Published by:
ABUBAKAR NAEEM
Labour and Employment laws
• A set of laws that deal with the rights of employees and the responsibilities of employers and it
governs the relationship between a group of organized people with their management.
The Constitution of Pakistan contains a range of provisions with regards to labour rights:
• Article 11 of the Constitution prohibits all forms of slavery, forced labour and child labour;
• Article 17 provides for a fundamental right to exercise the freedom of association and the right to
form unions;
• Article 18 prescribes the right of its citizens to enter upon any lawful profession or occupation
and to conduct any lawful trade or business;
• Article 25 lays down the right to equality before the law and prohibition of discrimination on the
grounds of sex alone;
• Article 37(e) makes provision for securing just and humane conditions of work, ensuring that
children and women are not employed in vocations unsuited to their age or sex, and for maternity
benefits for women in employment.
Factories Act, 1934
• Factory Act, 1934 extends to the whole of Pakistan
and its is enforced on the 1st day of January, 1935.
• Any premises where ten or more workers are
working on any day of preceding twelve months of
the year on any part of which a manufacturing
process is carried on with or without the aid of the
power and excludes mines.
• This act was enacted to protect factory workers being
subjected to attending long hours of work and to that
the work in healthy and sanitary conditions as far as
possible.
• The objective of this act is to provide healthy, safety
and welfare of the workers, to regulate the
employment of women and young personals
employed in the factories, and to eliminate
conditions which so often renders the job in factories
hazardous, unpleasant, monotonous, and even
lacking in comfort.
Wage rate and Worker Benefits
• Wages, as defined under the Minimum Wages Ordinance 1961, mean all remuneration, expressible in
monetary terms, and payable to a person on fulfillment of the express or implied terms of employment
contract.
Minimum Wage in Pakistan is set by the following two acts:
• The Minimum Wages Ordinance, 1961 (applicable in ICT and Balochistan)
• Pakistan Minimum Wages for Unskilled Workers Ordinance, 1969 (no longer in use after the 18th Amendment)
• The Minimum Wages Ordinance, 1961 (adapted in Punjab by 2012 Amendment Act)
• The Khyber Pakhtunkhwa Minimum Wages Act, 2013
• Sindh Minimum Wages Act, 2015
Current minimum wage rate set at Rs. 17500/- per month by the federal government.
Wage rate trend in the past
Worker benefits
The Pakistan workers’ rights and benefits are governed by the following laws:
• Workmen Compensation Act 1923
• Provincial Employees Social Security Ordinance 1965
• West Pakistan Industrial and Commercial Employment Ordinance 1968
Basic Benefits offered to employees
• Annual Paid Leave
• Health and Sickness Benefits
• Maternity Benefits
• Social Security System
Education and Literacy of labour force
Education and Literacy of labour force
Labour Availability
Labour Availability
Labour Availability
Living Standards
• The standard of living in Pakistan differentiates and varies between different classes of society. Despite
having a growing middle class numbering over 70 million, a large portion of the country's population
remains poor. Poverty, unemployment and a population boom contribute to Pakistan's current social
problems.
• Society has transformed from a rural, feudal one into one that is urban and middle-class. The middle class in
Pakistan can loosely be defined as the section of society that comprises households with a minimum
monthly income of Rs50,000.
Living standards
Poverty
• The Economic Survey 2018 revealed Pakistan’s percentage of people living below the poverty line
has fallen to 24.3 percent in 2015-16 from 50.4 percent in 2005-06.