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Inquiry against Worker on Misconduct

1. Introduction

Standing order 15 of industrial and commercial employment, ordinance, 1968 provides punishment for certain acts and omissions which

have been declared to be actionable and termed as misconduct. Four kinds of punishments have been prescribed according to the degree

or severity of the act or omission and made it obligatory on the employer to frame a Charge-sheet before dismissing the workmen.

2. Relevant Provisions

Following are the relevant provisions of industrial and commercial employment (Standing orders) ordinance, 1968 regarding the concerned


Standing order 15(2)(3)(4)

3. Definition of 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.

4. Acts or Omissions amounts to misconduct

The following acts or omissions shall be treated is misconduct.

Allegations which are not covered by any of 12 Kinds of activities which could be treated as misconduct specified in SO 14(3) cannot be

treated as misconduct.

i. Willful Disobedience
Willful disobedience or insubordination to an lawful and reasonable order a superior would amount to misconduct word willful means

deliberate and intentional act determinable on the facts and circumstances of each case.

ii. Theft, Fraud or Dishonesty

Theft, fraud or dishonesty in connection with the employer’s business or property.

iii. Willful Damage or loss

Intentionally and deliberate damage to or loss of employer’s goods or property.

iv. Immoral Activities

Taking or giving bribes or any illegal gratification.

v. Habitual Absence

Habitual absence without leave or absence without leave for more than 10 days.

Habitual implies a tendency or capacity resulting from the repetition of the same act.

vi. Habitual late Attendance

Habitual late attendance and it is to be proved by aggregate of facts.

vii. Habitual breach of law

Habitual breach of any law applicable to the establishment.

viii. Act subversive of Discipline

Disorderly behavior during the working hours at the establishment or any subversive act of discipline amounts to misconduct. Threat given to

superior by worker outside factory premises would be as an act subversive of discipline.

ix. Habitual Negligence

Negligence is the state of mind of undue indifference towards one’s conduct and its consequences. It is the breach of duty to take care.

Habitual negligence or neglect of work will amount to misconduct.

x. Acts mentioned in clause

Frequent repletion of the acts and omission referred to in clause (1) e.g making false statements.
xi. Striking

Strike means cessation of work or refusal to continue to work. Striking work or inciting others to strike in contravention of the provisions of

any law or rule having the force of law.

xii. Go-Slow

Go-slow means an organized deliberate and purposeful slowing down of normal output of work by a body of workers in a concerted manner.

5. Punishments for Misconduct

A workman found guilty of misconduct shall be liable to any of the following punishments.

i. Fine

He may be liable to fine in the manner prescribed under the payment of wages Act. 1936 up to three paisa in the rupee of the wages payable

to him in a month.

ii. Withholding of increment etc

He may be punished by withholding of increment or promotion for a specified period not exceeding one year.

iii. Reduction

He may also be punished by a reduction to a lower post.

iv. Dismissal

A workman may also be punished by way of dismissal from service without payment of any compensation in lieu of notice.

6. Essential requirements for the punishment of dismissal

a. Charge Sheet

Charge sheet is the first step of the procedure laid by clause (4) of standing order 15.

i. Purpose of Charge sheet

The purpose of charge-sheet is to communicate to the workman concerned the specific charge or charges together with the allegation on

which such charge or charges are based and to call for his explanation in respect of the same.

ii. Form of Charge Sheet

The charge sheet must be in written form.

iii. Language of Charge Sheet

The charge sheet must be in language which can be understood by the workman.

iv. Particulars of Charge Sheet

a. the charge sheet must contain full particulars of the alleged misconduct.

b. the manner in which it is alleged to have been committed, and

c. any other matter or circumstances that is proposed be taken into consideration when passing final order on the case.

b. Opportunity of being heard

Workman shall be given an opportunity to explain the circumstances of the alleged misconduct against him.

c. Holding of inquiry

When eh explanation of the workman in reply to the charge-sheet is not found satisfactory and the employer intends to proceed further

against him, it will be mandatory on the employer to institute an independent inquiry into the matter before dealing with the charges against


Employer is not required to supply record of inquiry to employee as there is not provision of law obliging employer to do so.

i. Assistance of any other workman

The workman against whom inquiry is being proceeded may nominate any workman employed in that establishment for his assistance and

employer shall allow such workman to be present in the inquiry to assist the workman proceeded against and shall not deduct his wages if

the inquiry is held during his duty hours.

d. Suspension of workman by employer

An employer may suspend the workman concerned for the purpose of conducting an inquiry, for a period not exceeding four days at a time

so. However the total period of such suspension shall not exceed four weeks.

i. Form of suspension

The order of suspension shall be in writing and take effect immediately on delivery to the workman.

ii. Payment of allowance to the workman

During the period of suspension, the employer shall pay subsistence allowance of not less that 50 per centum of the wages, to the workman

iii. Where workman found not Guilty

If the workman is found not guilty he shall deemed to have been on duty during the period of suspension and shall be entitled to the same

wages as he would have received if he had not been suspended.

f. Approval of employer

It is only the employer who can dismiss the workman and not any officer subordinate to him. The approval of the employer shall be obtained

before dismissing the workman for service.

7. Failure of comply with provision of order

The failure to observe the procedure prescribed in standing order 15(4) will render the order of dismissal a nullity in the eye of law.

8. Conclusion

To conclude, I can say that, the fair progress of industry demands that the workmen should work property and in disciplined manner standing

order 15 prescribes punishments for the misconduct on the part of the workman and also safeguards the interests of workman against

arbitrary dismissal from the service.

Retrenchment under Industrial and Commercial

1. Introduction

It is undeniable right of the management to retain the services of those person sonly who are really useful and terminate the services of

those ones who becomes surplus to the requirements of the employer. It is called retrenchment and is to be made bona fide and the

workman retrenched has the right of re-employment in preference of others where the employer proposes to take into his employment any

person within a period of one year from the date of retrenchment.

2. Relevant Provisions

Following are the relevant provisions of industrial and commercial employment (standing orders) ordinance, 1968 regarding the concerned


Standing order 13,14 and 14-A

3. Meaning of Retrenchment

“Retrenchment means the termination of services of a workman by the employer on the ground of redundancy, i.e, when he becomes surplus

to the requirements of the employer."

4. Retrenchment of a workman u/order 13

i. Authority Empowered to Retrench

It is the employer who can retrench the workman.

ii. Rule of Retrenchment

In the retrenchment “Last come first go” rule must be followed where any workman is to be retrenched and he belongs to a particular

category of workmen, the employer shall retrench the workmen who is the last person employed in that category.

a. Meaning of Category

Word category means category in an establishment. Whole business concerns if one establishment it will be one unit. Business concern if

consisting of various establishments each will be a separate unit and category would means category of that unit.

iii. Essential for retrenchment

It is necessary that the retrenchment order must be made bona fide. The court should not interfere until and unless some positive mala fide is

proved regarding injury to employee. The burden of proof is upon party urging mala fide.

5. Re-Employment of Retrenched workmen

The retrenched workmen are entitled to the re-employment where employer proposes to take into his employ any person within a period of

one year from the date of such retrenchment and it is incumbent upon the employer to follow the following procedure.

i. Notice to Retrenched workman

The employer shall send a notice by registered post to the retrenched workmen belonging to the category concerned to offer themselves for

re-employment and that notice shall be sent to the last known addresses of the retrenched workmen.

ii. Preference over others

The retrenched workmen shall have preference over others and shall be given re-employment on the basis of their inter-se seniority.

6. Re-Employment in case workmen retrenched belongs to seasonal factory

In case of seasonal factory the workman who was retrenched in one season and reports for duty within ten days of the resumption of work in

the factory in the immediately following season shall be given preference for employment by the employer.

i. Notice

Sending a notice to the retrenched workman in case of seasonal factory in not obligatory on the employer but he may if he wishes, send a

notice by registered post to the last known address of a workman who was retrenched in one season, require him to report on a day

specified in the notice, not being earlier than 10 days before resumption of work in such factory.

ii. Report by workman

If such workman reports as required by the employer on a specified day, he shall be given preference for employment and paid full wages

from the day he reports.

7. Re-employment of Retrenched workman engaged in constructions Industry

Where any workman is retrenched or discharged by a contractor or employer engaged in the constructions industry due to completion,

cessation, discontinuance of work, he shall be given preference for employment in any other similar work undertaken by the contractor or

employer within a period of one year from the date of such retrenchment or discharge.

i. Where workman Re-employed within one month of Retrenchment

Where a workman is re-employed within one month of his retrenchment or discharge he shall be deemed to have been in continuous service

of the contractor or employer but no wages shall be paid to him for the period of interruption.

8. Conclusion

To conclude, I can say that, the retrenchment is not to be understood in the same sense as the termination of services of workman on the

complete closure of business. Retrenchment implies a continuous running of the business when the services of only some of the workmen

who become surplus to the requirements of the employer, are terminated. It shall be incumbent upon the management to retrench only that

workman who is the last person employed in that category where the retrenchment has become necessary and it is the right of the

retrenched workmen to be given preference over the others if the vacancy occurs in the same category within a period of one year from the

date of retrenchment.

Compulsory Group Insurance

1. Introduction

The provisions of Industrial and commercial employment (Standing orders) ordinance, 1968 makes it compulsory for the employers that they

shall have the group insurance of all the permanent workmen working under their administration against the natural death and disability and

death and injury arising out of contingencies.

2. Relevant provisions

Following are the relevant provisions of industrial and commercial employment (Standing orders) ordinance, 1968 regarding the concerned


Standing order 10-B

3. Object of Order 10-B

The object of order 10-B is to provide financial assistance to the workmen or to his legal heirs and secure the life of workmen.

4. Compulsory Group Insurance

Under Order 10-B the employers are required to have all their permanent workmen insured against natural death and disability and death

and injury arising out of contingencies not covered by the workmen’s compensation Act 1923 or provincial employees social security

ordinance, 1965.

i. Essential to claim group Insurance

Claim of group insurance is enforceable only where relationship of employer and employee subsists and not terminated.

ii. Workman entitled to Insure

Only permanent workmen are entitled to insure.

a. Meaning of Permanent Workman

A permanent workman is a workman who has been engaged on work of permanent nature likely to last more than nine months and has

satisfactorily completed 3 months probationary period in the same or another occupation in the Industrial or commercial establishment and

includes a badly who has been employed for continuous period of 3 months or for 183 days during any period of twelve consecutive months.

b. Insurance of Risks

The employer shall insure the workmen against the following risks.

i. Natural Death

The purpose is to provide financial assistance to the legal heirs of the deceased workman. Where the death of worker was not natural but

due to over intoxication, legal heir is not entitled to insurance.

ii. Disability

Word disability means incapacity to act or move. Falling health could not constitute disability.

iii. Death or injury arising out of contingencies

Workmen shall be insured against any death or injury arising out of contingencies not covered by the workmen’s compensation act, 1923 or

the social security ordinance 1965.

5. Responsibility of employer
i. Payment of Premium

The employer is responsible for the payment premium in group insurance of workmen.

ii. Administrative Arrangement

The employer is responsible for all administrative arrangements of group insurance whether carried out by himself or through an insurance


6. Amount of Insurance

The amount for which each workmen shall be insured shall not be less than the amount of compensation specified in schedule IV to the

workmen’s compensation Act, 1923.

7. Liability of employer when workmen not insured

If the employer fails to insure all workman as prescribed, the employer shall pay in the case of death ot the heirs or in the case of injury ot the

workman, such sum of maoney as would have been payable by the insurance company, had such worker been insured.

8. Manner of Recovery

All claims of a workman or his heirs or recovery of money from the employer u/sec 4 shall be settled in the same manner provided under

workmen’s compensation Act 1923.

9. Jurisdiction Entertaining Claims of compulsory Group insurance

The commissioner for workmen’s compensation has jurisdiction to entertain and adjudicate claim under standing order 10-B.

10. Order of commissioner is not Appealable

The order of commissioner regarding group insurance amount is not appealable.

11. Remedy against order of commissioner

Remedy could be availed of in constitutional jurisdiction of High Court.

12.Applicablity of order 10-B

The provisions of standing order 10-B shall not apply the first instance, to any industrial establishment not more than forty nine persons were

employed on any day during the preceding 12 months but Govt. may by notification in the official Gazette extend it ot any such industrial

establishment or class of such establishments.

13. Conclusion

To conclude, I can say, that the insurance policy is obtained to ensure payment in respect of risk covered thereby. By virtue of standing order

10-B, duty is imposed on employer to insure all his permanent workmen against all four risks set out is S.O. 10-B, and the object is to provide

financial assistance to the workmen or his heirs.

Unfair Labour Practices

1. Introduction
The main object of PIRA, 2010 is to regulate the relation of employer and workman and it provides a
complete code of conduct for both of employer and employee and certain acts of both these parties has
been termed as unfair labour practices and made punishable as such.

2. Relevant Provisions

Section 31, 32, 33, Industrial relation Act 2010

Section 17, 18, 64, Punjab Industrial Act 2010

3. Definition of workman

Workman means persons, not falling within the definition of employer, who is employed in an
establishment or industry for remuneration or reward either directly or through a contractor and
includes a person who has been dismissed, discharge, retrenched, laid off or otherwise removed from
employment in connection with industrial dispute but does not include a person who is employed
mainly in a managerial or administrative capacity.

4. Unfair Labour practices on the part of workman

Following acts, of workman, trade union of workman or any of its members or office bearers or any
other person, are declared as unfair and termed as unfair labour practices on the part of workmen.

a. Persuasion

By virtue of PIRA, every workmen can join any trade union of their choice within the establishment or
industry they are employed. No workman shall be persuaded to join a trade union or refrain from
joining a trade union during working hours. If so, then the person who persuade shall be guilty of an
unfair labour practice. This is due to the fact that the work of an industry should not be affected by
unnecessary canvassing during working hours.

b. Intimidation

Intimidation includes the elements of force or violence. No workman etc can intimidate any person to

i. become a member or office bearer of trade union or

ii. refrain from becoming a member or officer bearer of trade union, or

iii. continue to be a member or office bearer of trade union, if he is already a member or

iv. cease to b ea member or office bearer of trade union, if he is already a member or office bearer

c. Inducement

Inducement means offering benefits to someone which are illegal. Coming of this act of inducement into
the category of unfair labour practice, it is necessary that.

i. a person should be induced to refrain from becoming or cease to be a member or officer-bearer of

trade union.

ii. Such inducement should be by intimidating or conferring or offering to confer any advantage for such
person or any other person

d. Compel or Attempt to compel employer

Essential ingredients of an offence under this clause are

i. That an employer should be compelled or an attempt should be made to compel him to accept any

ii. Such compulsion or attempt should be done by using intimidation, coercion, pressure, threat
confinement or ouster from a place, dispossession, assault or other methods etc.

e. Compel or Attempt to compel person other than employer

Where there is compulsion or attempt to compel any member of a body bipartite or tripartite, or of any
composition relating to the functioning of the industry or if he is in place for the benefit of workers, to
accept any demand by using intimidation, coercion, pressure, threat, confinement or ouster form a
place dispossession, assault, physical injury or by such other methods.

f. Illegal Strike or Go-slow

The commencing, continuing, instigation or inciting others to take part in or expend or supply money or
otherwise act in furtherance or support of an illegal strike or adoption of go-slow measures.
(i) Meaning of Go-slow

The expression go slow means an organized, deliberate and purposeful down of normal output or the
deterioration of the normal quality of work by a body of workmen acted in a concerted manner.

g. Carry arms or weapons

Carrying of arms or weapons within the premises of an employer without any legal authority.

h. Interference in secret ballot

Where there are more than one trade unions in an establishment or industry the registrar shall hold a
secret ballot for the purpose of determining collective bargaining agent. If any trade union interfere with
such a ballot by the exercise of undue influence, intimidation, impersonation, or bribery though its
executive or any other person acting on its behalf, then such trade union shall be guilty of an unfair
labour practice.

5. Penalty for Unfair Labour Practices on part of workman

A person who contravenes the provision of sec 18, except clause (d) of sub sec (1), he shall be liable to
fine which may extend to twenty thousand Rs but not less than five thousand Rs.

An office bearer of trade union a workman or person other than a workman who contravents or abets
the contravention of the provisions of clause (d) of sub section (1) of section 18 shall be liable to pay fine
which may extend to thirty thousand rupees but not less than ten thousand Rs.

6. Conclusion

To conclude, I can say that the freedom of choice and will is the right given by the provisions of PIRA
2010 so any attempt on the part of the trade union or workman etc has been discouraged to force any
person to do which he is not legally bound to do and such acts on the part of workmen or trade union
has been made punishable.

Powers and Functions under PIRA

1. Introduction
The registrar of Trade Unions is an authority which is appointed to perform various functions with
regard to the trade unions, under PIRA 2010. Provisions of section 14 and 15 of PIRA 2010 prescribes the
mode of appointment of registrar and his powers and functions. Section 15 concerns and control
registrar of Trade unions alone and not the labour court.

2. Relevant Provisions

Sec 4, 5 of Industrial Relation Act 2012

Sect 14, 15 of Punjab Industrial Relation Act 2010

3. Definition and Appointment of Registrar

Registrar means Registrar of Trade Unions appointed by the Provincial Govt. under section 14. The
Provincial Govt. shall notify the fact of appointment in the official Gazette.

4. Powers and Functions of Registrar

Following are the powers and functions of Registrar under PIRA 2010.

a. Registration of Trade Union

It is the duty of the Registrar that when an application for registration is made to satisfy himself that a
trade union has complied with all the requirements of this ordinance and if so then to register the Trade
Union u/sec 9 and issue a registration certificate in prescribed form.

b. Maintenance of Register

Registrar also has to maintain a register for the purpose registration and register the Trade union in it.

c. Lodging of complaints

The Registrar has the power either to lodge himself or authorizes any person to lodge complaints with
the labour court for action including prosecution against trade unions, employers, workers or other

i. for any alleged offence, or

ii. any unfair labour practice or

iii. violation of any provisions of PIRA 2010 or

iv. for expending the funds of a trade union in contravention of the provisions of its constitution.

d. Determination of Collective Bargaining Agent

An application can be made by an registered trade union in an establishment or a group of

establishment or industry, to the registrar to be certified as collective bargaining agent.

e. Poer to inspect and investigate

Registrar has the power to inspect the accounts and records of the registered trade union investigage or
hold such inquiry as he deems fit and this he may do so either personally or though any officer which is
subordinate to him and authorized by him in writing in the behalf.

f. Other powers and Functions

Registrar can also exercise such powers and functions as may be prescribed by rules.

5. Status of Registrar

By virtue of section 75 of PIRA 2010, a registrar shall be deemed to be public servant within the meaning
of section 21 of P.P.C.

6. Conclusion

To conclude, I can say, that the Registrar of Trade Unions enjoys overall and general control on the
Trade unions to the extent that they work in accordance with Punjab Industrial Relation Act 2010 and its
constitution. Otherwise Trade Union are free to pursue their policies.

Redress of Individual Grievance

1. Introduction
The object of the government’s Labour policy was to create a environment in which both the
industrialists and the workers can work together to achieve higher productivity and equitable
distribution and the intention of labour legislature was to confer benefits of labour laws on as many
persons as would be covered by definition of workmen. Whenever a worker has any grievance regarding
any right granted to him either by law or any award or settlement, he could redress, that, under section
33 PIRA 2010.

2. Relevant Provisions

Sec 33 of Industrial relation Act 2012

Sec 33 of Punjab Industrial Relation Act 2010

3. Redress of Individual Grievance

a. Locus Standi

A person who seeks to enforce a claim must establish that he is entitled to that claim or right and that
he is a “Workman” under PIRA 2010 or under the other law under which he claims the right.

b. Cases for redress of Grievance

A worker may bring his grievance in respect of any right

(i) Guaranteed to him under PIRA 2010. or

(ii) Guaranteed to him under any other law for the time being force, or

(iii) The violation, non-implementation or breach of which secured to him under any settlement or

4. Procedure followed by workman for the redress of his grievance

a. Grievance Notice
Grievance notice to employer is essential pre-condition for filling grievance petition before labour court.
Service of grievance notice by workman on employer is mandatory. Grievance notice not only to
employer but also to those whose rights were likely to be affected is necessary.

b. Mode of giving Notice

The notice of the employer must be in written form and may be delivered either

(i) By the worker himself, or

(ii) Through his shop steward or collective bargaining agent.

c. Limitation period for such notice

Grievance notice must be filed within three month of the day on which cause of such grievance arises.
First representation containing grievance is to be considered grievance notice for the purpose of

d. Decision by an employer

After receiving the grievance notice from workman, the employer shall communicate his decision in
writing to the worker, within fifteen days of such receiving.

e. Failure of communication by employer or dissatisfaction of worker

If an employer fails to communicate his decision within 15 days of receiving notice or a worker is
dissatisfied with the decision of an employer, then the worker has the following two forums to redress
his grievance.

(i) Collective Bargaining Agent

The worker or shop steward may take up the matter with his collective bargaining agent for its proper
solution. Collective bargaining agent means the trader union of workmen is the agent of the workmen in
the establishment etc., in the matter of collective bargaining.

(ii) Labour Court

If the collective bargaining agent has itself filed the grievance notice, he may file a petition of grievance
before the labour court.

a. Limitation Period

The Limitation Period for filing a grievance petition before labour court is two months from the date of
communication of the employer or, if he does not communicate, from the expiry of the period of 15
days given to employer.

b. Procedure of Labour Court

The petition filed in the labour court is to be adjudicated as if it is an industrial dispute the labour court
shall go into all the facts of the case and give its decision expeditiously and pass such orders as may be
just and proper in the circumstances of the case.

iii. Award of compensation to a workman

Where the workman is terminated from his service wrongfully, the labour court may reinstate him in
service and in lieu of it, may award compensation equivalent to not less that twelve months and not
more than thirty months basic pay last drawn and house rent if admissible, to the workman.

iv. Effect of non-compliance of order of labour court or High Court

Where the decision of the Labour court or High court in an appeal against such order of labour court is
not given effect or complied with within one month or such period as specified in such order or decision,
the defaulter shall be punished with imprisonment of term which may extend to 3 months and fine Five
Hundred thousand Rs.

a. Pre-requisite

Such punishment of fine can be imposed on defaulter only

i. If the order or decisions is in the favour of workman and

ii. Is not implemented within the period specified therein and

iii. Workman made a written complaint about it.

5. Joint application to Labour court

Where more than one worker have common grievance arising out of a common cause of action, they
may make a joint application to the labour court.

6. Conclusion

To conclude, I can say that the PIRA 2010 safeguards the rights of workman by inserting the provision of
sec. 46, under which a workman could seek redress of his grievance. It is wider in scope and he can filed
grievance petition for the enforcement of right guaranteed by law, award or settlement.

Powers and Functions of Labour Court

1. Introduction

The main object of an industrial relations system is to provide a framework within which the conflicts
inherent in a worker employer relationship may be peacefully resolved. For this purpose the labour
court u/sec 44 of the ordinance has been established which secures the rights of both employer and
workmen guaranteed under the PIRA 2010 and other laws for the time being in force.

2. Relevant Provisions

Sec 44, 45, 47 of Industrial Relation Act 2012

Section 44, 45, 46 of Punjab Industrial relations Act 2010.

3. Meaning of Labour Court

Labour Court means a labour court established under section 44.

4. Establishment of Labour court

Labour court is to be established by the provincial Government

a. Procedure of establishing

(i) Provincial Govt. has to consult with the chief justice of the respective High Court.

(ii) It must notify in the official gazette the fact of such establishment.

b. Discretion of Provincial Govt.

Provincial Govt. has the discretionary power in respect of establishing labour court and it may establish
as many labour courts as it considers necessary.

c. In case more than one labour court established

Where provincial Govt. establishes more than one labour court, it shall specify in the notification.

(i) The territorial limits within which or

(ii) The Industry or classes of cases in respect of which each one of them shall exercise jurisdiction under
the ordinance.

5. Constitutement of Labour Court

(i) Number and appointment of members of labour court

A labour court shall consist of one presiding officer appointed by a provincial Govt. in consultation with
the chief justice of the respective High Court.

(ii) Qualifications

A person to appointed as presiding officer must be either

(a) Qualified to be judge or additional judge of High Court, or

(b) Has been a judge or additional judge of High court or,

(c) Is a District judge

6. Functions of Labour Court

Following are the functions of Labour court.

(a) Determination of Industrial Dispute

A labour court shall adjudicate and determine an industrial dispute which has been referred to or
brought before it under this ordinance.

(i) Meaning of Industrial dispute

Industrial dispute means any dispute or difference between employers, and workmen or between
workmen and workmen which is concerned with the

a. employment or non-employment or

b. the terms of employment or

c. conditions of work

(ii) Adjudication on matters relating to settlement

Labour court shall enquire into or adjudicate any mater relating to the implementation or violation of a
settlement which is referred to it by a provincial Govt.

a. Meaning of Settlement

Settlement means any agreement arrived at during conciliation proceeding or otherwise if in writing,
singed by parties in the prescribed manner, a copy where of has been sent to the provincial Govt. the
conciliator and such other person as may be prescribed.

b. Try offences

A Labour Court has dual functions to perform i.e civil as well as criminal. It shall try offences under PIRA
2010 and such other offences as the provincial Govt. may specify by notification in the official Gazette.

c. Other Functions
A labour court shall exercise such other powers and functions as may be entrusted to it by law.

7. Procedure and Powers of Labour court

(a) While trying offences

While trying an offence, a labour court shall follow as nearly as possible summary procedure as provided
under Cr.P.C, and shall have the same powers as are versed in the court of a magistrate of first class
specially empowered u/sec 30 of Cr.P.C.

(b) While adjudicating industrial dispute

For the purpose of adjudicating and determining any industrial dispute, a labour court shall be deemed
to be a civil court and follow the procedure as provided under C.P.C and shall have the same powers as
are vested in such court under C.P.C. Following are the powers of labour court.

i. To Grant Relief

Labour court can grant full and final relief to the aggrieved party.

ii. To Grant interim Relief

Labour court is also competent to grant ad-interim relief under its inherent powers.

Iii. To grant Adjournment

Labour court has the power to grant adjournments if just cause to shown.

iv. To enforce attendance of any Person

Labour court can enforce the attendance of any person which is necessary for deciding the matter
before it and this it can done so by issuing summons, proclamation etc.

v. Power to Examiner

Labour court can examine any person on oath.

vi. To compel Production of Documents etc

Labour court can compel the production of documents and material objects, necessary for deciding the
matter in questions.

vii. To issue commissions

Labour court has the power to issue commissions for the examination of witnesses or documents.

viii. Ex-part Proceedings

Labour court has the power to proceeding ex-parte, where the party failed to appear before it.

ix. to determine Grievance of workmen

Labour court may determine the grievance of workmen and in doing so, it shall go into all the fact of the
case and pass such order as may be just and proper in the circumstances of the case.

c. While trying cases of Rights Given under special Acts

Where the special acts confer on litigants certain rights but the power to decide, try or adjudicate the
case in conferred on the labour court established under PIRA 2010 and no procedure is prescribed,
labour courts can apply their own procedure.

8. Territorial Jurisdiction of Labour Court

Assumption of jurisdiction by labour court without deciding objection to territorial jurisdiction was
unwarranted unless it had necessary territorial jurisdiction, its order was bound to be without lawful

9. Exemption from court fee

No court fees are payable for filing, exhibiting or recording any document in or obtaining any document
from labour court.
10. Withdrawal of case

Where the matter has resolved the parties amicable before a final order is passed by the labour court,
the labour court may allow withdrawal of such case if there are sufficient grounds for such withdrawal.

11. Conclusion

To conclude, I can say, that the labour court is a judicial forum to resolve the disputes between
employers and workmen. It has two-fold jurisdiction viz civil and as well as criminal, nut it is not
subordinate to the high court and Article 201 of the constitution of Pakistan, 1973 does not apply to it.
The labour court is left with the owner discretion to decide what is just and fair in the circumstances of
each case, having regard to equity, fairness and social justice.

Lockout and Strike

1. Introduction

PIRA 2010 provides certain right to both employer and workman. If any industrial dispute arises
between employer and the workman, they can restore to the conciliator for the settlement of such
dispute and if the conciliation proceedings fail the employer may declare a lockout or a workman may
go on strike.

2. Relevant Provisions

Sec 42 and 43, 44, 45 Industrial Relation Act 2012 and Section 40, 41 of Punjab Industrial Relation Act

3. Definition of Lockout and Strike

(i) Definition of Lockout u/sec. 2 (xix)

Lockout means the closing of a place or part of place of employment or the suspension of work wholly
or partly by an employer or refusal absolute, or conditional by him to continue to employ any number f
workmen employed by him and that closing, suspension or refusal must occur either in connection with
industrial dispute or for the purpose of compelling workman employed to accept certain terms and
conditions or affecting employment.

(ii) Definition of strike u/sec 2 (xxviii)

Strike means cessation of work by a body of person employed in any establishment acting in
combination or a concerted refusal or a refusal under a common understanding of any number of
persons who have been so employed to continue to work or accept employment.

4. Declaration of Lockout and Strike u/sec 40

An employer or workman may declare lockout or strike if the following conditions are satisfied.

(i) There must be an industrial dispute.

(ii) No settlement is arrived at during the course of conciliation proceedings.

(iii) Parties to the dispute do not agree to refer it to an arbitrator u/sec 39.

(iv) There must be 14 days notice by a workman to the employer for strike or the Period of notice u/sec
36 upon declaration of failure of conciliation proceedings have been made, whichever is later for the
purpose of lockout.

5. Application to Labour Court

The party raising a dispute may make an application to the labour court for adjudication of the dispute.

(i) Time for making an application

An application may be made at any time, either before or after the commencement of lockout or strike.

6. Prohibition of Lockout or Strike

It can be discussed under the following three heads.

(i) Prohibition where it lasts for more than 30 days

Where the strike or lockout lasts for more than 30 days the appropriate Govt. may be order in writing,
prohibit it.

(a) Authority Empowered Prohibit

Such strike or lockout may be prohibited by

(a-i) Federal Govt. if it relates to a dispute which the commission is competent to adjudicate and
determine, and

(a-ii) Provincial Govt. if it relates to another dispute.

(ii) Prohibition before the expiry of 30 Days

The appropriate Govt. may prohibit the strike or lockout even before the expiry of 30 days if it is
satisfied that the continuance of such strike or lockout is causing serious hardship to community or is
prejudicial to the national interest.

(a) Authority empowered to Prohibit

Such prohibition may be made by

(i) Federal Govt. if it relates to a dispute which the commission is competent to adjudicate and
determine, and

(ii) Provincial Govt. if it relates to other dispute, with the previous approval of the Federal Govt.

(iii) Prohibition of Commencement of Lockout or Strike

The Federal or Provincial Govt. as the case may be shall prohibit by an order in official Gazette, the
commencement of a strike or lockout if the same is in the opinion of the Govt. Concerned is detrimental
to the interests of the community at large.

7. Dispute to be Referred u/s 40(5)

Where the Federal or Provincial Govt. prohibits a strike or lockout, it shall forthwith refer the dispute to
the commission or the labour court, as the case may be.
8. Making of award u/s 40(6)

The commission or the labour court after giving both parties to the dispute and opportunity of being
heard shall make such an award as it deems fit as expeditiously as possible.

(i) Time Limitation for Making

Such award must be made within 30 days from the date on which the dispute was referred to it but any
delay in making an award shall not affect the validity of it.

(ii) Making for Interim Award

The commission or the labour court as the case may be, may make an interim award on any matter of

9. Duration of award u/s 40(9)

The award made u/s 40(9) shall be for such period as may be specified in the award but shall not be for
more than two years.

10. Strike or Lockout in public utility services u/s 41

The Government in case of strike or lockout relating to an industrial dispute in respect of public utility
services may, by order in writing prohibit a strike or lockout at any time before or after the
commencement of strike or lockout.

(i) Meaning of Public utility service u/s 2(XXIII)

Public utility service means any of the service specified in schedule I.

(i-a) Services Provided under schedule I

Following services are provided under schedule I.

(a) Generation, Production manufacture or supply of electricity, gas, oil or water to the public.

(b) Any system of public conservancy or sanitation.

(c) Hospitals and ambulance service

(d) Fire fighting service

(e) Any postal, telegraph or telephone service

(f) Railway and airway

(g) Dry Ports

(h) Watch and wards staff and security services maintained in any establishment.

(i-b) Time when Prohibition may be made

Such prohibition of strike or lockout may be made at any time before or after the commencement of the
strike or lockout.

11. Conclusion

To conclude, I can say that the workman or employer both can go on strike or lockout, if their demands
not accepted by the other party such strike or lockout must be in accordance with the provisions of
section 40, otherwise it may be declared as illegal. Government may prohibit it if is detrimental to the
national interest or unnecessarily prolonged.