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In House Training Program ( 1st Day )



Learning Objectives
This Training program has been designed with the objective of developing clear perception and understanding of the audience about the different laws concerning business and labour. The course is comprised of three parts containing Law concept, Labor Policies and different laws confronting the businesses and labour force.


What is Law
Law in general sense defined as :
The law consists of rules that regulate the conduct of individuals, businesses, and other organizations within society International Law Domestic Law

Significance of Law Law is to maintain rights, uphold justice and redress wrongs. Law ensures public order, balance, harmony, peace among the persons within the state and inter-states.

Process of Law making and enforcement







Constitution of Pakistan

The supreme law of the country is called the constitution. The affairs of Pakistan are run under the constitution of Pakistan 1973 (duly amended and up-dated).

Objection of Labor Law

1.To protect workmen from exploitation. 2. To improve their working and living conditions. 3. To encourage settlement of industrial dispute amicably for the purpose of maintaining industrial peace and harmony. 4. To provide for a legal machinery to take care of various aspects of socio-economic importance and environment.

Objective of Labour Law

5.To ensure social justice to both the employers and the employees 6. To reduce tensions and chances of victimization 7. To create an environment of peaceful coexistence. 8. To ensure safeguard and safe environment for workmen in factories and industries. 9. To provide relief to workmen in the matter of layoff and retrenchment, collective bargaining, etc.

Labor legislation in Pakistan

Pakistan's labour laws trace their origination to legislation inherited from India at the time of partition of the Indo-Pak subcontinent. The laws have evolved through a continuous process of trial to meet the socio-economic conditions, state of industrial development, population and labour force explosion, growth of trade unions, level of literacy, Governments commitment to development and social welfare.

Labor Policies in Pakistan

Labour Policy in Pakistan has been evolving in response to specific needs of the situation to suit requirements of planned Economic Development & Social Justice has two-fold Objectives, viz., Labour Policies are devised to maintain Economic Development, Social Justice, Industrial Harmony & Welfare of Labour in the country.

Labor Policies in Pakistan

Labor Policy 1955 Labor Policy 1959 Labor Policy 1969 Labor Policy 1972 Labor Reforms of 1975 Labor Reforms of 1977 Labor Policy 2002 Labor Protection Policy 2005 Labor Inspection Policy 2006 Labor Policy 2010

The First Labor Policy 1955

Highlights of Labor Policy While developing the First labor policy, the government had expressed its anxiety on the following issues. Trade union Industrial Peace Promoting Welfare of Labor

The Second Labor Policy 1959

Highlights of Labor Policy

ILO Convention Trade Unionism Employee and Employer relationship Industrial peace Social Amenities Unemployment Employment information Collection of Statistics Employment of seamen Responsibility of Social welfare Foreign Assistance

The Third Labor Policy 1969

Highlights of Labor Policy

The third policy was a forthright admission on the part of the government that the workers did not have a fair deal in the past and despite economic growth, the workers real income and living conditions remained static and in many cases had actually deteriorated. Freedom of Association Collective bargaining minimum wages Labor law accordance with ratified convention of ILO Public utility services Implementation of labor laws Uniform application of labor laws both for private and public sector Wages structure.

The Fourth Labor Policy 1972

Highlights of Labor Policy

The fourth Labor Policy was announced on February 10, 1972. The salient features of these reforms were as under: Management Inspection of Account Share in Annual Profit Shop stewards Grievance of Workers Works councils Strike Notices Labour Court Banks


The Fourth Labor Policy 1972

Highlights of Labor Policy

Strike Protection of Bonus Labour under contract Housing Social Security Scheme Pension Group Insurance Safety Measure Efficiency Cognizable Offence Trade Union Movement.


Labor Reforms of 1975

In 1975 the following labour reforms were legislated:

In an establishment where two registered trade unions already exist, no other union shall be registered unless it has at least 20% membership of the total number of workers in the establishment. A worker shall not be entitled to be a member of more than one trade union at a time. While prohibiting the agreement between the employer and the union other than the collective bargaining agent, agreement between the collective bargaining agent and the emplohyer even outside the conciliation proceeding has been made binding on all workmen as the agreement in the course of conciliation proceedings. While disallowing the representation through any other union, the worker himself or the collective bargaining agent is entitled to make representation to the employer and the labour court.

Labor Reforms of 1977

On 9-1-1977 Federal Minister announced new pension rules. The labor policy from 1977 to 1988 was in fact a suppression policy. The country was in the grip of martial law. That period was devoid of any freedom of association.

Labor Policy 2002

Highlights of Labor Policy

The fifth Labor Policy was announced on 23-9-2002. The principal objective and action program of the policy concentrate on the creation of relationship of trust and co operation between employer and employee under the strategy of least intervention by the state. Objectives and initiatives of Policy are: Promotion of Healthy Trade Unionism Consolidation of Labor Laws Strengthening Social Dialogue Mechanism Labor Jundiciary Social Safety Net Elimination of Gender Discrimination Workers children Education

Labor Policy 2002

Elimination of Child Labour and Bonded Labor Workers in the Agriculture sector. Informal Sector and home based workers Seasonal Workers Regulation of contract workers Rights of workers in the Event of Privatization Challenges of Globilization Labor welfare Levies Sectins 2-A and 27-B Human Resource Development Occupational Safety and Health Labor Research Labor Market Information system

Labor Protection Policy 2005

This provides Protection to workers in five areas.

Basic Rights Working Condition The Working Environment Social Security The Living Environment

Labor Inspection Policy 2006

The Policy provides a new direction for the nations labor inspection system to enable them to respond to new approaches on a wide range of labor protection issue.


Labor Policy 2010

Highlights of Labor Policy

The National Labor Policy 2010 (preceding five policies of 1955, 1959, 1969, 1972 and 2002) provides a legal framework to organizations and constitutes a compilation of rules and regulation on various facets of labor relations and laws in Pakistan. The previous policies were mostly complex, irregular, and difficult to interpret. However, the NLP 2010 outlines and safeguards 11 key characteristics of labor which includes:
Workers right to form unions and provide protection to the union Equitable adjustment of rights between workers and employers Consultations between workers and employers on matters of interest to the establishment and welfare of wokers.

Labor Policy 2010

Workers right to form unions and provide protection to the union Equitable adjustment of rights between workers and employers Consultations between workers and employers on matters of interest to the establishment and welfare of workers. Adequate security of jobs should be available to the workers and their grievances be addressed. Conditions should be created that workers and employers engage in labor productivity. Promotion to higher jobs (through fair means) Facilities for proper matching of job opportunities. Social insurance schemes. Just and humane conditions of work be guaranteed. Elimination of forced labor. Provisions relating to the employment of women and children workers


Link and Resources

M. Shafi, Labour Policy Dimensions, Bureau of Labour Publication 1990 Karamat Ali, Labour Policy in Pakistan, PILER Karachi. Prof. Dr. Khawja Amjad Saeed, Mercantile and industrial law, 2013 Internate