Lahore University of Management Sciences

LAW 322 – Labor Law

Spring 2018

Instructor Dr. Muhammad Azeem
Room No. 1-13
Office Hours TBD
Email muhammad.azeem@lums.edu.pk
Telephone 8061
Secretary/TA TBD
TA Office Hours TBD
Course URL (if any) -

Course Basics
Credit Hours 3
Lecture(s) Nbr of Lectures per week 2 Duration 75 m
Recitation/Lab (per Nbr of Lectures per week None Duration N/A
week)
Tutorial (per week) Nbr of Lectures per week None Duration N/A

Course Distribution
Core BA/LLB
Elective No
Open for Student Juniors and Seniors
Category

1
Close for Student Freshman and Sophomore
Category


Course Description
This course will introduce the students to the Labour Code of Pakistan. This course is unique in the sense that it is only Labour Law core course in
any law college in Pakistan. Starting from the concept of labour and working class and its emergence in historical perspective locally and globally,
this course starts labour laws concerning collective rights of the workers covered in certain articles of the Constitutions and Industrial Relations Act
like registration of trade union, strikes, lockouts, and unfair labour practices on behalf of the employers and the employees. Later part of the course
discusses the remedies in laws for individual regress like workers’ compensation, pension, minimum wage, misconduct and punishments. Finally
few lectures at the end cover the laws about the marginalized sections of the work force like gender, child labour, informal labour and agricultural
labour.

Course Prerequisite(s)
Law 101 Introduction to Legal Reasoning OR Law 102 Introduction to Pakistan Legal System.

Course Objectives
This is particularly important when the rapid pace of neoliberal economic development in Pakistan, and the dismantling of the protections that only
a small fraction of the labour force had ever gained, has run ahead of scholarly analyses on industrial and labour issues. A sustainable development
of the field of labour law is difficult to imagine due to this gap. Research on labour is also confined to labour conditions leading to short-term ad
hoc advocacy, and is almost completely dependent on NGOs, the ILO and the EU on defining the field and scope for reform. We have seen
occasional campaigns, therefore, on some of the more egregious aspects of labour relations – such as child labour or bonded labour – without any
related understanding of labour markets, or the state and judicial infrastructure which has done its part to create a massively impoverished
workforce at all levels. The objective of this course is to train labour law scholars to meet these challenges.

Learning Outcomes
• Training of future labour law practitioner
• To explore the connection of labour law and labour conditions through field work in projects

2
Grading Breakup and Policy
Attendance and Class 10%
Participation:
Group Project: 40%
Final Examination: 50%

Examination Detail
Midterm Exam Yes/No: No
Final Exam Yes/No: Yes
Combine/Separate:
Duration:
Exam Specifications:

Course Overview
Lecture Topics Recommended Readings Objectives/Application
1. Introduction to the concept of labour and After this lecture, students will understand how
working ‘class’ the working class emerged in industrial countries
- Claudio J. Katz, Karl Marx on the and how labour laws and rights came into being.
Transition from Feudalism to
Capitalism
- E. P. Thompson, The Making of the
English Working Class (some
excerpts)
- Labour Law and Marxist position-
TBA

2. History of trade unionism in Pakistan Students will know about different constitutional
- Articles 11, 12, 17/A, 37 & 38 of 1973 rights and statutory provisions which are relevant

3
 Constitution; S 27-B of Banking to labour issues.
Companies Ordinance; S 2/A of Civil
Services Tribunals Act
- Khurshid Ahmed, “Impact of 18th
Constitutional Amendment on Labour
Issues” in Khurshid Ahmed, Labour
Movement in Pakistan: Past and
Present, 2nd edition, (Lahore: Institute
of Workers Education and Labour
Studies, 2009, 2011), pp. 136-149
- Khurshid Ahmed, History of Trade
unionism in Pakistan, chapters 2-3,
10-11, pp. 3-27 and 73-80
- Sabur Ghayur, Evolution of the
industrial relations system in Pakistan,
Cornell University, ILR School
(excerpts)

3. Current labour conditions and laws Students will learn current diversity in
- Christopher Candland, The Cost of labour force and labour conditions.
Incorporation: Labour Institutions,
Industrial Restructuring and New
Trade Union Strategies in India and
Pakistan –
- Asad Sayeed & Karamat Ali, “Labour
Market Structure, Contractual
Arrangements and the Direction of
Change,” chapter 1 of Asad Sayeed &
Karamat Ali, Labour Market Policies

4
 and Institutions: A Framework for
Social Dialogue (PILER, Research
Report No.3), pp.1-22
- Zinat Hisam, edited, “Status of Labour
Rights and Worker’s Struggles in
Selected Sectors” and also “Labour in
Labour Rights in Pakistan: Declining
Decent Work & Emerging Struggles
(PILER, 2010), pp. 15- 45

4. Introduction to recent industrial relations Students will know how the 18th
legislation in Pakistan-basic amendment has accommodated local
background and concepts devolution demands and international
- Ss 1 & 2 of Industrial Relations Act, obligations. They will also know about
2012; S91, Schedule I and II of few basic concepts and definitions.
IRA 2012; Ss. 1 and 2(i) of Industrial
and Commercial Employment
(Standing Orders) Ordinance, 1968;
- 18th Amendment and labour, chapter
16, pages 141-142 of Justice Shafi’s
book Labour Code of Pakistan

Case law:
- Air League of PIAC Employees vs
Federation of Pakistan, Ministry of
labour and manpower, Islamabad
- Army Welfare Sugar Mills Workers’
Union vs Army Welfare Sugar Mills,

5
 2009 PLC 132 [claiming exemptions
from IRA, 2012 under S 1(4)
- General Manager, Hotel International,
Lahore and another vs Bashir A.
Malik and another, PLD 1986 SC 103
[definition of workman]
- Mahmood Hussain Larik and 2 others
vs Muslim Commercial Bank Ltd.,
2011 PLC 307 [definition of
workman]
- Coca Cola Beverages Pakistan Ltd.
Through Authorized Officer/Industries
Relations Manager vs Registrar of
Trade Unions, Sindh and 3 others,
2010 PLC 48 [definition of workman]
- Karachi Chamber of Commerce and
Industry, Karachi vs Sindh Labour
Court No. V, Karachi and others, 2011
SCMR 1709 [definition of industry]

5. Freedom of Association, trade union and Through this lecture students will how to register
its registration a trade union and related hurdles.
- A17 (10 of 1973 Constitution; Ss. 3
and 8(1) of IRA 2012; ILO
conventions No. 87, 98

Case law:
- Civil Aviation Authority, Islamabad
and others Vs Union of Civil Aviation

6
 Employees and another, PLD 1997 SC
78 [discusses certain rights inherent in
a trade union]
- International Textile Ltd. Through
Factory Manager Vs Registrar of
Trade Unions, Government of Sindh
and 3 others, 2010 PLC 125
[principles regarding registration of a
trade union]

6. Students will know a full procedure to register a

- Sui Northern Gas Co. Ltd. Through trade union.
Authorized Officer and 3 others Vs
Registrar of Trade Unions & 3 others,
2009, PLC 120 [contract workers from
different contractors cannot form a
trade union- application of S6 & 7]
- Habib Sugar Mills Ltd., trough
Manager vs Registrar of Trade
Unions, Government of Sindh and 4
others, 2001 PLC 441 [composition of
trade union under S8(1) and how
outsider can be a member of trade
union]
- Mazdoor Union, Coca Cola Beverages
Pakistan Ltd., through General
Secretary Vs Presiding Officer, Punjab
Labour Court No. 9 Multan and 2
others, 2010 PLC 210 [if there is

7
 already a trade union, new union
should show 20% (1/5th) members-
application of S8(2)(b)]
- Dandot Cement Factory Ltd., Vs
Registrar of Trade Unions Jehlum and
2 others , 2009 PLC 166 [employer
has no role in registration of trade
union]

7. Process and Challenges after registration Certain issues after registration may appear. This
of trade union lecture will discuss a few of them.
- Ss. 9-18 of IRA, 2012

Case law:
- Mushtaq Husain Shah Vs Riaz
Muhammad Hazarvi and another,
1980 PLD 1978 Kar 612 [duty of
registrar to give certificate]
- KMC Peoples Workers’ Union Vs
Registrar of Trade Union, central
division, Karachi and another 1997
PLC 315 [only labour court not
registrar can cancel a trade union-
application of S11]
- R. B. Avari & Co. Ltd. Vs All Karachi
Liquor Wine Workers Union, 1975
PLC 37 [A union can represent a
group of establishments]
- Factory Manager, Rustam Sohrab

8
 Cycle Factory, Lahore Vs Registrar of
Trade Unions and another, 2010 PLC
447 [disqualification to be an office
bearer or member of a trade union]
8. Collective Bargaining Agent (CBA) and its Students will learn how a trade union can become
functions a CBA where there are more trade unions in an
- Ss. 19-21 of IRA, 2012 establishment. Added to this is the familiarity
about the functions of a CBA.
Case law:
- Optimus Ltd. through its Manager
Human Resources Vs Registrar of
Trade Unions, Sindh through Joint
Director Labour South and 2 others,
2010 PLC 166 [how a CBA is elected
when there are more trade unions]
- Head Officer Staff Union Vs Registrar
of Trade Unions, Lahore Region,
Lahore and another, 1980 PLD 1979
Lah 820
- Baluchistan Engineering Works Ltd.
Through Notified Factory Manager Vs
Muhammad Salman and others, 2003
PLC 330 [functions of CBA]
- Airleague of PIA Employees Union
and another Vs Federation of
Pakistan/the President/ Chief
Executive and another, 2003 PLC (C.
S.)145 [Musharraf’s order 6 of 2001
suspending trade union activities]

9
9. Unfair labour practices on the part of After this lecture, students will know about unfair
employees and workmen labour practices by employers as well as by a
- Ss. 31-32 of IRA 2012; S11-A of workmen in the course of disputes among them.
Industrial and Commercial
Employment (Standing Orders)
Ordinance, 1968

Case law:
- Aziz Muhammad Vs General Tyre &
Rubber Company of Pakistan Ltd.
Through Occupier and 3 others, 2007
PLC 224 [disciplinary proceedings are
not unfair practice]
- M. C. P. Employees’ Union, Shalimar
Workshop, Lahore Vs Afzal Butt,
Area General Manager, M. C. P. and 2
others, 1979 PLC 13 [transfer order to
victimize union activities was set
aside]
- Optimus Ltd. Employees’ Union and 2
others Vs Optimus Ltd. And 3 others,
2009 PLC 354 [letter of warning not
to misbehave was not an unfair labour
practice]
- Ahmad Food Industries (Pvt.) Ltd.
Through General Manager Vs Ahmad
Food Industries Mazdoor Itehad
Union and 2 others, PLJ 1998 Tr. C.

10
 (NIRC) 24
- Idrees Fatima Vs Asrar & another,
1974 PLC 46 [female labour was
forced to join union]

10. Raising of industrial disputes, strikes and
lockouts
- Ss. 34-40 of IRA, 2012 (raising of
disputes); Ss. 41-48 of IRA 2012
(strikes and lockouts)
While it is true that strike is the right of workers,
an exercise of this right needs certain procedure
and considerations. Through this lecture, students
will know about the complexity of strikes and
lockouts.

Case law:
- Pakistan Tobbaco Vs Chairman,
Second Labour Court and others, 1972
PLC 190 [each clause of settlement is
part of agreement and cannot be
severed]
- Messers Hayat Industries Ltd. Vs The
Fourth Sindh Labour Court and two
others, 1974 PLC 584
- Adamjee Cotton Mills Karachi Vs
Sindh Employees Social Security
Institutions, 1974 PLC 213
- Messers Crescent Garment Industries
Ltd. Vs Workers Union and another
1989 PLC 519
- Star Textile Mills Ltd. Vs Third Sindh
Labour Court, 1973 PLC 376
- Muhammad Yousaf Vs Messers Pak

11
 Industries ltd. 1973 PLC 45
- Messers Café Millat Vs Karachi Hotel
Workers Union, 1973 PLC 104
- Workers’ Union Vs Indus Chemicals
and Alkalies Ltd. 1972 PLC 220
- Modern Tentage & Textile Industries
Ltd. Vs Punjab Labour Court No. 1
ETC. PLD 1978 Lah. 965 [notice on
employer and CBA is mandatory]

11. National Industrial Relations Commission Students will learn about NIRC, its composition,
(NIRC), its composition, functions, powers, functions, powers, and appeals.
and appeals
- Ss. 53-66 of IRA, 2012

Case law:
- M Atiqullah and 2 others Vs Khuda
Bakhsh and another, 1980 LLC 752
[NIRC remedy is independent of other
issues]
- Karachi Port Trust (KPT) Labour
Union, Union Bank KPT, Head Office
through its General Secretary Vs
Board of Trustees of KPT, PLJ 1998
Tr. C. (NIRC) 344 [KPT employees
are workers or civil servants?]
- Habib Bank Ltd., Zonal Office,
Bahawalpur Vs NIRC and others,

12
 1999 PLC 22 [NIRC orders should not
be slipshod and perfunctory]
- Swat Silk Mills Employees’
Association VS Shah Jehan Khan,
1976 PLC 272 [refusal to accept
summons and appearance in court]
- Simplex Rubber Manufacturer (Pvt.)
Ltd. Vs Simplex Rubber
Manufacturers Employees’ Union and
others, 2002 PLC 238 [full bench of
NIRC can set aside the decision of
single bench]
- Karachi Union of Employees and
others Vs The Industrial Court
Karachi and others, 1961 PLD SC 57
[legal practitioners cannot appear in
the guise of office bearers of the
union]

12 & 13. Industrial and Commercial Employment

(Standing Orders) Ordinance, 1968
- Ss.1, 2, Schedule Standing Orders’ S
2(g)

Case law:
- Abdul Razzaq Vs Ihsan Sons Ltd. and

13
 2 others (1992 SCMR 505) whether an
employee was a worker?]
- Pir Muhammad Vs Suleman Glass
Works, Karachi, 1992 PLC 940
[burden of proof is on worker
regarding the number of workers to
bring proceedings under S1(4)(a)
- Asghar Ali Vs Al-Asif Sugar Mills
Ltd. Karachi, PLJ 1998 Tr. C.
(Labour) 177 [worker failed to fulfill
above requirement]
- Faqir Muhammad Vs The Director of
National Savings, Multan Region,
Multan, 1992 PLC 163 [standing
orders do not apply on servants]
- Granulars (Pvt.) Ltd. Vs Muhammad
Afzal and others, 2002 PLC 1
[application letter should specifically
state about application of labour laws]
- Attaullah Vs Chief Executive &
General Manager, Liberty Power Ltd.
Mirpur Mathelo, 2001 PLC 473
[contract worker and standing orders]
- Hino Pak Motors Limited Vs
Chairman, Sindh Labour Appellate
Tribunal and others, 2002 PLC 89
[how to prove employment with the
contractor or employer]
- Pakistan International Airlines Vs
Sind Labour Court No. 5 and others,

14
 PLD 1980 SC 323 [worker after 9
months is not a temporary worker]

14 & 15. Law of minimum wages and the law of

payment of wages
- Ss. 3, 5, 6, 19B; Schedule of minimum
wage of Minimum Wages Ordinance,
1961; West Pakistan Minimum Wages
for Unskilled Workers Ordinance,
1969; Ss. 2, 7, 15, 17 of Payment of
Wages Act, 1936; Payment of Wages
(Procedure) Rules, 1937; West
Pakistan Payment of Wages Rules,
1960

Case law:
- National Steel Rolling Mills and
others Vs Province of West Pakistan,
1976 LLC 444=1968 SCMR 317 (2)
[changing minimum wages and
powers of Board in this regard]
- North Western Railways Vs Sher
Muhammad, 1967 PLC 101 [wages
and earned wages-difference]
- Adamjee Paper and Board Mills,
Nowshera Vs Sher Muhammad Khas
and 2 others, 1980 PLC 568 [claim of
wages and work done]
- Shaukat Ali and others Vs Pakistan,

15
 1959-60 LLC Kar. 73 [wages and
contract ascertained by authority]
(below are the cases about S15 of the
Payment of Wages Act, 1936)
- Vice Chairman, P. W. Railways Vs
Qutbuddin, 1975 PLC 310 [how much
should be deducted on penalty]
- Muhammad Aslam and another Vs ?
2000 PLC 268 [cost of living
allowance and overtime is not part of
wages]
- The Divisional Superintendent, N. W.
R. Lahore Vs Muhammad Sharif,
1960 PLC 214 [employee can calim
wages for the time he was not allowed
to work (suspended]
- Lawrencepur Woolen and Textile
Mills Ltd. Vs Government of Punjab
and others, PLD 2004 SC 416 [for
authority under S 15 –normal courts
procedure is not applicable to party]
- Express Newspaper (Pvt.) Ltd. Vs
Michael Mark and others, 1962 LLC
898 [termination without notice]
- National Tyre & Rubber Company Vs
Sind Labour Court No. III, Karachi
and 2 others, 1979 PLC 440 [no right
of appeal when labour authority act
correctly]
- Iqbal Ahmed Vs Second Labour Court

16
 and another, 1980 PLC 316 [order of
the authority is not final and one can
go for S34 of IRO 1969
- Crescent Ghee Mills, Presently S. J.
Industries, Chichawatni through
General Manager Vs Rehmat Ali and
another, 1998 PLC 289 [golden
handshake scheme and payment of
wages] (case law about S17 of the
Payment of Wages Act, 1936)
- Pakistan through Chairman Railway
Board, Lahore Vs Maqsood Ali & 82
others, 1981 PLC 307 [appeal and
revision against the order of the
authority]
- S. M. Rahman & Co. Vs Motbar and
ithers, PLD 1981 SC [revisional
jurisdiction of HC- no more valid]
- Abdur Rashid and others Vs Abdul
Rahim, 1960 PLC 219 [different HCs
have different opnion about the
revisional jurisdiction of HC against
the orders of the authority]
16. Misconduct, Punishments and fines
- Section 15 of Standing Order

Case law:
- Pakistan International Airline
Corporation, Karachi Vs Junior

17
 Labour Court No. IV, Karachi and
another, PLD 1978 SC 239 [what is
misconduct?]
- Saifee Development Corporation Ltd.
Vs Workers’ Union, 1965 PLC 304
[negligence should be habitual]
- Anwar Ali Shah Vs Punjab Labour
Appellate Tribunal, Lahore and
another, 1979 PLC 201 [unsatisfactory
performance is not misconduct]
- Haroon-ur- Rashid Vs Rafhan Maze
Products Co. Ltd. Through Personnel/
Factory Manager, Faisalabad and 2
others, 2000 PLC 99 [criminal
proceedings and departmental action
of misconduct –both can go side by
side]
- Noor Silk Mills Ltd. Karachi Vs Yar
Ali and 4 others, 1969 PLC 216
[participation in illegal strike]
- Hafeez Shah and 3 others Vs United
Bank Limited and 2 others, 2001
SCMR 931 [charge sheet/show cause
notice of inquiry is necessary]
17. Workmen’s compensation
- Ss. 2, 3, 4, 19, 30, Schedule I, II, III of
Workmen’s Compensation Act, 1923

Case law:

18
 - Mst. Nasreen Akhtar Vs Khair Din,
2001 PLC 53 [liability of employer for
compensation for death of employee
on duty]
- Divisional Superintendent P. W. R.
Quetta Vs Mian Muhammad 1973
PLC 337 [summary procedure in the
Act is not for tort proceedings]
- Mst. Lal Jan Vs Silver Paper Tube
Co., 1974PLD Kar. 140
[compensation Act and social security
ordiance-relation]
- G. D. Gianchand etc. Vs Abdul
Hameed 1938 A. I. R. Lah. 855 [a
commissioner court under the Act is
subordinate to HC-revision]
- Muhammad Ali Vs Govt of West
Pakistan etc. PLJ 1974 Lah. 596 [same
as above]
- Johnson and Philips (Pakistan) Ltd. Vs
Jaleel Ahmad, 1973 PLC 244
[commissioner under the Act is not
subordinate to HC within the meaning
of S115 CPC –no revision]

18. Employees’ Social Security Legislation, old

age benefits and provident fund
- Ss. 1, 20, 20A, 35-46 of Provincial
Employees Social Security Ordinance,

19
 1965

Case law:
- Sindh Employees’ Social Security
Institutions Vs Fuji Color Pakistan
Laboratories (Pvt.) Ltd., 2003 PLC
189 [purpose of the ordinance]
- Nestle Milk Pack (Pvt.) Ltd. through
Secretary Vs Vice-Commissioner,
PESSI, Head office, Lahore and 3
others, 2003 PLC 80 [construction
contractors are different than other
contractors]
- Punjab Employees’ Social Security
Institutions and others Vs Lyallpur
Cotton Mills Ltd. and others, 2002
SCMR 729 [link between various
allowances, wages, and social
security]
- Sindh Employees’ Social Security
Institutions Vs Consolidated Sugar
Mills Ltd., 1988 SCMR 888 [ultimate
employer is liable for its employees
even through contractor]
19. Gender and labour conditions/Harassment Students will learn about an area of labour law
of women at work place which needs urgent attention. Women are entering
- Protection against Harassment of in industrial labour force in ever greater number
Women at the Workplace Act, 2010; but facing a hostile environment.
Protection against Harassment of

20
 Women at the Workplace Rules, 2010;
Criminal Law (Amendment) Act,
2010
- Maliha Zia Lari, “Gender Review of
Labour Laws: Overview of the legal
system and women’s access, chapter
2, pp. 1-4 (PILER, 2010) -Ibid, pp11-
33

Case law: TBA

20. Laws of Bonded labour system abolition

- Bonded Labour System (Abolition)
Act, 1992
- Bonded Labour System (Abolition)
Rules, 1995
- Report of Dr Ali Qazilbash on bonded
labour in Pakistan

Case law:
- Darshan Masih case

- A guest speaker will be invited

21. Child Labour and Children Employment
- Employment of Children Act, 1991
- Employment of Children Rules, 1995
- Reports and analyses of HRCP on
child labour in Pakistan. TBA
22. Labour in agricultural sector, TBA

21
Textbook(s)/Supplementary Readings

22