Sardar Khan & Co | Labour Law Services - Pakistan

Labour law governs the legal ties between employees, hiring companies, trade unions, and the government. While individual labour law shields a worker’s particular rights via their employment contract, collective labour law centres on the trilateral connection between the employer, the union, and the worker.

The need for these rules increased dramatically during the Industrial Revolution. The dynamic changed as manufacturing shifted from modest businesses to massive factories. While employers wanted a flexible, cost-effective staff, workers started asking for greater safety and the ability to join (or reject) unions. Labour law now is the product of continuous compromises among these several social and economic groups.

International Labour Organisation (ILO)

Set in 1919, the ILO is a United Nations body committed to advancing social and economic justice by establishing international labour standards. It aims to guarantee that under conditions of freedom and dignity, work everywhere is efficient, sustainable, and carried out. The ILO, based in Geneva and with 187 member nations, defines the standard that Pakistan has to adhere to. Pakistan, as a member, must reconcile its domestic policies and legislation with these international criteria.

Labour Law Practice in Pakistan

Pakistan has a very exhaustive set of labour laws, yet it is sometimes spread throughout various Ordinances, Acts, and Rules, making it challenging to follow. Employers, workers, and unions can use these guidelines as a crucial reference to understand their responsibilities and legal protections. The ultimate aim is to align large corporate profits and high output with decent salaries and labour abuse protections.

Many of these legislation predates the subcontinent’s partition. These initial regulations gave employees the right to unionise, bargain collectively, and even go on strike, very advanced rights. The national constitution and particular provincial laws define the framework today.

Labour Laws Under the Constitution of Pakistan

The Constitution provides the highest level of protection for workers’ rights within Part II, covering Fundamental Rights and Principles of Policy:

• Article 11: Strictly bans slavery, human trafficking, forced labour, and child labour.
• Article 17: Guarantees the fundamental right to freedom of association and the power to form unions.
• Article 18: Protects the right of every citizen to choose any legal profession or business.
• Article 25: Ensures all citizens are equal before the law and forbids discrimination based solely on gender.
• Article 37(e): Directs the state to ensure humane working conditions and mandates that women and children are not given jobs unsuited to their age or physique. It also secures maternity benefits.

Annual Leave and Holidays

After working for 12 months without interruption, an employee earns 14 consecutive days of paid annual leave (Factories Act, Sec. 49-B).

Pay on Public Holidays

Paid time off during religious and public holidays is owed to employees. At the beginning of each year, the Ministry of Interior and provincial governments usually declare around 14 such holidays (Factories Act, Sec. 49-I).

Weekly Rest Days

Typically, employees should get at least one full day (24 hours) of rest each week. Section 35 of the Factories Act states that if a person is needed to work on their day off, they cannot work for more than 10 days in a row without getting a complete compensatory day of rest.

Bonded Labour in Pakistan

Fundamentally, bonded labour is a contemporary kind of servitude. It arises when a creditor exaggerates a debt by including hidden costs for housing and meals, thereby rendering repayment impossible. Through violence and intimidation, this cycle might entangle families for years.

Keeping someone in bondage infringes almost every constitutional right, including the freedoms of mobility (Art. 15), assembly (Art. 16), association (Art. 17), and employment (Art. 18). To combat this, Pakistan has introduced several harsh legislations:

• The Bonded Labour System (Abolition) Act, 1992
• Provincial Abolition Acts (Sindh, KP, Punjab, and Gilgit-Baltistan)
• The Punjab Prohibition of Child Labour at Brick Kilns Act, 2016
• Prevention of Trafficking in Persons Act, 2018

Compensation

Overtime Compensation: Double time, that is, 200% of your typical hourly wage, double time under Section 47 of the Factories Act is required for work exceeding nine hours daily or 48 hours weekly.

Night Work Compensation: Currently, the law does not call for a higher compensation rate for workers assigned to night shifts.

Sexual Harassment at the Workplace

The law strictly forbids sexual harassment. Offenders under the 2010 Act and the Code of Criminal Procedure may be sentenced to up to three years in jail, a fine of up to PKR 500,000, or both.

Health & Safety

Owner’s Responsibility: Legally obligated under the Factories Act, Chapter 3, owners must create a clean and safe atmosphere for all employees.

Free Protection: Though the law does not specifically name every kind of garment, the 2006 Labour Protection Policy mandates businesses to supply safety equipment. Mandatory vaccinations and health check-ups (Factories Act, Sec. 23-A) must also be covered by companies.

Training: Employers are legally obligated to offer the needed training and supervision to ensure employees stay safe on the job (Sec. 38).

Labour Inspection System

Pakistan enforces these regulations using an autonomous inspection network. But since labour is now a provincial issue, there is no one central agency; Each province controls its inspectors instead.

Social Security

Pension Rights: Men must be 60 and women 55, with at least 15 years of contributions, to get a full pension from EOBI. Early retirement is an option with a minimal loss in advantages. PKR 5,250 is the minimum monthly pension as of 2015.

Survivors’ Benefits: The spouse of a deceased worker gets 100% of the minimum pension. Should there be no spouse, it passes to the parents or kids.

Invalidity Benefit: If an injury or illness (not caused by work) leaves a person 67% disabled, they get a monthly pension based on their former earnings and years of service.

Child Labour

Art. 11 of the Constitution prohibits children under 14 from working in mines or factories. Article 25-A also requires the government to offer free, mandatory education to kids 5 to 16, since education is the most effective weapon against child labour. Further control comes from particular Acts, including the Employment of Children Act 1991.

Domestic Work

Who is a Domestic Worker? This is anyone employed to work within a private household. While Pakistan lacks a specific dedicated law for domestic helpers, their rights are covered under new ILO conventions.

Rights under ILO: The ILO requires that domestic workers have written contracts they understand, follow the 48-hour work week, receive overtime and paid leave, and be paid primarily in cash rather than just “food and board.”

Fair Treatment

Equal Pay: Under the Minimum Wage Rules of 1962, men and women must be paid the same for work of equal value. The government is currently drafting more specific anti-discrimination laws for the provinces.

Non-Discrimination: Article 27 of the Constitution prevents discrimination based on race, religion, or gender, though this currently applies mostly to government (public sector) jobs.

Choice of Profession: Certain industrial roles are still restricted for women under the Factories Act for safety reasons. Article 27 also allows for gender-specific roles if the job functions require it.

Maternity and Work

Maternity Leave: Women are entitled to 12 weeks (3 months) of fully paid maternity leave. Taking at least six weeks off after the birth is mandatory (Maternity Benefit Ordinance, 1958).

Income: To qualify for paid leave, a woman must have worked for her employer for at least four months before the delivery date.

Medical Care: Qualifying women are also entitled to free prenatal and postnatal medical care through Social Security.

Trade Unions

Freedom to Join: Both the law and the Constitution allow workers to form and join unions. However, the Industrial Relations Act (IRA) 2012 does include some exceptions that limit this right for certain categories of workers.

Collective Bargaining: The IRA 2012 provides a framework for employees to negotiate terms through their chosen representatives.

Right to Strike: Striking is not a “fundamental” right. The government can ban strikes that last over 30 days or force the parties into arbitration, which can limit the effectiveness of a strike.

Services provided by Sardar Khan & Co

SARDAR KHAN & CO helps clients in union-heavy sectors, including law enforcement and education. We often handle issues on contract negotiation, collective bargaining, and union creation. Our crew can represent your interests well, whether you need an out-of-court arbitrator or a courtroom litigator to solve a conflict.