The branch of law that governs the interactions of employers and employees is referred to as employment law services. The goal of these laws is to safeguard the rights of employees while ensuring that the business can run effectively and attain maximum productivity, profitability, and employment and minimise unlawful activities and discrimination.

The bond between an employer and an employee is sensitive, yet it is vital for the success of an organisation. This bond can determine the employee’s overall experience in the organisation as well as the employer’s success.

Legal requirements for recruitment including minimum wage laws, anti-discrimination laws, and work safety requirements, must be known by employers. Minimum wage rules, for example, specify a given payment an employer must pay. Lawmakers have created regulations prohibiting employers from treating applicants or employees differently based on specific characteristics.

Employers are required to create a safe and favorable working environment; in some cases, this means providing health insurance. There is also a requirement for employers to deduct and submit payroll tax on the employees’ behalf.

Workplace Legal Framework & Labour Protection in Pakistan

While enforcement of labour laws in Pakistan can vary, employees are legally entitled to overtime pay, social security, and the right to form unions. Certain provincial institutions also provide healthcare and financial support to workers and their dependents.

Employees in the Pakistan Workers Federation (PWF) have a voice now, no matter what type of job they do. Also, some of the social security institutions for employees have been created at the provincial level, which offer health care, financial aid, and other services to workers and to their dependents.

Constitutional Safeguards for Workers in Pakistan

The Constitution of Pakistan provides for the protection of employees’ rights. These protections are included in the chapter on Fundamental Rights and Principles of Policy.

Regarding Article 11, this article prohibits child labour, forced labour and slavery in any shape or form.

About Article 17 and the provision for the fundamental right to form unions and the right to associate, the same is also applicable to this Article.

Regarding Article 18, this article provides for the right of citizens to undertake any lawful profession or occupation and to carry on any trade or business.

The right to equality before the law and protection against discrimination based on sex are addressed in Article 25.

Concerning Article 37(e), this article provides for the right to just and humane conditions of work, the right to protection against the employment of children and women in work for which they are unsuited, and the right to maternity benefits.

Key Labour & Employment Statutes Governing Pakistan

Provincial Social Security System for Employees (1965 Framework)

The Social Security Ordinance on the provincial employees was passed in the year 1965, and it established a social security project that provided benefits on selected employees and their dependents due to illness, maternity, work related injuries, or death. The ordinance was devolved after the 18 th amendment and the employee social security agencies were established at the provincial levels to carry on with the provision of the same benefits. These agencies are called:

• Punjab Employees Social Security Institution (PESSI)

• Sindh Employees Social Security Institution (SESSI)

• KPK Employees Social Security Institution

   

Standing Orders Law: Written Employment Terms & Worker Protection

The Standing Orders Ordinance, 1968, (Industrial and Commercial Employment) is assumed to be the most vital labour law introduced in Pakistan. At the time of its enactment, the policymakers believed that it was an important policy for the protection of the rights of workers in employment matters.

The employers under this Ordinance have the obligation of giving a written appointment letter to each employee upon hiring, upon transfer or promoting them. The terms and conditions of employment must be clearly indicated in this letter. Besides this, a permanent employee is entitled to a written service certificate when he or she ceases employment because of dismissal, discharge, retrenchment, or retirement (Standing Orders 2-A and 18 of the1968 Ordinance).

The provincial laws contain similar legal requirements. Both the Khyber Pakhtunkhwa Industrial and Commercial Employment (Standing Orders) Act, 2013, and the Sindh Terms of Employment (Standing Orders) Act, 2015, also direct employers, who hire workers under the applicable standing orders, to issue written employment terms and service certificates to workers.

Standing Orders Law: Written Employment Terms & Worker Protection

According to Pakistani employment law, you cannot employ people on fixed-term contracts for jobs that are permanent in character. A fixed-term (temporary) agreement, including renewal, cannot last for more than nine months.

In accordance with laws in Sindh and Khyber Pakhtunkhwa, employees can be hired on contract, with the contract’s duration being determined by the terms of the contract itself.

Nonetheless, Sindh law defines a contract worker as someone who works for a certain amount of time specified in the contract, in any business, but excludes third-party employment.

In Khyber Pakhtunkhwa, a contract worker is also defined by law as one who works on a contract basis for a certain time period specified in the Letter of Contract. According to the legislation, an employer must get a No Objection Certificate (NOC) from the Employment Department in order to outsource jobs that are ancillary in nature and not those that are essential to the organisation’s operations. An NOC of this nature is only valid for six months at a time and includes specific restrictions on the work and hiring of contract labourers.

Old Age Pension & Retirement Benefits Under Pakistani Law

Eligibility Criteria for Pension Benefits

The Social Security Act makes provisions for pensions that are either complete or only partially/early. A worker must be at least 60 years old (or 55 for women) and have at least 15 years of contributions to be eligible for a full pension. The workers with ages between 55 and 59 (men) or 50 and 54 (women) with at least 15 years of contribution are given a lower pension. (The Employees’ Old Age Benefits Act of 1976’s Section 22).

Survivor & Family Pension Rights

Survivor benefits, which include dependents like widows, widowers, and children, are covered under Social Security legislation. The worker who died must be a retiree at the time of their passing. The minimum pension of the deceased is divided equally among their spouses. (The Employees’ Old Age Benefits Act of 1976, Section 22-B).

Invalidity Benefit

If a non-occupational accident/injury/illness causes permanent invalidity, the aforementioned legislation grants the invalidity benefit. (The Employees’ Old Age Benefits Act, 1976, sec. 23).

How SARDAR KHAN & CO Assists Employers & Employees

We assist employers and employees with drafting contracts, ensuring labour law compliance, resolving disputes, and securing pensions. Contact us today to protect your business and employee rights.