Industrial Relations

Presented To:
Dr. Sajjad Ahmad

Presented by:
Hamza, Ahmed, Hadia, Rabia, Humayun, Haris
 01
Ahmed Waqar
Topic: Industrial Relation Act and its
Application and Definitions
Scope of the Industrial
Relations Act

• The Industrial Relations Act of 2012 deals with the interaction

between workers and employers in most industries in Pakistan.
• There are exceptions, including workers in the police, defense
services, and some government administrative staff.
• The Act focuses on matters like trade unions, bargaining, and
dispute resolution in the workplace.
 Definition
Award
A decision made by a commission or arbitrator regarding an
industrial dispute or related matter, including interim decisions.

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.
 Definition
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.

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.
 Definition
Executive
The body responsible for managing the affairs of a trade union
according to its constitution.

Industry
Any business, trade, occupation, or employment involved in
producing goods or providing services, excluding charitable
organizations
 Definition
Officer
A member of the executive of a trade union, excluding auditors
or legal advisors

Organization
A group of workers or employees that works to protect and advance
their interests
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.
 Definition
Settlement
An agreement reached through conciliation proceedings
between an employer and workers, including agreements in the
absence of a collective bargaining agreement (CBA).

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
 02
Hamza Yameen
Topic: Registrar and Collective
Bargaining Agent ( CBA )
 Registrar
A registrar typically refers to an organization or an
individual responsible for maintaining and managing
records related to a specific field.
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]

Registering trade Determining collective

unions and bargaining agreements
maintaining a register
Power
of Registrar
complaints for offenses,
unfair labor practices, Act
violations, or unauthorized Inspecting accounts and
expenditure by trade unions. records of registered
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 join international associations without authorization.

2. Trade unions must include women in their executive bodies in establishments

with female employees.

3. Workers can only be members of one trade union at a time.

4. Employers have the freedom to join international associations without prior

authorization.

5. Trade unions and employers' associations must establish constitutions and

rules for fair representation and organizational activities.

6. Workers and employers can form federations and confederations, connecting

globally for stronger collaboration and representation.
 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 union.

Name of Trade Union Address of head office Date of formation of trade union

Titles, names, age, addresses Occupations of officers of the trade union Statement of total paid membership

In the case of a federation of trade unions, the

Establishment/Industry: ABC Hotel Chain Names and addresses of registered trade unions
names, addresses and registration
Number of Workers Employed: 1,000 in the establishment
number of member unions.

A copy of the resolution by A copy of the resolution by members of the trade

Three copies of the constitution of the trade
members adopting such a constitution signed by union authorizing its president and
union
the chairman of the meeting secretary to apply for registration

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):

Name and Address Objects Utilization of Funds

Executive Composition Membership Benefits and Fines Maintenance of Member List

Procedures and requirements for changing

Safe Custody and Audit Dissolution
or cancelling its provisions

Officer Elections No Confidence Procedure Meetings

 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 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.
 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:
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.
 Cancellation of Registration:
● Application to Commission: 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.
● Cancellation by Registrar: Upon receiving permission from the Commission, the Registrar shall cancel the registration
within 7 days.
● 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.
● Disqualified Person: If a disqualified person is elected or becomes a member, the Commission can cancel the registration
upon a complaint by the Registrar.
● Dissolution of Trade Union: If the Registrar finds that the trade union has dissolved, the registration shall be cancelled
 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.
 Criteria for Union
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
01
of workmen employed, the
trade union can apply to the
Registrar for certification as
the CBA.
Multiple Union
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
02 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 particular
 Procedure for Election
● 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.
● Verification: The Registrar should be given access by the employer to verify the submitted worker list and the trade
union involved.
● 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.
● Right to Vote: Workers who are members of any of the contesting trade unions and appear on the voter list are entitled
to vote.
 Procedure for Election
● Polling Facilities: Employers must provide polling facilities within their establishments. They should not interfere with
or influence voting.
● 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
 CBA Certification

The trade union with

the highest number of
votes will be certified
as the Collective
Bargaining Agent
(CBA) by the Registrar.
 03
Hadia Jamait
Ali
Topic: Workers Participation and Unfair
labor Practices
 Workers Participation

Shop Steward Works Council

Workers Participation Joint Management

Board
Shop Steward

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
 Cont.
The rules of appointment of shop steward are as under: [Sec. 23]

The shop steward is employed
in every factory or
establishment in which 25 or
more workmen are employed
Where there is a CBA, he shall
be nominated from workers in
a shop, section or department
of the establishment
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
 Cont.
The rules of appointment of shop steward are as under: [Sec. 24]

He acts as a link between He assists in improving the He helps the workers to settle
workers and the employer physical working conditions their problems regarding work
and production work in the and individual grievances
department
 Works Council
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]
● 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.
 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
 Workers Participation
The management shall not take any decision in the following matters without advice in
writing of the workers' representatives:
1. Changing physical working conditions.

2. In-service training of workers.

3. Recreation and welfare of workers.

4. Regulation of daily working hours and breaks.

5. Preparation of leave schedule.

Joint Management Board
The rules are as under: [Sec. 28]

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 following matters:
a. Improvement in production, productivity and efficiency
b. Provision of minimum facilities for workers employed through
contractors
 Cont.
• The joint management board may ask for information about the
working of the establishment from its management
• The joint management board shall meet at intervals as prescribed
• The workers representative shall hold office for the prescribed
period
 Unfair Labor Practices
• Unfair Labor Practices
on part of employers

• 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
● 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
 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))
● 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
 04
Rabia Javed

Topic:
Settlement of Disputes
Negotiation
 Meeting minutes should be used as evidence during
negotiations and should include at least:
 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.
 Negotiation according to Sec: 35
● If any individual dispute has arisen, the employee should communicate with the council or
other party as well.
● The dispute should be settled within 10 days or on a period decided by both parties.
● 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
● 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
 Arbitration

Arbitration is a mechanism in which a dispute is

resolved by a impartial third party whose decision is
final and binding upon the parties.
 Types of Arbitration
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 .
 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 a lock out occurs.
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. Strikes within fourteen
days after receiving notice are prohibited, as are continuing strikes.

Illegal Lockout
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.
 05
Humayun khan
Topic: 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.
 Constitution of the commission
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.
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
● To resolve industrial disputes in the Islamabad Capital Territory and across provinces involving
trade unions, particularly those of national importance referred by the Government.
● To register trade unions, industry-wise trade unions, and federations of trade unions in the
Islamabad Capital Territory and across provinces.
● To determine the collective bargaining agents among trade unions, industry-wise trade unions, and
their federations in the Islamabad Capital Territory and across provinces.
● To handle offenses related to employers, workers, trade unions, and their federations, as specified
by the law.
● To take measures to prevent unfair labor practices by employers or workers, following regulations.
● To address individual grievances as per the prescribed procedure.
● To exercise authority over establishments or groups of establishments in the Islamabad Capital
Territory and across provinces.
 Functions of the commission
● To perform additional powers and functions assigned by the Government through official
notification.
● To prevent employers or workers from engaging in unfair labor practices.
● To address individual complaints and issues.
● To have exclusive jurisdiction over establishments in the Islamabad Capital Territory and
across provinces.
● To have additional powers and functions assigned by the Government.
● To impose penalties, such as imprisonment or fines, on individuals who disobey its orders or
commit contempt of court.
● 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 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
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

Withdraw from a Labor Court of

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
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.
 06
Haris Asif

Topic: Provincial Industrial

Relations Acts
 Provincial Industrial Relations Acts
Labor Court:
Constitution:
● 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

The Labor Court has the following functions:

Handling matters related to the

Resolving industrial disputes Trying offenses specified by the government
implementation or violation of settlements

Trying offenses punishable under section Exercising additional assigned powers and
Addressing cases of unfair labor practices
64 functions

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 The court can make people provide Issue commissions for witness examination
under oath. documents and physical items or document examination.

There are no court fees for filing

Act as a First Class Magistrate for trying documents, and the Court may allow case
offenses. withdrawal
if the matter is resolved
 Award & 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.
 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:

Confirming, setting aside, or modifying Reviewing the correctness, legality, or Ensuring an opportunity for a person to be
awards, decisions, or sentences passed by a propriety of orders passed by a Labor heard before revising or modifying an
Labor Court. Court. adverse order

Punishing for contempt of its authority or Allowing persons convicted by the tribunal
Following prescribed procedures.
any Labor Court. to appeal to the High Court

Transferring applications or proceedings between Labor Courts.

Setting time limits for deciding appeals, especially those related to reinstatement orders