10/23/2016

Agenda

• We will discuss the laws

• Local Laws – Laws of Pakistan
• International Laws

HRM & LAW • We will discuss how Laws affect Human Resource Management and how
these laws shape and affect; how companies deal with employees

• We will discuss international laws being adopted by MNC and large

Submitted to: Vijay Kumar organizations in Pakistan and also internal policies set forth by
Course Code: MGT-501 organizations pertaining to LAW of Pakistan.
Course Name: Human Resource Management
Submitted by: Muhammad Qasim
BM-26464
1 2

What is meant by Labor law? History of Labor law?

• Labor laws mediates the relationships • Labor laws arose parallel with the industrial revolution as the
between workers (employees), employers relationship between workers and employers changed from small
and government. scale production studios to large scale factories.
• There are two types of labor laws: • Workers sought better rights to join unions and associations, while Laissez-faire is an
employers sought more predictable, flexible and less costly workforce. economic system in
• Collective labor law that relates to the
which transactions
tripartite relationship between • England was the first country to industrialize, it was also the first to between private
employee, employer and the union, face the alarming consequences of the capitalist in a totality and parties are free
association or the government. laissez-faire economic framework. from government
interference such as
• Individual labor law that covers • Over the course of time from the late 18th and mid 19th century the regulations,
employee`s workplace rights enforced foundation for the modern labor laws were slowly laid notably by privileges, tariffs,
by the agency where he/she is working. Anthony Ashley Cooper, 7th earl of Shaftsbury and others. and subsidies.

3 4

Labor laws in constitution of Pakistan

Article 11 prohibits all forms slavery , forced labor and child labor.
• Slavery is non existent and forbidden and no law shall permit or facilitate its
introduction into constitution in any form.
• All forms of forced labor and traffic of humans are prohibited.
• No child below the age of 14 shall be engaged in any factory or mine or any

Laws of Pakistan hazardous employment.

Article 17 provides for a fundamental right to exercise the freedom of association and
the right to form unions.
• Every citizen shall have the right to form association or unions, subject to any
reasonable restriction imposed by the law in the interest of public order.

5 6

1
 10/23/2016

Labor laws in constitution of Pakistan Labor laws in constitution of Pakistan

• Article 18 prescribe the right of its citizens to enter upon any lawful profession or
occupation and to conduct any lawful trade and business. • Article 27 puts complete ban on discrimination on the basis of gender in appointment in
"the service in Pakistan", provided that the performance and functions of the job can be
carried out by, and is deemed suitable for, both sexes.
• Article 25 lays down the right to equality before and prohibition of discrimination on
grounds of sex alone.
• All citizens are equal before the law and are entitled to equal protection of law. • Article 37(e) makes provisions for securing just and humane conditions for work and,
• There shall be no discrimination on the basis of sex. ensuring that children and women are not employed in vocation(particular occupation)
unsuited to their age and sex and for maternity benefits of women in employment.
• Article 26 says no person otherwise qualified can be discriminated against in the matter of
employment on the basis of race, religion, caste, gender, residence or place of birth
(Exceptions: specific services can be reserved for members of either sex if such
posts/services require duties which cannot be adequately performed by the members of
other sex, e.g. Lady Health Visitor)
7 8

Complete List of Labor Laws in Pakistan

1. Apprenticeship Ordinance 1962 19. Mines Act 1923

2. Boilers & Pressure Vessels Ordinance 2002
3. Bonded Labour System (Abolition) Act 1992
4. Employment of Children Act 1991
5. Companies Profits (Worker’ Participation) Act 1968
6. Control of Employment Ordinance 1965
7. Employees’ Cost of Living (Relief) Act 1973
20. Newspaper Employees (Condition of Service) Act 1973
21. Employees Old Age Benefits Act 1976
22. Provident Funds Act 1925
23. Railway Act 1890
24. Road Transport Workers Ordinance 1961

8. Dock Labourers Act 1934
9. Disabled Person (Employment and Rehabilitation)
Ordinance 1981
11. Pakistan Essential Services (Maintenance) Act 1952
12. Export Processing Zone Authority Ordinance 1980
13. Factories Act 1934
14. West Pakistan Factories Canteens Rules 1959
15. Protection against Harassment of Women at
Workplace Act 2010
16. Industrial Relations Act 2012
17. West Pakistan Maternity Benefits Ordinance 1958
18. Merchant Shipping Ordinance 2001
Notable Laws
25. Employment (Record of Service) Act 1951
26. West Pakistan Shops and Establishments Ordinance 1969
27. Provincial Employees Social Security Ordinance 1965
28. Industrial and Commercial Employment (Standing Orders)
Ordinance 1968
29. Industrial Statistics Act 1942
30. Minimum Wages Ordinance 1961
31. Payment of Wages Act 1936
32. Workers Children (Education) Ordinance 1972
33. Workers Welfare Fund Ordinance 1971
34. Workmen’s Compensation Act 1923 9 10

Sexual Harassment Law Child Labor

The objective of this Act is to create a safe working environment for women, which is
free of harassment, abuse and intimidation with a view toward fulfillment of their right
to work with dignity. It will also enable higher productivity and a better quality of life at
work. Harassment is one of the biggest hurdles faced by working women preventing
many who want to work to get themselves and their families out of poverty. This Act will
open the path for women to participate more fully in the development of this country at
all levels.
Minimum Age and Protection of Young Workers Article 11(3) of Pakistan’s Constitution
expressly prohibits the employment of children below the age of fourteen years in any
factory, mine or other hazardous employment. Also ensuring that children and women
are not employed in vocations unsuited to their age or sex.
The Factories Act, 1934 allows for the employment of children between the ages of 14
and 18 years provided that each adolescent obtains a certificate of fitness from a
certifying surgeon.

This Act requires all public and private organizations to adopt an internal Code of
Conduct and a complain/appeals mechanism aimed at establishing a safe working
environment, free of intimidation and abuse, for all working women. It shall also
establish an Ombudsman at Federal and provincial levels.
11
The Act further restricts the employment of a child in a factory to five hours in a day. The
hours of work of a child should thus be arranged in such a way that they are not spread
over more than seven-and-a-half hours in any day.
12

2
 10/23/2016

Overtime Sickness & Leaves

Factories Act, 1934 (applicable in ICT, Sindh, and Balochistan) Every secured worker certified by a medical practitioner is entitled to paid sick leave for a
The Industrial and Commercial Employment (Standing Order) Ordinance, 1968 period of 121 days in case of ordinary ailments and 365 days in case of Cancer or
(applicable in ICT, Sindh, and Balochistan) Tuberculosis.

Every employee in a factory, except those employed in clerical or executive capacity, is
eligible for the overtime pay. If you work for more than 8 hours in a day or more than 48
hours in a week (while working in a non-seasonal factory), you are eligible for this
extra/overtime pay.
You can’t be compelled to work more than 2 hours overtime a day. Your total yearly
overtime work hours should also not exceed 624 hours.
13
Ordinary ailments requires the employer to pay 75% of wages last drawn while for
Cancer and Tuberculosis a worker has to be paid 100% of last wages drawn.
If there is an employment related injury, a worker has the right to draw 100% wages for a
period of 180 days.
As per section 72 of The Provincial Employees Social Security Ordinance, 1965, an
employer can't dismiss, discharge, reduce or otherwise punish a worker during his/her
period of sickness, maternity, injury or medical care. 14

Employee Safety

• Prior to permitting employees to work with machine tools, chemicals, powered

machinery, electrical systems, lasers and other such equipment, or enter confined
spaces, operate forklifts, work in elevated locations or perform similar hazardous work,
they must receive specialized training.
• Inform employees of the procedures to follow in the event of an emergency
•
•
•
Inform employees of any unique hazards in the workplace and how to identify them
Inform employees of how to report unsafe or unhealthful conditions
Inform employees of actions to take in the event of a work-related injury
International Laws
• Maintain records of safety training provided, such as lesson plans, rosters, list of
audio-visual and other materials used
• Cleanliness / Disposal of wastes and effluents / Ventilation and temperature / Dust and
fume / Artificial humidification. / Overcrowding / Lighting / Drinking water 15 16

International Laws International Laws

Employees are also protected by the Equal Employment Opportunity Commission (EEOC),
which was established through the 1964 Civil Rights Act, Title VII. The scope of authority of Pregnancy Discrimination Act of 1978. Prohibits discrimination or dismissal of
the EEOC has been expanded so that today it carries the major enforcement authority for women because of pregnancy alone, and protects job security during maternity
the following laws: leaves.

Civil Rights Act of 1964. Prohibits discrimination on the basis of race, color, religion,
national origin, or sex.
Civil Rights Act of 1991. Reaffirms and tightens prohibition of discrimination. Permits
individuals to sue for punitive damages in cases of intentional discrimination and shifts the
burden of proof to the employer.
Equal Pay Act of 1963. Prohibits pay differences based on sex for equal work.
17
American with Disabilities Act. Prohibits discrimination against individuals with
physical or mental disabilities or the chronically ill, and requires that “reasonable
accommodations” be provided for the disabled. E.g Philedelphia
Vocational Rehabilitation Act. Prohibits discrimination on the basis of physical or
mental disabilities and requires that employees be informed about affirmative
action plans.
18

3

International Laws
ADA (Americans with Disabilities Act): Prohibits employers from discriminating against
people with disabilities. Requires employers to provide “reasonable accommodation” for
individuals with disabilities. The law applies to all private employers with 15 or more
employees, state and local governments, and labor unions.
ADEA (Age Discrimination in Employment Act): Prohibits discrimination against
employees 40 years of age or older on the basis of age. The law applies to all private-
sector employers with 20 or more employees who work 20 or more weeks per year, labor
unions (with 25 or more members), employment agencies, state and local governments.
19
International Laws
• Title VII of the Civil Rights Act: Prohibits employers from discriminating against
employees and applicants for employment, in the terms and conditions of employment,
on the basis of race, color, religion, sex, or national origin. The law applies to private
employers with 15 or more employees, as well as virtually all government institutions,
employment agencies, and labor unions, but not the federal government.
• WARN (Worker Adjustment and Retraining Notification Act): Requires 60 days’ advance
written notice to affected employees (or their bargaining unit), as well as state and local
rapid response/dislocated worker agencies, of mass layoffs or plant closings that will
result in at least 50 employment losses within a 30-day period. The law generally covers
employers with 100 or more employees.
21
International Laws
Davis-Bacon Act of 1931—This law requires the payment of minimum wages to nonfederal
employees.
The Norris-Laguardia Act of 1932—This law protects the rights of unions to organize, and
prohibits employers from forcing job applicants to promise not to join a union in exchange
for employment.
The Wagner Act of 1935—This law, also known as the National Labor Relations Act, is the
main piece of legislation governing union/management relations, and is a chief source of
regulation for HRM departments.
Social Security Act of 1935—This law was enacted in order to protect the general welfare by
establishing a variety of systems to assist the aging, the disabled, and children.
The Walsh-Healy Public Contracts Act of 1936—This law was designed to ensure that
employees working as contractors for the federal government would be compensated fairly.
23
10/23/2016
International Laws
FLSA (Fair Labor Standards Act): Establishes minimum wage rates, requires overtime pay for
certain employees, restricts the employment of minors, and imposes certain recordkeeping
obligations. The law applies to most private and public employers, with some exceptions in
certain retail and agricultural industries.
FMLA (Family and Medical Leave Act): Grants qualified employees a total of 12 work weeks
of unpaid leave during a 12-month period for health-related reasons, including childbirth,
family illness, or personal health reasons that preclude handling the job’s duties. The law
applies to any individual or entity engaged in commerce or in any industry or activity
affecting commerce that employs 50 or more employees for each working day during each
of 20 or more calendar workweeks in the current or preceding calendar year, and public
agencies regardless of the number of people they employ.
20
International Laws
COBRA (Consolidated Omnibus Budget Reconciliation Act): Provides certain former
employees, retirees, spouses, former spouses, and children the right to temporary
continuation of health coverage at group rates. Employers with 20 or more employees
usually are required to offer COBRA coverage and to notify their employees of the
availability of such coverage. COBRA applies to plans maintained by private-sector
employers and sponsored by most state and local governments. (Some states also have
their own versions of COBRA.)
IRCA (Immigrant Reform and Control Act): Requires that employers attest to the
immigration status of their employees, bans employers from hiring illegal aliens, and
establishes penalties for such behavior. The law applies to all employers.
22
International Laws
Fair Labor Standards Act of 1938—this important law mandated employer compliance
with restrictions related to minimum wages, overtime provisions, child labor, and
workplace safety.
Taft-Hartley Act of 1947—This law created provisions that severely restrict the activities
and power of labor unions in the United States.
Landrum-Griffin Act of 1959—Also known as the Labor-Management Reporting and
Disclosure Act (LMRDA), the Landrum-Griffin Act deals primarily with the relationship
between a union and its members. This law grants certain rights to union members and
protects their interests by promoting democratic procedures within labor organizations.
Age Discrimination in Employment Act of 1967—This legislation, which was strengthened
by amendments in the early 1990s, essentially protects workers 40 years of age and older
from discrimination.
24
4

International Laws
Occupational Safety and Health Act of 1970—This act, which established the
Occupational Safety and Health Administration, was designed to force employers to
provide safe and healthy work environments and to make organizations liable for workers'
safety. Today, thousands of regulations, backed by civil and criminal penalties, have been
implemented in various industries to help ensure that employees are not subjected to
unnecessarily hazardous working conditions.
Family and Medical Leave Act of 1993—This law was passed to provide employees who
qualify with up to 12 work weeks of unpaid, job-protected leave in a 12-month period for
specified family and medical reasons. It also requires group health benefits to be
maintained during the leave as if employees continued to work instead of taking leave. The
Act became effective on August 5, 1993 and applies to companies who employ 50 or more
people. 25
Laws and its effects on HRM
Contract Every employer in an industrial or commercial establishment is required to issue a
formal appointment letter at the time of employment of each worker. The obligatory
contents of each labor contract, if written, are confined to the main terms and conditions
of employment, namely nature and tenure of appointment, pay allowances and other
fringe benefits admissible, terms and conditions of appointment.
The services of a permanent worker cannot be terminated for any reason other than
misconduct unless one month’s notice or wages in lieu thereof has been furnished by the
employer or by the worker if he or she so chooses to leave his or her service. One month’s
wages is calculated based on the average wage earned during the last three months of
service.
Ambiguities are construed in favor of the employee
27
Laws and its effects on HRM
Orientation programs help employees gain an understanding of what is expected of them.
Each organization has its own set of rules and policies regarding areas such as dress,
attendance and conduct, and the orientation should make it clear what is and is not
acceptable. Employees should also get a sense of the organizational culture during this
time so they have a better understanding of what they need to do to fit in more quickly.
NDA (Non-Disclosure Agreements) It is a legal contract between at least two parties that
outlines confidential material, knowledge, or information that the parties wish to share
with one another for certain purposes, but wish to restrict access to or by third parties. It is
a contract through which the parties agree not to disclose information covered by the
agreement.
29
10/23/2016
Effects of Laws on
HRM by Organizations
26
Laws and its effects on HRM
Working hours Under the Factories Act, 1934 no adult employee, defined as a worker who
has completed his or her 18th year of age, can be required or permitted to work in any
establishment in excess of nine hours a day and 48 hours a week. Similarly, no young
person, under the age of 18, can be required or permitted to work in excess of seven hours
a day and 42 hours a week. Section 8 of the West Pakistan Shops and Establishments
Ordinance, 1969 likewise, restricts weekly work hours at 48 hours. The Shops and
Establishments Ordinance regulates persons employed in shops and commercial
establishments
Paid Leave As provided in the Factories Act, 1934, every worker who has completed a
period of twelve months continuous service in a factory shall be allowed, during the
subsequent period of twelve months, holidays for a period of fourteen consecutive days.
28
Laws and its effects on HRM
Grievances are concerns, problems or complaints raised by an employee about workplace
issues such as their work, workload, where they work or who they work with. These
Grievances are best dealt with at an early stage, informally, but businesses and HR
Directors must be prepared to handle employee grievances that cannot be resolved
informally using a formal Employee Grievance Procedure.
CBA - Collective bargaining Agent, CB is a process of negotiation between employees and
a group of employers aimed at agreements to regulate working salaries. The interests of
the employees are commonly presented by representatives of a trade union to which the
employees belong. The collective agreements reached by these negotiations usually set
out wage scales, working hours, training, health and safety, overtime, grievance
mechanisms, and rights to participate in workplace or company affairs. Eg. – PTCL, KE, NBP
etc.
30
5
 10/23/2016

Internal Rules/Policies MNCs Adopting international Standards

• Bribery policies and disciplinary actions • Equal Opportunity Employment

• Criminal offense disciplinary actions (Gender/Minorities/Disability/Harassment)– Unilever, P&G
• Rules violation - PPRA rules, DLP Policy • Pregnancy Discrimination (NBP) 4 months leaves regardless of time
• Non-Competition and Non-Solicitation Provisions • Equal Pay – women are equally paid in FIS (Pakistan)
• Fraud or forgery with documentation • WARN (Worker Adjustment and Retraining Notification Act) – Barclays
gave 3 years salary to all the employees
• Advertent or inadvertent sharing of confidential information
• Some MNCs are paying time and half for normal holidays and twice for
• Non-compliance to chain of command
national holidays (like eid etc..) (telecom/Banks)
• Misbehaving or physical exchange
• Regulatory guideline non-compliance
31 32

HR LAW Organizations

EEO Compliance and Operations Divisions (EEOCO)

The goal of the EEO Compliance and Operations Division (EEOCO) is to ensure every HHS
employee/applicant for employment has equal access to EEO services, timely resolution
of their complaint and equitable remedy.

Organizations related HR Policy Association

HR Policy Association is the lead public policy organization of chief human resource
officers from large employers. The Association consists of over 300 of the largest

to HR LAW corporations doing business in the United States and globally.

33 34

HR LAW Organizations

Industrial Workers of the World

Workers and their employers do not have the same interests. Workers want shorter
hours, higher pay, and better benefits. The easiest way to stand up for each other in our
workplaces and communities and the easiest way to improve our working conditions is
to join a union.

Society for Human Resource Management (SHRM)

Thank You
The Society for Human Resource Management (SHRM) is the world’s largest association
devoted to human resource management. Representing more than 250,000 members in
over 140 countries, the Society serves the needs of HR professionals and advances the
interests of the HR profession. Founded in 1948, SHRM has more than 575 affiliated
chapters within the United States and subsidiary offices in China and India.
35 36