Employees' Old-Age Benefits Act, 1976 HISTORICAL BACK GROUND ALONG WITH BRIEF ON AMENDMENTS Prior to this law,

in Pakistan, there were so many labor laws like Works Compensation Act, 1923F a c t o r i e s A c t , 1 9 3 4 , P a y m e n t o f W a g e s A c t , 1 9 3 6 , W e s t P a k i s t a n S o c i a l S e c u r i t y O r d i n a n c e , 1 9 6 5 (Ordinance No: X of 1965), West Pakistan Industrial and Commercial (Standing Orders) Ordinance,1968, Companies Profit (workers Participation)Act,1968, West Pakistan Shops and EstablishmentOrdinance,1969, Industrial Relation Ordinance,1969, Workers Welfare Fund Ordinance, 1971, Workers Children (Education) Ordinance, 1972, etc. In many labor laws remedial, beneficial and welfare clauses and sections were provided but none from these laws or others provide such coverage of the old-age risk thus it was necessary to make a law that can provide security in the eve of old age when a man becomes handicap to work hard, condition of invalidity and in the case of death of a worker / employee the pension to the widows and orphans. In the European countries such laws were in operation. In view of this need, first time in Pakistan, in 1972, an Ordinance with the title of the Employees' Old-Age Pension Ordinance (Ordinance X of 1972) was promulgated. Under this legislation first time, in Pakistan, t h e G o v e r n m e n t indicates its desire to introduce such a social security scheme for t h e betterment of the employees of private sectors. This Ordinance was issued on 23rd April, 1972Where under Old Age Pension scheme was introduced and a pension @ Rs60/= was suggested on completion of 20 years of service. For this purpose retirement age was fixed at 55 years (50 years for female). This was a provincial legislation that was intended to apply only to those establishments which employed 100or more workers, and wages for coverage under this scheme were proposed to be fixed at Rs500/= per m o n t h , w h i l e t h e r a t e o f t h e c o n t r i b u t i o n w a s f i x e d 5 % , t o b e p a i d b y t h e e m p l o y e r . B e f o r e t h e implementation of the Employees' Old-Age Pension Ordinance, 1972, it was realized that the provincial pension scheme would not bear fruit thus the scheme was reshaped and after much work thereon the g o v e r n m e n t i n t r o d u c e d a b e t t e r s c h e m e f o r t h e b e t t e r m e n t , w e l f a r e a n d b e n e f i t s o f t h e p e o p l e o f Pakistan. This better scheme was promulgated on 23rd December, 1975 whereby the Federal Government in the place of the Employees' Old-Age Pension Ordinance, 1972, n o t i f i e d t h e E m p l o y e e s O l d - A g e Benefits Ordinance (Ordinance XXVI of 1975). This law relates to Old-Age Benefits for persons employed in industrial, commercial and other organizations, employing at least ten persons l a t e r o n t h e E m p l o y e e s ' O l d -

Age Benefits Ordinance, 1975, was substituted by the better enactment, the Employees' Old-Age Benefits Act, 1976, (Act No XIV of 1976) which was passed by the National Assembly on 5th April, 1976. The President of the Islamic Republic of Pakistan gave his assenton 15th April, 1976 and then the Act was published in the Official Gazette of Pakistan on 19th April, 1976. Although it came into force at once, but as per section 9 thereof the contribution was payable from 1st day of July, 1976. This Act was implemented from 1st day of July, 1976.

Tittle of Law- Employees' Old Age Benefits Act 1976 Promulgation Date- This law was promulgated on April 8th, 1976 as EOB Act. Coverage- The EOB Act covers all industrial, commercial and other organizations which employ 10 or more persons. Exemption from coverage: Employees in the service of the state, statuary bodies, police force, armed forces, railways, local bodies, municipal committees and other local authorities are exempted from the EOB Act. Who pays the contribution: Only employers pay the contributions on behalf of their employees. These employers may represent national or multinational organizations. As far as the government employees are concerned, the government itself paid contribution to the institution. This exercise continued from 1986 to 1995. In 1995 the government withdrew its contributions towards the institution. Rate of contribution: The rate to be paid to the institution is Five (5%) per cent of the wages/salary upto the limit of Rs. 3000/-. In the initial Act of 1976, the wages ceiling on which EOB contribution was payable was Rs. 1000/- which was raised to Rs. 1500/- in 1985 and Rs. 3000/- in 1993 respectively. Thus presently the maximum amount of contribution payable is Rs. 150/- per insured person for the wage/salary of Rs. 3000 and above. Benefits: There are four benefits available under the Act which are as follows: Old-Age Pension. Old-Age Grant. Survivors' Pension. Invalidity Pension

Old Age Pension:

Old-Age pension is payable at the age of 60 years for males and 55 years for women. It is relaxed upto five years in case of persons in employment in the occupation of mining for at least ten years immediately proceeding retirement. Requirement for pension: The requirements for receiving pension have been classified under three options. These are: A person should have 15 years of insurable employment if he enters the EOB Scheme before the age of 40 years; A person should have 7 years of insurable employment if he enters the EOB Scheme between 40-45 years of age; A person should have 5 years of insurable employment if he enters the EOB Scheme at the age of 45 or above. IMPORTANT POINTS FOR Old-Age Pension: (1) An insured person shall be entitled to a monthly old-age pension at the rate specified in the Schedule' Provided that(a) he is over sixty years of age. or fifty-five years in the case of a woman; and (b) contributions in respect of him were payable for not less than fifteen years: Provided further that the age specified in clause (a) will be reduced by five years in the case of an insured person employed in the occupation of mining for at least ten years immediately preceding retirement. (2) If an insured person was on the 1st day of July, 1976 or is on any day thereafter on which this Act becomes applicable to an industry or establishment. (i) over forty years of age, or thirty-five years in the case of a woman, clause (b) of subsection (1) shall have effect as if for the word "fifteen" therein the word "seven" were substituted; or (ii) over forty-five years of age, or forty years in the case of a woman, clause (b) of subsection (1) shall have effect as if for the word "fifteen" therein the word "five" were substituted.

(2-A) Notwithstanding anything contained in sub-section (1), an insured person(a) who was insured under the provisions of this Act on or before the 30th June, 1986, and will attain the age fifty-five years (fifty years in the case of a woman) on or before the 30th June, 1991, and (b) in respect of whom contributions were payable to the Institution for the period required under the provisions of this Act. shall be entitled to old-age pension at the age of fifty-five years (fifty years in the case of a woman). (2-B) An insured person already in receipt of an old-age or invalidity pension, or entitled to an old-age pension under the provisions of sub-section (2-A), shall be retitled to a minimum pension at the rate specified in the Schedule. (2-C) An insured person who retires from insurable employment before attaining the age of sixty years (fifty-five years in the case of a woman) but after attaining the age of fiftyfive years (fifty years in the case of a woman) shall be entitled to a reduced old-age pension on fulfilling the following conditions, namely:-(a) the Institution is satisfied through documentary evidence that the employer has a definite established retirement age of less than sixty years (fifty-five years in the case of a woman); (b) the employer certifies that the insured person has been retired by him on attaining the age of superannuation; and (c) the contributions in respect of him were payable for the period required under the provisions of this Act. (2-D) The Old-age pension shall be reduced by one-half per cent of the old-age pension specified in the Schedule for each completed month by which the age falls short of sixty years (fifty-five years in the case of a woman) and the minimum old-age pension shall also be reduced in the aforesaid manner in the case of retirement from insurable employment before attaining the age of sixty years (fifty-five years in the case of a woman). (2-E) The reduction in old-age pension specified in sub-section (2-D) shall be for life and shall not be restored on the insured person's attaining the normal pension age. (3) Subject to regulations, the old-age pension shall commence as from the month following that in which the insured person satisfies the condition for entitlement thereto provided that no benefit shall be payable retroactively for more than six months preceding the month in which an application for old-age pension is submitted.

(4) Insurable employment of a person for the purposes of this Act shall commence on the date from which the first contribution in respect of him becomes payable. (5) The old-age pension payable to an insured person shall be terminated at the end of the month in which the death of such person occurs. (6) Omitted by the Finance Act, I of 1986, S. 11.

Calculation of amount of benefit The calculation of pension for an insured person is based on a number of factors. Therefore E.O.B.I has defined a formula for calculation of Old-Age Pension which takes into account all the necessary factors. This formula is as under: (Average monthly wage *No. of insurable employment years)/50 Here the average monthly wage is calculated on the basis of the wages earned over the last twelve months. Also six months or more will be taken as one full year of insurable employment. A minimum level of old-age pension is maintained. Presently the minimum pension is Rs. 630/-. If an insured person whose amount of old-age pension is calculated according to the above formula falls short of the minimum pension amount, then he or she will be awarded the minimum pension amount. Reduced Old-Age pension: Reduced old age pension is payable to the insured persons working in an establishment, which maintains superannuating age less than 60 years but not less than 55 years (55 years in case of woman) which has to be established through documentary evidence. Calculation of reduced old-age pension: The old-age pension is reduced by one-half per cent of the old-age pension specified in the schedule for each completed month by which the age falls short of 60 years (55 years for woman). The minimum old-age pension is also reduced in the aforesaid manner. The reduced old-age pension is for life and is not restored when the insured person attains the normal pension age of 60 years. Invalidity pension

Invalidity pension is payable to that insured person whose normal earnings have dropped to one third due to any incapacitation. The other conditions in this regard are that the degree of invalidity is two third and; Contribution in respect of him is payable for 15 years. However, if the insured person has less than 15 years of insurable employment to his credit but not less than 5 years and contributions are payable for not less than three years during the five years preceding immediately his sustainability of invalidity. Invalidity pension is not payable retroactively for more than six months Invalidity pension is renewed after six months on the medical report. If degree of invalidity remains more than two third, the pension is continued. If invalidity pension is allowed continuously to the insured person for five years then he becomes entitled to invalidity pension for life. Invalidity pension commences from the following month that in which insured person satisfies the condition for entitlement. Invalidity pension will be calculated according to the formula for old-age pension. Minimum pension is anyhow payable to him even if the formula gives an amount which is less than the minimum pension amount. IMPORTANT POINTS (1) In the case of the death of an insured person while in insurable employment but after he had completed not less than thirty-six months' insurable employment, the surviving spouse, if any, shall be entitled to a life pension equal to [...] of the minimum pension. (1-A) In the case of the death of an insured person whale not in insurable employment but after he had completed five years' insurable employment, the surviving spouse, if any shall be entitled to life pension equal to the minimum pension. (2) In the case of the death of an insured person who had become entitled to or invalidity pension before his death, the surviving spouse shall, if the spouse had married the deceased person before he had attained the minimum age prescribed for old-age pension, receive a life pension of equal to of the pension of such person. (3) In the case of death of the surviving spouse in receipt of survivor's pension, the minor children of the deceased insured person, if any, shall be entitled to the survivors' pension in the following equal shares, namely:-(i) in case of a male child, until he attains eighteen years of age; and (ii) in case of a female child, until she attains eighteen years of age or until marriage, whichever is earlier.

(3-A) In the case of cessation of survivor's pension of any of the children of the deceased insured person on his attaining the age of eighteen years or marriage in case of female, or death, as the case may be, the share of survivor's pension received by such child shall be distributed equally among the rest of the minor children of the deceased insured person. (3-B) In the case of death of the surviving spouse in receipt of a survivor's pension within five years after the death of the insured person and not survived by any minor child of the deceased insured person, the survivor's pension shall be paid to the surviving parents of the deceased insured person, if any, for a period of five years from the death of the said spouse. (4) In the case of death of an insured person who is not survived by a spouse, the survivor's pension shall be paid to the minor children of the deceased insured person referred to in sub-section (3) and sub-section (3-A) and in the case of the insured person not surviving by any minor child, the survivors' pension shall be paid to the surviving parents of the deceased insured person, if any, for a period of five years from the death of the Insured person.

Survivor's pension The requirement for survivor's is as follows: If the old-age or invalidity pension holder dies, the same amount of pension is allowed to the surviving spouse of the deceased pensioner, and there is no discontinuity of pension as such. It is just treated as a conversion case. The old-age or invalidity pension is converted to survivor's pension. If an insured person dies while in insurable employment and contribution in respect of him is a payable for at least three years on if an insured person dies while not in insurable employment and contributions in respect of him/her are payable for at least five years, minimum pension would be allowed to the surviving spouse. The survivor's pension will commence from the month following the insured person's death. Pension to the Children: If the deceased pensioner is not survived by a spouse, survivor pension will be allowed to his minor children and will be distributed among them

equally. The pension is payable up to the age of 18 years to a male child and to the female child till she attains the age of 18 years or her marriage, whichever is earlier. Pension to Parents: If the deceased pensioner is neither survived by a spouse nor by children, the pension will be paid to the parents of the deceased pensioner for a period of five years. IMPORTANT POINTS FOR Survivor's pension:

1) An insured person who sustains invalidity shall be entitled to an invalidity pension at. the rate to be calculated according to the formula set out in he Schedule: Provided that-(a) contributions in respect of him were payable for not less than fifteen years; or (b) contributions in respect of him were payable for not less than five years since his entry into insurable employment and for not less than three years during the period of five years preceding the month in which he sustains invalidity; and (c) in either case, he is under sixty years of age or fifty-five years in the case of a woman. (2) Subject to regulations, the invalidity pension shall be payable from the month following that in which the insured person satisfies the conditions for entitlement thereto: Provided that the invalidity pension shall not be payable retroactively for more than six months preceding the month in which an application for the invalidity pension is submitted. (3) The invalidity pension shall be payable so long as invalidity continues: Provided that an insured person who has been in respect of the invalidity pension for not less than five continuous years or attains the age specified in clause (a) of subsection (1) of Section 22 shall be entitled to the invalidity pension for life.
Old-Age Grant

If an Insured person, not otherwise entitled to old-age pension, retires from insurable employment after attaining the age of sixty years, or fifty-five years in the case of a woman and a mine worker, and contributions in respect of him were payable for less than fifteen years, but not less than two years, he shall be entitled to an old-age grant payable in a lump-sum equal to his one month's average monthly wages for every completed year of insurable employment or part thereof in excess of six months.

Old-age grant is allowed to that insured person who is not otherwise entitled to old-age pension. Old-age grant is approved to that insured person who has attained the age of 60 (55 in the case of women) years and has at least two years of insurable employment to his credit. Calculation of Old-age grant: Old-Age grant is payable in lumpsum @ one month's average wages for each completed year (average wage is to be calculated on the basis of wages on which contribution was payable in respect of twelve calendar months) of insurable employment. A period of six months or more will be treated as one year. Registration of employers: As per law, it is the responsibility of the employer to get his establishment registered with EOBI. However the field force of the institution also persuades the employers who employ ten or more persons to register themselves with the institution and to fulfil other liabilities as provided by the law. Registration of employees: Again it is the legal responsibility of the employer to register his employees with the Institution. However the institution persuades the employers to register their employees and issues registration cards to the employees. However the employees can also apply for registration if he is not registered by his employer. The principle of "Once Covered, Ever Covered": The Institution follows the principle of once covered ever covered for both employees and employers. If an establishment employs ten or more persons and it is registered with the Institution then even if the number of persons reduces to one it will have to fulfil his liabilities in respect of that employee. A similar case is with the employees except that they have to work in a registerable establishment so that their service may be treated as insurable employment under the EOB Act. Continuity of insurable employment: Continuity of insurable employment is not necessary to claim EOB benefits. The service of an insured person with registered establishments is considered for calculation of insurable employment while his services with the unregistered establishments would be left out. Contribution can be deposited only with the banks: The employers are to deposit contributions only in the HBL authorized branches. Likewise the EOBI pensioners can derive pensions only from that HBL branch which has been allowed to them as per their pension card. The offices of the Institution are not allowed to receive any contribution or disburse and pension.

HEAD OFFICE:
Buxly Paints Limited has a very well established head office which is situated on Polytechnic Road of Sindh Industrial & Trading Estate, Karachi. It is in the same building in which the production department exist. All the activities and related paper work from purchase to production and then to sales, billing and credits is done here.

FACTORIES:
Buxly Paints Limited has three factories to produce quality paints. All these factories are situated in S.I.T.E. area of Karachi. These factories are titled as Works I, Works II (Unit-I & Unit-II). But due to the new management which realize the problem of extra prime cost and conversion cost due to enlarge production capacities and due to very low turnover, the production is restricted only in works-I and production and offices are closed And transferred in the W-I.

AREA OFFICES:
Buxly paints limited has divided its paint market into two regions, Southern region and Northern region. The sales and market of Southern region is handled by General Sales Department which is in the Head Office premises while the Northern region is controlled by two Sales Offices which are situated in Rawalpindi and Lahore.

Personnel Department
n the world of todays industrial life, the importance of personnel department

cannot be denied. The function of any personnel department is to manage the people who are at work. In BUXLY Paints Ltd. , personnel department is newly

established on January 1, 1997, previously there was an establishment department

which was practicing some preliminary practice of personnel management. After realizing the needs of the organization, a restructuring process took place on the behalf of Managing Director. After the takeover of Berger the factory has no proper personnel working department the person who is taking care of all the functions of personnel department has both the responsibilities of personal and factory admin manager and he is the wonderful person taking care of all the affairs of the both spheres. He has only one coordinator the age old and devoted employee Mr.Mehboob Ali who assist him in all the affairs of the factory policies regarding the HR. There is also workers union in the company which was established in 1958.the union produced many great problems of legislation and shut down of the factory due to the acquisition of new management and factory has faced a lot of crucial stages due to union and now after a year the union problems are going to be settled by the entire effort of new admin manager and legislation activities. Functions Of Personnel Department: The personnel department is engaged in exercising the following types of jobs:

Maintenance of the attendance and daily work joining & leaving records. Developing and updating the Bio-Data of all the employees. Issuing office orders especially for selection & recruitment, leaves, retirement,
promotions, increments and allowances etc.

 Creating, keeping and updating the policy files according to the direction of top
management.

Guiding management to take decisions according to the policies especially in

situations like increment, promotion & upgrading considerations, disciplinary violations and terminations.

Assisting the management in the coarse of dealing and encountering with union
affairs especially at the time of revision of biennial union-management contract.

Policy Issues In Relation To Human Resources

Following are the major areas of human resources in which the company has some specified policies and these issues are kept in the form of files in personnel department. There is no order of papers in these files. Being policy files, these should have only the final decisions on policy matters but these are having a pile of papers including letters, irrelevant office notices and a lot of other irrelevant material. Moreover the documents in the files are not ordered chronologically. Mr.Mehboob Ali is now responsible for the arrangement of the policy files and documents after the downsizing of the employees without any designation and additional benefits. The solution is that the department should be run in systematic manner by having a complete and separate office setup and proper coding of all these related things. The policies as I notes are as follows: Employees Classifications & Pay Scales:

The employees in Buxly Paints Limited are broadly classified into following categories.

Woks-I

Staff 25

Productive Workers 22

Non Productive 10

The above classification is a general kind of division showing the overall strength of the employees however this categorization is further classified into staff and workers in accordance with pay scales, this is shown below :
Pay Scales Grade I Grade II Grade III Grade IV Senior Staff 2770-200-3770-250-5520 3880-260-5700-300-7200 5040-320-7280-370-9130 7500-375-9375-410-12245450Junior Staff 550-60-1150-80-1550-100-2050 700-80-1500-100-2000-1202600 1000-100-2000-120-2720-1403280 1300-120-2500-131-3175-1453875

The division of workers in various categories in accordance with their pay scales is shown below:
Class B 400-40-800-50-1050-55-1325 500-55-1055-60-1355-651680 600-60-1250-70-160-75-1975 700-80-1500-85-1925-902325 Class A 450-50-950-55-1225-60-1525 550-60-1150-65-1475-70-1825 650-70-1350-75-1750-80-2135 *****

UN Skilled Semi Skilled Skilled Leading Hand

These pay standards of the staff & workers are revised periodically at the direction of Directors. Recruitment & Selection:

There is no concrete policy for the selection & recruitment in Buxly Paints Limited. Most of the new jobs are filled by the sons of old employees working there which is the single criteria for most of the jobs. e.g. the son of technical manager is assistant programmer in computer section. The son of chief accountant is sales person and acting upon the policy of looking busy, doing nothing., the son of Ex-Senior general manager operations is chemist in BUXLY PAINTS LIMITED. From all these, except the son of senior general manager operations, any body is not doing up to the mark. Besides this what is written in the policy file is that the directors are directly involved in these matters with discretionary authority, however while recruiting a person in certain Department , the Head of that Department is asked for the initial screening of the applicants and the final interview is taken by the Executive Director or sometimes by the Managing Director. The newly recruited employees are asked to fill a Surety or Indemnity Bond which is a kind of legal service agreement between the employer and the employee. The probationary period of all categories of employees is of three months but the Managing Director have the full authority to increase or decrease (very rare) the duration of this period by judging the performance of new employees. Promotions: The criteria of promotion in the company is mainly based on the seniority and a minimal kind of importance is being given to performance . while promoting the employees from one pay scale to another it is strictly cared that total strength of scale 2 should not exceed 40% of those in scale 1, the total strength of scale 3 should not exceed 50% of incumbents of scale 2 and those in scale 4 should be a

maximum of 40% of scale 3 while the total strength of the employees in scale 1 is determined by considering the changing of the organization. Allowances: In Buxly Paints Limited, following types of allowances are being given to employees: House Rent Allowance: According to the lastly decided biannual contract which will be valid up to 30-06-98, it is the policy that the staff members who are drawing their basic wage upto RS. 1000 per month will be paid a sum of RS. 840 per month as house rent allowance. The staff members whom basic wage exceed RS. 1000 per month will be paid house rent allowance at the rate of 51% of their basic salary plus RS. 320 per month. Conveyance Allowance: The policy about conveyance allowance as was lastly decided in biannual contract mentioned above are as follows: All workers are paid RS. 360 as conveyance allowance All staff members drawing basic wage up to RS. 1000 per month are paid a sum of RS. 410 as conveyance allowance All Staff members drawing basic wage exceeding RS. 1000 are paid conveyance allowance @ 17% of their basic wage plus RS. 234 per month as conveyance allowance.

Attendance Allowance: As mentioned in the biannual contract, the attendance allowance is given to the employees on the following basis: On full attendance during the month, RS. 125 per month per head On one day leave in a month, a sum of RS. 100 payable to each of such worker in that month. On two days leave a sum of RS. 80 per month payable to such worker/staff member. The workers/staff members availing leaves or being absent for more than two days in a month are not entitles to attendance allowance. This monthly attendance allowance is in addition to annual attendance award. Recreation / Vacation Allowance: Buxly Paints Limited also pays special

recreation & vacation allowance to its employees @ RS. 2250 per annum on the occasion of annual vacations.

Bonuses And Awards:

Buxly Paints Limited announces and pays bonuses to all the employees in every financial year. The company also gives a 17-Year Service watch plus prize bonds on completion of 17 years of any employee with the organization. Company also gives hard work, loyalty and devotion award on any good performance to its employees so as to present a tribute to hardworking, loyal and devoted employees. On the time of retirement, a retirement award is given to the employees. Moreover, annual gifts of paints are also being given to employees to increase their morale and motivation level. But here is it is important to note that from last four years

there was no promotion and bounces for the employees due to the long years in the factory economic conditions. During my stay at Buxly the new management announces the increments and bounces for the employees.

Leave Entitlements: In Buxly Paints Limited, an earned leave of 25 days per annum is allowed to all the employees. In case of less absences the employees can enact these leaves upto an accumulation of three years. For Medical and casual leaves , employees are given a maximum period of 15 days with pay. All the employees are given 15 minutes time relaxation so as to join the office and even then if a person come late for five days his one annual leave is deducted by the management. Training Courses & Apprenticeship: Buxly Paints Limited rarely sends its employees to professional institutes for training purposes but it is the policy of the management that whenever an employee will be sent to any institute then all the expenses of that training will be beard by the company and the person will be paid his regular salary throughout the training period. The company also appoints different people as trainee employees especially in the section of Research and Control Laboratories, which are mostly the trainee chemists. The time period of this type of training is usually one year. These appointments do not carry any pay scales but these are paid agreed salaries. Any sort of allowances, bonuses, leaves entitlements or gratuity and provident fund is not a matter of legitimacy to these appointments.

Along with this Buxly also provide the internship to the local and country wide business schools and institutes for their graduates for the learning of the business activities and have a proper and planned schedule for that purpose and provide them with all the facilities regarding their needs and fully accommodate the internees by the stipend and lunch facilities.
Graduity & Provident Fund:

The policy prevailing in Buxly Paints Limited depicts that the statutory graduity is not applied to those employees who have their Provident Fund Accounts in the company. The rate of provident fund is 8.33% of the basic pay. At the end of service, retirement or death, it is paid to employees with interest. Otherwise employees are paid graduity on the basis of number of employment years, on number of years, the pay of some days per year is given as graduity. Schedule of graduity is as follows: 1-5 years 5-10 years 10-12 years 12-15 years 15-20 years 20-25 years 25 and greater Union-Management Affairs: 25 days 27 days 30 days 32 days 40 days 45 days 50 days

All the workers and the junior staff in Buxly Paints Limited are unionized. This union was established in 1958, since then it is working for the rights and welfare of employees. The biennial Union-Management contract is one of the efforts of union and of management also to satisfy the workers and to smoothly run the organization.. This is the agreement which takes place after every two years, in this contract the wage standard of workers are revised, increase in allowances and bonuses are mutually agreed upon. Due to the mismanagement and work shirking practice of the previous management the company suffer a lot of union problems and has to face the crucial situation of shut down of production and legalities. But now by the takeover of the new management the things are coming on their normal flow and a successful down sizing takes place and company cover the losing market by reducuing its factory overheads and prime cost and producing the same sales with one fourth of previous strength. In order to deal with the union affairs management appointed the factory manager Mr.Niazi to solve the matter with peace and mutual agreement and now the new union is organized and all the legalities are being fulfilled. Lunch Subsidy & Mess System: There is one canteen in Buxly Paints Limited, at Head Office. This canteen is basically providing the lunch and tea facility to staff members. The workers are not served with lunch but are paid the same amount as lunch subsidy. The amount is as follows: For and on behalf of each staff member, a sum of RS. 10 per attended day plus a fixed amount of RS. 75 per head per month are paid to officers mess

 All the workers are paid a sum of RS. 10 per attended day plus a fixed amount of RS. 75 per head per month as lunch subsidy. No deductions are made from RS. 75 fixed amount except on availing more than 25 days annual leave in a month. Social Security & Old Age Benefits: These are the institutions, which demand a fixed percentage of the pay of all the employees from the employer so that the benefits should be given at the time of retirement, death or any mishap during work. Under the policy of social security Buxly Paints Limited deposits 7% of the wages of each worker to Social Security Department and in case of any serious accident of any of the employees all the medical expenses are beard by the Government. The age of retirement in Buxly Paints Limited is 60 years and during their service the company pays 5% of each employee wage to the government under the system of Employees Old Age Benefit and 7% to the social security so the these employees can get pension after their retirement.