and be properly maintained. They must be thoroughly examined at least once a year and must not be overloaded. The crane must be at a specified distance from the wheel track of the crane. (Sec.33) 10. Hoists and Lifts Every hoist and lift shall be of good mechanical construction, sound material and adequate strength and properly maintained. They must be examined once in every sic months. Every hoist way and lift way shall be sufficiently protected by an enclosure fitted with gates. Every such gate will be fitted with

interlocking or other efficient device.. (Sec.33-A) 11. Excessive Weights. In any factory a person shall not be allowed to lift or move any load so heavy as may cause him injury. The provincial government may make rules prescribing maximum weights that may be lifted, carried or moved by adult man, adolescent an children employed in factories or in any process carried on in a factory. (Sec.33 F) 12 Protections of Eyes In every factory effectives screens or suitable goggles should be provided for the protection of persons employed on any manufacturing process or in the immediate vicinity of the process if such a process involves of injury to the eyes. The worker is required to use protective devices provided for them (Sec.33-G) Welfare of the Workers The factories act provides the following provisions regarding the welfare of workers: 1. Provision of Canteen. In a factory where more than 250 workers are employed, the employer must provide an adequate canteen for the use of the worker (Sec.24) 2. Welfare Officer. In a factory where not less than 500 workers are employed, the manager shall employ

such number of welfare officers, having such qualification are may be prescribed. (Sec. 24-A) 3. Shelter for Rest In every factory where in more than 150 workers are ordinarily employed, an adequate shelter of prescribed standard shall be provided for use of the workers during periods of rest (Sec.33-Q) 4. First Aid Appliances The manager or occupier of a factory is required to maintain stores of first aid appliances and provide for their proper custody and use (Sec.33 (5) Working Hours. Daily hours. A worker may be required to work in a factory for not more than nine hours in a day, However a male adult worker may work for ten hours a day in seasonal factory. (Sec.36) Weekly hours A worker in a factory shall not be allowed to work for more than forty-eight hour in a week. If it is seasonal factory, the worker shall not be allowed to work for more than fifty hours in a week. If for technical reasons, a work is continuous throughout the day, a worker may be allowed to work for fifty-six hours in a week (Sec.34)

Double employment An adult worker shall not be allowed to work in any factory on any day on which he has already been working in any other factory except under specified circumstance. (Sec.48) Overtime Work If a worker in a non seasonal factory has worked for more than nine hours in a day, or more than forty eight hours in a week, he will be entitled to overtime pay at the rate of twice his ordinary rate of pay. (Sec.47) Child Workers Working hours A child shall not be allowed to work in a factory for more than 5 hours on any day .The span of time during which the child workers or adolescent, can be allowed to work in a factory is from 6 a.m. to 7 p.m. (Sec.54) Fitness Certificates A child or an adolescent, in spite of attaining the required age, cannot be allowed to work in a factory with out obtaining a fitness certificate from a certifying surgeon. (Sec.52) Register of Child workers Where children are employed in a factory the manager of that factory shall maintain a register of child workers showing the name, age of

each child, nature of his work, group in which he is included, and the number of his certificates of fitness. Other Restrictions Child worker s and adolescent workers are not allowed to perform double duty. They are not allowed to work at a place where cotton opener is at work. They cannot oil or clean the machines while they are in motion. They are not allowed to work on dangerous machines. Women Workers The factories act provides the following provisions relating to women workers Machinery in Motion A women shall not be allowed to clean, lubricate or adjust any part of the machinery while in motion, or work between moving parts, or between moving and fixed parts of machinery in motion. (Sec.27 (2) Cotton Openers A woman shall not employ in any part of the factory for pressing cotton in which a cotton opener is at work. However they are allowed if the cotton openers are located on different sides (Sec.32) Suitable Room Where more than 50 women workers are ordinarily employed there shall be provided sutiable

room for use of children less than 6 years of age (Sec.33-2 (Q) Working Hours A woman shall not be allowed or required to work for more than 9 hours in a day and no exemption in this respect will be granted (Sec.36) Working Time A woman shall not be allowed to work accept between 6 a.m. and 7 p.m. However, the provincial government may allowed to work between 5 a.m. and 7 p.m. in special cases (Sec.45) Holydays With Pay The factories act provides the following provisions relating to holydays Annual Holydays Every worker who has completed a period of 12 months continuous service in a factory shall be allowed, during subsequent period of 12 months holidays for a period of fourteen consecutive days. (Sec.49 (B) Casual Leave Every worker shall be entitled to casual leave with full pay for ten days in a year (Sec.49. (H) Sick Leave Every worker shall be entitled to sixteen days sick leave on half average pay in year (Sec.49 (H)

Festival Holidays Every worker shall be allowed holidays with pay and on all days declared by the provincial government to be festival holidays. (Sec.49 (1)

30 INDUSTRIAL & COMMERCIAL EMPLOYMENT Industrial and Commercial Employment (Standing Orders) Ordinance, 1968 The law relating to industrial and commercial employment is contained in industrial and commercial employment (standing orders) Ordinance, 1968. It extends to the whole of Pakistan It came into force on 8th March 1968. Application of Ordinance

This law is applicable to such commercial and industrial establishment in which 20 or more workers are employed The ordinance does not apply to commercial and industrial establishments run by he federal or provincial government where statutory rules of service are applicable. It further provides that provisions of standing orders 10 (B) 11, 12(6) 12 (8) and 15 are applicable to those industrial establishment where the workmen employed are 50 or more in number Sec .1. Definitions Section 2 of industrial and commercial employment (standing orders) ordinance, 1968 defines the different terms as follows 1. Collective Agreement. Collective agreement mean an agreement in writing, intended to specify the conditions of employment and entered into between one or more employers on the one hand, and one or more trade unions or, where there is no trade union the duly authorized representatives of workmen, on the other. Sec.2 (a) 2 Commercial Establishment Commercial establishment includes an advertising firm, a commission or forwarding agent, a commercial agent, a clerical department of a factory, and establishment of a contractor, a unit of a join stock company, insurance a restaurant, an

eating house, a cinema, a theater, and any establishment notified by the government. Sec. 2 (b) 3.construction Industry Construction industry means an industry engaged in the construction reconstruction, maintenance, repair, alteration, or demolition of any building, railways, tramways, harbor, canal, etc. Or other work of construction as well as preparation for laying the foundation of any such work or structure. Sec.2 (bb) 4. Employer Employer means the owner of an industrial or commercial establishment to which this ordinance applies for the being such as manager of the factory head of the department, in an industrial establishment under the control of any government department or any person responsible to the owner of an industrial or commercial establishment 5. Go slow Go slow means on organized, deliberate and purposeful slowing down of normal output of work by a body of workers in a concerted manner and which is not due to any mechanical defect, break down of machinery, failure or defect in power supply, or in the supply of normal materials and spare parts of a machinery. Sec.2 (d) 6. Industrial Establishment An industrial establishment means an industrial establishment defined in the payment of

wages act, a factory defined in factories act a railway defined in railway act, and establishment of contractor, any premises where any of a construction industry. Sec.2 (f) 7. Workman Workman means any person employed in any industrial or commercial establishment to do any skilled or unskilled, manual or clerical work for hire or reward. Sec2 (i) Minimum Employment Benefits According to section 4 of the ordinance of 1968 conditions of employment of industrial and commercial workmen prescribing the minimum benefits to them have been explain by the different standing order as under: 1. Classification of workmen. (S.O.1) The following are the classifications of workmen a. Permanent Permanent workmen are those who are engaged on work of permanent nature likely to last for more than nine months and who complete three months probationary period satisfactorily in any occupation in the relevant establishment. Thus, a workman becomes permanent on completing three months probation satisfactorily. In calculating the three months period of probation, illegal lock out or strike will not be counted.

b. Probationer A probationer is a workman who is provisionally employed to fill a permanent vacancy in a post and has not completed three months service there in If a permanent workman is employed as a probationer in a higher post he may, at any time during the probationary period of three months, be reverted to his old permanent post c.Badli A badli is a workman who is appointed in the post of permanent workman or probationer, who is temporarily absent; badli workman can be on daily wages. His appointment is of purely adhoc nature. When the permanent workman returns to duty, the badli is automatically discharged d. Temporary Temporary is a workman who has been engaged for work, which is of an essentially temporary workman after the completion of 9 months does not become permanent e. Apprentice An apprentice is a person who is an apprentice under the law. He is learner who is a paid an allowance during the period of his training 2. Tickets (s.o.2) A permanent workman shall be given two tickets, a permanent ticket and a departmental ticket, showing the workmens number. A badli shall be

given a badli card in which are entered the days he works. A temporary workman is given a temporary card. An apprentice is given an apprentice card? These cards signify the status of the workmen. 3. Terms and Conditions (S.O.2-A) Every workman, at the time of his appointment, transfer or promotion shall be given an order writing showing the terms and conditions of hi service. 4. Working Time (S.O.3) The periods and hours of work shall be exhibited in Urdu and in principal language of the workmen on the notice board near the main entrance and timekeepers office 5.Holidays and Pay Days (S.O, 4) The days observed as holidays and paydays shall be exhibited on the notice board. 6.Wage Rates (S.O.5) The rates of wages payable for each class of workmen and each class of work shall be displayed on the notice board. 7.Shift Working (S.O.6) The rules are as under (a) The employer may direct that more than one shift shall be worked. (b) The workmen can be transferred from one shift to another.

(c) Shift working can be discontinued only after giving one months prior notice. (d) The permanent workmen can be discharged on the principle of last in first out if the shift working discontinues. (e) If the shift working is restarted, the discharged workmen shall be reemployed, applying the principle last out, first in 8.Attendance and Late Coming. (S.O.7) All workmen shall be at work at the establishment at the time fixed and notified under order. Workmen attending late shall liable to deduction for their wages. 9.Leave (S.O.8) Holidays and leaves with pay shall be allowed to workmen under the law. All other holidays according to law, contract, custom and usage are also allowed to workmen 10.Payment of Wages (S.O.10) All workmen shall be paid wages on an working day before the expiry of the 7th or 10th day after the last day of the wage period, if the number of workmen employed is 1000 or less or exceeds 1000, respectively. Unclaimed wages shall be paid on a day for payment of unclaimed wages, which shall be one day every week. 11.Group Incentive Scheme (S.O 10-A) In an industrial establishment where 50 or more workers are employed, there shall be introduced a

group incentive scheme for the workers in the factory. The incentive shall be in the form of additional wages or additional leave with wages or both for workmen whose production exceeds an average. 12. Compulsory Group Insurance (S.) 10-B) The employer shall have the entire permanent workman employed by him insured against risks of natural death and disability and death and injury due to contingencies not covered by others laws. The employer shall be responsible for the payment of premier and other arrangement. 13. Payment of Bonus (S.O. 10-C) Every employer making profit in any year shall pay for that year within three months of the closing of that year, to the workmen who have been in his employment in that year for a continues period of not les than 90 days, a bonus in addition to the wages payable to such workers. 14. Stoppage of Work (S.O 11) The employer has the right to stop the working of any section or sections, without notice due to causes beyond his control. 15.Lay Off (S.O.11-13) The employer can lay off the workers on a account of reasons mentioned in standing orders. Such laid off workers shall be paid wages according to the rules. 16. Closure of Establishment (S.O 11-A)

The employer is not allowed to terminate the employment of more than 50 percent of the workmen or to close down the whole establishment with out permission of the labour court accept under some special circumstances. 17.Termintion of Employment (S.O 12) The employment of permanent workmen other than misconduct is terminated by giving one months notice, either by the workmen or by the employer. And in lieu of such notice one months wages being average wages of the last three months, shall be payable. The employment of temporary workmen, a probationer or a badli may be terminated either by the workmen or by the employer, without giving any notice or any wages in lieu thereof. 18. Procedure of Retrenchment (S.O.13) Where any workman is to be retrenched and he belongs to a particular category of workmen, the employer shall retrench the workman who is the last person employed in that category. 19. Re-employment of retrenchment (S.O 14) In case of re-employment within one year they employer can offer re-employment to the retrenched worker according to their seniority. 20 Eviction from residential accommodation (S.O16)

When a workman retires or resigns, or is retrenched or discharged or dismissed or whose services have been terminated, he shall vacate the residential accommodation provided by his employer within a period of two months.

31 PAYMENT OF WAGES The payment of Wages Act, 1936 The law relating to payment of wages is contained in payment of wages act 1936. It consists of 26 sections and 5 appendices Application of the Act The payment of wages act extends to the whole of Pakistan. It applies to the payment of wages of persons employed in any factory and railway by a railway administration directly or through contractor. Provincial government is authorized to apply to any class of persons employed in an industrial establishment after giving a three months notice of its intention. This act will not apply in case of workmen who get monthly wages exceeding Rs.3000 (Sec.1) Definitions The definitions of important terms are as under: 1.Factory

A factory means any premises including the precincts thereof where ten or more worker are working or were working on any day of the proceeding twelve months, in which manufacturing process is being ordinarily carried on, with or without the aid of power but does not include mine. (Sec.2 (i) 2. Industrial establishment Industrial establish means any tramway or motor omnibus service, dock, wharf or jetty, inland steamvessel, mine, quarry or oil field, plantation, workshop, and establishment of a contractor. (Sec.2 (ii) 3.Wages Wages means all remuneration capable of being expressed in terms of money, which would, be payable to a person in respect of his employment or of work done in such employment and includes bonus, additional remuneration, sum payable by reason of the termination of employment, but does not include value of house accommodation, light, water, medical attendance, amenity, or any service excluded by order of provincial government, employers contribution to any provident fund or pension fund, traveling allowance or value of traveling concession, gratuity payable on discharge. (Sec. 2(6) Payment of wages The responsibility of payment of wages is on the following persons (Sec.3)

In factories, if a person has been named as the manager of the factory under the factories act, 1934 In industrial establishment, if there is a person responsible to the employer for the supervision and control of the industrial establishment In railway, the railway administration or the person nominated by railway in this behalf for the local area concerned (Sec.3) Fixation of wages periods The person responsible for the payment of wages shall fix the periods in respect of which such wages shall be payable. However, it has been legally laid down that no wage period shall exceed one month (Sec.4) Time of payment of wages In establishment employing less than 1000 persons, wages shall be paid before the expiry of the seventh day of the next month, and in all other establishment before the expiry of the tenth day In cases where services of a person are terminated, his wages shall be paid before the expiry of the second working day from the day on which his employment is terminated. The day for the payment of wages shall always be a working day (Sec.5) Deduction from the wages The following deduction can be made form the wages (Sec.7-13)

1. Fines, if any, imposed on the employee under the rules 2. Deduction for absence from duty 3. Deduction for the damage or loss caused to the goods by the employee. 4. Deduction for house accommodation provided by employer. 5. Deduction for amenities and services supplied to the employee. 6. Deduction for recovery of advances or adjustment of overpayments made to the employee. 7. Deduction for income tax payable by the employee 8. Deduction under the order of the court or other authority 9. Deduction for subscription to provided fund. 10. Deduction for payment to cooperative societies approved by provincial government or to a scheme of insurance maintained by Pakistan post office Important deduction Some important deductions are explained as follows: 1 Fines The rules with regard to fine explained as follows: a) The employer can impose fine on the employee for wrongful acts or omissions under some special circumstances and with the approval of provincial government

b)A fine can be imposed for those acts or omissions, which will be mentioned in the display notice. c) The employee must be given an opportunity to show causing before any fine is imposed. d)The fine imposed should not exceed the prescribed amount. e) No fine shall be imposed on a person who is under the age of 15 years. f) Fine imposed shall be recovered from wages in lump sum. g)Fine shall not be recovered after 60 days. h)Fine recovered shall be spent on the welfare of the employees 2. Absence from the duty A person is deemed to be absent form duty if he is physically present within the premises of his duty but not attending to his job. Deduction due to absence from duty shall be proportional to the period of absence from work. 3. Damage of loss A deduction shall not exceed the amount of the damage or loss caused to the employee due to the fault of the worker. Such deduction can be made only after giving an opportunity of showing cause against deduction to the worker 4. Services rendered Deductions for house accommodation, amenities and services supplied can be made only when the

employee had accepted these benefits of his free will as a term of his employment 5. Advances Deduction of any advance given before the employee joins employment must be made from the first payment of wages in respect of complete wage period. But and advance for traveling express cannot be deducted. 6 Payment to cooperative societies These deductions can be made as approved by the government 32 WORKMENS COMPENSATION Workmens Compensation Act, 1923 The law relating to workmens compensation is contained in workmens compensation act, 1923. It extends to the whole of Pakistan. It consists of 35 sections and four schedules. It deals with compensation to workmen due to accidental death, personal injury, disablement, specified occupational diseases arising during employment. Definitions Section 2 of the workmens compensation act, 1923 defines the different term as follows 1.Minor

A person who is under the age of 15 years is considered as minor. Sec 2 (1)(a) 2 Adults A person who has achieved the age of 15 years is considered as adult. Sec.2 (i)(a) 3.Dependent Depends means any of the following relatives of a deceased workman. Sec.2 (1) (d) a) These relatives will not have to prove that they were dependent on the earnings of the workman at the time of his death. They are wife, minor legitimate son, unmarried legitimate daughter and window mother. b)These relatives will have to prove that they were wholly are in part dependent on the earnings of the workman at the time of his death. They are widower, parent other than widowed mother, minor illegitimate son, unmarried illegitimate daughter, minor brother, unmarried or widowed sister, widowed daughter in law minor child of a deceased son and minor son of a deceased daughter. 4.Employer According to section 2(1) (e) the term employer includes:1. Any body of persons whether incorporated or not. 2. Any managing agent of an employer

3. Legal representative of deceased employer 4. A person to whom the services of the workman were temporarily lent and the workman was working for him 5.Partial disablement it means a disablement which reduces the earning capacity of a workman. It may be temporary or permanent. Sec2 (1)(g) (a) Temporary partial disablement It means a disablement, which reduces earning capacity of a workman in any employment in which he was engaged at the time of the accident resulting in the disablement (b) It means a disablement, which reduces the earning capacity of the workman in every employment which he was capable of undertaking at the time of accident 6.Total disablement Total disablement means a disablement, which incapacitates workman for all work, which he was capable of performing at the time of accident resulting in such disablement. It is provided that permanent total disablement shall be deemed to result from the permanent total loss of sight of both eyes or from any combination of injuries where the aggregate percentage of the loss of earning capacity amounts to one hundred percent Sec.2 (1) (1) 7.Wages.

Wages includes any privilege or benefit which is capable of being estimated in money, other than a traveling allowance or the value of any traveling concession or a contribution paid by the employer of a workman towards any pension or a provident fund or a sum paid to workman to cover any special expenses entitled on him by the nature of his employment.Sec.2 (1)(m) 8.workman Workman means any person who is employed on monthly wages up to Rs, 3000. It also includes railway servant if he is not permanently employed in any administrative, district or sub divisional office of railway. Workman does not include a person whose employment is of a casual nature and who is employed to work not connected with employers trade a person working in the capacity of a member of navel, military or air force. Sec.2 (1)(n) Employers liability for compensation The workmens compensation act, has abolished the documents of negligence .The employee is entitled to the benefits of the law regardless of doctrine of negligence 3, provides the following rules regarding workmens compensation. 1.Employer liable The employ is liable to pay compensation to a workman for personal injury and occupational disease

arising out of and in the course of employment. Besides injury, the employer is liable to pay compensation if the workman contracts any of the occupational diseases specified in schedule III of the act. (a) Personal injury An employer is liable to pay compensation to a workman if personal injury is caused to him by accident arising out of and in the course of employment. (b) Out of employment An accident arising out of employment means that there must be some relation between the injury and the accident and the work dome in the course of employment. In order to prove that injury arose out of employment two conditions must be fulfilled. Injury must have resulted from some risk incidental to the duties of the service. At the time of injury worker must have been engaged in the business of the employer and must not be doing something for his personal advantage. (c) In the course of employment It refers to the time during which employment continues. It covers whole of the time a workman is carrying out the duties required of him as incidental to his service. It includes not only the time when he is doing the work but also the time he is at place where he would not be for his employment. Sec.3 (2)

(d) Occupational diseases Workers employed in certain occupations are exposed to certain disease, which are inherent in these occupations. Contracting of an occupational disease is deemed to be an injury accident. Sec. Sec.3 (2) 2.Employer not liable The employer shall not be liable to pay compensation in the following cases Sec.3(i) (a) Where the incapacity or disablement does not last for more than 4 days. (b) Where the injury, not resulting in death, is caused by an accident which is directly attributable to: The workman having been at the time of accident under the influence of drinks or drug. The willful disobedience to and express order or rules framed for securing safety e.g. the worker did not use the eye shield at time of welding which was provided him. The willful removal or disregard of any safety guard or other device, which he knew to have been provided for securing safety. Amount of compensation The amount of compensation payable to a workman depends on the nature of the injury caused by the accident, and the amount of average monthly wages of the workman concerned. The amount of compensation shall be as follows: - Sec.4

1.Death Where death results from an injury to a workman who is in receipt or monthly wages not exceeding to Rs.3000 the amount of compensation payable to heirs be Rs.100, 000 as specified in column 10 of schedule IV. 2.Permanent total disablement Where permanent total disablement results from an injury to a workman drawing Rs.3000 p.m. as wages, the amount of compensation payable shall be Rs, 100,000 as specified in schedule IV 3.Permanent partial disablement Where permanent total disablement results from the injury. In case of injury specified in schedule 1, compensation will be calculated on the basis of percentage of loss of earning capacity as laid down there in. In case of an injury not specified in schedule 1, such percentage of compensation payable in case of permanent total disablement as is proportionate to the loss of earning capacity permanently caused by the injury. 4.Temporary disablement Where temporary disablement, whether or partial results from injury arising out and in cause of employment, the workman drawing wages up to Rs.3, 000 p.m. irrespective of being adult or minor, compensation payable shall be.1/2 of the monthly

wages during the period of disablement or a period of one year from the date of injury whichever is less. There after only in case of chronic disease, 1/3 of the monthly wages during the period of temporary disablement or for a period of 5 years from the date of injury which ever is less.

33 SOCIAL SECURITY Provincial Employees social security ordinance, 1965 The law relating to employees social is contained in provincial employees social security ordinance, 1965. It extends to the whole of Pakistan Sec.1 The object of this ordinance is to introduce a scheme of social security for providing benefits to certain employees or their dependents In the event of sickness, maternity, employment injury or death and matters ancillary thereto. Application of ordinance Section I (3) deals with the application of ordinance a follows: 1. The ordinance applies only to such industry or notified by the government.

2. The government can apply the ordinance to any industry or establishment irrespective of the number of employees 3. The ordinance one applied to an organization continues to apply even after the change of ownership Definitions. Section 2 of the provincial employee social security ordinance, 1965 defines the different terms as follows: 1. Appointed day Appointed days mean the day on which the social security ordinance has been made applicable to any are, class of persons, industries, and establishments and benefits. Sec2 (1) 2. Confinement Confinement means the labour resulting in the issue of a living child, or labour after twenty sic weeks of pregnancy resulting in the issue of a child, whether alive or dead. Sec2 (4) 3. Contribution Contribution mean sum of money payable to the institution by an employer in respect of an employee in accordance with the provisions of this ordinance. Sec. 2(5) 4. Dependent Dependent means the wife or wives or a needy invalid husband, independent parents, and any unmarried

children under the age of twenty-one years dependent upon the secured person. Sec2 (6) 5.Disablement Disablement mean a condition caused by an employment injury which, has permanently reduced, or likely to reduce permanently, a secured persons earning capacity, provided such condition is certified by a medical practitioner authorized for the purpose. Disablement may be minor, partial or total as follows:a) Disablement is minor when the loss of earning capacity is less than 20% b)Disablement is partial when the loss of earning capacity is between 21% and 60% c) Disablement is total when loss of earning capacity is in excess of 60% sec.2 (7) 6.Domestic. Servant Domestic servants mean any person working whole time in connection with the work of any household for any consideration, whether in cash or in kind. Sec2 (7A) 7.Employee Employee means any person working for at least 24 hours per week for wages in industry, business, undertaking or establishment under any contract but does not include: a) Persons in the service of state, armed forces, police and railways

b)Persons employed in Defence organizations or railway administration c) Persons in service of local council, municipal committee, cantonment board or local authority. d)Person in the service of his father, mother, wife, son, daughter or husband 8.Employment injury Employment injury means a personal injury to a secured person caused by an accident or by specified occupational disease arising out of and in course of employment. Sec. 2(10) 9.Secured person Secured person means a person in respect of whom contributions are payable under the social security ordinance. Sec.2 (25) 10.Wages Wages means remuneration for services paid payable in cash or in kind to a secured person, not being less than remuneration based on the minimum rates of wages, with out taking account of deduction for any purpose, under a contract of services or apprenticeship. Wages include: dearness allowance, cost of living allowance, and payment for authorized leave, illegal lockout, and illegal strike. But does not include overtime allowance payment for special expenses, or bonus. Sec2 (30)

SOCIAL SECURITY INSTITUTION For the enforcement of this ordinance of government set up employees social security institution. The various provisions relating to this institution are as under Sec.3 Establishment The institute is a body corporate. It has a common seal and perpetual succession. It has the power to acquire, hold and dispose of property both moveable and immoveable. It can sue and be sued by its own name. It has its own funds. It can incur expenditures where necessary. Sec.3. Management The management of the institution will be governed by a governing body with the assistance of commissioner. The institution is bound to follow the instruction of the government on the question of policy.Sec.4 Governing body The governing body of the institution shall consist of twelve members appointed by the government as follows: - sec 5(I) 1. One person will be chairman. A chairman must be a person who is or has been a judge of high court, or senior officer of government not below the rank of commissioner or secretary to government.

2. Four persons will represent government, one each from department of labour, industries, health and finance. 3. Three persons will represent employers 4. Three persons will represent secured persons 5. One medical advisor will be ex-officio officer The representative of employer and secured persons will be chosen from a list of names submitted by the recognized organizations of employers and employees. The government shall select first members before the completion of lists and formation of rules. Sec 5(2) A member shall hold office for 3 years from the date on which his appointment is made. Sec5 (3) Powers and functions of general body The powers and functions of the governing body are as under: 1. To direct and supervise the affairs of institution Sec.4 (1) 2. To approve the budget estimates, audited accounts and annual reports of the institution for submission to government Sec 6(1) 3. To call for any information or direct any research to be made for the furtherance of the objects of this ordinance. Sec.6 (2) Meetings of the general body The rules in this respect are as under sec.7

1. The meetings of the general body shall be held according to the regulations made in this behalf. 2. To constitute a quorum at a meeting, the number of members shall be 5. 3. Each member shall have one vote. The chairman shall have a costing vote 4. The chairman shall preside over the meetings. In the absence of chairman a person elected by the members shall preside over the meeting. Supervision of the governing body The government can supersede the governing body of it fails to perform the duties imposed upon it. The government shall, before suppression, give an opportunity to the governing body to explain its position. The government upon suppression of governing body shall constitute another governing body by appointing new members. Sec.9 CONTRIBUTION Meeting Contribution means the sum of money payable to the institution by an employer in respect of an employee in accordance with the provisions of this ordinance. Sec.2 (5) Responsibility of contribution The responsibility of payment of contribution is as under: -

1. The employer shall be responsible for payment of contribution where he employs workmen directly or indirectly. 2. In case of construction work the owner of building shall guarantee the payment of contribution by the contractor. 3. In case of work done by contractor on behalf of government, the contractor will deposit the contribution with institution. If he fails, the authority shall deduct such amount before any payment is made to him. Amount of contribution The employer shall pay contribution at the prescribed rate. For this purpose daily wages be calculated in such manner as may be provided by regulations. Where the mode of payment of remuneration whether in cash or in kind, makes it difficult to determine the amount of wages for computing the contribution, the commissioner may determine the amount of wages. Under the law and employer is liable to pay contribution at the rate of 7% of the wages of all such employee whose wages do not exceed Rs.3,000 p.m.Sec.20 Record of contribution The employer is required to maintain records showing the payment of contribution. The employer is also required to file a return, on the basis of such

records, showing the particulars of the persons employed in the prescribed from. Sec.20 Checking of records If authorized officer can check the records to ensure its correctness. Such officers shall have power: Sec.21 1. To ask any employer to provide any information. 2. To enter any premises occupied by any employer. 3. To ask any person in charge of the promises to provide documents about employment of persons and payment of wages. 4. To examine the in charge and secured persons. Sec.22 Unpaid contribution Under the following situations the contribution payable by the employer can be increased. 1. Where the employer fails to pay the contribution on due date. The amount shall be increased by a prescribed percentage, but the amount of increase shall in no case exceed 50% of the amount due. 2. When the employer does not observe the safety and hygienic rules the commissioner shall increase the rate of contribution by an order in writing. But this increase shall not be more than 20%. Social security benefits The following social security benefits are available to the secured persons

1. Sickness benefit A secured person who is certified by authorized medical practitioner to be incapable of attending to his work due to sickness, shall be entitled to receive sickness benefit at the prescribed the contribution in respect of him was paid or payable for at least 90 days during sex months immediately preceding his incapacity to work. A secured person shall be entitled to his benefit through out the period of sickness. But it will not be paid for more than 365 days in case of T.B. and 121 days in case of any other disease. Moreover, no benefit shall be given for first two days Sec.35 2. Maternity Benefit A secured person is entitled to receive this benefit at the prescribed rate provided contribution in respect of her has been paid according to law. This benefit is payable for all days on which she does not work during the period of 12 months. Sec.36 3. Death Grant On the death of secured person, the person entitled to receive such benefit, shall e entitled to death grant which will be equal to the daily rate of sickness benefit multiplied by 30 subject to minimum of Rs. 1500 Sec. 37(1) 4. Iddat benefit Where the husband of a secured women dies she shall be entitled to receive iddat benefit equal to the daily

rate of her wages during the period of her iddat. Sec.37 (2) 5. Medical care during sickness and maternity A secured person and his dependents shall be entitled to medical care according to the regulations. The secured woman shall also be entitled to prenatal confinement and post natal medical care if she is entitled to such benefit Sec.38 (1)(2) 6. Medical care of dependents Where secured person dies other than due to any employment injury, his dependents shall subject to regulations be entitled to medical care for one year from the date of death of secured person. Sec.38 (a) 7. Injury Benefit A secured person is entitled to receive injury benefit. The secured shall receive this benefit from the day he suffers employment injury. This benefit is payable for a maximum period of 180 days. The rate for the time being announced is 60% of the daily rate of wages.Sec.39 8. Disablement pension A secured person who sustains total or partial disablement shall be entitled, after the expiry of his entitlement to injury benefit, to receive disablement pension. Disablement pension shall terminate with the death of the secured person, or when disablement ceases. The disablement pension shall be payable for life if the same has been paid for five year. Sec.40

9. Disablement gratuity The secured person sustaining minor disablement shall be entitled to disablement gratuity according to the rules. If a secured person receiving this pension ceases to suffer from total or partial disablement but continues to suffer from minor disablement, he shall , on the termination of disablement pension, be entitled to disablement gratuity. Sec.41 10. Survivors pension Survivors pension is payable to each of the dependents according to the rule subject to the maximum of rate of total disablement pension which was payable to deceased person. Survivors pension shall terminate upon the death of survivor, upon the remarriage of survivor window, and upon the attaining 16 years of age of dependent child. When the deceased person does not leave a widow or needy widower the survivors pension shall be payable to the dependent father, or mother, if they are alive, at the rate of equal to 1/5the of the rate of total disablement pension. Sec.42 34 THE EMPOYEES OLD-AGE BENEFITS ACT, 1976

The above act consists of eight chapters (48 section), in respect of subject such as, preliminary, insured persons , contributions, finance and audits, benefits, provisions common to all benefits, determination of questions and claims and miscellaneous. It extends to the whole of Pakistan. It applies to every industry or establishment in which the employer employs ten or more persons directly or through any other person. DEFINITIONS Benefits Benefits means old-age pension, invalidity pension, windows pension, old-age grant and such other payments as may be determined by the federal government from time to time. Contribution. Contribution means the sum of money payable to the institution by the employer or by the federal government in respect of an insured person under the provisions of the act Employee Employee means any person employed, whether directly or through any other person , for wages or otherwise , to do any skilled or unskilled, supervisory, clerical, manual or other work in , or in connection with the affairs, of an industry or establishment, under a contract of service or

apprenticeship, whether written or oral, express or implied an includes such person when laid off; Employer Employer, in relation to an industry establishment, means any person who employees, either directly or through any other person, any employee an includes: (i) In the case of an individual, an heir, successor, administrator or assign; (ii) A person who has ultimate control over the affair of an industry or establishment, or where the affairs of an industry or establishment are entrusted to any other person (whether called a managing agent, managing director, manager, superintendent, secretary or by any other name), such other person. Employment injury Employment injury means a personal injury to a secured person caused by an accident or by specified occupational disease arising as may be to specify in the regulations, arising out of and in course of employment. Establishment Establishment mean 1. An establishment to which the West Pakistan shops and establishments ordinance, 1969(West Pakistan ordinance no. VIII of 1969), for the time being applies, and notwithstanding anything

contained in section5 thereof, includes clubs, hostels, organizations and messes not maintained for profit or gain and establishment, including hospitals, for the treatment or care of sick, infirm, destitute or mentally unfit persons 2. A construction industry as defined in the West Pakistan industrial a commercial employment (standing orders) ordinance. 1968 (West Pakistan ordinance no. VI of 1968) 3. A factory as defined in the factories act, 1934 (XXV of 1934) 4. A mine as defined in the mines act, 1923 (IV of 1923); 5. A road transport service as defined in the road transport workers ordinance, 1961(XXVIII of 1961); and Includes any class of industries or establishments, which the federal government may, by notification in the office gazette, declare to be establishment for the purposes of this act. Insurable employment Insurable employment means employment of a person under a contract of service or apprenticeship, whether written or oral, express or implies and in respect o which contributions are repayable under this act.

Invalidity Invalidity means a condition, other than that caused by an employment injury, as a result of which an insured person is permanently incapacitated to such an extent as to be unable to earn from his usual or other occupation more than one-third of the normal rates of earning in his usual occupations. Wages Wages means remuneration for services paid or payable in cash or kind to an insured person, not being less than the remuneration based on the minimum rates of wages declared under the minimum wages ordinance, 1961(XXXIX of 1961), without taking account of deductions for any purpose, under as contract of service or apprenticeship, express or implied and shall deemed to include to include any dearness allowance or other addition in respect of the cost of living, and any payment by the employer to an insured person in respect of any period of authorized leave, illegal lock-out or legal strike; but does not include: (1) Any payment for overtime; or (2) Any sum paid to the employee to defray special expenses entailed by the nature of his employment or (3) Any gratuity payable on discharge or (4) Any sum paid as bonus;

INSURED PERSONS All employees in an industry or establishment shall be insured in the prescribed manner. The federal government has been vested with powers to establish or nominate the employees old age. Benefits institution. The general direction and superintendence of the affairs of institutions shall vest in board. The board of trustees will have the following powers: 1. To approve the budget estimates, the audited accounts and the annual report of the institution for submission to the federal government in accordance with the provision of the act; and 2. To call for any information or direct any research to be made for the furtherance of the objects of the act. The federal government on such terms and conditions shall appoint the chairman as it may detain. The board of trustees shall consist of following to be appointed by the federal government. 1. The secretary or additional secretary in the labour division, who shall also be the president of the board of trustees. 2. Four persons to represent the federal government, one each from the ministries of finance, commerce, industries and labour

3. Four persons to represent the federal government one to be nominated by each of the provincial government 4. Four persons to represent employers 5. Four person to represent insured persons and 6. Two persons to represent the institution. CONTRIBUTIONS Contributions are required to be paid every month by the employer to the institution in respect of every person n his insurable employment at he rate of 5% of his wages in the prescribed manner. Employees drawing wages in excess of Rs.3000/- are excluded from the scheme of the above act. Mover over no contribution shall be pay able in respect of an insured person who is in the receipt of pension under the above act or has attained the age of sixty years, or fifty-five years in the case of a woman. With effect from July 1986, contribution shall be payable on quarterly basis by the federal government to the institution in respect of every insured persons at the rate of 5% of his wages. The restriction mentioned above in respect of contributions is also applicable to the government contribution. Any official of the institution has the following powers. 1. Require an employer to furnish to him such information as the he may consider necessary

2. At any reasonable time, enter any establishment or other premised occupied by such employer an require any person found in charge there for produce and allow him to examine such accounts books and others documents relating to employment of persons an payment of wages or to furnish to him such information, as he may consider necessary 3. Examine with respect to any matter relevant to the purpose aforesaid the employer, his agent or any person found in such establishment or other premises or any other person whom the said official has reasonable cause to believe to be or to have been an insured person. FINANCE AND AUDIT The institution is required to have its own fund entitled employees old age benefits fund. The institution is authorized to derive its revenues from the following source. 1. Contribution payable under the above act and rules. 2. All other payments made by the employers under the act and the regulations. 3. Income from investment of the moneys the institutions and 4. Donations and bequests for the purposes of the above act

The institution is required to drawn up annually a budget showing the anticipatory receipts and expenditure during the following year and shall submit it to the board for the approval of the federal government. The accounts of its income and expenditure are required to be maintained in a prescribed manner .the books of accounts should be balanced on June 30 each year and the accounts should be audited bye the auditors approved by the federal government. The auditor has been given sufficient powers and required to forward their report together with an audited copy of the accounts of the institution to the federal government. In addition is also required to submit to the federal government report of its work and activities. The institution is required to have an actuarial valuation made in the prescribed manner of its assets and liabilities at intervals of not more than five years. 1.Old-Age Pension Payment of pension to insured person in respect of old-age pension is governed by the following rules. (a) An insured person shall be entitled to monthly old age pension at prescribed rate, if he is over 60 years of age (50 years in the case of a woman) and contributions in respect of him were payable for not less than 15 years. The period shall be reduced by 5 years

if the insured person was employed in the occupation of mining for at least 10 years immediately proceeding retirement. (b) If an insured person was on the 1st day of July, 1976, or is on any day there after on which this act becomes applicable to an industry or establishment (i) Over 40 years of age, or 35 years in the case of a woman, the word 15 will be reduced to 7 years; Over 45 years of age, or 40 years in the case of woman, the work15 will (c) The old age pension shall commence as from the month following that in which the insured person satisfies the condition for entitlement there to, provided that no allowance shall be payable retrospectively for more than six months preceding the months in which an application for old age pension is submitted. (d) Insurable employment of a person for the purposes of this act shall commence on the date from which the first contribution in respect of him becomes payable; (e) The old age pension payable to an insured person shall be terminated at the end of the month in which the death of such person occurs.

An insured person who was insured under the provision of this act on or before the 30th June 1986, and will attain the age of 55 years (50 years in case of a woman) on or before the 30th june, 1991, and in respect of whom contributions where payable to the institution for the period required under the provisions of this act, shall be entitled to old age pension at eh age of 55 years (50 years in the case of a woman) An insured person already in receipt of an old age or invalidity pension or entitled to an old age pension under the provisions of the act, shall be entitled to a minimum pension at the rate specified in the schedule An insured person who retires from insurable employment before attaining the age of 60 years, (55 years in the case of a woman) but after attaining the age of 55 years (50 years in case of woman) shall be entitled to a reduced old age pension fulfilling the following conditions (i) The institution is satisfied through documentary evidence that the employer has a definite establishment retirement age of less than 60 years (55 years in the case of a woman) (j) The employer certified that the insured person has been retired by him on attaining the age of superannuating; and (k) The contributions in respect of him were payable for the period required under the provision of this act.

The old age pension shall be reduced by one half per cent of the old age pension specified in the schedule for each completed month by which the age falls short of sixty years (55 years in case of a woman) and the minimum old age pension shall also be reduced in the aforesaid manner in the case of retirement from insurable employment before attaining the age of 60 years (55 years in the case of woman) The reduction in old age pension specified in the above paragraph, shall be for life and shall not be resorted on the insured pensions attaining the normal pension age. 2-. Old age Grant If an insured person, not otherwise entitled to old age pension, retires from insurable employer after attaining the age of 55 years, or 50 years in the case of a woman, and contribution in respect of him were payable for less than15 years but not less than 5 years, he shall be entitled to an of old age grant payable in lump sum equal to 50 percent of his monthly wages for every completed years of insurable employment or part there of in excess of 6 months. 3. Survivors pension In the case of the death of an insured person which in insurable employment but after he had completed not less than 36 months insurable employment, the surviving

Spouse, if any, shall be entitled to a life pension equal to 60 percent of minimum pension In the case of the death of an insured person who had become entitled to old age pension before his death, the serving spouse shall, if the spouse had married the deceased person before he had attained the minimum age prescribed for of age pension, receive a life pension of 60 percent of the pension of such person In the case of the death of the surviving spouse in respect of a survivors pension within five yeas after the death of insured person, the survivors pension for the balance of the said five years shall be paid to the estate of the deceased spouse In the case of the death of an insured person not survived by a spouse, the survivors pension shall be paid to the estate of the deceased for a period of five years 4. Invalidity pension (a) Contribution in respect who suffers invalidity shall be entitled be get invalidity (b) Contributions in respect of him were payable for not less than five years since his entry into insurable employment and for not less than 3 years during the period of five years preceding the months in which he sustains invalidity; and

(c) In either case he is under 60 years of age or 55 years of age in the case of a woman. The invalidity pension shall be payable from the month following that in which the insured person satisfies the conditions for entitlement there to. The invalidity pension shall not be pay able retrospectively for more than six months preceding the months in which an application for the invalidity pension is submitted The invalidity pension shall be payable so long as invalidity conditions. The insured person who has been in receipt of the invalidity pension for not less than five continuous years or attains the age specified shall be entitled to the invalidity pension for life 5. Act not to apply The provisions of this act will not apply in respect of following categories of persons: (a) Person in the services of the state, including members of armed forces, police force and railway servants; (b) Persons in the service of a local council, a municipal committee, a cantonment board or any other local authority; (c) Person who are employed in services or installations connected with or incidental to the armed forces of Pakistan including an ordinance factory maintained bye the federal government of railway administration

(d) Persons in the services of water and power development authority; (e) Person in the service of a bank of banking company (f) Persons in the service of statutory bodies other than those employed in or in connection with affairs of a factory. Workshops maintained exclusively for the purposes of repair or maintenance of equipment or vehicles used in such statutory bodies shall not be treated as factories for the purposes of this clause (g) Members of the employers family (husband, wife and dependant children) living in his house, in respect o their work for him 6. Officers & Penalties According to section 37 of the act, the following acts have been considered as offences under the act: (a) If any person for the purpose of obtaining a benefit, or denial of any payment or benefit under this act, whether for himself or some other person or for the purpose of avoiding any payment to be made by himself or any other person under this act knowingly makes or causes to be made false statement of false representation; or

(b) If he produces or furnishes, or causes or knowingly allows to be produced or furnished any document or information which he knows to be false in any material particularly; or (c) If he fails to pay any contribution which under this act he is liable to pay ;or (d) If he recovers or attempts to recover from an insured person, or deducts or attempts to deduct from his wages, the whole or any part of the contribution; or (e) If he fails or refuse to submit any return required by this act or regulation or makes a false return; or (f) If he obstructs any official of the institution in the discharge of his duties; or (g) If he is guilty of any contravention of, or non-compliance with, any of the provisions of this act or the rules or the regulations In all the above cases, he shall be punished with imprisonment for a term, which may extend to 2 years, or with fine with may extend to Rs.10, 000 Section 38 of the act deals with the PROSECUTION matters. According to this section, not prosecution under this act shall be instituted except with the precious sanction of the federal government or any officer or authority authorized in this behalf by it. No

court inferior to that of a magistrate of the first class shall try any offence under this act. Also no court shall take cognizance of any offence under this act except on a complaint made in writing within 6 months of the date on which the offence comes to the knowledge of the federal government or an officer or invalidity referred to in subsection above 7. Power to make Rules The federal government has been empowered to make rules to carry out the purpose of this act. Such rules may be formulated for the following purposes: (a) The tenure of office of member of the board, other than the chairman and other terms and conditions of appointment of the members of the board and the manner in which the board shall conduct its business, including the number of members required to from quorum at the meeting there of; (b) The manner in which names of persons from whom members of the board may be appointed shall be submitted by organizations of employer and employees recognized by the federal government for that purpose. (c) Power and functions of the board. (d) Fees and benefits of the member of the board.

(e) Times and rates at which, and conditions subject to whom contributions shall be payable. (f) Percentage or amount by which contributions in arrears may be increased. (g) Investment of surplus moneys, realization of investments and reinvestment of proceeds. (h) Times at which and the manner in which the budget of the institution shall be prepared and submitted to the federal government (i) The form an manner in which the institution shall keep accounts of its income and expenditure an of its assets an liabilities. (j) The times at which, and the manner in which, the accounts of the institution shall be audited. (k) The matters, which the annual report of institution, shall cover. (l) The times in which claims for the benefit shall be made (m) The manner and procedure for disposal of appeals by the board. (n) Any other matter which is required to be or may be prescribed 8. Power to make Regulations

The federal government by the notification in the official gazette makes regulations and such regulations may provide for all or any or the following matters (a) The times and places at which meeting of the board shall be held. (b) The matter in which daily wages shall be calculated for the purpose of determining the contribution payable. (c) Determination of wages for computation of contributions where the mode of payment of remuneration, in cash or kind, makes such computation difficult (d) Records to be kept an returns to be submitted by employers, time at which at the form in which such returns are to be submitted, and particulars relating to the insured persons to be started in such returns and the manner and form for registration of employers and insured persons. (e) The manner in which any claim of the institution for unpaid contributions may be extinguished. (f) Power and duties of internal auditors. (g) The form and manner in which claims for a benefit shall be preferred and the documents information and evidence which shall accompany such claim.

(h) The manner in which and the time and places at which payment in respect of a benefit shall be made (i) The manner in which and the time within which complaints, questions and disputes shall be decided. (j) The circumstances and the manner in which, on new acts coming to light, the institution may review decisions (k) The method of payment of contributions and liability thereof (l) The manner in which invalidity shall be assessed and the procedure thereof (m) The manner in which proof of age shall be furnished for the purpose of this act (n) The manner In which the services of the institution shall be organized and (o) Any other matte not provided for in this act or the rules necessary to give effect to the provisions of this act The federal government may, subject or such conditions as it thinks fit to impose by notification in the official gazette exempt any establishment or industry from all or any of the provision of this act