THE INDUSTRIAL RELATIONS ACT, 2012
CONTENTS
SECTIONS:
1. Short title, extent, commencement and application.
2. Definitions.
3. Trade unions and freedom of association.
4. Registrar of trade unions.
5. Powers and functions of Registrar.
6. Application for registration.
7. Requirements for application.
8. Requirements for registration.
9. Registration.
10. Certificate of registration.
11. Cancellation of registration.
12. Appeal against the order/decisions etc of Registrar.
13. Incorporation of registered trade union.
14. Registration of federation of trade unions.
15. Registered trade union to maintain register, etc.
16. Returns.
17. Transfer, etc, of officer of trade union during pendency of application for
registration.
18. Disqualification for being an officer or a member of a trade union.
19. Collective bargaining agent.
20. Functions of the Collective Bargaining Agent.
21. Performance of functions pending ascertainment of collective bargaining agent.
22. Check off.
23. Shop steward.
24. Functions of Shop Steward.
25. Works Council.
26. Functions of Works Council.
27. Workers' Participation in Management.
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28. Joint Management Board.
29. Inspector.
30. Functions of the Inspector.
31. Unfair labour practices on the part of employers.
32. Unfair labour practices on the part of a workmen.
33. Redress of individual grievances.
34. Raising of industrial disputes.
35. Negotiations relating to differences and disputes.
36. Conciliator.
37. Conciliation after notice of strike or lockout.
38. Proceedings before Conciliator.
39. Commencement and conclusion of proceedings.
40. Arbitration.
41. Notice of strike or lockout.
42. Strike and lockout.
43. Illegal strikes and lockout.
44. Procedure in cases of illegal strikes or lockout.
45. Strike or lockout in public utility services.
46. Prohibition of serving notice of strike or lockout while proceedings pending.
47. Removal of fixed assets.
48. Protection of certain persons.
49. Settlements and awards on whom binding.
50. Effective date of settlement, award, etc.
51. Interpretation of settlement and awards.
52. Recovery of money due from an employer under settlement or award.
53. National Industrial Relation Commission.
54. Functions of the Commission.
55. Benches of the commission, etc
56. Resolution of difference of opinion.
57. Additional powers of the Commission.
58. Appeals.
59. Finality of order.
60. Enforcement of guaranteed rights.
61. Powers of the Commission to prohibit strike, etc.
62. Determination, etc, of collective bargaining unit.
63. Certain matters to be kept confidential.
64. Conditions of service to remain unchanged while proceedings pending.
65. Representation of parties.
66. Power to make regulations.
67. Penalty for unfair labour practices.
68. Penalty for committing breach of settlement.
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69. Penalty for failing to implement settlement, etc.
70. Penalty for false statement, etc.
71. Penalty for discharging officer of trade union in certain circumstances, etc.
72. Penalty for embezzlement or misappropriation of funds.
73. Penalty for obstructing inspector.
74. Penalty for contravening section 27 or section 28, etc.
75. Penalty for other offences.
76. Offences to be noncognisable.
77. Offences by corporation.
78. Trial of offences.
79. Indemnity.
80. Conformity with Ratified International Conventions.
81. Law of conspiracy limited in application.
82. Immunity from civil suit in certain cases.
83. Enforceability of agreement.
84. Registrar, etc., to be public servants.
85. Limitation.
86. Power to make rules.
87. Act to override other laws.
88. Repeal and savings.
89. Former registration offices, officers, etc, to continue.
90. Removal of difficulties.
91. Rights and duties of employers and workers.
SCHEDULE I.
SCHEDULE II.
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INDUSTRIAL RELATIONS ACT, 2012
ACT NO. X OF 2012
An Act to consolidate and rationalize the law relating to formation of trade unions, and
improvement of relations between employers and workmen in the Islamabad Capital Territory and
in transprovincial establishments and industry
[ 14th March, 2012]
WHEREAS, the Constitution of the Islamic Republic of Pakistan recognizes the freedom of
association as a fundamental right of the citizens;
AND WHEREAS the Islamic Republic of Pakistan has ratified ILO Convention No.87 on
Freedom of Association and Convention No.98 on Right to Organize and Collective Bargaining;
AND WHEREAS it is expedient to consolidate and rationalize the law in Islamabad Capital
Territory and at transprovincial level, relating to formation of trade unions and federations or trade
unions, determining the collective bargaining agents, regulation of relations between employers and
workers, the avoidance and settlement of any differences or disputes arising between them or matters
connected therewith and ancillary thereto;
It is hereby enacted as follows:—
CHAPTERI
PRELIMINARY
1. Short title, extent, application and commencement.—(1) This Act may be called the
Industrial Relations Act, 2012.
(2) Subject to subsection (3), it extends to the whole of Pakistan.
(3) It shall apply to all persons employed in any establishment or industry, in the Islamabad
Capital Territory or carrying on business in more than one province, but shall not apply to any person
employed—
(a) in the Police or any of the Defence Services of Pakistan or any services or installations
exclusively connected with the Armed Forces of Pakistan including an Ordnance Factory
maintained by the Federal Government;
(b) in the administration of the State other than those employed as workmen;
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(c) as a member of the Security Staff of the Pakistan International Airlines Corporation or
drawing wages in pay group not lower than Group V in the establishment of that
Corporation as the Federal Government may, in the public interest or in the interest of
security of the Airlines, by notification in the official Gazette, specify in this behalf;
(d) by the Pakistan Security Printing Corporation or the Security Papers Limited; and (e) by
an establishment or institution for the treatment or care of sick, infirm, destitute or
mentally unfit persons excluding those run on commercial basis.
(4) It shall come into force at once.
2. Definitions.—In this Act, unless there is anything repugnant in the subject or context,—
(i) "arbitrator" means a person appointed as such under Section 40;
(ii) "award" means the determination by the Commission or Arbitrator of any industrial
dispute or any matter relating thereto and includes an interim award;
(iii) "Bench" and "Full Bench" mean a Bench and Full Bench of the Commission;
(iv) “collective bargaining agent" in relation to an establishment, group of establishments
or industry, means the trade union of the workmen which under Section 19, is the
agent of workmen in the establishment or, as the case may be, industry, in the matter
of collective bargaining;
(v) "collective bargaining unit" means those workers or class of workers of an employer
in one or more establishment falling within the same class of industry whose terms
and conditions of employment are, or could appropriately be, the subject of
collective bargaining together;
(vi) "Commission" means the Industrial Relations Commission constituted under Section
53;
(vii) "conciliation proceedings" means any proceedings before a conciliator;
(viii) "Conciliator" means a person appointed as such under Section 36;
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(ix) "employer" in relation to an establishment, means any person or body of
persons, whether incorporated or not, who or which employs workmen in the
establishment under a contract of employment and includes—
(a) an heir, successor or assign, as the case may be, of such person or body as aforesaid;
(b) any person responsible for the management and control of the establishment;
(c) in relation to an establishment run by or under the authority of any department of the
Federal Government, the authority appointed in this behalf or, where no authority is so
appointed, the Head of the department;
(d) in relation to an establishment run by or on behalf of a local authority, the officer
appointed in this behalf, or where no officer is so appointed, the chief executive officer of
that authority;
Explanation.—For the purpose of distinction from the category of "workers" or "workmen",
officers and employees of a department of the Federal Government who belong to the superior,
managerial, secretarial, directorial, supervisory or agency staff and who have been notified for this
purpose in the official Gazette shall be deemed to fall within the category of "employers"; and
(e) in relation to any other establishment, the proprietor of such establishment and every
director, manager, secretary, agent or officer or person concerned with the management
of the affairs thereof;
(x) "establishment" means any office, firm, factory, society, undertaking, company, shop
or enterprise, which employs workmen directly or through a contractor for the
purpose of carrying on any business or industry and includes all its departments and
branches in the Islamabad Capital Territory or falling in more than one province,
whether situated in the same place or in different places and except in section 62
includes a collective bargaining unit, if any, constituted by any establishment or
group of establishments;
(xi) "executive" means the body, by whatever name called, to which the management of
the affairs of a trade union is entrusted by its constitution;
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(xii) "Government" means the Federal Government;
(xiii) "Group of establishments" means establishments belonging to the same employer
and the same industry;
(xiv) "illegal lockout" means a lockout declared, commenced or continues otherwise
than in the provisions of this Act;
(xv) "illegal strike" means a strike declared, commenced or continues otherwise than in
accordance with the provisions of this Act;
(xvi) "industrial dispute" means any dispute or difference between employers and
employers or between employers and workmen or between workmen and workmen
which is connected with the employment or nonemployment or the terms of
employment or the conditions of work of any person;
(xvii) "industry" includes any business, trade, calling, employment or occupation for
production of goods or provisions of services in the Islamabad Capital Territory and
falling in more than province, and excluding those set up exclusively for charitable
purposes;
(xviii) "industrywise trade union" means a trade union having its membership in more
than one province in a group of establishments owned by one employer;
(xix) "inspector" means an inspector appointed under this Act;
(xx) "Labour Court" means a Labour Court established in a province;
(xxi) "lockout" means the closing of place of employment or part of such place, or the
suspension, wholly or partly, of work by an employer, or refusal, absolute or
conditional, by an employer to continue to employ any number of workmen
employed by him, where such closing, suspension or refusal occurs in connection
with an industrial dispute or is intended for the purpose of compelling workmen to
accept certain terms and conditions of or affecting employment;
(xxii) "officer" in relation to a trade union, means any member of the executive thereof
but does not include an auditor or legal adviser;
(xxiii) "organization" means any organization of workers or of employers for furthering
and defending the interests of workers or of employers;
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(xxiv) prescribed" means prescribed by rules;
(xxv) "public utility service" means any of the services specified in Schedule I;
(xxvi) "registered trade union" means a trade union registered under this Act;
(xxvii) "Registrar" means a Registrar of trade unions appointed under section 4;
(xxviii) "rules" and ''regulations” mean rules and regulations made under this Act;
(xxix) "settlement" means a settlement arrived at in the course of a conciliation proceeding,
and includes an agreement between an employer and his workmen where there is no
Collective Bargaining Agent, or Collective Bargaining Agent, as the case may be, arrived
at or in the course of any conciliation proceedings, where such agreement is in writing,
has been signed by the parties thereto in such manner as may be prescribed and a copy
thereof has been sent to the Government, the Conciliator and such other person as may
be prescribed;
(xxx) "strike" means a cessation of work by a body of persons employed in any establishment
acting in combination or a concerted refusal, or refusal under a common understanding of
any number of persons who have been so employed to continue to work or to accept
employment;
(xxxi) "trade union" means any combination of workmen or employers formed primarily for
the purpose of regulating the relations between workmen and employers, or workmen and
workmen or employers and employers, or for imposing restrictive conditions on the
conduct of any trade or business, and includes a federation of two or more trade unions;
(xxxii) "transprovincial" means any establishment, group of establishments, industry, having
its branches in more than one province;
(xxxiii) "worker" and "workman" mean person not falling within the definition of employer
who is employed (including employment as a supervisor or as an apprentice) in an
establishment or industry for hire or reward either directly or through a contractor
whether the terms of employment are express or implied, and, for the purpose
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of any proceedings under this Act in relation to an industrial dispute includes a person who has been
dismissed, discharged, retrenched, laid off or otherwise removed from employment in connection
with or as a consequence of that dispute or whose dismissal, discharge, retrenchment, layoff, or
removal has led to that dispute but does not include any person who is employed mainly in
managerial or administrative capacity.
CHAPTER—II
REGISTRATION OF TRADE UNIONS
3. Trade unions and freedom of association.—Subject to the provisions of this Act and
notwithstanding any other law for the time being in force,—
(a) workers, without distinction whatsoever, shall have the right to establish and, subject to
the rules of the organization concerned, to join international associations of their own
choice without previous authorization:
Provided that in the establishment where women are also employed the Trade Union shall
include the women in the executive of the said trade union with the same proportion in
which they are employed in the establishment:
Provided further that no worker shall be entitled to be a member of more than one trade
union at any one time and on joining another union the earlier membership shall
automatically stand cancelled;
(b) employers, without distinction whatsoever, shall have the right to establish and, subject
only to the rules of the organization concerned, to join international associations of their
own choice without previous authorization:
(c) every trade union and employers association shall frame its own constitution and rules to
elect its representatives in full freedom to organize its administration and activities and to
formulate its programmes; and
(d) workers and employers' organizations shall have the right to establish and join federations
and confederations and any such organization, federation or confederation shall have the
right to affiliate with international organizations and confederations of workers' and
employers’ organisations.
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4. Registrar of trade unions.—For the purpose of this Act, the Government shall, by notification
in the official Gazette, appoint the Registrar of Trade Unions who shall be assisted by one or more
Joint Registrars.
5. Powers and functions of Registrar.—The Registrar, and the Joint Registrars, as the case may
be, shall have the following powers and functions:—
(a) the registration of trade unions under this Act and the maintenance of a register for the
purpose;
(b) to lodge, or authorize any person to lodge, complaints with the Commission for action,
including prosecution, against trade unions, employers, workers or other persons for any
alleged offence or any unfair labour practice or violation of any provision of the Act or
for expending the funds of a trade union in contravention of the provisions of its
constitution;
(c) the determination of the question as to which one of the trade unions in an establishment
or an industry is entitled to be certified as the collective bargaining agent in relation to
that establishment or industry;
(d) to inspect the accounts and record of the registered trade unions, or investigate or hold
such inquiry in the affairs of the trade unions as he deems fit either by himself or through
any officer subordinate to him and to authorize him in writing in this behalf; and
(e) such other powers and functions as may be prescribed.
6. Application for registration.—Any trade union may, under the signature of its President and
the Secretary, apply to the Registrar for registration of the trade union under this Act:
Provided that there shall be at least two trade unions in an establishment.
7. Requirements for application.—Every application for registration of Trade Union shall be
made to the Registrar and shall be accompanied by—
(a) a statement showing,—
(i) the name of the trade union and the address of its Head Office;
(ii) date of formation of the union;
(iii) the titles, names, ages, addresses and occupations of the officers of the trade union;
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(iv) statement of total paid membership;
(v) the name of the establishment or group of establishments, or the industry, as the case
may be, to which the trade union relates along with a statement of the total number
of workers employed therein;
(vi) the names and addresses of the registered trade unions in the establishment group of
establishments or industry, as the ease may be, to which the union relates; and
(vii) in case of a federation of trade unions, the names, addresses and registration
number of memberunions;
(b) three copies of the constitution of the trade union together with a copy of the resolution
by the members of the trade union adopting such constitution bearing the signature of the
Chairman of the meeting;
(c) a copy of the resolution by the members of the trade union authorizing its President and
the Secretary to apply for its registration; and
(d) in case of a federation of trade unions, a copy of the resolution from each of the
constituent unions agreeing to become a member of the federation.
8. Requirements for registration.—(1) A trade union shall not be entitled to registration under
this Act unless the constitution thereof provides for the following matters, namely:—
(a) the name and address of the trade union;
(b) the objects for which the trade union has been formed:
(c) the purposes for which the general funds of the union shall be utilized;
(d) the number of persons forming the executive which shall not exceed the prescribed limit
and shall include not less than seventy five percent from amongst the workmen actually
engaged or employed in the establishment or establishments or the industry for which the
trade union has been formed;
Provided that the condition of being employed in any establishment or an industry as aforesaid
shall not apply to the remaining twenty five percent of the members of such executives;
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(e) the conditions under which a member shall be entitled to any benefit assured by the
constitution of the trade union and under which any fine or forfeiture may be imposed on
him;
(f) the maintenance of a list of the members of the trade union and of adequate facilities for
the inspection thereof by the officers and members of the trade union;
(g) the manner in which the constitution shall be amended, varied or rescinded;
(h) the safe custody of the funds of the trade union, its annual audit, the manner of audit and
adequate facilities for inspection of the account books by the officers and members of the
trade union;
(i) the manner in which the trade union may be dissolved;
(j) the manner of election of officers by the general body of the trade union and the term, not
exceeding two years, for which an officer may hold office upon his election or re
election;
(k) the procedure for expressing no confidence in any officer of the trade union; and
(l) the meeting of the executive and of the general body of the trade union so that the
executive shall meet at least once in every three months and the general body at least
once a year.
(2) Without prejudice to the provisions of subsection (1), a trade union of workmen shall not be
entitled to registration under this Act—
(a) unless all its members are workmen actually engaged or employed in the industry with
which the trade union is connected;
Explanation.—For the purpose of this clause, a dismissed, terminated of retrenched
worker, whose dismissal, termination or retrenchment is pending adjudication before a
court of competent jurisdiction, shall be deemed to be an employed worker of that
establishment, and
(b) where there are two or more registered trade unions in the establishment, group of
establishments or industry with which the trade union is connected, unless it has as its
members not less than onefifth of the total number of workmen employed in such
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establishment, group of establishments or industry, as the ease may be.
9. Registration.—(1) On receipt of application for registration, the Registrar shall ensure
compliance of sections 7 and 8 of this Act, and issue the registration certificate in the prescribed form
within seven days.
(2) In case the application has been rejected or a certificate of registration has not been issued
within a period of seven days as provided in subsection (1), as the case may be, the trade union may
appeal to the Commission who, for reasons to be stated in its judgment, may pass an order directing
the Registrar to register the trade union and to issue a certificate of registration or may dismiss the
appeal.
(3) Notwithstanding anything contained in any other provision of this Act, every alteration made
in the constitution of a registered trade union and every change of its officers shall be notified by
registered post by the trade union to the Registrar within fifteen days of such change.
(4) The Registrar may refuse to register such change or alteration if it is in contravention of any
of the provisions of this Act, or if it is in violation of the constitution of the trade union.
(5) Subject to the provision of subsection (4), every inclusion or exclusion of any constituent unit
of a federation of trade unions shall be notified by registered post by the federation to the Registrar
within fifteen days of such inclusion or exclusion.
(6) In case there is a dispute in relation to the change of officers of a trade union, or any trade
union is aggrieved by the refusal of the Registrar under subsection (4), the Registrar may, after
satisfying himself that a dispute exists, hold fresh elections under his supervision.
10. Certificate of registration.—The Registrar, on registering a trade union under section 9,
shall issue a certificate of registration in the prescribed form which shall be conclusive evidence that
the trade union has been duly registered under this Act.
11. Cancellation of registration.—(1) Subject to other provisions of this section, the
registration of a trade union may be cancelled by the Registrar if the trade union has—
(a) contravened or has been registered in contravention of any of the provisions of this Act or
the rules;
(b) applied for such cancellation or ceased to exist;
(c) obtained registration by fraud or by misrepresentation of facts;
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(d) obtained less than ten percent of total votes polled in an election for determination of a
Collective Bargaining Agent, or is not a contestant in such election;
(e) failed to submit its annual returns to the Registrar as required under this Act or the rules;
(f) contravened any of the provisions of its constitution; or
(g) made in its constitution any provision which is inconsistent with this Act or the rules.
(2) Where the Registrar is of opinion that the registration of a trade union should be cancelled, he
shall submit an application to the Commission praying for permission to cancel such registration.
(3) The Registrar shall cancel the registration of a trade union within seven days from the date of
receipt of permission from the Commission.
(4) The registration of a trade union shall not be cancelled on the ground mentioned in clause (d)
of subsection (1) if the unfair labour practice is not committed within three months prior to the date
of submission of the application to the Commission.
(5) Where any person who is disqualified under Section 18 from being 10 member or elected as,
or from being an officer of a trade union is elected as an officer of a registered trade union, the
registration of that trade union shall be cancelled if the Commission, upon a complaint in writing
made in this behalf by the Registrar, so directs.
(6) The registration of a trade union shall be cancelled by the Registrar if, after holding such
inquiry as he deems fit, he finds that such trade union has dissolved itself or has ceased to exist.
12. Appeal against the order/decisions etc. of Registrar.—A trade union, its members or an
officer may prefer an appeal against the order, decision and proceeding conducted by the Registrar
within thirty days before the Commission
13. Incorporation of registered trade union.—(1) Every registered trade union shall be a body
corporate by the name under which it is registered, shall have perpetual succession and a common
seal and the power to contract and to acquire, hold and dispose of property, both movable and
immovable, and shall by the said name sue or be sued.
(2) The Societies Registration Act, 1860 (XXIV of I860), the Cooperative Societies Act, 1925
(W.P. Act VII of 1925) and the Companies Act, 1984 (XLVII of 1984), shall not apply to any
registered trade union and the registration of any trade union under any of these Acts shall be void.
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14. Registration of federation of trade unions.—(1) Any two or more registered trade
unions may, if their respective general bodies so resolve, constitute a federation by executing an
instrument of federation whereas any four or more registered trade unions, (from any two or more
provinces) may constitute a federation or confederation and apply to the Registrar for the registration
of the federation:
Provided that a trade union of workmen shall not join a federation which comprises a trade union
of employers; nor shall a trade union of employers; join a federation which comprises a trade union of
workmen.
(2) An instrument of federation referred to in subsection (1) shall, among other things, provide
for the procedures to be followed by the federated trade unions and the rights and responsibilities of
the federation and the federated trade union.
(3) An application for the registration of a federation of trade unions shall be signed by the
Presidents of all the trade unions constituting the federation or by the officers of these trade unions
respectively authorized by the trade unions in this behalf and shall be accompanied by three copies of
the instrument of federation referred to in subsection (1).
(4) No trade union federation or confederation shall be formed and registered having same,
similar on identical name.
(5) Subject to subSections (1), (2), (3) and (4), the provisions of the Act shall, so far as may be
and with the necessary modifications, apply to a federation of trade unions as they apply to a trade
union.
15. Registered trade union to maintain register, etc.—Every registered trade union shall
maintain in such form as may be prescribed—
(a) a register of members showing particulars of subscriptions paid by each member;
(b) an accounts book showing receipts and expenditure; and
(c) a minute book for recording the proceedings of meetings.
16. Returns.—(1) There shall be sent annually to the Registrar, on or before such date as may be
prescribed, a general statement, audited in the prescribed manner, of all receipts and expenditure of
every registered trade union during the year ending on the 31st day of December, next preceding such
prescribed date, and of the assets and liabilities of the trade union existing on such 31st day of
December, as may be prescribed.
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(2) Together with the general statement there shall be sent to the Registrar a statement showing
all changes of officers made by the trade union during the year to which the general statement refers,
together also with statement of the total paid membership and a copy of the constitution of the trade
union corrected up to the date of the dispatch thereof to the Registrar.
(3) A copy of every alteration made in the constitution of a registered trade union and of a
resolution of the general body having the effect of a provision of the constitution, shall be sent to the
Registrar within fifteen days of the making of the alteration or adoption of the resolution.
(4) In case the registered trade union is member of a federation, the name of the federation shall
be given in the annual statement.
(5) The Registrar shall audit the return and issue a certificate of acceptance. In case the
statement of expenditure is found incorrect, he will submit a complaint before the Commission for
initiation of cancellation proceedings of the union.
17.Transfer, etc., of officer of trade union during pendency of application for registration.
—Save with the prior permission of the Registrar, no officer or member of a trade union of workmen
shall be transferred, discharged, dismissed or otherwise punished during the pendency of an
application for registration of the trade union with the Registrar, provided that the union has notified
the names of its officers and members to the employer in writing.
18. Disqualification for being an officer or a member of a trade union.—Notwithstanding
anything contained in the constitution or rules of a trade union, a person who has been convicted and
sentenced to imprisonment for two years or more or in an offence involving moral turpitude under the
Pakistan Penal Code (Act XLV of 1860) shall be disqualified from being elected as, or from being, an
officer of a trade union, unless a period of five years has elapsed after the completion of the sentence.
CHAPTER—III
COLLECTIVE BARGAINING AGENT
19. Collective bargaining agent.—(1) Where there is only one registered trade union in an
establishment or a group of establishments, that trade union shall if it has as its members not less than
onethird of the total number of workmen employed in such establishment or group of establishments,
upon an application made in this behalf be certified by the Registrar in the prescribed manner to be
the collective bargaining agent for such establishment or group of establishments.
(2) Where there are more registered trade unions than one in an establishment or a group of
establishments, the Registrar shall upon an application made in this behalf by any registered trade
union of an establishment or group of establishments, hold within fifteen days from the making of the
application, a secret ballot to determine as to which one of such trade unions shall be the collective
bargaining agent for the establishment or group:
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Provided that the Registrar may, in the case of a large establishment having its branches in more than
one town, hold the secret ballot within thirty days from the making of the application:
Provided further that the Registrar shall not entertain any application under this subsection in
respect of an establishment or group of establishments, consisting of, or including, a seasonal factory
within the meaning of section 4 of the Factories Act, 1934 (XXV of 1934), unless such application is
made during the month in which the number of workmen employed in such factory in a year is
usually the maximum.
(3) Upon receipt of an application under subsection (2), the Registrar shall, by notice in writing
call upon every registered trade union in the establishment or group of establishments to which the
application relates:
(a) to indicate whether it desires to be a contestant in the secret ballot to be held for
determining the collective bargaining agent in relation to such establishment or group; and
(b) if it so desires, to submit to him within the time specified in the notice a list of its members
showing, in respect of each member, his parentage, age, the section or department and the
place in which he is employed, his ticket number and the date of his becoming a member
and if union is a federation of trade unions, a list of its affiliated trade unions together
with a list of members of each such trade union showing in respect of each such member
the said particulars.
(4) Every employer shall—
(a) on being so required by the Registrar, submit a list of all workmen employed in the
establishment excluding those whose period of employment in the establishment is less
than three months and showing, in respect of each workman, his parentage, age, the
Section or department and the place in which he is employed, his ticket number and the
date of his employment in the establishment; and
(b) provide such facilities for verification of the lists submitted by him and the trade unions as
the Registrar may require:
Provided that, in computing the period of three months referred to in clause (a) in the case of a
workman employed in a seasonal factory within the meaning of section 4 of the Factories Act, 1934
(XXV of 1934), the period during which he was employed in that factory during the preceding season
shall also be taken into account.
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(5) The Registrar shall, after verification of the lists submitted by the trade unions, prepare a list
of voters in which shall be included the name of every workman whose period of employment as
computed in accordance with subsection (4), is not less than three months and who is a member of
any of the contesting trade unions and shall, at least four days prior to the date fixed for the poll, send
to each of the contesting trade unions a certified copy of the list of voters so prepared.
(6) Every workman who is a member of any of the contesting trade unions and whose name
appears in the list of voters prepared under subsection (5) shall be entitled to vote at the poll to
determine the collective bargaining agent.
(7) Every employer shall provide all such facilities in his establishment as may be required by the
Registrar for the conduct of the poll, including actual expenditures of the poll, but shall not interfere
with, or in any way influence, the voting.
(8) No person shall canvass for vote within a radius of fifty metres of the polling station.
(9) For the purpose of holding secret ballot to determine the collective bargaining agent, the
Registrar shall—
(a) fix the date for the poll and intimate the same to each of the contesting trade unions and
also to every employer;
(b) on the date fixed for the poll so placed in the polling station set up for the purpose the
ballot boxes which shall be sealed in the presence of the representatives of the contesting
trade unions as to receive the ballot papers;
(c) conduct the poll at the polling station at which the representatives of the contesting trade
unions shall have the right to be present;
(d) after the conclusion of the poll and in the presence of such of the representatives of the
contesting trade unions as may be present, open the ballot boxes and count the votes; and
(e) after the conclusion of the count, certify the trade union which has received the highest
number of votes to be the collective bargaining agent:
Provided that no trade union shall be certified to be the collective bargaining agent for an
establishment or group of establishments unless the number of votes received by it is not
less than onethird of the total number of votes of workmen mentioned in the voters" list
employed in such establishment or group of establishments:
Page 18 of 56
Provided further that, if no trade union secures such number of votes in the first poll, a second
poll shall be held between the trade unions which secure the two highest numbers of votes in the first
poll and the trade union which secures a majority of the votes cast at the second poll shall be certified
in the prescribed manner to be the collective bargaining agent:
Provided also that, if the number of votes secured by two or more trade unions securing the
highest number of votes is equal, further poll shall be held between them until one of them secures a
majority of the votes cast at such further poll.
(10) If no trade union indicates under clause (a) of subsection (3) that it desires to be a
contestant in the secret ballot, the Registrar shall certify the trade union which has made the
application under subsection (2) to be the collective bargaining agent for a period of two years.
(11) Where a registered trade union has been certified under clause (e) of subsection (9) and
subsection (10) to be the collective bargaining agent for an establishment or group of establishments,
no application for the determination of the collective bargaining agent for such establishment or group
shall be entertained within a period of two years from the date of such certification except where the
registration of such a registered trade union is cancelled before the expiration of the period:
Provided that for the trade unions having membership of more than five thousand and presence in
more than one province, the period of two years will be enhanced to three years.
(12) The Registrar may authorize in writing an officer to perform all or any of his functions under
this section.
(13) After an application under subsection (2) is made to the Registrar, no employer shall
transfer, remove, retrench or terminate any worker who is officer of any contestant trade union save
with the permission of the Registrar.
20. Functions of the Collective Bargaining Agent.—(1) The collective bargaining agent in
relation to an establishment or group of establishments shall be entitled to—
(a) undertake collective bargaining with the employer or employers on matters connected
with employment, nonemployment, the term of employment or the conditions of work
other than matters which relate to the enforcement of any right guaranteed or secured to
it or any workman by or under any law, other than this Act, or any award or settlement;
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(b) represent all or any of the workmen in any matter or judicial proceedings under this Act;
(c) give notice of, and declare, a strike in accordance with the provisions of this Act; and
(d) nominate representatives of workmen on the Board of Trustees of any welfare institutions
or Provident Funds and of the Workers Participation Fund established under the
Companies Profits (Workers Participation) Act, 1968 (XII of 1968).
(2) A collective bargaining agent may, without prejudice to its own position, implead as a party to
any proceedings under this Act to which it is itself a party or any federation of trade unions of which
it is a member.
21. Performance of functions pending ascertainment of collective bargaining agent.—Any
act or function which is by this Act required to be performed by or has been conferred upon a
collective bargaining agent may, until a collective bargaining agent has been certified under the
provisions of this Act, be performed by a registered trade union which has been recognized by the
employer or employers.
22. Check off.—(1) If a collective bargaining agent so requests, the employer shall deduct from
the wages of the workmen such amounts towards their subscription to the funds of the trade union as
may be specified by each individual workman named in the demand statement furnished by the trade
union.
(2) An employer making any deductions under subsection (1) shall, within fifteen days of the end
of the period for which the deduction have been made, deposit the entire amount so deducted by him
in the account of the trade union on whose behalf he has made the deductions.
(3) A collective bargaining agent shall maintain with a branch of the National Bank of Pakistan,
or with a scheduled bank with "AAA" creditrating recognised by the State Bank of Pakistan, or with
a Post Office Savings Bank an account to which shall be credited the entire amount deducted by the
employer under subsection (1) from the wages or the members of the trade union.
(4) The employer shall provide facilities to the collective bargaining agent for ascertaining
whether deductions from the wages of its members are being made under subsection (1).
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CHAPTER—IV
WORKERS' PARTICIPATION
23. Shop steward.—(1) In every factory/establishment in which twentyfive or more workmen
are employed, shop stewards, from amongst the workmen in a shop. Section or department of the
factory/establishment, shall,—
(a) where there is a collective bargaining agent in the factory/establishment, be nominated by
it, or
(b) where there is no collective bargaining agent in the factory/establishment, be elected at a
secret ballot held in the prescribed manner.
(2) The employer shall provide all such facilities in his factory/ establishment as may be required
for the holding of a ballot under subsection (1) but shall not interfere with, or in any way influence,
the voting.
(3) A shop steward shall hold office for a period of one year from date of his election or
nomination as the case may be.
(4) Any dispute arising out of, or in connection with, the election of a shop steward shall be
referred to the Registrar whose decision shall be final and binding on all parties to the dispute.
24. Functions of Shop Steward.—The shop steward shall act as a link between the workers and
the employer, assist in the improvement of arrangements for the physical working conditions and
production work in the shop section or department for which he is elected and help workers in the
settlement of their problems either connected with work or with any such individual grievance of a
workman as is referred to in subsection (1) of Section 33.
25. Works Council.—(1) In every factory/establishment in which fifty or more workmen are
employed or were employed on any day in the preceding twelve months, the employer shall
constitute, in the prescribed manner, a work council consisting of representatives of the employer and
the workmen in such a manner that the number of the representatives of the workmen is not less than
the number of the representatives of the employer in the works council.
(2) In the case of any factory/establishment where there are one or more trade unions, the
collective bargaining agent shall nominate the representatives of the workmen on such Works
Council:
Provided that if there is no collective bargaining agent, representatives of workmen on Works
Council shall be chosen in the prescribed manner from amongst the workmen engaged in the
factory/establishment for which the Works Council is constituted.
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26. Functions of Works Council.—The functions of Works Council shall be to promote measure
for securing and preserving good relation between an employer and his workmen and, in particular;
(a) To endeavour to maintain continuous sympathy and understanding between the employer
and the workmen;
(b) To promote settlement of differences and disputes through bilateral negotiations;
(c) To promote security of employment for the workmen and conditions of safety, health and
job satisfaction in their work;
(d) To take measures of facilitating good and harmonious working condition in the
factory/establishment; to provide vocational training and educational facilities for
children of workmen in secretarial and accounting procedures and to promote their
absorption in these departments of the factory/establishment; and
(e) To discuss any other matter of mutual interest with a view to promoting better labour
management relations.
27. Workers' Participation in Management.—(1) In every factory/ establishment employing
fifty persons of more there shall be elected or nominated workers' representatives to participate to the
extent of fifty per cent in the management of the factory/establishment:
Provided that there shall be elected or nominated at least one worker's representative to
participate in the management of such factory/establishment:
Provided further that, for the purpose of determining the number of workers' representatives in
the management of the factory/ establishment, fractions equal to, or greater than one half shall be
regarded as one and lesser fractions shall be ignored.
(2) The workers' representatives shall be workmen employed in the same factory/establishment
and shall,—
(a) where there is a collective bargaining agent in the factory/ establishment, be nominated by
it, or
(b) where there is no collective bargaining agent in the factory/establishment, be elected by
simple majority at a secret ballot by all workmen employed in the factory/establishment.
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(3) The worker's representative shall hold office for a period of two years from the date of their
election or nomination, as the case may be.
(4) The workers' representatives shall participate in all the meetings of the management
committee constituted in the prescribed manner and all matters relating to the management of the
factory/establishment, except commercial and financial transaction, may be discussed in such
meetings.
(5) The management shall not take any decision in the following matters without the advice in
writing of the workers' representative, namely
(a) framing of services rules and policy about promotion and discipline of workers;
(b) changing physical working conditions in the factory/ establishment;
(c) inservice training of workers;
(d) recreation and welfare of workers;
(e) regulation of daily working hours and breaks;
(f) preparation of leave schedule; and
(g) matters relating to the order and conduct of workers within the factory/establishment.
(6) The workers' representatives may on their own initiative give advice in writing concerning the
matters specified in subsection (5) and, where they do so, the management shall convene a meeting
within two weeks of the receipt of the advice to discuss its merits with them.
(7) The management shall give reply to the workers' representative within two weeks of the
receipt of their advice given under subsection (5) or subsection (6) and any such advice shall not be
rejected except by the person holding the highest position in the management of the
factory/establishment.
(8) In case the advice of the workers' representatives is rejected by the management of the
factory/establishment, the matter may, within fifteen days of the advice being so rejected, be taken up
by the collective bargaining agent in the Works Council for bilateral negotiations and thereupon the
provisions of section 35 shall apply as they apply to the settlement of an industrial dispute in relation
to which the views of the employer or the collective bargaining agent have been communicated to the
Works Council under subsection (1) of the section.
Page 23 of 56
28. Joint Management Board.—(1) Every company which owns or manages an
factory/establishment, and in every factory/establishment which is not so owned or managed, and
which employs fifty persons or more, the management shall, in the prescribed manner set up a joint
management board in which the workers' participation shall be to the extent of thirty percent.
(2) The employer's representatives on the joint management board shall be from amongst the
Directors or senior executives and the workers' representatives shall be workmen employed in the
factory/establishment.
(3) The joint management board shall look after the following matters, namely:—
(a) improvement in production, productivity and efficiency;
(b) fixation of job and piecerates;
(c) planned regrouping or transfer of the workers;
(d) laying down the principles of remuneration and introduction of new remuneration
methods; and
(e) provision of minimum facilities for such of the workers employed through contractors as
are not covered by the laws relating to welfare of workers.
(4) The joint management board may call for reasonable information about the working of the
company or factory/establishment from its management and the management shall supply the
information called for.
(5) The joint management board shall meet at such intervals as may be prescribed.
(6) The workers' representative shall hold office for such period as may be prescribed.
(7) In this section,—
(a) "company" has the same meaning as in the Companies Act, 1984 (XLVII of 1984); and
(b) " management" means the employer.
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(8) In the case of an factory/establishment where there are one or more trade unions, the
collective bargaining agent shall nominate the representatives of the workmen on such join
management board:
Provided that where there is no collective bargaining agent, representatives of workmen on the
join management board shall be chosen in the prescribed manner from amongst the workmen engaged
in the factory/establishment for which the joint management board is constituted.
29.Inspector.—The inspectors appointed under section 10 of the Factories Act, 1934 (XXV of
1934), and such other persons, not being Conciliators appointed under this Act, as the Government
may by notification in the official Gazette appoint, shall be inspectors for ensuring compliance with
the provisions of this Act within the local limits assigned to each.
30.Functions of the Inspector.—(1) The inspector may—
(a) at all reasonable hours enter any premises and make such examination of any register and
document relating to the provisions of section 27 and section 28 and take on the spot or
otherwise such evidence of any person, and exercise such other powers of inspection, as
he may deem necessary for discharging his duty;
(b) call for such information from the management as he may deem necessary for the
discharge of his functions and the management shall provide the information called for
within such period as may be specified by him; and
(c) make a report in writing to the Registrar having jurisdiction of any offence punishable
under this Act.
(2) Every Inspector shall be deemed to be a public servant within the meaning of section 21 of
the Pakistan Penal Code. 1860 (XLV of 1860).
CHAPTER
__
V
UNFAIR LABOUR PRACTICES
31. Unfair labour practices on the part of employers.—(1) No employer or trade union of
employers and no person acting on behalf of either shall—
(a) impose any condition in a contract of employment seeking to restrain the right of a person
who is a party to such contract to join a trade union or continue his membership of a trade
union;
(b) refuse to employ or refuse to continue to employ any person on the ground that such
person is, or is not a member or officer of a trade union;
Page 25 of 56
(c) discriminate against any person in regard to any employment, promotion, condition of
employment or working condition on the ground that such person is, or is not, a member
or officer of a trade union;
(d) dismiss, discharge, remove from employment or transfer or threaten to dismiss, discharge
or remove from employment or transfer a workman or injure or threaten to injure him in
respect of his employment by reason that the workman:
(i) is or proposes to become, or seeks to persuade any other person to become, a member
or officer of a trade union; or
(ii) participates in the promotion, formation or activities of a trade union;
(e) induce any person to refrain from becoming, or to cease to be a member or officer of a
trade union, by conferring or offering to confer any advantage on, or by procuring or
offering to procure any advantage for such person or any other person;
(f) compel or attempt to compel any officer of the collective bargaining agent to arrive at a
settlement by using intimidation, coercion, pressure, threat, confinement to a place,
physical injury, disconnection of water, power and telephone facilities and such other
methods;
(g) interfere with or in any way influence the balloting for the determination of the Collective
Bargaining Agent;
(h) recruit any new workman during the period of a notice of strike under section 41 or during
the currency of a strike which is not illegal except where the Conciliator having been
satisfied that complete cessation of work is likely to cause serious damage to the
machinery or installation, has permitted temporary employment of a limited number of
workmen in the section where the damage is likely to occur;
(i) close down the whole of the establishment in contravention of Standing Order 11A of the
industrial and Commercial Employment (Standing Orders) Act, 1968 (W.P. Ord. VI of
1968); or
Page 26 of 56
(j) Commence, continue, instigate or incite others to take part in, or expend or supply money
or otherwise act in furtherance or support of, an illegal lockout.
(2) Nothing in subsection (1) shall be deemed to preclude an employer from requiring that a
person upon his appointment or promotion to managerial position shall cease to be, and shall be
disqualified from being, a member or officer of a trade union of workmen.
32. Unfair labour practices on the part of a workmen.—(1) No workmen or other person
or trade union of workmen shall—
(a) persuade a workman to join or refrain from joining a trade union during working hours; or
(b) intimidate any person to become, or refrain from becoming, or to continue to be, or to
cease to be a member or officer of a trade union; or
(c) induce any person to refrain from becoming, or cease to be a member or officer of a trade
union, by intimidating or conferring or offering to confer any advantage on, or by
procuring or offering to procure any advantage for such person or any other person; or
(d) compel or attempt to compel the employer to accept any demand by using intimidation,
coercion, pressure threat, confinement to, or ouster from, a place, dispossession, assault,
physical injury, disconnection of telephone, water or power facilities or such other
methods; or
(e) commence, continue, instigate or incite others to take part in, or expend or supply money
or otherwise act in furtherance or support of, an illegal strike or a goslow; or
Explanation.—In clause (e) the expression 'goslow’ means an organized, deliberate and
purposeful slowing down of normal output, or the deterioration of the normal quality of work by a
body of workmen acting in a conceited manner, but does not include the slowing down of normal
output, or the deterioration of the normal quality of work which is due to mechanical defect,
breakdown of machinery, failure or defect in power supply or in the supply of normal materials and
spare parts of machinery.
(2) It shall be an unfair practice for a trade union to interfere with a ballot held under section 19
by the exercise of undue influence, intimidation, impersonation or bribery through its executive or
through any person acting on its behalf.
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CHAPTER—VI
SETTLEMENT OF DISPUTES
33. Redress of individual grievances.—(1) A worker may bring his grievance in respect of
any right guaranteed or secured to him by or under any law or any award or settlement for the time
being in force to the notice of his employer in writing, either himself or through his shop steward or
collective bargaining agent within ninety days of the day on which the cause of such grievance arises.
(2) Where a worker himself brings his grievance to the notice of the employer, the employer
shall, within fifteen days of the grievance being brought to his notice, communicate his decision in
writing to the worker.
(3) Where a worker brings his grievance to the notice of his employer through his shop steward
or collective bargaining agent, the employer shall, within seven days of the grievance being brought to
his notice, communicate his decision in writing to the shop steward or as the case may be the
collective bargaining agent.
(4) If the employer fails to communicate a decision within the period specified in subsection (2)
or, as the case may be subsection (3), or if the worker is dissatisfied with such decision, the worker
or the shop steward may take the matter to his collective bargaining agent or to the Commission or, as
the case may be, the collective bargaining agent may take the matter to the Commission, and where
the matter is taken to the Commission, it shall give a decision within seven days from the date of the
matter being brought before it as if such matter were an industrial dispute:
Provided that a worker who desires to so take the matter to the Commission shall do so within a
period of sixty days from the date of the communication of the employer or, as the case may be, from
the expiry of the period mentioned in subsection (2), or subsection (3), as the case may be.
(5) In adjudicating and determining a grievance under subsection (4), the Commission shall go
into all the facts of the case and pass such orders as may be just and proper in the circumstances of
the case.
(6) If a decision under subsection (4) or an order under subsection (5) given by the Commission
or a decision in an appeal against such a decision or order is not given effect to or complied with
within seven days or within the period specified in such order or decision, the defaulter shall be
punishable with imprisonment for a term which may extend to one year, or with fine which may
extend to seventyfive thousand rupees, or with both.
(7) No person shall be prosecuted under subsection (6) except on a complaint in writing—
Page 28 of 56
(a) by the workman if the order or decision in his favour is not implemented within the period
specified therein; or
(b) by the Commission if an order or decision thereof is not complied with.
(8) For the purposes of this section, workers having common grievance arising out of a common
cause of action may make a joint application to the Commission.
(9) Any collective bargaining agent or any employer may apply to the Commission for the
enforcement of any right guaranteed or secured to it or him by or under any law or any award or
settlement.
(10) There shall be a Tripartite Council for review of grievances of workers in the Islamabad
Capital Territory comprising not less than three members each of the workers, employers and the
Government:
Provided that the representatives of the workers and the employers shall be nominated by the
Government after consultation with registered trade unions and employers' organizations to be
notified in the Official Gazette.
34. Raising of industrial disputes.—(1) No industrial dispute shall be deemed to exist unless
it has been raised in the prescribed manner by a collective bargaining agent or an employer;
(2) Notwithstanding anything contained in this Act, a federation of trade unions or federation
may, if it is a collective bargaining agent, raise an industrial dispute affecting all employers or workers
of the establishments represented by that federation and a decision of the Commission shall be
binding on all such employers and workers.
(3) No collective bargaining agent shall, at any time when a decision of the Commission in respect
of any matter is effective, be entitled to raise a demand relating to that matter.
35. Negotiations relating to differences and disputes.—(1) If at any time an employer or a
collective bargaining agent finds that an industrial dispute has arisen or is likely to arise, the employer
or, as the case may be, the collective bargaining agent, may communicate his or its views in writing
either to the Works Council or to the other party and where the views are so communicated to the
Works Council, a copy of the communication shall also be sent to the other party.
(2) On receipt of the communication under subsection (1) the Works Council or the party
receiving it shall try to settle the dispute by bilateral negotiations within ten days of receipt of the
communication or within such further period as may be agreed upon by the parties and, if the parties
reach a settlement, a memorandum of settlement shall be recorded in writing and signed by both the
parties and a copy thereof shall be forwarded to the Conciliator and the authorities mentioned in
clause (xxx) of Section 2.
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(3) Where a settlement is not reached between the employer and the collective bargaining agent
or, if the views of the employer or collective bargaining agent have been communicated under sub
section (1) to the Works Council, there is a failure of bilateral negotiations in the Works Council, the
employer or the collective bargaining agent may, within seven days from the end of the period
referred to in subsection (2), serve on the other party to the dispute a notice of lockout or strike, as
the case may be, in accordance with the provisions of this Act.
36. Conciliator.—The Commission may, appoint as many persons as it considers necessary to act
as Conciliators under this Act.
37. Conciliation after notice of strike or lockout.—Where a party to an industrial dispute
serves a notice of strike or lockout under subsection (3) of section 35, it shall, simultaneously with
the service of such notice, deliver a copy thereof to the Conciliator and to the Commission.
38. Proceedings before Conciliator.—(1) The Conciliator shall within fifteen days call a meeting
of the parties to the dispute for the purpose of bringing about a settlement.
(2) The parties to the dispute shall be represented before the Conciliator by persons nominated by
them and authorized to negotiate and enter into an agreement binding on the parties:
Provided that if, in the opinion of the Conciliator, the presence of the employer or any officer of
the trade union connected with the dispute is necessary in a meeting called by him, he shall give
notice in writing requiring the employer or such officer to appear in person before him at the place,
date and time, specified in the notice and it shall be the duty of the employer or the officer of the
trade union to comply with the notice.
(3) The Conciliator shall perform such functions in relation to a dispute before him as may be
prescribed and may, in particular, suggest to either party to the dispute such concessions or
modifications in its demand as are in the opinion of the Conciliator likely to promote an amicable
settlement of the dispute.
(4) If a settlement of the dispute or of any matter in dispute is arrived at in the course of the
proceedings before him, the Conciliator shall send a report thereof to the Commission together with a
memorandum of settlement signed by the parties to the dispute.
(5) If no settlement is arrived at within the period of the notice of strike or lockout, the
conciliation proceedings may be continued for such further period as may be agreed upon by the
parties.
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39. Commencement and conclusion of proceedings.—(1) A conciliation proceeding shall be
deemed to have commenced on the date on which a notice of strike or lockout is received by the
Conciliator under subsection (3) of Section 35.
(2) A conciliation proceeding shall be deemed to have concluded:
(a) where a settlement is arrived at, on the date on which a memorandum of settlement is
signed by the parties to the dispute; and
(b) where no settlement is arrived at—
(i) if the dispute is referred to an arbitrator under section 40 on the date on which the
arbitrator has given his award or otherwise; or
(ii) on the date on which the period of the notice of strike or lockout expires.
(3) Proceedings before the Commission shall be deemed to have commenced—
(a) in relation to an industrial dispute, on the date on which an application has been made
under section 42 or section 60, or on the date on which it is referred to the Commission
by the Federal Government under section 42 or section 45; and
(b) in relation to any other matter, on the date on which it is referred to the Commission.
(4) Proceedings before the Commission in relation to a dispute referred to it under section 42 or
section 45 or to a dispute raised under subsection (2) section 34, shall be deemed to have
commenced on the date on which the reference is made to it or, as the case may be, the dispute is
raised before it.
(5) Proceedings before the Commission shall be deemed to have concluded on the date on which
the decision is delivered under subsection (5) of Section 42.
40. Arbitration.—(1) If the conciliation fails, the Conciliator shall try to persuade the parties
to agree to refer the dispute to an arbitrator. In case the parties agree, they shall make a joint request
in writing for reference of the dispute to an arbitrator agreed upon by them.
(2) The arbitrator to whom a dispute is referred under subsection (1) may be a person borne on a
panel to be maintained by the Commission or any other person agreed upon by the parties.
Page 31 of 56
(3) The arbitrator shall give his award within a period of thirty days from the date on which the
dispute is referred to him under subsection (1) or such further period as may be agreed upon by the
parties to the dispute.
(4) After he has made an award, the arbitrator shall forward a copy thereof to the parties and to
the Government for publication in the official Gazette.
(5) The award of the arbitrator shall be final and no appeal shall lie against it.
(6) The award shall be valid for a period not exceeding two years, as may be fixed by the
arbitrator.
CHAPTER—VII
STRIKES AND LOCKOUT
41. Notice of strike or lockout.—The period of a notice of lockout or strike given under
subsection (3) of Section 35 shall be fourteen days.
42. Strike and lockout.—(1) If no settlement is arrived at during the course of conciliation
proceedings and the parties to the dispute do not agree to refer it to an arbitrator under section 40, the
workmen may go on strike or, as the case may be, the employer may declare a lockout, on the
expiration of the period of the notice under section 41 or upon a declaration by the Conciliator that
the conciliation proceedings have failed, whichever is the later.
(2) The party raising a dispute may at any time either before or after the commencement of a
strike or lockout make an application to the Commission for adjudication of the dispute.
(3) Where a strike or lockout lasts for more than thirty days, the Government, may by order in
writing, prohibit the strike or lockout:
Provided that the Government may, with respect to any other strike or lockout relating to a
dispute which the Commission is competent to adjudicate and determine, by order in writing, prohibit
a strike or lockout at any time before the expiry of thirty days, if it is satisfied that the continuance
of such a strike or lockout is causing serious hardship to the community or is prejudicial to the
national interest.
(4) In any case in which the Government prohibits a strike or lockout, it shall forthwith refer the
dispute to the Commission.
(5) The Commission shall, after giving both the parties to the dispute an opportunity of being
heard, make such order as it deems fit as expeditiously as possible but not exceeding thirty days from
the date on which the dispute referred to it:
Page 32 of 56
Provided that the Commission may also make an interim order on any matter in dispute:
Provided further that any delay by the Commission in making an order shall not affect the validity
of any order made by it.
(6) An award of the Commission shall be for such period as may be specified in the award which
shall not be more than two years.
43. Illegal strikes and lockout.—(1) A strike or lockout shall be illegal if—
(a) it is declared, commenced or continued without giving to the other party to the dispute, in
the prescribed manner, a notice of strike or lockout or before the date of strike or lock
out specified in such notice, or in contravention of section 46;
(b) it is declared, commenced or continued in consequence of an industrial dispute raised in a
manner other than that provided in section 34;
(c) it is continued in contravention of an order made under section 42, section 45, or section
61 or subsection (6) of section 44; or
(d) it is declared, commenced or continued during the period in which a settlement or award
is in operation in respect of any of the matters covered by a settlement or award.
(2) A lockout declared in consequence of an illegal strike and a strike declared in consequence
of an illegal lockout shall not be deemed to be illegal.
44. Procedure in cases of illegal strikes or lockout.—(1) Notwithstanding anything
contained in any other provision of this Act or in any other law for the time being in force, an Officer
of the Commission not below the rank of Deputy Registrar, hereinafter in this section referred to as
the Officer, may be assigned by the Commission the duly to make enquiries in such manner as he may
deem fit into an illegal strike or illegal lockout in an establishment and make a report to the
Commission.
(2) The officer may, for the purpose of enquiry under subsection (1), enter with such assistance
by the persons in the service of Pakistan, as he thinks fit, in an establishment, where he has reason to
believe an illegal strike or lockout to be in progress, and make such examination of the premises and
plant and of any registers maintained therein and take on the spot or otherwise such evidence of
persons and exercise such other powers as he may deem necessary for carrying out the purposes of
this section.
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(3) The officer shall have authority to call any party to such dispute to his office or secure his
presence in the establishment and shall also have the power to bind any party to the dispute to appear
before the Commission.
(4) Where a party to an illegal strike or lockout, on being required or bound under this section to
appear before the officer or the Commission, does not so appear, the officer or the Commission, as
the case may be, may, besides taking such other action as may be admissible under this Act, proceed
exparte.
(5) After receiving the enquiry report the Commission shall serve a notice on the employer and
the collective bargaining agent or the registered trade union concerned with the dispute to appear
before the Commission on a date which shall not be later than seven days.
(6) The Commission may, within ten days following the day on which it receives a report under
subsection (1), and after considering the report and hearing such of the parties as may appear before
it, order the strike to be called off or the lockout to be lifted.
(7) If the employer contravenes the order of the Commission under subsection (6) and the
Commission is satisfied that the continuance of the lockout is causing serious hardship to the
community or is prejudicial to the national interest, it may issue an order for the attachment of the
establishment and for the appointment of an official receiver for such period as it deems fit, and such
period may be varied from time to time.
(8) The official receiver shall exercise the powers of management and may transact business,
enter into contracts, give valid discharge of all moneys received and do or omit to do all such acts as
are necessary for conducting the business of the establishment.
(9) The Commission may, in appointing and regularizing the work of an official receiver exercise
the powers of a Civil Court under the Code of Civil Procedure, 1908 (Act V of 1908).
(10) If the workers contravene the order of the Commission under subsection (6), the
Commission may pass orders of dismissal against all or any of the striking workers and,
notwithstanding anything to the contrary contained in this Act, if the Commission, after holding such
inquiry as it deems fit, records its finding that any registered trade union has committed or abetted the
commission of such contravention, the finding shall have the effect of cancellation of the registration
of such trade union and debarring all officers of such trade union from holding office in that or in any
other trade union for the unexpired term of their offices and for the term immediately following:
Provided that the Court may review its orders if good and sufficient cause is shown by an
affected worker within seven days of such orders of dismissal.
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45. Strike or lockout in public utility services.—(1) The Government, in the case of a
strike or lockout relating to—
(a) an industrial dispute of national importance; or
(b) an industrial dispute in respect of any of the public utility services which the Commission
is competent to adjudicate and determine, may, by order in writing, prohibit a strike or
lockout at any time before or after the commencement of the strike or lockout.
(2) The provisions of subsections (4), (5) and (6) of section 42 shall also apply to an order made
under subsection (1) above as they apply to an order made under subsection (3) of that section.
46. Prohibition of serving notice of strike or lockout while proceedings pending.—No
notice of strike or lockout shall be served by any party to an industrial dispute during the pendency
of any conciliation proceedings or proceedings before an Arbitrator or Commission in respect of any
matter constituting such industrial dispute.
47. Removal of fixed assets.—No employer shall remove any fixed assets of the
establishment during the currency of an illegal lockout or a strike which is not illegal:
Provided that the Commission may, subject to such conditions as it may impose, cause to be
removed any such fixed assets for safe custody to avoid damage to such assets due to flood, fire,
catastrophe or civil commotion.
48. Protection of certain persons.—(1) No person refusing to take part or to continue to
take part in any illegal strike or illegal lockout shall, by reasons of such refusal, be subject to
expulsion from any trade union or to any fine or penalty or to the deprivation of any right or benefit
which he or his legal representatives would otherwise have been entitled, or be liable to be placed in
any respect, either directly or indirectly, under any disability or disadvantage as compared with other
members of the trade union.
(2) Any contravention of the provisions of subsection (1) may be made the subject matter of an
industrial dispute, and nothing in the constitution of a trade union providing the manner in which any
dispute between its executive and members, shall be settled shall apply to any proceedings for
enforcing any right or exemption granted by subsection (1). In any such proceeding, the Commission
may, in lieu of ordering a person who has been expelled from membership of a trade union to be
restored to membership, order that he be paid out of the funds of the trade union such sum by way of
compensation or damages as the Commission thinks just.
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CHAPTER—VII
AWARDS AND SETTLEMENTS
49. Settlements and awards on whom binding.—(1) A settlement arrived at in the course of
conciliation proceedings, or otherwise between the employer and the collective bargaining agent or an
award of an arbitrator prescribed under section 40, or an award or decision of the Commission
delivered under section 54 and section 57 shall—
(a) be binding on all parties to the industrial dispute;
(b) be binding on all other parties summoned to appear in any proceedings before the
Commission as parties to the industrial dispute, unless the Commission specifically
otherwise directs in respect of any such party;
(c) be binding on the heirs, successors or assignees of the employer in respect of the
establishment to which the industrial dispute relates where an employer is one of the
parties to the dispute; and
(d) where a collective bargaining agent is one of the parties to the dispute, be binding on all
workmen who were employed in the establishment or industry to which the industrial
dispute relates on the date on which the dispute first arose or who are employed therein
after that date:
Provided that, where a collective bargaining agent or a trade union performing the functions of a
collective bargaining agent under section 21 exists, the employer shall not enter into a settlement with
any other trade union, and any contravention of this provision shall be deemed to be an unfair labour
practice under section 31.
(2) A settlement arrived at by agreement between the employer and a trade union otherwise than
in the course of conciliation proceedings shall be binding on the parties to the agreement.
50. Effective date of settlement, award, etc.—(1) A settlement shall become effective—
(a) if a date is agreed upon by the parties to the dispute to which it relates, on such date; and
(b) if a date is not so agreed upon, on the date on which the memorandum of the settlement is
signed by the parties.
(2) A settlement shall be binding for such period as is agreed upon by the parties, and if no such
period is agreed upon for a period of one year from the date on which the memorandum of
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settlement is signed by the parties to the dispute and shall continue to be binding on the parties after
the expiry of the aforesaid period until the expiry of two months from the date on which either party
informs the other party in writing of its intention no longer to be bound by the settlement.
(3) An order passed by the Commission shall, unless an appeal against it is preferred to the Full
Bench, become effective on such date and remain effective for such period, not exceeding two years,
as may be specified therein. The Arbitrator or the Commission shall specify dates from which the
award or decision on various demands shall be effective and the time limit by which it shall be
implemented in each case;
Provided that if, at any time before the expiry of the said period, any party bound by an award or
decision applies to the Commission for reduction of the said period on the ground that the
circumstances in which the award or decision was made have materially changed, the Commission
may, by order made after giving to the other party an opportunity of being heard, terminate the said
period on a date specified in the order.
(4) Notwithstanding the expiry of the period for which an award is to be effective under sub
section (3), the award shall continue to be binding on the parties until the expiry of two months from
the date on which either party informs the other party in writing of its intention no longer to be bound
by the award.
51. Interpretation of settlement and awards.—(1) If any difficulty or doubt arises as to the
interpretation of any provisions of an award or settlement, it shall be referred to the Full Bench
constituted under this Act.
(2) The Full Bench to which a matter is referred under subsection (1) shall after giving the
parties an opportunity of being heard, decide the matter, and its decision shall be final and binding on
the parties.
52. Recovery of money due from an employer under settlement or award.—(1) Any money
due from an employer under a settlement, or under an award or decision of the Arbitrator, the
Commission may be recovered as arrears of land revenue or as a public demand if, upon the
application of the person entitled to the money, the Commission so directs.
(2) Where any workman is entitled to receive from the employer any benefit, under a settlement
or under an award or decision of the Arbitrator, the Commission, which is capable of being computed
in terms of money, the amount at which such benefit shall be computed may, subject to the rules, be
determined and recovered as provided for in subsection (1) and paid to the workman concerned
within a specified date.
(3) The Commission shall have the powers of Collector GradeI and shall exercise such powers
of recovery as determined by it.
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CHAPTERVIII
NATIONAL INDUSTRIAL RELATIONS COMMISSION
53. National Industrial Relations Commission.
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(1) The Federal Government shall consistute a
National Industrial Relations Commission.
(2) The Commission shall consist of not less than ten full time members including the Chairman.
(3) The qualification for appointment as a member or as the Chairman of the Commission shall be
such as may be prescribed.
(4) The Chairman and other members of the Commission shall be appointed by the Governmenbt
in the prescribed manner.
(5) Two of the members shall be appointed in the prescribed manner to advise the Chairman, one
to represent the employers and the other to represent trade unions and the federations of such trade
unions.
(6) The Chairman of the Commission may, in addition to the representatives of workers appointed
to the Commission, coopt, in cases where he deems it necessary, from amongst workers belonging to
federation such representatives of workers as he may deem fit.
(7) The worker's representative coopted under subsection (6) shall be entitled to such
honorarium as may be prescribed.
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54. Functions of the Commission.—The following shall be the functions of the Commission,
namely—
(a) to adjudicate and determine an industrial dispute in the Islamabad Capital Territory and
transprovincial to which a trade union or a federation of such trade unions is a party and
which is not confined to matters of purely local nature and any other industrial dispute
which is, in the opinion of the Government, of national importance and is referred to it by
that Government;
(b) to register trade unions and industrywise trade unions of an establishment or group of
establishments in the Islamabad Capital Territory and transprovincial, and federations of
such trade unions;
(c) to determine the collective bargaining agents amongst trade unions and industrywise
trade unions in the Islamabad Capital Territory and transprovincial and federations of
such trade unions;
(d) to try offences punishable under—
(i) Section 67 other than subsections (1) and (6) thereof; and
(ii) any other section, in so far as they relate to employers or workers in relation to a
trade union or an industrywise trade union in the Islamabad Capital Territory and
transprovincial, and a federation of such trade unions, or officers of such union or
federation;
(e) to deal with cases of unfair labour practices specified in sections 31 and 32 on the part of
employers, workers, trade unions of either of them or persons acting on behalf of any of
them, whether committed individually or collectively, in the manner laid down under
section 33 or subsection (9) section 33 or in such other way as may be prescribed, and to
take, in such manner as may be prescribed by regulations under Section 66, measures
calculated to prevent an employer or workman from committing an unfair labour practice;
(f) to advise the Government, trade unions and industrywise trade unions in the Islamabad
Capital Territory and transprovincial, and federations in respect to the education of
workers in the essentials of trade unionism, including education in respect of their right
and obligations, and to secure the provision of facilities required thereof, and to apportion
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the cost thereof between the Government, trade unions and federations of such trade
unions, and the employers, in such manner as may be considered equitable by the
Commission, subject to the approval of the Government;
(g) to take measures calculated to prevent an employer or workman from committing an
unfair labour practice in such manner as may be determined by regulations;
(h) to deal with cases of individual grievance in the manners prescribed in section 33.
(i) to exercise exclusive jurisdiction over the establishment or group of establishments
situated in the Islamabad Capital Territory and transprovincial; and
(j) such other powers and functions as the Government may, by notification in the official
Gazette, assign to it from time to time.
55. Benches of the Commission, etc.—(1) The Chairman shall exercise general superintendence
over its affairs.
(2) For the efficient performance of the functions of the Commission, the Chairman shall
constitute—
(a) a Full Bench of the Commission which shall consist of not less than three members of the
Commission; and
(b) as many other Benches of the Commission consisting of one member of the Commission,
as he may deem fit.
(3) The Benches shall—
(a) adjudicate and determine an industrial dispute or any other matter which has been
referred to, or brought before it under this Act;
(b) enquire into and adjudicate any matter relating to the implementation or violation of a
settlement which is referred to it by the Federal Government.
(c) try offences under this Act ; and
(d) exercise and perform such other powers and functions as are or may be conferred upon or
assigned to it by or under this Act or any other law:
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Provided that, in the performance of those functions and in the exercise of those powers, the
Benches shall, unless otherwise provided in this Act, follow the procedure laid down in the
regulations.
(4) If any member of the Commission is absent from, or is otherwise unable to attend any sitting
of the Commission or of a Bench consisting of more than one members of which he is a member, the
Chairman may reconstitute the Bench.
(5) No act, proceedings, decision, or award of the Commission or Bench shall be invalid or be
called in question merely on the ground of absence or of the existence of a vacancy in or any defect
in the constitution of the Commission or Bench.
56. Resolution of difference of opinion.—(1) If the members of a Bench differ in opinion as
to the decision to be given on any point,—
(a) the point shall be decided according to the opinion of the majority, if there is a majority;
and
(b) If the members are equally divided, they shall state, the point on which they differ and the
case shall be referred by them to the Chairman for hearing on such point by one or more
of the other members of the Commission, and such point shall be decided according to the
opinion of the majority of the members of the Commission who have heard the case,
including those who first heard it:
Provided that if, upon any matter requiring the decision of a Bench which includes the Chairman
of the Commission as one of its members, there is a difference of opinion among its members and the
members so constituting the Bench are equally divided, the opinion of the Chairman shall prevail and
the decision of the Bench shall be expressed in terms of the views of the Chairman.
(2) Any order or decision made, award given, sentence passed, power exercised, functions
performed or proceedings taken by any Bench of the Commission in accordance with this Act and the
order constituting the Bench shall be deemed to be the order or decision made, award given, sentence
passed, power exercised, functions performed or proceedings taken, as the case may be, by the
Commission.
Explanation.—In this section, the expression "The Chairman of the Commission" includes such
member of the Commission to be known as Senior Member as the Chairman may nominate to
perform the functions, and exercise the powers of the Chairman during his absence.
57. Additional powers of the Commission.
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(1) In addition to powers which the Commission
has under this Act—
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(a) the Commission shall have power to punish any person who obstructs or abuses its
process or disobeys any of its orders or directions, or does anything which tends to
prejudice the case of a party before it, or tends to bring it or any of its members in relation
to proceedings of the Commission into hatred or contempt, or does anything which, by
law, constitutes contempt of Court, with simple imprisonment which may extend to six
months or with fine which may extend to fifty thousand rupees, or with both; and
(b) for the purposes of any investigation, enquiry or adjudication to be made by the
Commission under this Act, the Chairman or any member of the Commission may at any
time between the hours of sunrise and sunset, and any other person authorised in writing
by the Chairman or any member of the Commission in this behalf may, after he has given
reasonable notice, enter any building, factory, establishment, workshop or other place or
premises whatsoever and inspect the same or any work, machinery, appliance or article
therein or interrogate any person therein in respect of anything situated therein or any
matter relevant to matters before the Commission; and
(2) The Commission may, on the application of a party, or of its own motion,
(a) initiate prosecution, trial or proceedings, or take action, with regard to any matter relating
to its functions;
(b) withdraw from a Labour Court of Province any application, proceedings or appeal relating
to unfair labour practice, which fall within jurisdiction of the Commission; and
(c) grant such relief as it may deem fit including interim injunction.
(3) For the purpose of dealing with a case of unfair labour practice of which the Commission is
seized, the Commission may—
(a) proceed directly with the case;
(b) ask the Provincial Registrar within whose jurisdiction the case has occurred or is likely to
occur to enquire into it and submit a report; or
(c) refer the case to a Provincial Labour Court within whose jurisdiction the case has
occurred or is likely to occur, either for report or for disposal.
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(4) The Labour Court to whom the case is so referred shall enquire into it and, if the case was
referred to it for report, forward its report thereon to the Commission or, if the case was referred to it
for disposal, continue the proceedings and dispose of the case as if the proceedings had originally
commenced before it and grant such relief as the Commission has the power to grant.
(5) Save as provided in subsection (4) no Registrar, Labour Court or Labour Appellant Tribunal
shall take any action, or entertain any application or proceedings, in respect of any matter which falls
within the jurisdiction of the Commission:
Provided that no Court, including Labour Court, shall take any action or entertain any
application or proceedings in respect of a case of unfair labour practice which is being dealt with by
the Commission.
Explanation.—The expressions "industrywise trade union" and "federation of such trade
unions" refer to a trade union membership of which extends to establishments in more than one
Province and a federation of trade unions whose membership extends to registered trade unions in
more than one Province.
58. Appeals.—(1) Notwithstanding anything contained in this Act, or in any other law for the
time being in force, any person aggrieved by an award or decision given or a sentence or order
determining and certifying a collective bargaining unit passed by any Bench of the Commission, may,
within thirty days of such award, decision, sentence or order prefer an appeal to the Commission.
(2) An appeal preferred to the Commission under subsection (1) shall be disposed of by the Full
Bench of the Commission which shall
(a) if the appeal is from an order determining and certifying a collective bargaining unit, have
the power to confirm, set aside, vary or modify such an order.
(b) if the appeal relates to any other matter, the Full Bench may, confirm, set aside, vary or
modify the decision or sentence passed and shall exercise all the powers required for the
disposal of an appeal.
(c) The decision of the Full Bench shall be delivered as expeditiously as possible, within a
period of sixty days following the filing of the appeal, provided that such decision shall
not be rendered invalid by reasons of any delay in its delivery.
(d) The Full Bench may, on its own motion at any time, call for the record of any case or
proceedings under this Act in which a Bench within its jurisdiction has passed an order
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for the purpose of satisfying itself as to the correctness, legality, or propriety of such order, and may
pass such order in relation thereto as it thinks fit:
Provided that no order under this subsection shall be passed revising or modifying any order
adversely affecting any person without giving such person a reasonable opportunity of being heard.
(3) In an appeal preferred to it against the order of a Bench directing the reinstatement of a
workman, the Full Bench may make an order staying the operation of the order of the Bench.
(4) The Full Bench shall decide such appeal within twenty days of its being preferred:
Provided that, if such appeal is not decided within the period aforesaid, the stay order of the Full
Bench shall stand vacated on the expiration of that period.
59. Finality of order.—No Court shall entertain any plea as to the jurisdiction of the Commission
or as the legality or propriety of anything done or purporting to be done by the Commission or any of
its Benches, and no order, decision, judgment or sentence of the Commission shall be called in
question in any manner, whatsoever, in or before any Court or other authority.
60. Enforcement of guaranteed rights.—Any collective bargaining agent or any employer may
apply to the Commission for the enforcement of any right guaranteed or secured to it or him or to the
workers collectively by or under any law, award, settlement or decision.
61. Powers of the Commission to prohibit strike, etc.—(1) When a strike or lockout in
pursuance of an industrial dispute has already commenced and is in existence at the time when, in
respect of such industrial dispute, there is made to, or is pending before, the Commission, an
application under subsection (9) Section 33, the Commission may, by an order in writing prohibit
continuance of the strike or lockout.
(2) When an appeal in respect of any matter arising out of an industrial dispute is preferred to the
Full Bench under section 55, the Full Bench may, by an order in writing, prohibit continuance of any
strike or lockout in pursuance of such industrial dispute which had already commenced and was in
existence on the date on which the appeal was preferred.
62. Determination, etc., of collective bargaining unit.—(1) Where the Commission, on an
application made in this behalf, by a trade union of Workmen or a federation of such trade unions, or
on a reference made by the Federal Government, after holding such inquiry as it deems fit, is satisfied
that for safeguarding the interest of the workmen employed in an establishment or group of
establishments belonging to the same employer and the same industry, in relation to collective
bargaining, it is necessary, just and feasible to determine one or more collective
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bargaining units of such workmen in such establishment or group, it may, having regard to the
distribution of workers, existing boundaries of the components of such establishment, or group,
facilities of communication, general convenience, sameness or similarity of economic activity and
other cognate factors,—
(a) determine and certify one or more collective bargaining units in such establishment or
group;
(b) Specify the modifications which, in consequence of the decision under this section, will
take effect in regard to the registration of the trade unions and federations of trade unions
affected by such decision and certification of collective bargaining agents among such
unions and federations, nomination or election of shop stewards, and workers'
representatives for participation in the management of the factories, if any, affected by
such decision;
(c) specify the date or dates from and the period, for which all or any of such changes shall
take effect:
Provided that the date so specified shall not be a date falling within the period of two
years specified in subsection (11) of section 19, in its application to a collective
bargaining agent certified in respect of an establishment or establishments:
Provided further that, after the receipt of a reference for determination of a collective
bargaining unit, the Commission may stop or prohibit the proceedings to determine
collective bargaining agent under section 19 for any establishment or group of
establishments which is likely to be affected by a decision under this section:
(d) take such measures or issue such directions to the Registrar as may be necessary to give
effect to such modifications; and
(e) determine and certify a collective bargaining agent for each such unit in accordance with
section 19 insofar as applicable and with the necessary modifications, if such a unit
relates to more than one province, or direct the Registrar to take such action, if such a
unit relates to the Islamabad Capital Territory.
(2) Where the Commission issues any directions to the Registrar under this section, the Registrar
shall comply with them within such period as the Commission may from time to time determine.
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(3) After the certification of a collective bargaining unit, no trade union shall be registered in
respect of that unit except for the whole of such unit and no certification or proceedings for
determination of collective bargaining agent under section 19 shall take place for a part of a collective
bargaining unit or a group of collective bargaining units.
63. Certain matters to be kept confidential.—Any information obtained by a Registrar,
Conciliator, Arbitrator or Commission in the course of any investigation or inquiry as to a trade union
or as to any individual business (whether carried on by a person, firm or company) which is not
available otherwise than through the evidence given before such authority shall not be included in
any report, award or decision under this Act, if the trade union, person, firm, or company in question
has made a request in writing to the authority that such information shall be treated as confidential,
nor shall such proceedings disclose any such information without the consent in writing of the
Secretary of the trade union or the person, firm or company in question, as the case may be:
Provided that nothing contained in this section shall apply to disclosure of any such information
for the purpose of a prosecution under section 193 of the Pakistan Penal Code (Act XLV of 1860).
64. Conditions of service to remain unchanged while proceedings pending.—(1) No employer
shall, while any conciliation proceedings or proceedings before an Arbitrator or the Commission in
respect of an industrial dispute are pending, alter to the disadvantage of any workman concerned in
such dispute, the conditions of service applicable to him before the commencement of such
conciliation proceedings, or of the proceedings before an arbitrator, as the case may be, nor shall he
save with the permission of the Conciliator, the Arbitrator or the Commission, discharge, dismiss or
otherwise punish any workman except for misconduct not connected with such dispute.
(2) Notwithstanding anything contained in subsection (1), an officer of a registered trade union
shall not, during the pendency of any proceedings referred to in subsection (1), be discharged,
terminated, dismissed or otherwise punished for misconduct, except with the previous permission of
the Commission. However, the terms and conditions of employment secured by the workers through
collective bargaining agreements, awards and decisions of Courts shall continue to be binding upon
the parties until revised for betterment of workers.
65. Representation of parties.—(1) A workman who is a party to an industrial dispute shall be
entitled to be represented in any proceedings under this Act by an officer of a collective bargaining
agent and subject to the provisions of subsection (2) and subsection (3) any employer who is a party
to an industrial dispute shall be entitled to be represented in any such proceedings by a person duly
authorised by him.
(2) No party to an industrial dispute shall be entitled to be represented by a legal practitioner in
any conciliation proceedings under this Act.
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(3) A party to an industrial dispute may be represented by a legal practitioner in any proceedings
before the Commission, or before an Arbitrator, with the permission of the Commission or the
Arbitrator, as the case may be.
66. Power to make regulations.—(1) Subject to the provisions of this Act, the Commission may
make such regulations relating to its procedure and the performance of its functions as it may deem
fit.
(2) In particular and without prejudice to the generality of the foregoing power, such regulations
may provide for all or any of the following matters, namely—
(a) registration of trade unions and industrywise trade unions in the Islamabad Capital
Territory and trans provinces, and federations of such trade unions and the procedure, for
such registration;
(b) determination of collective bargaining units;
(c) determination of collective bargaining agent from amongst the industrywise trade unions,
federations of such trade unions and the procedure thereof;
(d) procedure, including rules of evidence, for adjudication of industrial dispute;
(e) procedure, including rules of evidence, for trial of offences;
(f) procedure for dealing with unfair labour practices;
(g) superintendence of the Chairman over the affairs of the Commission;
(h) forms of registers; processes and returns in respect of matters relating to the functions of
the Commission; and
(i) fixing of places and times of its sitting and deciding whether to sit in public or in private.
CHAPTER—IX
PENALTIES AND PROCEDURES
67. Penalty for unfair labour practices.—(1) Whoever contravenes the provisions of section
17 shall be liable to imprisonment which may extend to fifteen days or fine which may extend to
ninety days thirty thousand rupees, or both.
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(2) Whoever contravenes the provisions of section 31 shall be liable to imprisonment which may
extend to thirty days or fine which may extend to fifty thousand rupees, or both.
(3) Whoever contravenes the provisions of section 32, other than those of clause (d) of sub
section (1) thereof, shall be liable to imprisonment which may extend to thirty days or fine which may
extend to twenty thousand rupees, or both.
(4) An officer of a trade union, a workman or person other than a workman who contravenes or
abets the contravention of the provisions of clause (d) of subsection (1) of section 32 shall be liable
to imprisonment which may extend to thirty days or fine which may extend to thirty thousand rupees,
or both.
(5) Where the person convicted of an offence under subsection (4) is an officer of a trade union,
the Commission may, in addition to any other punishment which it may award to such person under
that subsection, direct that he shall cease to hold the office of such officer and be disqualified from
holding any office in any trade union during the term immediately following the term in which he so
ceases to hold office.
(6) Whoever contravenes the provisions of section 47 shall be liable to imprisonment which may
extend to thirty days or fine which may extend to seventyfive thousand rupees, or both.
(7) Nothing in this Act shall be deemed to exclude the jurisdiction of a Labour Court of a
province or the Court of a Magistrate to try a case under this section if it is authorized to do so by
general or special order of the Commission.
68. Penalty for committing breach of settlement.—Whoever commits any breach of any term
of any settlement, award or decision which is binding on him under this Act shall be punishable—
(a) for the first offence, with imprisonment which may extend to thirty days or fine which
may extend to thirty thousand rupees, or with both; and
(b) for each subsequent offence, with fine which may extend to seventyfive thousand
rupees.
69. Penalty for failing to implement settlement, etc.—Whoever wilfully fails to implement any
term of any settlement, award or decision which is his duty under this Act to implement shall be
punishable with imprisonment which may extend to fifteen days or a fine which may extend to thirty
thousand rupees, or with both and, in the case of continuing failure, with a further fine which may
extend to five thousand rupees for every day after the first during which the failure continues.
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70. Penalty for false statement, etc.—Whoever wilfully makes or causes to be made in any
application or other document submitted under this Act or the rules made thereunder, any statement
which he knows or has reason to believe to be false, or wilfully neglects or fails to maintain or furnish
any list, document or information he is required to maintain or furnish, under this Act or the rules
made thereunder shall be punishable with imprisonment which may extend to fifteen days or fine
which may extend to seventyfive thousand rupees, or with both.
71. Penalty for discharging officer of trade union in certain circumstances, etc.—Any
employer who contravenes the provision of section 64 shall be punishable with imprisonment which
may extend to fifteen days or fine which may extend to thirty thousand rupees, or with both.
72. Penalty for embezzlement or misappropriation of funds.—Any officer or any employee of
a registered trade union, guilty of embezzlement or misappropriation of trade union funds, shall be
liable to imprisonment which may extend to thirty days and shall also be liable to a fine which shall
not exceed the amount found by the Court to have been embezzled or misappropriated. Upon
realisation, the amount of fine shall be reimbursed by the Court to the trade union concerned.
73. Penalty for obstructing inspector.—Whoever wilfully obstructs an inspector in the exercise
of any power under section 29, or fails to produce on demand by an inspector any register or other
document in his custody required by him under the provisions of this Act, or conceals or prevents any
worker in an establishment from appearing before or being examined by an inspector, shall be
punishable with fine which may extend to seventyfive thousand rupees.
74. Penalty for contravening section 27 or section 28, etc.—(1) Whoever contravenes the
provisions of section 27 or section 28 shall be punishable with imprisonment which may extend to
fifteen days or fine which may extend to one hundred thousand rupees, or with both.
(2) No Court shall take cognizance of any offence punishable under subsection (1) except upon
a complaint in writing made by the Registrar.
75. Penalty for other offences.—Whoever contravenes, or fails to comply with, any of the
provisions of this Act shall, if no other penalty is provided by this Act for such contravention or
failure, be punishable with fine which may extend to ten thousand rupees.
76. Offences to be noncognisable.—Notwithstanding anything contained in the Code of
Criminal Procedure, 1898 (Act V of 1898) no police officer shall be competent to arrest without
warrant an employer or a worker for an offence under this Act.
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77. Offences by corporation.—Where the person guilty of any offence under this Act is a
company or other body corporate, every director, manager, secretary or other officer or agent thereof
shall, unless he proves that the offence was committed without his knowledge or consent or that he
exercised all due diligence to prevent the commission of the offence, be deemed to be guilty of such
offence:
Provided that, where a company has intimated to Government in writing the name of any of its
directors resident in Pakistan whom it has nominated for the purpose of this section and the offence is
committed while such director continues to be so nominated, only such director shall be so deemed to
be guilty of such offence.
78. Trial of offences.—Save as provided in this Act, no Court other than a Labour Court or that
of a Magistrate of the first class, as the case may be, shall try any offence punishable under this Act.
79. Indemnity.—No suit, prosecution or other legal proceedings shall lie against any person for
anything which is in good faith done or intended to be done in pursuance of this Act or any rule.
CHAPTER—X
SUPPLEMENTAL
80. Conformity with Ratified International Conventions.—The Government may coordinate
with the provinces before enacting any law or rules for the effective enforcement of obligations of the
State to international labourrelated and employer related Conventions so ratified by the State and in
case of difference of opinion, shall refer such matter, to the Council of Common interests for
decision.
81. Law of conspiracy limited in application.—No officer or member of a registered trade
union or a collective bargaining agent as certified by the Registrar shall be liable to punishment under
subsection (2) of section 120B of the Pakistan Penal Code, 1860 (XLV of 1860), in respect of any
agreement made between the members thereof for the purpose of furthering any such object of the
trade union as is specified in its constitution, unless the agreement is an agreement to commit an
offence, or otherwise violates any other law for the time being in force.
82. Immunity from civil suit in certain cases.—(1) No suit or other legal proceedings shall be
maintainable in any civil Court against any registered trade union or a collective bargaining agent or
any officer or member thereof in respect of any action done in contemplation or furtherance of an
industrial dispute to which the trade union is a party on the ground only that such act induces some
other person to break a contract of employment, or that it is an interference with the trade, business
or employment of some other person or with the right of some other person to dispose of his capital or
of his labour as he desires.
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(2) A trade union shall not be liable in any suit or other legal proceedings in any civil Court in
respect of any tortuous act done in good faith in contemplation or furtherance of an industrial dispute
by an agent of the trade union if it is proved that such person acted without the knowledge of, or
contrary to express instructions given by, the executive of the trade union.
83. Enforceability of agreement.—Notwithstanding anything contained in any other law for the
time being in force, an agreement between the members of a trade union shall not be void or voidable
by reason only that any of the objects of the agreement are in restraint of trade:
Provided that nothing in this section shall enable any civil Court to entertain any legal
proceedings instituted for the express purpose of enforcing, or covering damages for the breach of
any agreement concerning the conditions on which any member of a trade union shall or shall not sell
their goods, transact business or work, employ or be employed.
84. Registrar, etc., to be public servants.—A Registrar, a Conciliator, the Chairman and a
Member of the Commission shall be deemed to be a public servant within the meaning of section 21
of the Pakistan Penal Code (Act XLV of 1860).
85. Limitation.—The provisions of Section 5 of the Limitation Act, 1908 (IX of 1908), shall
apply in computing the period within which an application is to be made, or any other thing is to be
done, under this Act.
86. Power to make rules.—(1) The Government may make rules for carrying out the purposes of
this Act.
(2) Rules made under this section may provide that a contravention thereof shall be punishable
with fine which may extend to ten thousand rupees.
87. Act to override other laws.—The provisions of this Act shall have effect notwithstanding
anything to the contrary contained in any other law for the time being in force.
88. Repeal and savings.—The Industrial Relations Act, 2008 (IV of 2008), having been repealed
by virtue of subsection (3) of section 87 thereof, notwithstanding the repeal of the said Act,
hereinafter to be called the repealed Act, and without prejudice to the provisions of sections 6 and 24
of the General Clauses Act, 1897 (X of 1897)—
(a) every trade union of an establishment or industry located in the Islamabad Capital
Territory, or in more than one province and existing immediately before the
commencement of this Act, which was registered under the repealed Act shall be deemed
to be registered under this Act and its constitution shall continue in force until altered or
rescinded;
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(b) anything done, rules made, notification or order issued, officer appointed, Court
constituted, notice given, proceedings commenced or other actions taken under the
repealed Act shall be deemed to have been done, made, issued, appointed, constituted,
given, commenced or taken, as the case may be, under the corresponding provisions of
this Act; and
(c) any document referring to the repealed Act relating to industrial relations shall be
construed as referring to the corresponding provisions of this Act.
89. Former registration offices, officers, etc., to continue.—(1) The offices existing at the
commencement of this Act for registration of trade unions shall be continued as if they had been
established under this Act.
(2) Any person appointed to any office under, or by virtue of the provisions of the repealed Act
shall be deemed to have been appointed to that office under or by virtue of this Act.
(3) Any books of accounts, book, paper, register or document kept under the provisions of the
repealed Act relating to companies shall be deemed to be part of the books of accounts, book, paper,
register or document to be kept under this Act.
90. Removal of difficulties.—If any difficulty arises in giving effect to any provisions of this Act,
the Government may, by notification in the official Gazette, make such order, not inconsistent with
the provisions, of this Act, as may appear to it to be necessary for the purpose of removing the
difficulty:
Provided that no such power shall be exercised after the expiry of six months from the coming
into force of this Act.
91. Rights and duties of employers and workers.—The employers and workers shall within the
bounds of this Act and other laws for the time being in force shall abide by a code of conduct to
respect their rights and duties in accordance with the guidelines in Schedule II.
SCHEDULE—I
PUBLIC UTILITY SERVICES
[See Section 2(xxv)]
1. The generation, production, manufacture, or supply of electricity, gas, oil or water to the
public.
2. Any system of public conservancy or sanitation.
3. Hospitals and ambulance services.
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4. Firefighting service.
5. Any postal, telegraph or telephone service.
6. Railways and Airways.
7. Ports.
8. Watch and Ward Staff and security services maintained in any establishment.
SCHEDULE—II
RIGHTS AND DUTIES OF EMPLOYERS AND WORKERS
[See Section 91]
Rights and Duties of Workers and Employers
Workers and employers to respect each others' rights: Without prejudice to the provision of
this Act and any other labour law in vogue, workers and employers in each establishment will respect
each others’ rights and the rights of the enterprise to reasonable returns on investments and to
expansion and growth. Such rights, among other, will include the following:—
Employers' Rights and Duties
a. Right to conduct business.—The employer has the right to manage, control and use enterprise
property and conduct its business in any manner considered prudent and satisfactory by it.
b. Right to manage.—The employer has the right to manage the enterprise effectively and
efficiently by finding the best use of its available resources, including human resource, in most
prudent and fruitful manner in the general interest of the enterprise.
c. Duties of the Employer.—(i) While exercising the right to conduct business and the right to
manage the enterprise, it will be duty of the employer to act in accordance with the principles and
guidelines provided under the law.
(ii) The employee will implement all laws, including labour laws, in letter and spirit.
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(iii) The employer will protect and safeguard the interest and welfare of its workers to
obtain maximum productivity and output to the mutual advantage of the enterprise.
(iv) The Employer will respect the workers' rights to decent work, wages, decent living
and quality of life, subject to the resources of the enterprise.
Workers' Rights and Duties
a. Right to work, wage and welfare.—It is the right of a worker to work according to the job
assigned and to receive wages as per agreed terms and conditions of employment and to such welfare
benefits and safety measures as one is entitled to according to law, agreement settlement and/or
award.
b. Right to Freedom of association and collective bargaining and other rights secured or
guaranteed under the Industrial Relations Act, 2011, and other laws.—Worker has unfettered
right to enjoy the benefits guaranteed to him under the law, rules, settlement, agreement, award and in
line with the principles of social justice.
c. Duties of the Workers.—(i) Worker will perform their duties, as assigned by the employer or
his representatives, according to his best ability with due diligence, care, honesty and commitment.
(ii) Worker will fully observe norms of organizational discipline.
(iii) Worker, in exercise of his right, will fully respect the rights of the employer and will
fully cooperate with the employer in efficient conduct of the business of the
establishment.
d. Mutual obligations of employers and workers,—(1) Both employers and workers will
promote and foster an atmosphere of trust confidence and understanding for each others' viewpoint
and will at the first place make every effort not to let conflict arise among their relationship and if and
when a conflict arises they will make every effort to resolve the same by bilateral negotiation at the
establishment level.
(ii) Both employers and workers will accept the same degree of responsibility for
industrial relations as for other functions within their respective establishment and
will establish formal and informal climate of communication and social dialogue on
at the establishment level for discharging the responsibility.
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(iii) Both employers and workers will strive to develop good industrial relations
within the framework of efficiency in the establishment.
(iv) Both employers and workers take all reasonable steps to ensure compliance with
agreements and agreed procedures so that the objectives of productivity and
growth are served in atmosphere of industrial peace.
(v) Both employers and workers in their mutual interaction will demonstrate mutual
respect for each other and will not indulge in any act or insinuation to show
person disrespect in any form in keeping with the Islamic tradition of love,
fraternity, brotherhood and accepted social norms and civilized society.
e. Incentives and Recognition for Promoting Good Industrial Relations.—Such
establishment, which maintains a track record of good industrial relations through bilateral efforts of
employers and workers and their representative organizations in the establishment, shall be
recognized by the Government as a "Model Organisation in Industrial Relations" to be determined on
the basis of such criterion and in such manner as may be prescribed in the rules to be provided for the
purpose. Such recognition shall be in the form of a Certificate prescribed for the purpose which will
entitle the establishments and their unions to inscribe the word "Model Organisation in Industrial
Relations" on their letterheads and official logo and monograms.
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