2nd week
4th lecture
Date:2nd july2013
trend shaping human resource managment
important trends in hrm
high performance work system
Tuesday, 2 July 2013
HRM
Chapter 1: Introduction to Human Resource Management
Multiple Choice
1.
The basic functions of
management include all of the following except _____.
a.
planning
b.
organizing
c.
motivating
d.
leading
e.
staffing
(c; moderate; p. 4)
2.
The management process is
made up of _____ basic functions.
a.
three
b.
four
c.
five
d.
eight
e.
ten
(c; moderate; p. 4)
3.
Which basic function of
management includes establishing goals and standards, developing rules and
procedures, and forecasting?
a.
planning
b.
organizing
c.
motivating
d.
leading
e.
staffing
(a; easy; p. 4)
4.
What specific activities
listed below are part of the planning function?
a.
giving each subordinate a
specific task
b.
recruiting prospective
employees
c.
training and developing
employees
d.
developing rules and
procedures
e.
all of the above
(d; moderate; p. 4)
5.
Celeste spends most of her
time at work setting goals and standards and developing rules and procedures.
Which function of management does Celeste specialize in?
a.
planning
b.
organizing
c.
motivating
d.
leading
e.
staffing
(a; easy; p. 4)
6.
Which basic function of
management includes delegating authority to subordinates and establishing
channels of communication?
a.
planning
b.
organizing
c.
motivating
d.
leading
e.
staffing
(b; easy; p. 4)
7.
What specific activities
listed below are part of the organizing function?
a.
giving each subordinate a
specific task
b.
recruiting prospective
employees
c.
training and developing
employees
d.
developing rules and
procedures
e.
all of the above
(a; moderate; p. 4)
8.
Which basic function of
management includes selecting employees, setting performance standards, and compensating
employees?
a.
planning
b.
organizing
c.
motivating
d.
leading
e.
staffing
(e; easy; p. 4)
9.
What specific activities
listed below are part of the staffing function?
a.
giving each subordinate a
specific task
b.
maintaining morale
c.
recruiting prospective
employees
d.
developing rules and
procedures
e.
both b and c
(c; moderate; p. 4)
10.
Which basic function of
management includes setting standards such a sales quotas and quality
standards?
a.
planning
b.
organizing
c.
controlling
d.
leading
e.
staffing
(c; easy; p. 4)
11.
What specific activities
listed below are part of the controlling function?
a.
giving each subordinate a
specific task
b.
recruiting prospective
employees
c.
training and developing
employees
d.
developing rules and
procedures
e.
checking to see how actual
performance compares with standards
(e; moderate; p. 4)
12.
_____ is the process of
acquiring, training, appraising, and compensating employees, and attending to
their labor relations, health and safety, and fairness concerns.
a.
Human Resource Management
b.
Labor Relations
c.
Industrial Psychology
d.
Organizational Behavior
e.
Organizational Health and
Safety Management
(a; easy; p. 4)
13.
Human resource management
is _____.
a.
the concepts and techniques
used to control people at work
b.
the process of organizing
work activities
c.
the process of identifying
countries with cheaper labor costs and relocating jobs to those countries
d.
the process of acquiring,
training, appraising, and compensating employees, and attending to their labor
relations, health and safety, and fairness concerns
e.
all of the above
(d; moderate; p. 4)
14.
_____ is the right to make
decisions, to direct the work of others, and to give orders.
a.
Leadership
b.
Authority
c.
Delegation
d.
Management
e.
Responsibility
(b; easy; p. 6)
15.
_____ are authorized to
direct the work of subordinates.
a.
Line managers
b.
Staff managers
c.
Leaders
d.
Advisory board members
e.
All of the above
(a; easy; p. 6)
16.
_____ are responsible for
assisting and advising line managers in areas like recruiting, hiring, and
compensation.
a.
Human resource managers
b.
Staff managers
c.
Line managers
d.
EEO officers
e.
Board members
(a; easy; p. 6)
17.
Effective human resource
management could include all of the following responsibilities except
_____.
a.
placing the right person in
the right job
b.
training employees
c.
controlling labor costs
d.
protecting employees’
health
e.
all are responsibilities
necessary for effective human resource management
(e; moderate; p. 6)
18.
Human resource managers
generally exert _____ within the human resources department and _____ outside
the human resources department.
a.
line authority; implied
authority
b.
staff authority; line
authority
c.
line authority; staff
authority
d.
functional control;
authoritarian control
e.
staff authority; specific
authority
(a; difficult; p.
7)
19.
Line managers respect the
knowledge human resource managers have in areas such as testing and affirmative
action. Consequently, human resource managers can influence line managers
through _____.
a.
line authority
b.
functional control
c.
implied authority
d.
explicit authority
e.
human capital
(c; moderate; p. 7)
20.
Which of the following
responsibilities do human resource managers fulfill in their role as employee
advocates?
a.
establish guidelines for
how management should be treating employees
b.
provide support for
employees contesting unfair practices
c.
represent employees’
interests as appropriate
d.
all of the above
e.
none of the above
(d; moderate; p. 7)
21.
All of the following are
examples of human resource job duties except _____.
a.
recruiter
b.
equal employment
opportunity coordinator
c.
financial advisor
d.
compensation manager
e.
labor relations specialist
(c; moderate; p. 7)
22.
Which of the following job
titles indicates a position in human resources?
a.
recruiter
b.
job analyst
c.
training specialist
d.
EEO coordinator
e.
all of the above
(e; easy; p. 7)
23.
Which of the following
tasks related to recruiting and hiring is not typically handled by HR
staff?
a.
specify necessary job
qualifications
b.
develop pool of qualified
applicants
c.
conduct initial screening
interviews
d.
administer tests
e.
explain benefits packages
(a; easy; p. 8)
24.
The expertise of human
resource departments became indispensable with the _____.
a.
emergence of union
legislation in the 1930s
b.
passing of equal employment
legislation
c.
increase of women in the
workforce
d.
movement of jobs to
countries with cheaper labor costs
e.
both a and b
(e; moderate; p. 9)
25.
_____ refers to the
tendency of firms to extend their sales, ownership, and/or manufacturing to new
markets abroad.
a.
Expansion
b.
Market development
c.
Globalization
d.
Export growth
e.
Diversification
(c; easy; p. 10)
26.
Most people who are
classified as nontraditional workers are _____.
a.
contingent workers
b.
independent contractors
c.
job sharing
d.
working multiple jobs
e.
caring for an elderly
parent
(b; difficult; p.
12)
27.
Which of the following is a
type of nontraditional worker?
a.
contingent workers
b.
part-time workers
c.
people working in
alternative work arrangements
d.
people with multiple jobs
e.
all of the above
(e;
moderate; p. 12)
28.
Jason Jackson takes on
various projects as an independent contractor. He works on several projects for
a variety of companies. When a project is complete, he moves on to another
project, often with a different company. Jason is a type of _____.
a.
contingent worker
b.
collateral worker
c.
manager
d.
consultant
e.
none of the above
(a; moderate; p.
12)
29.
Sarah Smith and her mother,
Anne, share one flight attendant job at JetBlue airlines. Sarah and Anne could
be classified as _____.
a.
flex-time workers
b.
contingent workers
c.
nontraditional workers
d.
traditional workers
e.
none of the above
(c; easy; p. 12)
30.
What term refers to the
knowledge, education, training, skills, and expertise of a firm’s workers?
a.
human resources
b.
human capital
c.
intangible assets
d.
knowledge assets
e.
intellectual property
(b; moderate; p.
13)
Labour Policy 2010
HRM
Government of Pakistan
Labour Policy 2010
i
PREFACE
Since creation of Pakistan, five labour polices have been announced by
the governments in the year 1955, 1959, 1969, 1972 and 2002. All these
polices basically laid-down the parameters for the growth of trade unionism;
the protection of workers’ rights; the settlement of industrial disputes and
redressal of worker grievances. After 2002, no Labour Policy has been
introduced although a number of developments took place in the intervening
period, which would have necessitated the same. In this scenario the Prime
Minister of Pakistan in his first speech emphasized the need to address the
labour issues and announced the lifting of ban on trade unionism, repeal of
Industrial Relations Ordinance, 2002, Removal from Service (Special Powers)
Ordinance, 2000 and other anti labour laws. In pursuance of Prime Minister’s
directions a new Labour Policy of the Government is placed.
Of all the previous policies, the Labour Policy of 1972 taken out by
Shaheed Zulfiqar Ali Bhutto was the most progressive one, which reformed
the labour laws and set out new benchmarks including new administrative
infrastructure to manage the workers’ welfare, viz Workers Welfare Fund
Ordinance; Employees Old-Age Benefit Act; amended Industrial Relations
Ordinance with enhanced protection of workers’ rights like imposing condition
on the authority of employer to terminate workers job. The scope of labour
laws was enhanced and benefits such as Workers’ participation in factory
management; increase in workers shares in company’s profits from 2% to 4%
ii
and then to 5%; Nomination/election of shop-stewards to attend day to day
workers’ problems; Settlement of disputes through Works Councils;
Establishment of Workers Children Education Cess; Representation of
workers on the Governing Body established under Workers Welfare Fund
Ordinance; and increased profit-sharing, statutory bonus, group insurance
scheme, group incentive scheme, etc. were granted.
The present Government’s fundamental commitment today is to create
an enabling environment for the application of universal principles of equality
and social justice as well as the constitutional and international rights of
workers. The rights and commitment based approach to labour issues is being
followed also in accordance with the edicts provided by the Constitution of the
Islamic Republic of Pakistan. In order to fulfill the obligations under the
Constitution as well as under the international covenants with regard to well
being and socio-economic protection of the workers, the announcement of the
new policy of the Government has become inevitable.
The Government’s vision for the new Labour Policy contents are
entrenched in the four main guiding features. The process of globalization is
posing a serious problem of economic survival for the developing country. The
foreign investments demand restructuring and decentralization of the system.
The new technologies demand the new labour policy is supported by the four
pillars outlined in therein.
iii
The new technologies demand a high level of professional competence along
with specialized skills. Considering the changes requirements of the time, it
was imperative re-establishing technical training and human resource
development programmes to train manpower in multiple trades. The new
labour policy proposes to restructure training activities in order to meet the
demand of new technologies.
To have a fruitful consultation with the stakeholder, Pakistan Tripartite
Labour Conference under the Chairmanship of the Prime Minister was held on
16th February, 2009 after about eight years, which culminated in useful
recommendations for legislative, institutional and administrative reforms to
meet the emerging challenges of the time. These recommendations were
further discussed in Provincial Tripartite Committees, and all these
recommendations are the basis of this new labour policy. The objective before
the government is that the new Labour Policy should ensure a harmonious
working relationship between workers and employers for improving
performance and efficiency of the industry. The text of the Labour Policy that
follows consists of four parts, Part-I: Legal Frame Work; Part-II: Advocacy:
Rights of Workers and Employers; Part III Skill Development and
Employment; and Manpower Export.
iv
In the end, I extend on behalf of the Government of Pakistan, my thanks
to the Secretary Ministry of Labour & Manpower and his team for their hard
work and dedication in finalizing the draft of the labour policy, which was
overdue for the past eight years. I also pay special tribute to Workers and
Employers Organizations, Ministries, Provincial Governments and all other
stakeholders for their contributions and useful suggestions towards the
realization of this labour policy.
Syed Khursheed Shah
Federal Minister for Labour and Manpower
May 01, 2010
1
LABOUR POLICY 2010
Social and economic well-being of the people is one of the principal
objectives of the present people’s government. Labour Policy, like policies in
other fields, should also aim in attaining the objectives in a manner best suited to
the resources of the country and the present state of economy. There is an
urgent need to revitalize the economy, required sustained efforts, to increase the
level of productivity, promotion of investment and maximization of employment.
There is an equally genuine requirement to create among workers and
employers, a better awareness of their obligations to the national objectives
stated above. At the same time, the Government recognizes that workers and
employers must enjoy reasonable benefits as can be sustained by the economy
without suffering set-backs. Keeping these priorities in view, the Government
considers that a balanced labour policy should be based on the following
objectives:-
- Workers’ right to form unions and unions should be protected and an
institutional framework be made available to foster close cooperation
between workers and employers at establishment level.
- Equitable adjustment of rights between workers and employers should
be ensured in an atmosphere of harmony, mutually beneficial to the
workers and the management.
- Consultations between workers and employers on matters of interest to
the establishment and welfare of workers should be made more
effective.
- Adequate security of jobs should be available to the workers and there
should be expeditious redressal of their grievances.
- Conditions should be created that workers and employers are
committed in enhancing the labour productivity.
- Promotion to higher jobs be ensured at all levels based on suitability
and merit and for this purpose arrangements should be made for inservice
training facilities.
- Facilities for proper matching of job opportunities and the job seekers
be strengthened and standard procedures be streamlined.
- Social insurance schemes to be further strengthened.
2
- Just and humane conditions of work be guaranteed to all workers.
- Forced labour in all its forms to be eliminated.
- Provisions relating to the employment of children to be strictly adhered
to and be enforced.
2. The Labour Policy has accordingly been divided into four parts, i.e.
i) Legal Frame Work;
ii) Advocacy: Rights of Workers and Employers;
iii) Skill Development and Employment;
iv) Manpower Export.
LEGAL FRAME WORK
3. The Government is of the considered view that an atmosphere of
industrial peace and understanding is the need of the hour. The Government
would encourage and assist the process with volition of both workers and
employers. It will protect legitimate rights and interests of workers and employers
and minimize the areas of friction which compel either of them to agitate. The
question of unwilling and reluctant workers has, however, remained a source of
concern equally for the Government, employers and trade unions’ leadership.
The Government is committed for the welfare and protection of workers
4. The unions having the support of sizeable number of members shall
be, recognized, given due protection, and provided all facilities to further the
interests of their members. Only those unions shall be recognized who to their
credit have the support, of a minimum of 15 per cent of total membership of the
establishment, which they represent. The rest of the unions by default shall stand
dissolved.
5. The institutions of Shop Stewards, Work Councils and Joint
Management Boards which have up till now remained dormant, shall be
encouraged and re-activated for their rightful participation in improving labourmanagement
relations at plant level.
6. The Government repealed the Industrial Relation Ordinance 2002
through the Industrial Relations Act 2008. Now a new law in conformity with the
International labour Standards will be promulgated. Section 27B of the Banking
Company Ordinance shall be repealed.
3
Rationalization and Consolidation of Labour Laws.
7. The Labour Laws are quite complex, over-lapping, anomalous, and
at times render the subject matter difficult to understand, besides creating
confusion for those who deal with them. Further, the penalties prescribed for
offences and non-compliance are very low, since some of these laws were
framed during pre-independence period. The Labour Laws will be consolidated
and rationalized into five core laws, viz;
i) Laws relating to industrial relations.
ii) Laws relating to employment and service conditions.
iii) Laws relating to occupational safety and health.
iv) Laws relating to human resource development.
v) Laws relating to labour welfare and social security.
Universal/Voluntary Coverage
8. A comprehensive Social Insurance for old-age benefits and
health services will be introduced on self-registration/voluntary basis to
allow all workers in formal and informal sector of economy, including self
employed persons, to benefit from it.
Issuance of Smart Cards
9. The registration of workers will be linked with the Smart Cards
being issued by NADRA. All particulars of the workers with respect to
name, employment history, education, skills will be placed on the Chip of
the Smart Card. This card will also serve the purpose of registration under
Social Security, EOBI and workers Welfare Fund and will be a source of
Data Bank of labour force for re-skilling of workforce with respect to
enhancement of employment within the country and overseas.
Wages
10. The Government is committed to implement the system of minimum
wage as a fundamental element of labour protection, and proposes to continue
with the existing tripartite minimum wage determination arrangements. An
independent National Wage Commission will be set up and the government will
establish a Working Group to make detailed recommendations for the purpose of
specific functions and operational arrangements for such a Commission,
including its technical and secretarial support requirements and its relations with
provincial wage fixing authorities.
4
11. The deliberations of the Working Group will involve close
cooperation with workers’ and employers’ organizations, and will result in the
preparation of a detailed policy paper for the development and implementation of
national wage policy, including minimum wages, in the medium to longer term.
12. In line with Manifesto of the Pakistan Peoples Party the Government
shall gradually enhance wages of the workers. The wages shall continue to be
reviewed at least once in a year and minimum gross emoluments will be
progressively raised.
13. The minimum wage was raised from Rs. 4600/- to Rs. 6000/- in
the year 2008, which will be further enhanced to Rs.7000/- there are
increase of about 17%.
14. All industrial, commercial and other establishments registered
under any law shall pay wages to the employees through Cheque/Bank
transfer.
Women Empowerment and Gender Equality
15. International Labor Organization’s project Women Employment
Concerns and Working Condition in Pakistan (WEC-PK) funded by CIDA has
been Implemented in collaboration of Ministry of Labour and Manpower to
enhance the quality and number of women employment in Pakistan with ultimate
goal of economic empowerment of women in rural and urban areas. A number of
productive programs have been completed under this project aimed at creating
conducive working environment for women such as Sensitization and capacity
building of policy makers and implementing partners in public and private
sectors; Direct Assistance to Women in getting Decent Employment; Promoting
Gender Equality in Private Sector Employment in Pakistan; and promoting
Women's participation and Leadership in Trade Unions in Pakistan
16. Another project titled “Towards Gender Parity” was initiated in
January 2010 in collaboration of Ministry of Labour for the period of one year.
The focus of the project activities would be on capacity building of stake holders
on relevant areas and International Labour Standards (ILS); Establishment of
coordination mechanism among partners to monitor, learn and share experience;
Promotion of gender- responsive data collection, analysis and reporting through
a joint effort of all stake holders; strategy for gender equality in skill development
and small and medium enterprise program; strategy for implementation of
Women Empowerment Act; Advocacy for the implementation of national policy of
Home-based Workers and pilot activities for integration of HBWs into main
stream.
5
Women Workers
17. Women workers will benefit from the application of ILO Convention
on Equal Remuneration, 1951 (No. 100), ratified by Pakistan in 2001. Minimum
and above-minimum wages will be ensured on the basis of equal pay for equal
work, and equal pay for work of equal value, as between men and women, in
accordance with Pakistan’s obligations under ILO Conventions 100 and 111
concerned with equality and non-discrimination respectively.
18. Women will also benefit from better information concerning their
working conditions and arrangements in the informal economy, from improved
maternity arrangements, codes of conduct relating to sexual harassment and,
where possible, day care arrangements for their children.
19. The Government is committed to providing women with equal
opportunities for employment and will re-examine existing legislation to ensure
that women are not denied access to suitable jobs that are arising due to
Pakistan’s changing labour markets.
Young Persons
20. Workers between the ages of 14 and less than 18 years will not be
engaged in hazardous working conditions and other working environments that
adversely affect their physical and moral development. They will also be provided
greater access to education and training, particularly training, tailored to identified
labour market needs.
21. Children and young persons will be withdrawn and prevented from
hazardous nature as, for example, mining, tanneries, brick kilns, construction,
and glass bangles etc. Special programmes will be designed to focus young
domestic workers employed in private households. Payment of minimum wage
will also be ensured to the young persons.
Mine Workers
22. The majority of workers in Pakistan’s mining industry are employed
on a contract basis, often through a somewhat complicated system of subcontracting
making it difficult to identify the actual employer. Mine workers are
covered by special legislation that place them outside mainstream labour
legislation.
6
23. Mine workers, whether contract or permanent, will be provided with
same protection as other workers. They will benefit from minimum wage
payments, access to social security and improved safety and health in their
workplaces.
Eradication of Bonded Labour
24. The Government shall abolish bonded labour in all its forms and
shall make appropriate amendments in law to make it more stringent, strictly
implemented and safeguard the interest of workers who have hither to remained
under forced labour.
Construction Labour
25. Construction industry is the back-bone of all the development
activities and is estimated to employ more than two million workers. Since the
sector is witnessing rapid expansion, health, safety and occupational hazards in
this industry are likely to pose new challenges and problems. In order to guard
against occupational hazards and to provide safe working conditions for those
employed in this vital sector of the economy, the Government shall enact suitable
legislation to ensure health and safety of construction workers and to provide
benefits available to other formal sector workers such as Workmen’s
Compensation, Social Security, Old-age Pension etc.
Contractual Employees.
26. The Government has already started the process to
regularize/confirm contract employees. All contract employees in public
sector will be regularized/confirmed within shortest possible time.
Child Labour
27. The Government shall take legal as well as other measures to
regulate and control the employment of children in certain occupations and
processes considered hazardous and injurious to their health.
Agriculture Labour
28. The agriculture sector is being rapidly mechanized and requires
technical skill. Resultantly, the unskilled workers of this sector are becoming unemployed.
Moreover the labour laws are not applicable to this sector, therefore,
the agriculture labour force remain deprived of the benefits available under
various welfare legislations to their counterparts in the industrial establishments.
7
The Government, in the first instance, proposes to extend the coverage of
Workmen’s Compensation Act, 1923, to provide compensation in case of injury
as well as death to workers of mechanized farms in the rural sector.
Informal Economy Workers
29. Extending labour protection to the country’s large and diverse
informal economy is a major challenge. The informal economy supports millions
of people across a large geographic area, undertaking a wide variety of low-paid,
low-productivity jobs, under working conditions that are frequently harsh,
unhealthy, and hazardous. Informal economy workers are not covered by labour
laws. Government is planning to make it mandatory for the labour administration
to take the initiative to see how it can best reach out to such workers and provide
them with basic protection through the provision of advisory services, based on a
‘labour extension’ approach.
30. Workers in the informal economy, including home workers and
domestic workers, will benefit from improved safety and health arrangements,
access to social security arrangements, and the payment of minimum wages,
where an employee- employer relation is evident. The employment of children
less than 14 years will be eliminated, and the employment of those between the
ages of 14 and less than 18 years will be strictly controlled, through a
combination of stronger legislation and the introduction of labour extension
services.
Health and Safety
31. A Tripartite Council on Health and Safety be set-up to identify health
and safety hazards for workers of all economic sectors and to make
recommendations for safety measures on a continuous basis.
Pakistan Tripartite Labour Conference and
Standing Labour Committees
32. Industrial peace is a pre-requisite for economic development and
social progress of any country. The necessity of enlightened and constructive
outlook on the part of both workers and employers, which will promote
understanding and, obviate confrontation is, therefore, essential. The Pakistan
Tripartite Labour Conference and Standing Labour Committee shall be activated
to play more effective role in resolving differences, if any, between workers and
employers and to create an environment of mutual trust and understanding for
the promotion of industrial peace. With a view to draw the maximum benefit out
of the experience of both the workers and the employers, greater representation
8
shall be given to their nominees while framing new social and economic policies
of the country, particularly at the time of the framing of budget and Five Year
Plans.
33. Tripartite Monitoring Committees will be set up at District,
Province and Federal level to monitor implementation of Labour Laws,
particularly with reference to payment of wages, working environment and
working time.
Expansion in Scope of Workers’ Welfare Fund:
34. The scope of Workers’ Welfare Fund Ordinance, 1971 will be
extended; e.g.
i) Labour Colonies will be established by developing 100,000 houses
for allotment to the workers.
ii) To encourage the private sector for providing housing facilities to the
workers, the cost of construction of houses for the workers shall be
considered as direct deduction against income as an admissible
expenditure in the year in which such costs are incurred by
establishments constructing houses for their employees.
iii) Community buildings i.e. mosques, schools, dispensaries,
community centers, shops and parks will be provided in labour
colonies to make them self-sufficient.
iv) Scholarships will be awarded to workers’ children for higher studies
e.g Ph.d, FRCS, etc and to study abroad also.
v) Marriage grant for female workers and daughters of the workers will
be without any balloting and without any restriction on number @
Rs, 70,000/- per female worker/daughter.
vi) Two medical colleges will be established for children of workers at
Karachi and Lahore. In these colleges 60% admissions will be given
to the children of workers and 40% to the general public.
vii) All workers registered under the universal registration scheme
of the EOBI will be eligible to get benefits from the WWF.
viii) On request of an officer of the registered trade union, and
subject to recommendation of the Monitoring Committee, any
9
dismissed/retrenched worker will be paid legal aid subject to
maximum of Rs.15000/-.
Social Security
35. Provincial Employees’ Social Security Ordinance, 1965 is in
operation and covers the contingencies of employment injury, sickness and
maternity. It is financed entirely through employers’ contribution at the rate of 6
percent of the wages of the secured workers up to Rs. 10,000/- p.m. The scheme
is administered by the Provincial Governments.
36. Though the Social Security Scheme has been in operation for many
years, it has not achieved its full potential. Its coverage has remained almost
static over the last more than ten years. Implementation of the scheme would be
improved and intensified by undertaking the following activities:
i) Steps would be taken to adopt geographical coverage rather than by
notification of establishments.
ii) The amount of death grant to meet funeral expenses of a worker will
be raised from Rs.1500 to Rs.15000.
iii) Scope of social security medical services would be expanded to
public health to cover prevention of illness and promotion of good
health.
iv) The entitlement condition for seasonal labour would be considerably
improved.
v) In cases where the social security hospital has no facilities for
treatment, the worker shall be referred to any public/private
hospital and the respective Social Security Institution will bear
all costs of treatment.
vi) The retired registered worker will be provided medical facilities
from the Social Security Scheme.
vii) The Social Security Ordinance will be suitably amended to remove
the lacunas and difficulties experienced by the Provincial
Governments.
10
Employees’ Old-Age Benefits Scheme
37. The scheme is operated under the Employees’ Old-Age Benefits
Act, 1976 and covers establishments employing 5 or more persons. All the
employees irrespective of their wage are covered under the scheme. However,
contributions by employers and benefits to the workers are payable on minimum
rate of wages notified under the Minimum Wages for Unskilled Workers
Ordinance, 1962. The scheme is financed through employers’ contribution at the
rate of 5 percent of the minimum wages and insured persons contribution at the
rate of 1 percent of the minimum wages. The scheme provides Old-Age Pension,
Invalidity Pensions, and Survivors Pension (minimum Rs. 2000/- p.m.) and Old-
Age Grant. It is a federally administered scheme. This scheme has also not
achieved its full potential in terms of coverage of eligible establishments and
employees.
38. An in-depth review of the scheme would be made and effective
measures would be adopted to achieve the following objectives:-
i) Measures would be taken to gradually expand the coverage,
including self employed persons and increase the benefits under the
EOB Scheme.
ii) All eligible establishments and employees would be registered and
evasions would be checked through vigorous and efficient
administration of the law.
iii) The Act will be made applicable to the contingent/project
employees of such statutory bodies which are otherwise
exempted under the provisions of the Act.
iv) Collection of contributions and recovery of arrears would be fully
ensured through proper decentralization, regular inspection and
continuous vigilance.
v) Maintenance of accurate and up-to-date records of registration of
employers, employees and contributions and benefit management
system would be ensured on computerized basis.
vi) The survivors of a registered insured person under the EOB Act
will be paid Survivors Pension without any condition of
minimum insurable employment.
11
vii) The survivor pension shall be paid to disabled children for life
and unmarried daughters till their marriage without any
reference to the age.
viii) Pension shall be enhanced with the enhancement of
Government Servants Pension at the same ratio.
ix) The age for entitlement of old-age pension will be reduced from
55 years to 50 years in case of mine workers.
x) Amendments be made in the law to remove any lacuna or
administrative problem.
ADVOCACY; RIGHTS OF WORKERS AND EMPLOYERS: DECENT WORK.
39. The Labour Policy envisages a harmonious working relationship
between workers and employers for improving the performance and efficiency of
the industry. The rights and obligations based approach to labour issues is being
followed also in accordance with the Constitution of the Islamic Republic of
Pakistan. In order to fulfill obligation under the Constitution as well as under
international covenants with regard to well being and socio-economic protection
of the workers, a strategy has to be evolved and pursued in accordance with the
concept of decent work in the employment sector.
40. The economic growth is a pre-condition for expanding productive
employment. But economic growth in itself could not reduce poverty. Only
productive and remunerative employment could eliminate poverty and
deprivation. Pakistan has ratified many international commitments relating to
labour standards such as 34 ILO Conventions (33 in force) which include seven
of the eight fundamental conventions encompassing freedom of association, the
abolition of forced labour, equality at work, the elimination of child labour, the
Convention on the Rights of the Child, the Convention on the Elimination of All
Forms of Discrimination Against Women, Universal Declaration of Human Rights,
International Covenant on Economic, Social and Cultural Rights , International
Covenant on Civil and Political Rights and Anti-Slavery Convention of the UN.
The Government believes that in the light of its international commitments the
strategic goal of decent work means paying equal attention to economic and
social development, with special attention to safeguarding the rights and interests
of the workers. The economic globalization offers new opportunities, but at the
same time it presents challenges to workers all over the world. The decent work
strategy responses to the social challenge. The decent work strategy of the
country comprises four elements that are closely related:
12
• opportunities for productive, remunerative and safe work;
• social protection;
• respect for workers’ basic rights and interests; and
• Social dialogue.
41. The preliminary focus for the decent work strategy at present is
employment promotion and further improvement of the social security system.
Experience has shown that rapid economic development and technological
progress do not automatically lead to more employment opportunities; however,
individuals depend on employment opportunities to earn a living and meet their
basic needs. The Government will insure full adherence of labour laws and
workers friendly environment in all establishments to promote decent work
in the country.
SKILL DEVELOPMENT AND EMPLOYMENT
42. The main elements of Human Resource Development and
Employment strategy are outlined below:-
i) In the absence of determined measures to bring down the rate of
population increase efforts to enhance employment generation are
expected to produce limited success.
ii) Given the need to create 1.25 million man years of additional
employment annually and recent declining employment elasticity, the
growth rate of the economy need to centre around a minimum of 8.3
percent per annum.
iii) Primary emphasis will be on employment generation in rural areas
and surrounding small towns through development of physical and
social infrastructure and rural industries.
iv) Special measures will be taken to reduce unemployment among the
educated not through unproductive public sector employment in
administrative jobs but to meet real needs of the economy especially
in the social sectors and private sector employment.
v) Effort will be made to accelerate development, increase productivity
of small scale/informal sector enterprises and to generate
13
employment in less developed regions to remove regional
disparity .
vi) Self-reliance and austerity will be taken as cardinal planks of the
entire policy package.
vii) A concerted effort will be made to radically improve the participation
of females in income generating economic activities.
viii) Well trained skilled labour force will be developed to help achieve
significant gains in productivity and efficiency primarily through the
efforts of the private sector.
ix) Full support will be provided to Pakistanis seeking employment
opportunities abroad and assistance in productive re-absorption of
returning migrants.
x) Opportunities for self-employment will be incurred for those with
education, skills and entrepreneurship especially through better
access to credit facilities.
Skill Development
i) Particular emphasis will be given on Training of Trainers to maximize
the multiplier impact.
ii) Training in para-medical services, of which presently there is an
acute shortage will be increased.
iii) The industrial apprenticeship schemes will be revitalized and intake
will be enhanced.
iv) The production of skilled manpower for assimilation and spread of
new modern technologies especially in the application of electronics,
computers and modern production systems will be encouraged.
v) Mobile training units and trade-tests (through the National Training
Board Skills Standard and Certification System) for those who are
trained through the informal “Ustad-Shagird” system will be
introduced.
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vi) The government will encourage the involvement of private sector to
organize intensive in-plant training, actively participate in the
establishment and management of vocational training institute; and
the National Training Board will be reconstituted with a large
representation of the private sector.
vii) Matric Tech scheme shall be introduced in all schools run by
the Workers Welfare Fund to impart Technical Education to the
students.
viii) Increasing the proportion of workers in the labour force with higher
levels of education and skills will be encouraged. This will be
achieved by complementing general school education with
technical/vocational training and by easing the path of school
graduates to higher education with an emphasis on professional
training.
ix) The government will standardize courses/curricula and ensure
uniform quality control.
x) The trade unions will be engaged in identifying training needs and
priorities and the management of training programmes and training
institutes.
xi) A full-fledged Labour Market Information System shall be
established with creation of Human Resource Center at
different cities.
Employment
43. The most challenging issue facing Pakistan today is the high rate of
growth of population and labour force growing at over 3 percent per annum,
amongst the highest in the world. Its population has a literacy rate of less than 60
percent. It possesses an insignificant base for the production of high level
scientific and middle level technical manpower, and the quality of education has
seriously deteriorated in recent years. The main objectives of the country’s
Labour Policy shall be to meet the requirements of the economy, the employers
and the working classes.
44. In formulating a strategy to respond to these challenges the
following key factors are taken into account:-
15
i) During the past decade with an expected growth rate of the labour
force of 3.3 percent per annum, the economy is faced with the
formidable task of creating 1.25 million jobs annually, if the
unemployment and under-employment situation is not to worsen.
ii) The problem of the educated unemployed youth is serious thus
requires special programmes.
iii) Educational level and skill training of the industrial work force
remains very low.
iv) Women are Pakistan’s least utilized human resource. Woman labour
force participation depicts a gloomy picture.
v) The scientific manpower base in Pakistan lacks strategic depth in
meeting contemporary needs of the country. Only 20 percent of the
relevant age groups pass matriculation and only a quarter of these
students pursue further studies in science.
vi) Labour Market Information is presently not collected in a consistent
and systematic manner.
vii) The global financial crisis has aggravated Pakistan’s economic
difficulties.
Persons with Disabilities
45. The Government will ensure the special quota for employment of
disabled persons in all establishments in private as well as public sector. It will be
ensured that discrimination in any case should not be practiced in appointments
and/or promotions of persons with disabilities. Equal status and equal
opportunities will be provided to all workers including the handicapped. The
Government will establish complexes for education and training of disabled
workers and disabled children of workers under one roof, especially in remote
parts of the country from the Workers Welfare Fund.
46. The eunuchs are the most neglected human resource segment of
the society, subjected to humiliation and molestation. They are not exposed to
education and instead are trained to beg, dance or forced into prostitution.
Transgendered people are misunderstood and ridiculed for being born in the
wrong body and are condemned to exist at the bottom rung of Pakistan’s social
16
ladder. Such people are even denied their right to inheritance, civil rights and
registration in the formal workforce. The Government will take cognizance and
provide them opportunities for education, job and all other facilities of social
welfare which a common citizen is entitled to.
EXPORT OF MANPOWER
47. Human resource is one of the major capitals of any country.
Presently, the highest amount of foreign exchange is being earned through the
remittances by the expatriate Pakistanis. Procedures regarding export of
manpower will be simplified and streamlined by making necessary amendments
in the Emigration Rules to ensure expeditious processing of demands for
overseas jobs.
48. The Overseas Employment Promoters will be given further
incentives to enable them to improve their performance. Pakistan Embassies
abroad will be asked to extend necessary co-operation to the delegations of
OEPs when they visit the labour importing countries for procurement of
manpower demands so that they may be able to procure maximum demands for
Pakistani labour.
49. Regular export promotion campaigns and visits to main employers
especially in the Gulf region will be encouraged.
50. Return migrants will be viewed as a potential asset (a package of
labour skills, experience and investible resources) which will be tapped for the
benefit of the economy. Existing schemes to attract investments by migrants
while abroad as well as on return will be expanded and made more effective.
51. In addition to above to enhance the export of manpower, major
steps will be taken by the Government, which shall include:
Formulation of Manpower Export Committee in the Ministry to:
• Prospects of Pakistani emigrant workers
• Promoting emigration and protecting emigrants
• Re-integration of returning emigrants and effective use of diaspora
resources
• Supporting measures and implementation mechanism
Manpower Export Committee at National Level with following role and
functions:
• Prepare marketing plan and strategy for enhancement of manpower
export.
17
• Approve training plan, functional language courses.
• Arrange financial resources for training in Pakistan.
• Approve Road Shows/Job fairs in different countries.
• Extend invitation to important employers and key government
functionaries of labour receiving countries to assess the training
facilities in Pakistan - invest for up-gradation.
• Enhance the strength and capacity of skill training system of
Pakistan - at par with standards of Labour importing counties.
• Establishment of a Manpower Export, Research and Information
Center (MERIC) – in Bureau of Emigration.
• Coordinate with Ministries and Provincial Governments.
Coordination and Liaison Committee in Pakistani Missions
• Coordinate with Manpower Export Committee.
• Liaison with Pakistani community as well as the private and public
sector foreign employers.
• Develop Market strategy and action plan for employment abroad.
• Provide information on the skills requirement, occupation wise
emerging opportunities to the Manpower Export Committee.
• Recommend leading foreign employers & key Government
functionaries, to be invited to Pakistan for showcasing the prevalent
training/skill standards, investment in training institutions and hiring
of manpower.
52. Performance evaluation of Pakistani Missions inter-alia needs to be
made in terms of their initiatives for raising the number of Pakistani workforce, to
provide feedback on the key labour market developments, major economic
programs and projects.
-:( The End):-
Government of Pakistan
Labour Policy 2010
i
PREFACE
Since creation of Pakistan, five labour polices have been announced by
the governments in the year 1955, 1959, 1969, 1972 and 2002. All these
polices basically laid-down the parameters for the growth of trade unionism;
the protection of workers’ rights; the settlement of industrial disputes and
redressal of worker grievances. After 2002, no Labour Policy has been
introduced although a number of developments took place in the intervening
period, which would have necessitated the same. In this scenario the Prime
Minister of Pakistan in his first speech emphasized the need to address the
labour issues and announced the lifting of ban on trade unionism, repeal of
Industrial Relations Ordinance, 2002, Removal from Service (Special Powers)
Ordinance, 2000 and other anti labour laws. In pursuance of Prime Minister’s
directions a new Labour Policy of the Government is placed.
Of all the previous policies, the Labour Policy of 1972 taken out by
Shaheed Zulfiqar Ali Bhutto was the most progressive one, which reformed
the labour laws and set out new benchmarks including new administrative
infrastructure to manage the workers’ welfare, viz Workers Welfare Fund
Ordinance; Employees Old-Age Benefit Act; amended Industrial Relations
Ordinance with enhanced protection of workers’ rights like imposing condition
on the authority of employer to terminate workers job. The scope of labour
laws was enhanced and benefits such as Workers’ participation in factory
management; increase in workers shares in company’s profits from 2% to 4%
ii
and then to 5%; Nomination/election of shop-stewards to attend day to day
workers’ problems; Settlement of disputes through Works Councils;
Establishment of Workers Children Education Cess; Representation of
workers on the Governing Body established under Workers Welfare Fund
Ordinance; and increased profit-sharing, statutory bonus, group insurance
scheme, group incentive scheme, etc. were granted.
The present Government’s fundamental commitment today is to create
an enabling environment for the application of universal principles of equality
and social justice as well as the constitutional and international rights of
workers. The rights and commitment based approach to labour issues is being
followed also in accordance with the edicts provided by the Constitution of the
Islamic Republic of Pakistan. In order to fulfill the obligations under the
Constitution as well as under the international covenants with regard to well
being and socio-economic protection of the workers, the announcement of the
new policy of the Government has become inevitable.
The Government’s vision for the new Labour Policy contents are
entrenched in the four main guiding features. The process of globalization is
posing a serious problem of economic survival for the developing country. The
foreign investments demand restructuring and decentralization of the system.
The new technologies demand the new labour policy is supported by the four
pillars outlined in therein.
iii
The new technologies demand a high level of professional competence along
with specialized skills. Considering the changes requirements of the time, it
was imperative re-establishing technical training and human resource
development programmes to train manpower in multiple trades. The new
labour policy proposes to restructure training activities in order to meet the
demand of new technologies.
To have a fruitful consultation with the stakeholder, Pakistan Tripartite
Labour Conference under the Chairmanship of the Prime Minister was held on
16th February, 2009 after about eight years, which culminated in useful
recommendations for legislative, institutional and administrative reforms to
meet the emerging challenges of the time. These recommendations were
further discussed in Provincial Tripartite Committees, and all these
recommendations are the basis of this new labour policy. The objective before
the government is that the new Labour Policy should ensure a harmonious
working relationship between workers and employers for improving
performance and efficiency of the industry. The text of the Labour Policy that
follows consists of four parts, Part-I: Legal Frame Work; Part-II: Advocacy:
Rights of Workers and Employers; Part III Skill Development and
Employment; and Manpower Export.
iv
In the end, I extend on behalf of the Government of Pakistan, my thanks
to the Secretary Ministry of Labour & Manpower and his team for their hard
work and dedication in finalizing the draft of the labour policy, which was
overdue for the past eight years. I also pay special tribute to Workers and
Employers Organizations, Ministries, Provincial Governments and all other
stakeholders for their contributions and useful suggestions towards the
realization of this labour policy.
Syed Khursheed Shah
Federal Minister for Labour and Manpower
May 01, 2010
1
LABOUR POLICY 2010
Social and economic well-being of the people is one of the principal
objectives of the present people’s government. Labour Policy, like policies in
other fields, should also aim in attaining the objectives in a manner best suited to
the resources of the country and the present state of economy. There is an
urgent need to revitalize the economy, required sustained efforts, to increase the
level of productivity, promotion of investment and maximization of employment.
There is an equally genuine requirement to create among workers and
employers, a better awareness of their obligations to the national objectives
stated above. At the same time, the Government recognizes that workers and
employers must enjoy reasonable benefits as can be sustained by the economy
without suffering set-backs. Keeping these priorities in view, the Government
considers that a balanced labour policy should be based on the following
objectives:-
- Workers’ right to form unions and unions should be protected and an
institutional framework be made available to foster close cooperation
between workers and employers at establishment level.
- Equitable adjustment of rights between workers and employers should
be ensured in an atmosphere of harmony, mutually beneficial to the
workers and the management.
- Consultations between workers and employers on matters of interest to
the establishment and welfare of workers should be made more
effective.
- Adequate security of jobs should be available to the workers and there
should be expeditious redressal of their grievances.
- Conditions should be created that workers and employers are
committed in enhancing the labour productivity.
- Promotion to higher jobs be ensured at all levels based on suitability
and merit and for this purpose arrangements should be made for inservice
training facilities.
- Facilities for proper matching of job opportunities and the job seekers
be strengthened and standard procedures be streamlined.
- Social insurance schemes to be further strengthened.
2
- Just and humane conditions of work be guaranteed to all workers.
- Forced labour in all its forms to be eliminated.
- Provisions relating to the employment of children to be strictly adhered
to and be enforced.
2. The Labour Policy has accordingly been divided into four parts, i.e.
i) Legal Frame Work;
ii) Advocacy: Rights of Workers and Employers;
iii) Skill Development and Employment;
iv) Manpower Export.
LEGAL FRAME WORK
3. The Government is of the considered view that an atmosphere of
industrial peace and understanding is the need of the hour. The Government
would encourage and assist the process with volition of both workers and
employers. It will protect legitimate rights and interests of workers and employers
and minimize the areas of friction which compel either of them to agitate. The
question of unwilling and reluctant workers has, however, remained a source of
concern equally for the Government, employers and trade unions’ leadership.
The Government is committed for the welfare and protection of workers
4. The unions having the support of sizeable number of members shall
be, recognized, given due protection, and provided all facilities to further the
interests of their members. Only those unions shall be recognized who to their
credit have the support, of a minimum of 15 per cent of total membership of the
establishment, which they represent. The rest of the unions by default shall stand
dissolved.
5. The institutions of Shop Stewards, Work Councils and Joint
Management Boards which have up till now remained dormant, shall be
encouraged and re-activated for their rightful participation in improving labourmanagement
relations at plant level.
6. The Government repealed the Industrial Relation Ordinance 2002
through the Industrial Relations Act 2008. Now a new law in conformity with the
International labour Standards will be promulgated. Section 27B of the Banking
Company Ordinance shall be repealed.
3
Rationalization and Consolidation of Labour Laws.
7. The Labour Laws are quite complex, over-lapping, anomalous, and
at times render the subject matter difficult to understand, besides creating
confusion for those who deal with them. Further, the penalties prescribed for
offences and non-compliance are very low, since some of these laws were
framed during pre-independence period. The Labour Laws will be consolidated
and rationalized into five core laws, viz;
i) Laws relating to industrial relations.
ii) Laws relating to employment and service conditions.
iii) Laws relating to occupational safety and health.
iv) Laws relating to human resource development.
v) Laws relating to labour welfare and social security.
Universal/Voluntary Coverage
8. A comprehensive Social Insurance for old-age benefits and
health services will be introduced on self-registration/voluntary basis to
allow all workers in formal and informal sector of economy, including self
employed persons, to benefit from it.
Issuance of Smart Cards
9. The registration of workers will be linked with the Smart Cards
being issued by NADRA. All particulars of the workers with respect to
name, employment history, education, skills will be placed on the Chip of
the Smart Card. This card will also serve the purpose of registration under
Social Security, EOBI and workers Welfare Fund and will be a source of
Data Bank of labour force for re-skilling of workforce with respect to
enhancement of employment within the country and overseas.
Wages
10. The Government is committed to implement the system of minimum
wage as a fundamental element of labour protection, and proposes to continue
with the existing tripartite minimum wage determination arrangements. An
independent National Wage Commission will be set up and the government will
establish a Working Group to make detailed recommendations for the purpose of
specific functions and operational arrangements for such a Commission,
including its technical and secretarial support requirements and its relations with
provincial wage fixing authorities.
4
11. The deliberations of the Working Group will involve close
cooperation with workers’ and employers’ organizations, and will result in the
preparation of a detailed policy paper for the development and implementation of
national wage policy, including minimum wages, in the medium to longer term.
12. In line with Manifesto of the Pakistan Peoples Party the Government
shall gradually enhance wages of the workers. The wages shall continue to be
reviewed at least once in a year and minimum gross emoluments will be
progressively raised.
13. The minimum wage was raised from Rs. 4600/- to Rs. 6000/- in
the year 2008, which will be further enhanced to Rs.7000/- there are
increase of about 17%.
14. All industrial, commercial and other establishments registered
under any law shall pay wages to the employees through Cheque/Bank
transfer.
Women Empowerment and Gender Equality
15. International Labor Organization’s project Women Employment
Concerns and Working Condition in Pakistan (WEC-PK) funded by CIDA has
been Implemented in collaboration of Ministry of Labour and Manpower to
enhance the quality and number of women employment in Pakistan with ultimate
goal of economic empowerment of women in rural and urban areas. A number of
productive programs have been completed under this project aimed at creating
conducive working environment for women such as Sensitization and capacity
building of policy makers and implementing partners in public and private
sectors; Direct Assistance to Women in getting Decent Employment; Promoting
Gender Equality in Private Sector Employment in Pakistan; and promoting
Women's participation and Leadership in Trade Unions in Pakistan
16. Another project titled “Towards Gender Parity” was initiated in
January 2010 in collaboration of Ministry of Labour for the period of one year.
The focus of the project activities would be on capacity building of stake holders
on relevant areas and International Labour Standards (ILS); Establishment of
coordination mechanism among partners to monitor, learn and share experience;
Promotion of gender- responsive data collection, analysis and reporting through
a joint effort of all stake holders; strategy for gender equality in skill development
and small and medium enterprise program; strategy for implementation of
Women Empowerment Act; Advocacy for the implementation of national policy of
Home-based Workers and pilot activities for integration of HBWs into main
stream.
5
Women Workers
17. Women workers will benefit from the application of ILO Convention
on Equal Remuneration, 1951 (No. 100), ratified by Pakistan in 2001. Minimum
and above-minimum wages will be ensured on the basis of equal pay for equal
work, and equal pay for work of equal value, as between men and women, in
accordance with Pakistan’s obligations under ILO Conventions 100 and 111
concerned with equality and non-discrimination respectively.
18. Women will also benefit from better information concerning their
working conditions and arrangements in the informal economy, from improved
maternity arrangements, codes of conduct relating to sexual harassment and,
where possible, day care arrangements for their children.
19. The Government is committed to providing women with equal
opportunities for employment and will re-examine existing legislation to ensure
that women are not denied access to suitable jobs that are arising due to
Pakistan’s changing labour markets.
Young Persons
20. Workers between the ages of 14 and less than 18 years will not be
engaged in hazardous working conditions and other working environments that
adversely affect their physical and moral development. They will also be provided
greater access to education and training, particularly training, tailored to identified
labour market needs.
21. Children and young persons will be withdrawn and prevented from
hazardous nature as, for example, mining, tanneries, brick kilns, construction,
and glass bangles etc. Special programmes will be designed to focus young
domestic workers employed in private households. Payment of minimum wage
will also be ensured to the young persons.
Mine Workers
22. The majority of workers in Pakistan’s mining industry are employed
on a contract basis, often through a somewhat complicated system of subcontracting
making it difficult to identify the actual employer. Mine workers are
covered by special legislation that place them outside mainstream labour
legislation.
6
23. Mine workers, whether contract or permanent, will be provided with
same protection as other workers. They will benefit from minimum wage
payments, access to social security and improved safety and health in their
workplaces.
Eradication of Bonded Labour
24. The Government shall abolish bonded labour in all its forms and
shall make appropriate amendments in law to make it more stringent, strictly
implemented and safeguard the interest of workers who have hither to remained
under forced labour.
Construction Labour
25. Construction industry is the back-bone of all the development
activities and is estimated to employ more than two million workers. Since the
sector is witnessing rapid expansion, health, safety and occupational hazards in
this industry are likely to pose new challenges and problems. In order to guard
against occupational hazards and to provide safe working conditions for those
employed in this vital sector of the economy, the Government shall enact suitable
legislation to ensure health and safety of construction workers and to provide
benefits available to other formal sector workers such as Workmen’s
Compensation, Social Security, Old-age Pension etc.
Contractual Employees.
26. The Government has already started the process to
regularize/confirm contract employees. All contract employees in public
sector will be regularized/confirmed within shortest possible time.
Child Labour
27. The Government shall take legal as well as other measures to
regulate and control the employment of children in certain occupations and
processes considered hazardous and injurious to their health.
Agriculture Labour
28. The agriculture sector is being rapidly mechanized and requires
technical skill. Resultantly, the unskilled workers of this sector are becoming unemployed.
Moreover the labour laws are not applicable to this sector, therefore,
the agriculture labour force remain deprived of the benefits available under
various welfare legislations to their counterparts in the industrial establishments.
7
The Government, in the first instance, proposes to extend the coverage of
Workmen’s Compensation Act, 1923, to provide compensation in case of injury
as well as death to workers of mechanized farms in the rural sector.
Informal Economy Workers
29. Extending labour protection to the country’s large and diverse
informal economy is a major challenge. The informal economy supports millions
of people across a large geographic area, undertaking a wide variety of low-paid,
low-productivity jobs, under working conditions that are frequently harsh,
unhealthy, and hazardous. Informal economy workers are not covered by labour
laws. Government is planning to make it mandatory for the labour administration
to take the initiative to see how it can best reach out to such workers and provide
them with basic protection through the provision of advisory services, based on a
‘labour extension’ approach.
30. Workers in the informal economy, including home workers and
domestic workers, will benefit from improved safety and health arrangements,
access to social security arrangements, and the payment of minimum wages,
where an employee- employer relation is evident. The employment of children
less than 14 years will be eliminated, and the employment of those between the
ages of 14 and less than 18 years will be strictly controlled, through a
combination of stronger legislation and the introduction of labour extension
services.
Health and Safety
31. A Tripartite Council on Health and Safety be set-up to identify health
and safety hazards for workers of all economic sectors and to make
recommendations for safety measures on a continuous basis.
Pakistan Tripartite Labour Conference and
Standing Labour Committees
32. Industrial peace is a pre-requisite for economic development and
social progress of any country. The necessity of enlightened and constructive
outlook on the part of both workers and employers, which will promote
understanding and, obviate confrontation is, therefore, essential. The Pakistan
Tripartite Labour Conference and Standing Labour Committee shall be activated
to play more effective role in resolving differences, if any, between workers and
employers and to create an environment of mutual trust and understanding for
the promotion of industrial peace. With a view to draw the maximum benefit out
of the experience of both the workers and the employers, greater representation
8
shall be given to their nominees while framing new social and economic policies
of the country, particularly at the time of the framing of budget and Five Year
Plans.
33. Tripartite Monitoring Committees will be set up at District,
Province and Federal level to monitor implementation of Labour Laws,
particularly with reference to payment of wages, working environment and
working time.
Expansion in Scope of Workers’ Welfare Fund:
34. The scope of Workers’ Welfare Fund Ordinance, 1971 will be
extended; e.g.
i) Labour Colonies will be established by developing 100,000 houses
for allotment to the workers.
ii) To encourage the private sector for providing housing facilities to the
workers, the cost of construction of houses for the workers shall be
considered as direct deduction against income as an admissible
expenditure in the year in which such costs are incurred by
establishments constructing houses for their employees.
iii) Community buildings i.e. mosques, schools, dispensaries,
community centers, shops and parks will be provided in labour
colonies to make them self-sufficient.
iv) Scholarships will be awarded to workers’ children for higher studies
e.g Ph.d, FRCS, etc and to study abroad also.
v) Marriage grant for female workers and daughters of the workers will
be without any balloting and without any restriction on number @
Rs, 70,000/- per female worker/daughter.
vi) Two medical colleges will be established for children of workers at
Karachi and Lahore. In these colleges 60% admissions will be given
to the children of workers and 40% to the general public.
vii) All workers registered under the universal registration scheme
of the EOBI will be eligible to get benefits from the WWF.
viii) On request of an officer of the registered trade union, and
subject to recommendation of the Monitoring Committee, any
9
dismissed/retrenched worker will be paid legal aid subject to
maximum of Rs.15000/-.
Social Security
35. Provincial Employees’ Social Security Ordinance, 1965 is in
operation and covers the contingencies of employment injury, sickness and
maternity. It is financed entirely through employers’ contribution at the rate of 6
percent of the wages of the secured workers up to Rs. 10,000/- p.m. The scheme
is administered by the Provincial Governments.
36. Though the Social Security Scheme has been in operation for many
years, it has not achieved its full potential. Its coverage has remained almost
static over the last more than ten years. Implementation of the scheme would be
improved and intensified by undertaking the following activities:
i) Steps would be taken to adopt geographical coverage rather than by
notification of establishments.
ii) The amount of death grant to meet funeral expenses of a worker will
be raised from Rs.1500 to Rs.15000.
iii) Scope of social security medical services would be expanded to
public health to cover prevention of illness and promotion of good
health.
iv) The entitlement condition for seasonal labour would be considerably
improved.
v) In cases where the social security hospital has no facilities for
treatment, the worker shall be referred to any public/private
hospital and the respective Social Security Institution will bear
all costs of treatment.
vi) The retired registered worker will be provided medical facilities
from the Social Security Scheme.
vii) The Social Security Ordinance will be suitably amended to remove
the lacunas and difficulties experienced by the Provincial
Governments.
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Employees’ Old-Age Benefits Scheme
37. The scheme is operated under the Employees’ Old-Age Benefits
Act, 1976 and covers establishments employing 5 or more persons. All the
employees irrespective of their wage are covered under the scheme. However,
contributions by employers and benefits to the workers are payable on minimum
rate of wages notified under the Minimum Wages for Unskilled Workers
Ordinance, 1962. The scheme is financed through employers’ contribution at the
rate of 5 percent of the minimum wages and insured persons contribution at the
rate of 1 percent of the minimum wages. The scheme provides Old-Age Pension,
Invalidity Pensions, and Survivors Pension (minimum Rs. 2000/- p.m.) and Old-
Age Grant. It is a federally administered scheme. This scheme has also not
achieved its full potential in terms of coverage of eligible establishments and
employees.
38. An in-depth review of the scheme would be made and effective
measures would be adopted to achieve the following objectives:-
i) Measures would be taken to gradually expand the coverage,
including self employed persons and increase the benefits under the
EOB Scheme.
ii) All eligible establishments and employees would be registered and
evasions would be checked through vigorous and efficient
administration of the law.
iii) The Act will be made applicable to the contingent/project
employees of such statutory bodies which are otherwise
exempted under the provisions of the Act.
iv) Collection of contributions and recovery of arrears would be fully
ensured through proper decentralization, regular inspection and
continuous vigilance.
v) Maintenance of accurate and up-to-date records of registration of
employers, employees and contributions and benefit management
system would be ensured on computerized basis.
vi) The survivors of a registered insured person under the EOB Act
will be paid Survivors Pension without any condition of
minimum insurable employment.
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vii) The survivor pension shall be paid to disabled children for life
and unmarried daughters till their marriage without any
reference to the age.
viii) Pension shall be enhanced with the enhancement of
Government Servants Pension at the same ratio.
ix) The age for entitlement of old-age pension will be reduced from
55 years to 50 years in case of mine workers.
x) Amendments be made in the law to remove any lacuna or
administrative problem.
ADVOCACY; RIGHTS OF WORKERS AND EMPLOYERS: DECENT WORK.
39. The Labour Policy envisages a harmonious working relationship
between workers and employers for improving the performance and efficiency of
the industry. The rights and obligations based approach to labour issues is being
followed also in accordance with the Constitution of the Islamic Republic of
Pakistan. In order to fulfill obligation under the Constitution as well as under
international covenants with regard to well being and socio-economic protection
of the workers, a strategy has to be evolved and pursued in accordance with the
concept of decent work in the employment sector.
40. The economic growth is a pre-condition for expanding productive
employment. But economic growth in itself could not reduce poverty. Only
productive and remunerative employment could eliminate poverty and
deprivation. Pakistan has ratified many international commitments relating to
labour standards such as 34 ILO Conventions (33 in force) which include seven
of the eight fundamental conventions encompassing freedom of association, the
abolition of forced labour, equality at work, the elimination of child labour, the
Convention on the Rights of the Child, the Convention on the Elimination of All
Forms of Discrimination Against Women, Universal Declaration of Human Rights,
International Covenant on Economic, Social and Cultural Rights , International
Covenant on Civil and Political Rights and Anti-Slavery Convention of the UN.
The Government believes that in the light of its international commitments the
strategic goal of decent work means paying equal attention to economic and
social development, with special attention to safeguarding the rights and interests
of the workers. The economic globalization offers new opportunities, but at the
same time it presents challenges to workers all over the world. The decent work
strategy responses to the social challenge. The decent work strategy of the
country comprises four elements that are closely related:
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• opportunities for productive, remunerative and safe work;
• social protection;
• respect for workers’ basic rights and interests; and
• Social dialogue.
41. The preliminary focus for the decent work strategy at present is
employment promotion and further improvement of the social security system.
Experience has shown that rapid economic development and technological
progress do not automatically lead to more employment opportunities; however,
individuals depend on employment opportunities to earn a living and meet their
basic needs. The Government will insure full adherence of labour laws and
workers friendly environment in all establishments to promote decent work
in the country.
SKILL DEVELOPMENT AND EMPLOYMENT
42. The main elements of Human Resource Development and
Employment strategy are outlined below:-
i) In the absence of determined measures to bring down the rate of
population increase efforts to enhance employment generation are
expected to produce limited success.
ii) Given the need to create 1.25 million man years of additional
employment annually and recent declining employment elasticity, the
growth rate of the economy need to centre around a minimum of 8.3
percent per annum.
iii) Primary emphasis will be on employment generation in rural areas
and surrounding small towns through development of physical and
social infrastructure and rural industries.
iv) Special measures will be taken to reduce unemployment among the
educated not through unproductive public sector employment in
administrative jobs but to meet real needs of the economy especially
in the social sectors and private sector employment.
v) Effort will be made to accelerate development, increase productivity
of small scale/informal sector enterprises and to generate
13
employment in less developed regions to remove regional
disparity .
vi) Self-reliance and austerity will be taken as cardinal planks of the
entire policy package.
vii) A concerted effort will be made to radically improve the participation
of females in income generating economic activities.
viii) Well trained skilled labour force will be developed to help achieve
significant gains in productivity and efficiency primarily through the
efforts of the private sector.
ix) Full support will be provided to Pakistanis seeking employment
opportunities abroad and assistance in productive re-absorption of
returning migrants.
x) Opportunities for self-employment will be incurred for those with
education, skills and entrepreneurship especially through better
access to credit facilities.
Skill Development
i) Particular emphasis will be given on Training of Trainers to maximize
the multiplier impact.
ii) Training in para-medical services, of which presently there is an
acute shortage will be increased.
iii) The industrial apprenticeship schemes will be revitalized and intake
will be enhanced.
iv) The production of skilled manpower for assimilation and spread of
new modern technologies especially in the application of electronics,
computers and modern production systems will be encouraged.
v) Mobile training units and trade-tests (through the National Training
Board Skills Standard and Certification System) for those who are
trained through the informal “Ustad-Shagird” system will be
introduced.
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vi) The government will encourage the involvement of private sector to
organize intensive in-plant training, actively participate in the
establishment and management of vocational training institute; and
the National Training Board will be reconstituted with a large
representation of the private sector.
vii) Matric Tech scheme shall be introduced in all schools run by
the Workers Welfare Fund to impart Technical Education to the
students.
viii) Increasing the proportion of workers in the labour force with higher
levels of education and skills will be encouraged. This will be
achieved by complementing general school education with
technical/vocational training and by easing the path of school
graduates to higher education with an emphasis on professional
training.
ix) The government will standardize courses/curricula and ensure
uniform quality control.
x) The trade unions will be engaged in identifying training needs and
priorities and the management of training programmes and training
institutes.
xi) A full-fledged Labour Market Information System shall be
established with creation of Human Resource Center at
different cities.
Employment
43. The most challenging issue facing Pakistan today is the high rate of
growth of population and labour force growing at over 3 percent per annum,
amongst the highest in the world. Its population has a literacy rate of less than 60
percent. It possesses an insignificant base for the production of high level
scientific and middle level technical manpower, and the quality of education has
seriously deteriorated in recent years. The main objectives of the country’s
Labour Policy shall be to meet the requirements of the economy, the employers
and the working classes.
44. In formulating a strategy to respond to these challenges the
following key factors are taken into account:-
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i) During the past decade with an expected growth rate of the labour
force of 3.3 percent per annum, the economy is faced with the
formidable task of creating 1.25 million jobs annually, if the
unemployment and under-employment situation is not to worsen.
ii) The problem of the educated unemployed youth is serious thus
requires special programmes.
iii) Educational level and skill training of the industrial work force
remains very low.
iv) Women are Pakistan’s least utilized human resource. Woman labour
force participation depicts a gloomy picture.
v) The scientific manpower base in Pakistan lacks strategic depth in
meeting contemporary needs of the country. Only 20 percent of the
relevant age groups pass matriculation and only a quarter of these
students pursue further studies in science.
vi) Labour Market Information is presently not collected in a consistent
and systematic manner.
vii) The global financial crisis has aggravated Pakistan’s economic
difficulties.
Persons with Disabilities
45. The Government will ensure the special quota for employment of
disabled persons in all establishments in private as well as public sector. It will be
ensured that discrimination in any case should not be practiced in appointments
and/or promotions of persons with disabilities. Equal status and equal
opportunities will be provided to all workers including the handicapped. The
Government will establish complexes for education and training of disabled
workers and disabled children of workers under one roof, especially in remote
parts of the country from the Workers Welfare Fund.
46. The eunuchs are the most neglected human resource segment of
the society, subjected to humiliation and molestation. They are not exposed to
education and instead are trained to beg, dance or forced into prostitution.
Transgendered people are misunderstood and ridiculed for being born in the
wrong body and are condemned to exist at the bottom rung of Pakistan’s social
16
ladder. Such people are even denied their right to inheritance, civil rights and
registration in the formal workforce. The Government will take cognizance and
provide them opportunities for education, job and all other facilities of social
welfare which a common citizen is entitled to.
EXPORT OF MANPOWER
47. Human resource is one of the major capitals of any country.
Presently, the highest amount of foreign exchange is being earned through the
remittances by the expatriate Pakistanis. Procedures regarding export of
manpower will be simplified and streamlined by making necessary amendments
in the Emigration Rules to ensure expeditious processing of demands for
overseas jobs.
48. The Overseas Employment Promoters will be given further
incentives to enable them to improve their performance. Pakistan Embassies
abroad will be asked to extend necessary co-operation to the delegations of
OEPs when they visit the labour importing countries for procurement of
manpower demands so that they may be able to procure maximum demands for
Pakistani labour.
49. Regular export promotion campaigns and visits to main employers
especially in the Gulf region will be encouraged.
50. Return migrants will be viewed as a potential asset (a package of
labour skills, experience and investible resources) which will be tapped for the
benefit of the economy. Existing schemes to attract investments by migrants
while abroad as well as on return will be expanded and made more effective.
51. In addition to above to enhance the export of manpower, major
steps will be taken by the Government, which shall include:
Formulation of Manpower Export Committee in the Ministry to:
• Prospects of Pakistani emigrant workers
• Promoting emigration and protecting emigrants
• Re-integration of returning emigrants and effective use of diaspora
resources
• Supporting measures and implementation mechanism
Manpower Export Committee at National Level with following role and
functions:
• Prepare marketing plan and strategy for enhancement of manpower
export.
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• Approve training plan, functional language courses.
• Arrange financial resources for training in Pakistan.
• Approve Road Shows/Job fairs in different countries.
• Extend invitation to important employers and key government
functionaries of labour receiving countries to assess the training
facilities in Pakistan - invest for up-gradation.
• Enhance the strength and capacity of skill training system of
Pakistan - at par with standards of Labour importing counties.
• Establishment of a Manpower Export, Research and Information
Center (MERIC) – in Bureau of Emigration.
• Coordinate with Ministries and Provincial Governments.
Coordination and Liaison Committee in Pakistani Missions
• Coordinate with Manpower Export Committee.
• Liaison with Pakistani community as well as the private and public
sector foreign employers.
• Develop Market strategy and action plan for employment abroad.
• Provide information on the skills requirement, occupation wise
emerging opportunities to the Manpower Export Committee.
• Recommend leading foreign employers & key Government
functionaries, to be invited to Pakistan for showcasing the prevalent
training/skill standards, investment in training institutions and hiring
of manpower.
52. Performance evaluation of Pakistani Missions inter-alia needs to be
made in terms of their initiatives for raising the number of Pakistani workforce, to
provide feedback on the key labour market developments, major economic
programs and projects.
-:( The End):-
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