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AMENDMENT ORDINANCE OF SEVEN LABOUR LAWS

Ordinance No. LIII of 2001 AN ORDINANCE


FURTHER TO AMEND CERTAIN LAWS RELATING TO WORKMENS COMPENSATION, PAYMENT OF WAGES, MINES MATERNITY BENEFIT, SOCIAL SECURITY, WORKERS SHARE IN COMPANIES PROFITS, WORKERS WELFARE AND OLD-AGE BENEFITS WHEREAS it is expedient further to amend certain laws relating to workmens compensation, payment of wages, mines maternity benefit, social security, workers share in companies profits, workers welfare and old-age benefits for the purposes hereinafter appearing; AND WHEREAS THE President is satisfied that circumstances exist which render it necessary to take immediate action; NOW, THEREFORE, in pursuance of the Proclamation of Emergency of the fourteenth day of October, 1999, and the Provisional Constitutional Order No.1 of 1999, read with the Provisional Constitutional (Amendment) Order No.9 of 1999, and in exercise of all powers enabling him in that behalf, the President of the Islamic Republic of Pakistan is please to make and promulgate the following Ordinance: 1. (1) (2) 2. Short title and commencement. This Ordinance may be called the Labour Laws (Amendment) Ordinance, 2001. It shall come into force at once and shall be deemed to have taken effect from the 1st day of July, 2001.

Amendment of certain laws. The laws specified in the Schedule below are hereby amended to the extent and in the manner specified in the fourth column thereof. THE SCHEDULE (See section 2)

S.No. (1) 1. 2.

Number and year of the enactment. (2) Act No. VIII of 1923 Act No. IV

Short title (3) The Workmens Compensation Act, 1923. The Payment of

Amendments. (4) In Schedule IV, - for the figure 1,00,000, occurring twice the figure 200,000 shall be substituted. (1) In section 1,(a) in sub-section (4),(i) the words in the first instance shall be omitted; and (ii) after the word factory the commas and words, industrial establishment or commercial establishment, shall be inserted; and (b) sub-sections (5) and (6) shall be omitted. (2) In section 2, the existing clause (I) shall be renumbered as clause (ia) of that section, and before clause (ia) renumber as aforesaid, the following new clause shall be inserted, namely:

(i) commercial establishment means a commercial establishment as defied in the West Pakistan Industrial and Commercial (Standing Orders) Ordinance, 1968 (W.P. Ordinance VI of 1968). 3. Act No. XIX of 1941 The Mines Maternity Benefit Act, 1941. The Provincial Employees Social Security Ordinance, In section 5, in sub-section (1), for the words twelve annals a day for every day the words last pay drawn shall be substituted. (1) In section 2,(a) in clause (8), in sub-clause (f),(i) for the words three thousand the words five thousand shall be substituted; and (iii) in the proviso, for the words three thousand the words five thousand shall be substituted; and (c) after clause (25), the following new clause shall be inserted, namely:(25a) self-assessment scheme means a scheme of social security benefits, effective from the 1st July, 2001, with no intervention through checking by any staff member of the Institution, in respect of employees secured under this Ordinance as on the 30th June, 2001, and the employer undertake to pay a contribution in respect of them up to a maximum amount of three hundred fifty rupees per month per secured employee.. (2) After section 20, the following new section shall be inserted, namely:20-A. Self-assessment scheme:- (1) Notwithstanding anything contained in this Ordinance, an employer who opts for the self-assessment scheme shall be liable to pay to the Institution a contribution up to maximum amount of three hundred fifty rupees per month per secured employee. (2) The liability of an employed to pay contribution under the selfassessment scheme shall be in respect of those employees who were secured under this Ordinance on the 30th June, 2001. (3) Every employee secured under this Ordinance in respect of whom the employer pays contribution shall be liable to pay through the employer an amount of twenty

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W.P. Ordinance No. X of 1965

rupees per month as his share to the institution. (3) In section 22, after sub-section (3), the following new sub-section shall be added, namely:(4) No staff member of the Institution shall visit the premises of any establishment, opting for the self-assessment scheme under section 20A, for the purpose of checking of employers books, record, etc., during the period the self-assessment scheme remains in operation. 5. Act No. XII of 1968 The Companies Profits (Workers Participation) Act, 1968. (1) In section 2, in clause (f), for the words three thousand the word five thousand shall be substituted. (2) In the Schedule, in paragraph 4,(a) in clause (a), under the heading Categories, for the existing entries the following shall be substituted, namely:1. Workers drawing average monthly wages not exceeding two thousand two hundred rupees. 2. Workers drawing average monthly wages exceeding two thousand two hundred rupees but not exceeding three thousand two hundred rupees. 3. Workers drawing average monthly wages exceeding three thousand two hundred rupees but not exceeding five thousand rupees.; and (b) in clause (d), for the words three thousand the words six thousand shall be substituted. 6. Ordinance No. XXXVI Of 1971. The Workers Welfare Fund Ordinance, 1971. In section 6, for clause (b) the following shall be substituted, Namely:(b) the financing of other welfare measures including education training, re-skilling and apprenticeship for the welfare of the workers; 7. Act No. XIV of 1976. The Employees Old-Age Benefits Act, 1976. (1) In section 1, in sub-section (4), after clause (i) the following new Clause shall be inserted, namely:(ia) wherein less than ten persons are employed if such industry or establishment voluntarily applies for application of this Act and this Act

shall apply to such industry or establishment from the date of submission of an application by such industry or establishment; or. (2) In section 2, after clause (o), the following new clause shall be inserted, namely:(oa) self-assessment scheme means a self-assessment scheme according to which no inspection shall be made under sub-section (1) of section 12 for a period of two years; (4) In section 9, in sub-section (1), in the second proviso, for the full stop, at the end, a colon shall be substituted and thereafter the following new proviso shall be added, namely:Provided also that in case an employer opts for a self assessment scheme, no contribution shall be payable on so much of an insured persons wages as is in excess of five thousand rupees.. (5) After Section 9A, the following new section shall be inserted, namely:9B. Contribution by insured person:On and from the 1st day of July, 2001, the contribution shall be payable every month by an insured person at the rate of twenty rupees in the prescribed manner. (6) In section 12, in sub-section (1), in clause (c), for the full stop, at the end, a colon shall be substituted and thereafter the following proviso shall be added, namely:Provided that such official shall not enquire into or inspect any establishment which has opted for self-assessment scheme for a period of two years from the date of submission of application for ascertaining the amount of payment of the contributions..

Sd/Gen. Pervez Musharraf, President.

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