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Strategy for Human Resource Management Lecture 30. HRM 765. Topic . Understanding Labor Relations In Pakistan. Last Lecture . Monitoring Grievance procedures Grievance (rights) arbitration Conciliation and mediation Strikes versus lockouts

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Understanding Labor Relations In Pakistan

last lecture
Last Lecture
    • Monitoring
  • Grievance procedures
    • Grievance (rights) arbitration
    • Conciliation and mediation
      • Strikes versus lockouts
        • Economic strikes - labor and management cannot reach agreement before the current contract expires.
        • Wildcat strikes - unauthorized and illegal strikes that occur because of worker dissatisfaction during an existing contract.
last lecture1
Last Lecture
    • Lockouts - when organizations deny unionized workers access to their jobs during an impasse.

Union membership: Where have the members gone?

Labor-Management Cooperation

  • Some unions recognize that they can gain more by cooperating with management rather than fighting.

Sunshine laws in some states mandate that labor-management negotiations be open to the public.

Unionized Percentage

constitution courts
Constitution / Courts
  • law determining the fundamental political principles of a government.
  • 1973
  • Supreme Court
  • High Court
  • Lower courts
labour rights in the constitution
Labour Rights in the Constitution
  • The Constitution of Pakistan contains a series of provisions with regards to labour rights found in Part II: Fundamental Rights and Principles of Policy.
  • Article 11 of the Constitution prohibits all forms of slavery, forced labour and child labour;
  • Article 17 provides for a fundamental right to exercise the freedom of association and the right to form unions;
labour rights in the constitution1
Labour Rights in the Constitution
  • Article 18 proscribes the right of its citizens to enter upon any lawful profession or occupation and to conduct any lawful trade or business;
  • Article 25 lays down the right to equality before the law and prohibition of discrimination on the grounds of sex;
  • Article 37(e) makes provision for securing just and humane conditions of work, ensuring that children and women are not employed in vocations unsuited to their age or sex, and for maternity benefits for women in employment.

Labour Legislation

Contract of Employment

Article 18 of the Constitution gives citizens the right to enter upon any lawful profession, and to conduct any lawful trade or business; the Industrial and Commercial Employment (Standing Orders) Ordinance was enacted in 1968 to address employer and employee relationship and the contract of employment.


Labour Legislation

Termination of Contract

Terminations of service in any form must be proved in writing where reasons for such an act are stated. If a worker is aggrieved by an order of termination s/he may proceed under Section 46 of the Industrial Relations Ordinance 2002, aimed at regulating the labour-management relations in the country, and bring his or her grievance to the attention of his or her employer, in writing, either him or herself, through the shop steward or through his or her trade union within three months of the occurrence of the cause of action.


Labour Legislation

Under the Factories Act, 1934 no adult can be required or permitted to work in any establishment in excess of nine hours a day and 48 hours a week.

Section 8 of the West Pakistan Shops and Establishments Ordinance, 1969 likewise, restricts weekly work hours at 48 hours. Section 22-B of the Mines Act, 1923 also fixes weekly hours at 48 hours or 8 hours each day, with the limitation of spread-over 12 hours and interval for rest after every six hours for one hour.

In Ramadan special reduced working hours are observed in manufacturing, commercial and service organizations.


Paid Leave

As per Factories Act, 1934, every worker who has worked for a continuous period of twelve months in a factory in the subsequent period of twelve months is entitled for holidays for a period of fourteen consecutive days.


Other Leave Entitlements

Other than the 14 days of annual leave with pay, the Factories Act, 1934 states that every worker is entitled to a 10 days casual leave with full pay and further 16 days sick or medical leave on half pay.

With an understanding with the Collective Bargaining Agent, employees who desire to go on pilgrimage i.e., Hajj, Umra, are granted special leave up to 60 days.


Maternity Leave and Maternity Protection

Article 37 of the Constitution makes reference to maternity benefits for women in employment.

The Maternity Benefit Ordinance, 1958 states that upon the completion of four months employment or qualifying period, a worker is entitled to six weeks paid leave.

Mines Maternity Benefit Act, 1941 is applicable to female employed in the mines in Pakistan.



Article 38 of the Constitution highlights equality in the form of securing the well-being of the people, irrespective of sex, caste, creed or race, by raising their standard of living, and also ensuring equitable adjustment of rights between employers and employees, and landlords and tenants.

staffing recruitment selection termination

Before entering a contract the parties must know;

  • Understand the type of arrangement they are getting into
  • Employee’s rights & entitlements
staffing recruitment selection termination1


  • Nature of an agreement must be defined as;
    • Permanent
    • Term Wise
    • Casual
staffing recruitment selection termination2


  • Grievance Arrangements
  • Termination of Contract Notice
  • Disciplinary Procedure
  • Pension scheme details
  • Sickness Leaves
  • Signatures of both parties
  • Names of the Parties
  • Starting Date
  • Job Title & Description
  • Workplace Address
  • Details of Pay
  • Weekly Hours
  • Holiday Entitlements
staffing recruitment selection termination3

Termination of Contract

Services of a permanent worker cannot be terminated for any reason other than misconduct unless 1 month’s notice has been furnished.

1 month’s wages are calculated on the basis of the average wage earned during the last 3 months of service.

Other categories of workers are not entitled to notice or pay in lieu of notice.

staffing recruitment selection termination4
  • All terminations must be documented
  • If aggrieved then should proceed under s.46 of IRO 2002.
  • Forms of termination;
    • Removed
    • Retrenched
    • Discharged
    • Dismissed from Service
staffing recruitment selection termination5

To safeguard against any unfair labour practices the Labour Courts have been given powers to examine and intervene to find out whether there has been a violation of the principles of natural justice

  • Understanding Labor Relations In Pakistan
  • Labour Rights in the Constitution
  • Contract of Employment
  • Termination of Contract
  • Paid Leave
  • Other Leave Entitlements
  • Maternity Leave and Maternity Protection
  • Equality
  • Pay Issues
  • Freedom of association
  • Before entering a contract the parties must know
  • Termination of Contract
  • Constitution of Islamic Republic of Pakistan . (1973).
  • DeCenzo, D. A., Robbins, S. P., & Verhulst, S. L. (2010). Fundamentals of Human Resource Management 10th ed. United States of America: John Wiley & Sons, Inc.
  • Robbins, S. P., Coulter, M., & Vohra, N. (2013). Management. New Delhi: Dorling Kindersley.