Table of Contents

Industrial Relation Act and its Application:...............................................................................3

Definition:..................................................................................................................................3

Registrar:....................................................................................................................................4

Power of Registrar:....................................................................................................................4

Registration of Trade Unions:....................................................................................................5

Trade Union:..............................................................................................................................5

Requirement for Registration:....................................................................................................6

Entitlement of Registration:.......................................................................................................7

Disqualification of Member and Officer:...................................................................................8

Maintenance of Register:...........................................................................................................8

Registration of Trade Union:.....................................................................................................8

Certificate of Registration:.........................................................................................................9

Cancellation of Registration:......................................................................................................9

Appeal against Decision:..........................................................................................................10

Collective Bargaining Agent:...................................................................................................10

Procedure for Election:............................................................................................................11

Workers Participation...............................................................................................................13

Shop Steward:..........................................................................................................................13

Works Council.........................................................................................................................14

Workers Participation...............................................................................................................15

Joint Management Board.........................................................................................................15

Unfair Labor Practices.............................................................................................................15

Unfair Labor Practices on part of employers...........................................................................16

Unfair Labor Practices on part of workmen.............................................................................16

Negotiation:..............................................................................................................................17

Negotiation according to section 35:........................................................................................17

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Conciliation:.............................................................................................................................18

Arbitration:...............................................................................................................................18

Types:.......................................................................................................................................18

Voluntary Arbitration:..............................................................................................................19

Compulsory Arbitration (Adjudication):..................................................................................19

Lock out:..................................................................................................................................19

Illegal strike:.............................................................................................................................20

Illegal lock out:........................................................................................................................20

National Industrial Relations Commission:.............................................................................20

Constitution of the commission:..............................................................................................21

Functions of the commission:..................................................................................................21

Benches of the Commission.....................................................................................................22

Additional powers of the Commission:....................................................................................22

Provincial Industrial Relations Acts:.......................................................................................23

Labor Court:.............................................................................................................................23

Functions:.................................................................................................................................23

Procedure and Powers:.............................................................................................................23

Award and Decision:................................................................................................................24

Labor Appellate Tribunal:........................................................................................................24

Functions and Powers:.............................................................................................................24

References:...............................................................................................................................25

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Industrial Relation Act and its Application:

The Industrial Relations Act of 2012 is a law in Pakistan that deals with how workers and
employers interact. It applies to most people working in different industries, but there are a
few exceptions. The Act doesn't apply to people working in the police, defense services, or
jobs connected to the Armed Forces. It also doesn't cover certain government administrative
staff, high-level employees of Pakistan International Airlines, and specific security or fire
service staff in different sectors like airports or gas production. The Act focuses on matters
like trade unions, bargaining between workers and employers, and resolving disputes in the
workplace for most employees in Pakistan.

Definition:

The definition of important terms are as under:

1. Award:
A decision made by a commission or arbitrator regarding an industrial dispute or
related matter, including interim decisions.
2. Collective Bargaining Unit:
A group of workers in one or more establishments of the same industry who negotiate
together for their employment terms and conditions.
3. Employer:
A person, group, or organization that hires workers under a contract of employment.
This includes successors, managers, and those responsible for managing the
establishment.
4. Establishment:
Any office, firm, or enterprise that employs workers in a business or industry. It
includes all its departments and branches, including collective bargaining units, if
applicable.
5. Executive:
The body responsible for managing the affairs of a trade union according to its
constitution.
6. Industry:
Any business, trade, occupation, or employment involved in producing goods or
providing services, excluding charitable organizations.

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 7. Officer:
A member of the executive of a trade union, excluding auditors or legal advisors.
8. Organization:
A group of workers or employees that works to protect and advance their interests.
9. Public Utility Service:
Includes the generation, production, and supply of electricity, gas, water to the public,
public sanitation systems, hospitals, fire-fighting services, postal/telegraph/telephone
services, railways/airways, dry ports, and watch and ward/security services in any
establishment.
10. Settlement:
An agreement reached through conciliation proceedings between an employer and
workers, including agreements in the absence of a collective bargaining agreement
(CBA).
11. Worker/Workman:
A person employed in an establishment or industry for payment, excluding those in
managerial positions. It includes individuals affected by an industrial dispute, such as
those dismissed, discharged, retrenched, laid off, or removed from employment due to
the dispute.

Registrar:

A registrar typically refers to an organization or an individual responsible for maintaining

and managing records related to a specific field.

Power of Registrar:

The Government shall appoint the Registrar who shall be assisted by one or more joint
Registrars. The powers of Registrar are as under: [Sec. 4, 5]

1. Registering trade unions and maintaining a register.

2. Lodging complaints for offenses, unfair labor practices, Act violations, or
unauthorized expenditure by trade unions.
3. Determining collective bargaining agreements.
4. Inspecting accounts and records of registered trade unions.
5. Performing other prescribed functions and exercising additional powers as needed.

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Registration of Trade Unions:

Trade Union:

A trade union is a group of workers or employers that join together to improve their working
conditions and protect their rights. It can regulate relations between workers and employers,
workers and workers, or employers and employers. Trade unions aim to impose restrictions
on how trade or business is conducted. They can also form federations by combining with
other trade unions.

Trade Union and Freedom of Association:

Here are the rules regarding trade unions and freedom of association, as specified in Section
3:

1. Workers have the right to establish and join international associations of their choice
without requiring prior authorization.
2. In establishments where women are employed, the trade union must include women
in its executive body.
3. A worker can only be a member of one trade union at a time. If they join another
trade union, their previous membership is automatically canceled.
4. Employers have the freedom to establish and join international associations without
needing prior authorization.
5. Every trade union and employers' association is required to establish a constitution
and rules. These guidelines ensure the fair election of representatives, organize
administrative tasks and activities, and facilitate the development of programs for the
organization.
6. Workers and employers can form groups and join larger organizations, called
federations and confederations. These federations and confederations have the
freedom to connect with international organizations and other groups of workers or
employers worldwide. This allows for stronger collaboration and representation on a
global scale.

Application for Registration:

According to Section 6.7, when a trade union seeks registration, it must submit an application
to the registrar. The application should be signed by the president and secretary of the trade

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union. Additionally, the application for registration should be accompanied by the necessary
supporting documents or requirements as specified by the relevant regulations or authorities.

1. A statement showing the following:

a. Name of trade union and address of head office
b. Date of formation of trade union
c. Titles, names, age, addresses and occupations of officers of the trade union
d. Statement of total paid membership
e. Name of establishment or group of establishments or industry to which the
trade union relates along with a statement of the total number of workers
employed therein.
f. Names and addresses of registered trade unions in the establishment, group of
establishments or industry to which the trade union relates.
g. In the case of a federation of trade unions, the names, addresses and
registration number of member unions.
2. Three copies of the constitution of the trade union and a copy of the resolution by
members adopting such a constitution signed by the chairman of the meeting.
3. A copy of the resolution by members of the trade union authorizing its president and
secretary to apply for registration.
4. In the case of a federation of trade unions, a copy of the resolution from each of the
constituent unions agreeing to become a member of the federation

Requirement for Registration:

For a trade union to be registered, its constitution must address the following matters as
outlined in Section 8(1):

1. Name and Address: The constitution should include the official name and address of
the trade union.
2. Objects: The constitution must outline the objectives or goals of the trade union,
specifying its purpose and the interests it aims to protect or promote.
3. Utilization of Funds: The constitution should clearly state the intended purpose for
which the funds of the union will be utilized.
4. Executive Composition: The constitution must specify the maximum limit for the
number of individuals forming the executive body. It should also ensure that at least

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 75 percent of the executive members are workmen employed in the respective
establishment(s) or industry.
5. Membership Benefits and Fines: The constitution should detail the conditions under
which a member can receive benefits from the trade union. It should also address any
fines or penalties that may be imposed on members under specific circumstances.
6. Maintenance of Member List: The constitution should include provisions for the
maintenance of a list of trade union members. It should also ensure adequate facilities
for inspection of the member list by officers and members of the trade union.
7. Amendment or Rescission of the Constitution: The constitution should outline the
procedures and requirements for changing or cancelling its provisions. This ensures
that any modifications to the constitution are done transparently and democratically.
8. Safe Custody and Audit: Outline the procedures for securely storing the union's
funds, conducting an annual audit, and specify the manner in which the audit will be
carried out. Additionally, ensure that there are adequate facilities for officers and
members to inspect the account books.
9. Dissolution: Define the process and conditions for dissolving the trade union.
10. Officer Elections: Establish the method for electing officers by the general body of
the trade union. Specify the maximum term of office, not exceeding two years, for
which an officer may hold their position upon election or re-election.
11. No Confidence Procedure: Define the procedure for expressing a vote of no
confidence in any officer of the trade union.
12. Meetings: Specify the frequency of meetings for the executive and general body of
the trade union. Mandate that the executive should meet at least once every three
months and the general body should meet at least once every year.

Entitlement of Registration:

To be eligible for registration, a trade union of workmen must fulfill the following
conditions:

1. Membership Composition: All members of the trade union must be workmen who
are currently employed in the establishment or industry associated with the trade
union.
2. Minimum Membership Requirement: If there are already two or more registered
trade unions in the same establishment, group of establishments, or industry

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 connected to the trade union, it must have a membership of not less than one-fifth of
the total number of workmen employed in that specific establishment, group of
establishments, or industry.

Disqualification of Member and Officer:

A person will be disqualified from being elected or serving as an officer of a trade union if
they have been convicted of an offense under section 78 or a serious offense under the
Pakistan Penal Code Act 1860. (Sec. 7)

Maintenance of Register:

Every registered trade union is required to maintain the following registers:

1. Register of Members: This register should contain details of each member, including
information about the subscriptions paid by each member.
2. Accounts Book: An accounts book must be maintained to record the receipts and
expenditures of the trade union.
3. Minute Book: A minute book should be kept to record the proceedings of meetings
held by the trade union. (Sec. 8)

Registration of Trade Union:

1. Registration Process: The Registrar will register a trade union and issue a certificate
of registration within 15 days if all the requirements of the Act are fulfilled. If any
deficiencies are found, the Registrar will communicate them in writing to the trade
union, and the union must respond within 15 days.
2. Fulfilling Objections: Once the objections are fulfilled, the Registrar will register the
trade union and issue a registration certificate within 3 days. If the objections are not
addressed, the Registrar has the authority to reject the application.
3. Appeal Process: If the application is rejected or the Registrar delays the decision
beyond 15 days or fails to issue the registration certificate within 3 days, the trade
union can appeal to the labor court. The court may order the Registrar to register the
trade union and issue a certificate or dismiss the appeal.
4. Notification of Changes: Any changes made in the constitution of a registered trade
union or in its officers must be notified to the Registrar by registered post within 15
days of the change.

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 5. Registrar's Decision on Changes: The Registrar may refuse to register any changes
or alterations if they contravene the provisions of the Act or violate the trade union's
constitution.
6. Inclusion or Exclusion in Federation: If any constituent unit of a federation of trade
unions is included or excluded, the federation must notify the Registrar by registered
post within 15 days.
7. Disputes and Court Intervention: In case of disputes related to changes in officers
of a trade union or if the Registrar refuses to register changes, any officer or member
can apply or appeal to the labor court. The court will pass an order within 7 days,
directing the Registrar to register the changes, alter the constitution, hold fresh
elections, or take other appropriate actions.

Certificate of Registration:

Upon registering a trade union, the Registrar will issue a certificate of registration. This
certificate serves as conclusive evidence that the trade union has been properly registered
under the Act. (Sec. 10)

Cancellation of Registration:

The cancellation of a trade union's registration can be done by the Registrar based on certain
grounds. The process and appeal options are as follows:

1. Grounds for Cancellation (Sec. 11):

The Registrar can cancel the registration of a trade union if it:
a. Contravenes the Act or rules during registration.
b. Applies for cancellation or ceases to exist.
c. Obtains registration through fraud or misrepresentation of facts.
d. Obtains less than 10% of total votes or does not contest in an election for
Collective Bargaining Agreement (CBA).
e. Fails to submit annual returns to the Registrar.
f. Contravenes any provisions of its constitution.
g. Includes provisions in its constitution that are against the Act or rules.
2. Application to Commission:

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 If the Registrar believes that the registration of a trade union should be cancelled, they
must submit an application to the Commission for permission to cancel the
registration.
3. Cancellation by Registrar:
Upon receiving permission from the Commission, the Registrar shall cancel the
registration within 7 days.
4. Exceptions to Cancellation:
Registration cannot be cancelled if unfair labor practice was not committed within 3
months prior to the application to the Commission, or if the CBA obtained less than
10% of total votes or did not contest in an election.
5. Disqualified Person:
If a disqualified person is elected or becomes a member, the Commission can cancel
the registration upon a complaint by the Registrar.
6. Dissolution of Trade Union:
If the Registrar finds that the trade union has dissolved, the registration shall be
cancelled.

Appeal against Decision:

Any trade union, its member, or officer who is aggrieved by the Registrar's decision can
appeal to the Commission within 30 days (Sec. 12). This provides an avenue for challenging
the cancellation decision and seeking a review of the Registrar's decision.

Collective Bargaining Agent:

The collective bargaining agent (CBA) in an establishment or industry is the trade union
representing the workmen for the purpose of collective bargaining. The process of
determining the CBA depends on the number of registered trade unions in the establishment
or group of establishments. Here is a simplified explanation of the process:

 One Union:
If there is only one registered trade union in an establishment or group of
establishments, and its members constitute at least one-third of the total number of
workmen employed, the trade union can apply to the Registrar for certification as the
CBA.
 Multiple Unions:

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 If there are more than one registered trade unions in an establishment or group of
establishments, any trade union can apply to the Registrar for a secret ballot to
determine the CBA. The Registrar must conduct the secret ballot within 15 days of
the application. In the case of a large establishment with branches in multiple towns,
the secret ballot may be held within 30 days.

Procedure for Election:

1. Notice to Union:
Upon receiving an application, the Registrar will notify every registered trade union
involved. The union(s) will be required to:
a. Indicate if they wish to participate as a contestant in the secret ballot to determine
the CBA.
b. Submit a list of their members within the specified time, including details such as
parentage, age, section or department of employment, place of employment, ticket
number, and date of becoming a member.
c. If a union is a federation of trade unions, they must provide a list of their affiliated
trade unions and a list of their members with their particulars.
2. List of workers:
Employers must provide a list of their workers, including their parentage, age, and
department, place of employment, ticket number, and date of employment. Workers
employed for less than 3 months are excluded.
3. Verification:
The Registrar should be given access by the employer to verify the submitted worker
list and the trade union involved.
4. Voter List:
The Registrar will create a list of voters who are members of the contesting trade
unions. A certified copy of the voter list will be sent to each trade union at least 4
days before the polling date.
5. Right to Vote:
Workers who are members of any of the contesting trade unions and appear on the
voter list are entitled to vote.
6. Polling Facilities:

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 Employers must provide polling facilities within their establishments. They should
not interfere with or influence voting. No campaigning is allowed within a 50-meter
radius of the polling station.
7. Conducting the Poll:
To conduct the poll, the Registrar will:
a. Set the poll date and inform the contesting trade unions and employers.
b. Seal the ballot boxes in the presence of union representatives to receive ballot
papers on the polling date.
c. Conduct the poll at the designated polling station, where union representatives
have the right to be present.
d. Open and count the votes in the presence of trade union representatives after
the poll concludes.
8. CBA Certification:
The rules for certification are as follows:
a. The trade union with the highest number of votes will be certified as the
Collective Bargaining Agent (CBA) by the Registrar.
b. A trade union must receive votes from at least one-third of the total number of
workers employed in the establishment to be certified as the CBA.
c. If no trade union achieves this in the first poll, a second poll will be held
between the two unions with the highest votes. The union with the majority of
votes in the second poll will be certified as the CBA.
d. If two or more trade unions receive an equal number of votes in the second
poll, a further poll will be conducted among them until one of them secures a
majority of votes.
e. If no trade union wishes to participate in the secret ballot, the trade union that
made the application will be certified as the CBA, provided it has at least one-
third of the total number of workers.
f. Once a CBA is determined, no applications will be accepted within a 2-year
period, unless the registration of that trade union is cancelled before the expiry
of that period.

Rights and Duties of CBA:

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 1. Engage in collective bargaining with the employer regarding employment matters,
except for matters related to the enforcement of workmen's rights, guarantees, awards,
or settlements.
2. Represent workmen in any legal proceedings.
3. Issue notices and declare strikes in accordance with the rules.
4. Nominate workmen for positions on the Boards of Trustees of welfare institutions,
Provident Funds, and Workers Participation Fund.

Check-Off:

1. Upon request from the CBA, the employer must deduct subscription amounts from
the wages of workmen who are members of the trade union, as specified in the
demand statement provided by the trade union.
2. The employer should deposit the deducted amount in the trade union's account within
15 days.
3. The CBA must maintain an account with a recognized bank or the Post Office
Savings Account to receive the deducted amounts.
4. The employer must provide facilities to the CBA to verify that deductions from the
wages of its members are carried out in compliance with the rules.

Workers Participation

1. Shop Steward
2. Works Council
3. Workers Participation
4. Joint Management Board

Shop Steward:

Definition

A union steward, also known as a union representative or shop steward, is an employee of an

organization or company but is also a labor union official who represents and defends the
interests of his or her fellow employees.

Explanation

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The position is a voluntary position and is generally elected by fellow workers through
democratic election. 

As an organizer, it is the shop steward’s responsibility to:

 Hold regular meetings with the members at the workplace.

 Develop a spirit of unity amongst workers.
The rules of appointment of shop steward are as under: [Sec. 23]

1. The shop steward is employed in every factory or establishment in which 25 or more

workmen are employed.

2. Where there is a CBA, he shall be nominated from workers in a shop, section or

department of the establishment.

3. Where there is no CBA in the establishment, he is elected by a secret ballot. The

employer shall provide all facilities for holding the ballot

The following are functions of a shop steward: [Sec. 24]

 He acts as a link between workers and the employer.

 He assists in improving the physical working conditions and production work in the
shop, section or department.
 He helps the workers to settle their problems regarding work and individual
grievances.

Works Council

Definition

 Work council is an elected body of employee representative that deals with

management regarding working condition, wages etc.
 Works Council In every establishment or factory in which 50 or more persons are
employed, the employer shall set up a works council consisting of representatives of
employers and workers nominated by CBA.
 If there is no CBA, they shall be elected by a simple majority at a secret ballot.

The council shall perform the following functions: [Sec, 25, 26]

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  To maintain continuous sympathy and understanding between the employer and
workmen.
 To settle differences and disputes through bilateral negotiations.
 To promote the security of employment for workmen and conditions of safety,
health and job satisfaction in their work.
 To facilitate good and harmonious working conditions in the establishment.
 To provide educational facilities for children of workmen in secretarial and
accounting procedures and their absorption in these departments of the
establishment.
 To discuss any matter of mutual interest to promote better labor- management
relations.

Workers Participation

The rules are as under: [Sec. 27]

 In every factory or establishment employing 50 or more workers, the workers'

representatives are nominated by CBA or elected to participate in the
management.
 At least one workers' representative is appointed.
 A worker's representative shall hold office for 2 years.
 They shall participate in all meetings of management.
 The management shall not take any decision in the following matters without
advice in writing of the workers' representatives:

 Changing physical working conditions.

 In-service training of workers.
 Recreation and welfare of workers.
 Regulation of daily working hours and breaks.
 Preparation of leave schedule.

Joint Management Board

The rules are as under: [Sec. 28]

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  In every factory or establishment employing 50 or more persons, the management
shall set up a joint management board in which workers' participation shall be up to
30%.
 The employer's representative on the joint management board shall be directors or
senior executives.
 The joint management board shall look after e following matters:
a. Improvement in production, productivity and efficiency.
b. Provision of minimum facilities for workers employed through contractors

Unfair Labor Practices

1. Unfair Labor Practices on part of employers

2. Unfair Labor Practices on part of workmen

Unfair Labor Practices on part of employers

The following practices are considered unfair labor practices on the part of employers
or trade union of employers: [Sec. 31]

 Impose any condition in a contract of employment to restrain a person from joining a

trade union or continuing 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 officer of a trade union.
 Discriminate against any person in regard to employment, promotion, condition of
employment or working condition on the ground that such person is, or is not, a
member or officer of a trade union.
 Dismiss, discharge, remove from employment or transfer or threaten to dismiss,
discharge or remove from employment or transfer a workman or injure or threaten to
injure him in respect of his employment by reason that the workman
 Induce any person not to become or cease to be a member or officer of a trade union
by offering any advantage.

Unfair Labor Practices on part of workmen

The following practices are considered unfair labor practices on the part of workmen or
trade union of workmen. [Sec. 32(1))

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  Persuade a workman to join or not to joining a trade union during working hours.
 Intimidate any person to become or not to become, or continue to be or cease to be a
member or officer of a trade union.
 Compel the employer to accept any demand by using coercion or other illegal
methods.
 Commence, continue or incite others to take part in or supply money in support of an
illegal strike.

Settlement of dispute:

 Disputes are usually a disadvantage in any industry. A conflict can emerge for a
variety of reasons, the most prevalent of which being the relationship between the
employees and their earnings. A disagreement is caused by a clash of interests
between two parties.
 An industrial dispute involves two parties: the employer and the employee.
Employees have traditionally been placed on the bottom rungs of society by
employers who exhibit a dominant self-being in positions of control.
 This long-standing inequity in the industrial arena now demands resolution on the part
of both the employer and the employee having an equal opportunity to communicate
their desires.
 The Act has no mechanism for resolving disputes through bilateral dialogue. If the
parties are unable to reach an agreement, the only means to resolve an industrial
dispute is via adjudication on the recommendation of the competent authorities.
 As a result, the function of voluntary arbitration is required on fundamental grounds
for the parties engaged in the dispute to simply resolve the same. If this is not done,
there are alternative options for settling conflicts.
 The greatest approach to resolve disagreements is via collective bargaining, which
represents the diversity of workers in the business. If collective bargaining fails,
additional resolution options include conciliation, arbitration, and voluntary
arbitration.

Negotiation:

 Meeting minutes should be used as evidence during negotiations and should include
at least:

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  The complete names and addresses of the parties; the date and location of the
negotiation; the major problem or cause for the disagreement; each party's opinion;
the conclusions or outcomes of the discussions; and the date and signatures of the
negotiating parties.
 If the parties are unable to reach an agreement within 30 days, or if one party refuses
to continue discussions, one or both parties may bring the disagreement to the
authorized Manpower Office, accompanied by documentation that the negotiations
have failed.

Negotiation according to section 35:

1. If any individual dispute has arisen, the employee should communicate with the
council or other party as well.
2. The dispute should be settled within 10 days or on a period decided by both parties.
3. If employer or CBA find failure of bilateral negotiation in the work council, the
employer or CBA can take a notice of strike within 7 days.

Conciliation:

Conciliation: the resolution of disagreements regarding interests, termination of work

relationships, or disputes among trade unions within a single company.

 The copy of notice shall send you conciliator and commission.

 The conciliator should plan a meeting of both parties to the dispute within 15 days
for settlement.
 Both parties select one person to represent them in front of conciliator.
 The conciliator can call the employer by notice in writing.
 An agreement to settle the dispute is reached, the parties must draw up and sign a
Collective Agreement, which is witnessed by the mediator or conciliator and
registered at the Industrial Relations Court in order to receive a registration deed.
 If no agreement is reached, the mediator or conciliator will issue written
recommendations within ten days after the first hearing. The parties must provide
a written answer stating whether they accept or reject the recommendation within
ten days of receiving it. No response is considered a rejection.

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  If the parties accept the recommendation, within three working days of their
acceptance, the mediator or conciliator must assist the parties to draw up a
Collective Agreement and register it at the Industrial Relations Court to obtain a
registration deed.
 If one or both of the parties reject the recommendation, they may take the dispute
to the local Industrial Relations Court.
 The mediator or conciliator must complete their duties within 30 days from the
time they are requested to resolve a dispute

Arbitration:

Arbitration is a mechanism in which a dispute is resolved by an impartial third party whose

decision is final and binding upon the parties.

Types:

There are two types of arbitration:-

1. Voluntary arbitration
2. Compulsory arbitration

Voluntary Arbitration:

In this, the parties themselves agreed on their own to use an outside party, to settle their
disputes. It is non-binding in nature.

Compulsory Arbitration (Adjudication):

Compulsory arbitration is one where the parties are required to accept arbitration without any
willingness on their party .It is also non-binding in nature.

 If the conciliation fails, the Conciliator shall try to persuade the parties to agree to
refer the dispute to an Arbitrator.
 (a) If the parties do not agree to refer the dispute to an Arbitrator, the Conciliator
shall, within 3 (three) days of failure of the conciliation issue a certificate to the
parties to the dispute to the effect that it has failed.

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  (b) If the parties agree to refer the dispute to an Arbitrator, they shall make a joint
request in writing for settlement of the dispute to an Arbitrator agreed upon by
them.
 An Arbitrator referred in subsection (2-b) may be a person from the panel of
Arbitrators prepared by the Government on this behalf or any other person agreed
upon by the parties.
 The Arbitrator shall give his award within 30 (thirty) days from the date of receipt
of the request for arbitration or within such further period as may be agreed upon
in writing by the parties.
 When an award is given by the Arbitrator, he shall forward one copy thereof to
the parties and another copy to the Government.
 The award of the Arbitrator shall be final and no appeal shall lie against it.
 An award shall be valid for such period not exceeding 2 (Two) years as may be
fixed by the Arbitrator.

Lock out:

 Employers have the right to refuse to allow workers to work as a result of failed
negotiations and must be in accordance with the law.
 However, employers cannot lock out their workers as a countermeasure to
workers and/or union normative demands.
 Employers are required to inform the employee or the union and the official
representative in manpower at least 7 working days before the lock out occurs.
 The content of the written information will be:
 Time (day, date and hour) the lock out will be started and finished
 Justification for the lock out
 Signed by the employer and the management of the company.
 At least 7 days before the lockout, the employer must notify the local manpower
office and the workers of the time, duration and reason for the lockout.

Illegal strike:

Strike becomes unlawful if it is declared, begins, or continues in violation of the

requirements of this Ordinance. Strikes with less than fourteen days' notice are prohibited.

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 Strikes within fourteen days after receiving notice are prohibited, as are continuing
strikes.

Illegal lock out:

Lock out becomes unlawful if it is declared, begins, or continues in violation of the

requirements of this Ordinance. Locking out without fourteen days' notice is prohibited.
Locking someone out within fourteen days after receiving a notification is unlawful, as is
keeping them locked out indefinitely.

National Industrial Relations Commission:

Introduction:

 The Industrial Relations Commission was established through amendments in the

Industrial Relations Ordinance, 1969 in 1972 mainly with mandate to deal with issues
of registration of Industry wise trade unions and national level trade unions and
federations.
 Later on it was entrusted cases of unfair labor practices in all establishments.
 The Commission was retained under Industrial Relations Ordinance, 2002, Industrial
Relation Act, 2008. After 18th constitutional amendment when the subject of labor
welfare was devolved to the provinces and new law in the name of Industrial
Relations Act, 2012 was enacted for dealing with labor issues in the ICT and trans-
provincial establishments, the National Industrial Relations was established under
section 53 of the Industrial Relations Act, 2012 with fresh mandate.

Here is brief introduction of NIRC as described in the IRA, 2012.

Constitution of the commission:

Section 53 of IRA, 2012 provides that:

1. The Federal Government shall constitute a National Industrial Relations Commission.

2. The Commission shall consist of not less than ten full time members, including the
Chairman.
3. The qualification for appointment as a member or as the Chairman of the Commission
shall be such as may be prescribed.

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 4. The Chairman and other members of the Commission shall be appointed by the
Government in the prescribed manner.
5. Two of the members shall be appointed in the prescribed manner to advise the
Chairman, one to represent the employers and the other to represent trade unions and
the federations of such trade unions.
6. The Chairman of the Commission may, in addition to the representatives of workers
appointed to the Commission, co-opt, in cases where he deems it necessary, from
amongst workers belonging to federations such representatives of workers as he may
deem fit.
7. The worker's representative co-opted under sub-section.

Functions of the commission:

1. To resolve industrial disputes in the Islamabad Capital Territory and across provinces
involving trade unions, particularly those of national importance referred by the
Government.
2. To register trade unions, industry-wise trade unions, and federations of trade unions in
the Islamabad Capital Territory and across provinces.
3. To determine the collective bargaining agents among trade unions, industry-wise
trade unions, and their federations in the Islamabad Capital Territory and across
provinces.
4. To handle offenses related to employers, workers, trade unions, and their federations,
as specified by the law.
5. To take measures to prevent unfair labor practices by employers or workers,
following regulations.
6. To address individual grievances as per the prescribed procedure.
7. To exercise authority over establishments or groups of establishments in the
Islamabad Capital Territory and across provinces.
8. To perform additional powers and functions assigned by the Government through
official notification.
9. To prevent employers or workers from engaging in unfair labor practices.
10. To address individual complaints and issues.
11. To have exclusive jurisdiction over establishments in the Islamabad Capital Territory
and across provinces.

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 12. To have additional powers and functions assigned by the Government.
13. To impose penalties, such as imprisonment or fines, on individuals who disobey its
orders or commit contempt of court.
14. The Chairman, members, or authorized personnel have the right to enter and inspect
buildings, factories, establishments, workshops, or premises and inquire about
relevant matters.

Benches of the Commission

a. A Full Bench of the Commission which shall consist of not less than three members
of the Commission to hear appeals against judgements of Single Benches
b. As many other Benches of the Commission consisting of one member of the
Commission, to hear cases of unfair labor practices, individual grievances and
miscellaneous application/complaints.

Additional powers of the Commission:

The additional powers of the commission are

1. The Commission may, on the application of a party, or of its own motion, initiate
prosecution, trial or proceedings, or take action, with regard to any matter relating to
its functions.
2. Withdraw from a Labor Court of Province any application, proceedings or appeal
relating to unfair labor practice, which fall within jurisdiction of the commission and
grant such relief as it may deem fit including interim injunction.

Provincial Industrial Relations Acts:

Labor Courts and Labor Appellate Tribunals are set up by the Provincial Governments to
handle industrial relations matters. In Balochistan, there is an Industrial Relations
Commission, while in the other three provinces, Labor Courts and Labor Appellate Tribunals
perform similar functions. Here are simplified descriptions of these two institutions based on
the Punjab Industrial Relations Act, 2010:

Labor Court:

Constitution:

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  The government can establish multiple Labor Courts as needed, with specified
jurisdictions.
 A Labor Court consists of a presiding officer appointed by the government, who
should be a District Judge or an Additional District Judge.

Functions:

1. The Labor Court has the following functions:

2. Resolving industrial disputes.
3. Handling matters related to the implementation or violation of settlements.
4. Trying offenses specified by the government.
5. Trying offenses punishable under section 64.
6. Addressing cases of unfair labor practices.
7. Exercising additional assigned powers and functions.
8. Granting suitable relief, including interim relief.

Procedure and Powers:

 The Labor Court is considered a Civil Court for adjudicating industrial disputes. It has
powers to:
 The court can call and question people under oath.
 The court can make people provide documents and physical items.
 Issue commissions for witness examination or document examination.
 Act as a First Class Magistrate for trying offenses.
 There are no court fees for filing documents, and the Court may allow case
withdrawal if the matter is resolved.

Award and Decision:

The Labor Court's award or decision is provided in writing and delivered in open court.
Copies are sent to the Provincial Government and, if applicable, the Federal Government.
The Provincial Government publishes the award or decision in the official Gazette within 30
days. The decision is generally final, but parties may appeal to the Labor Appellate Tribunal
within 30 days.

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Labor Appellate Tribunal:

Constitution: The government can establish multiple tribunals, each consisting of one
member who is or has been a judge of the High Court.

Functions and Powers:

The tribunal's functions and powers include:

1. Confirming, setting aside, or modifying awards, decisions, or sentences passed by a

Labor Court.
2. Reviewing the correctness, legality, or propriety of orders passed by a Labor Court.
3. Ensuring an opportunity for a person to be heard before revising or modifying an
adverse order.
4. Following prescribed procedures.
5. Punishing for contempt of its authority or any Labor Court.
6. Allowing persons convicted by the tribunal to appeal to the High Court.
7. Transferring applications or proceedings between Labor Courts.
8. Setting time limits for deciding appeals, especially those related to reinstatement
orders.

References:

 The Industrial Relations Act, 2012.

https://na.gov.pk/uploads/documents/1335934287_218.pdf

 Wikipedia contributors. (2022). Registrar. Wikipedia.

https://en.wikipedia.org/wiki/Registrar

 Write a legal documentation on labour trade union. . . | Chegg.com. (n.d.).

https://www.chegg.com/homework-help/questions-and-answers/write-legal-

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 documentation-labour-trade-union-covering-1-formation-registration-trade-union-

q51019321

 Nidirect. (2021). Introduction to trade unions. Nidirect.

https://www.nidirect.gov.uk/articles/introduction-trade-unions

 Freedom of association trade union & cba. (n.d.).

https://www.slideshare.net/MdMorshedollAlam/freedom-of-association-trade-union-

amp-cba

 Khan, H. (2021, March 26). How To Register a Trade Union In Pakistan | Hamza &

Hamza. Hamza and Hamza. https://hamzaandhamza.com/how-to-register-a-trade-

union-in-pakistan/

 NIRC - Federation. (n.d.). http://www.nirc.gov.pk/listfederation.aspx?

aaakbcvxbmfbtdgm

 Cancellation of registration - Example. (n.d.).

https://www.ilo.org/legacy/english/dialogue/ifpdial/llg/ch2/ex10.htm

 The Industrial Relations Act, 2012.

https://na.gov.pk/uploads/documents/1335934287_218.pdf

 CBA Definition. (n.d.). Scribd. https://www.scribd.com/document/401871370/CBA-

Definition

 Check out this article. . .What Is a Shop Steward? (n.d.). UpCounsel.

https://www.upcounsel.com/shop-steward

 Wikipedia contributors. (2023). Works council. Wikipedia.

https://en.wikipedia.org/wiki/Works_council

 PAKISTAN. Industrial Relations Ordinance, 2002. (n.d.).

https://www.ilo.org/dyn/natlex/docs/WEBTEXT/62636/65260/E02PAK01.htm

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 Unfair Labor Practice Process Chart | National Labor Relations Board. (n.d.).

https://www.nlrb.gov/resources/nlrb-process/unfair-labor-practice-process-chart

 Voluntary vs Mandatory Arbitration. (n.d.). [Video]. The Business Professor, LLC.

https://thebusinessprofessor.com/criminal-civil-law/statutorily-mandated-arbitration

 VIA Mediation Centre. (n.d.). Settlement of Industrial dispute through Arbitration and

Conciliation  | VIA Mediation Centre.

https://viamediationcentre.org/readnews/NDQ5/Settlement-of-Industrial-dispute-

through-Arbitration-and-Conciliation

 NIRC - National Industrial Relations Commission. (n.d.). http://www.nirc.gov.pk/

 Industrial relations act, 2012.

https://pakistancode.gov.pk/pdffiles/administrator964ce81cc171ed5dcd0960630e9224
22.pdf

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