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HRM & LAW

Submitted to: Vijay Kumar


Course Code: MGT-501
Course Name: Human Resource Management
Submitted by: Muhammad Qasim
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BM-26464

Agenda

We will discuss the laws


Local Laws Laws of Pakistan
International Laws
We will discuss how Laws affect Human Resource
Management and how these laws shape and affect; how
companies deal with employees
We will discuss international laws being adopted by MNC
and large organizations in Pakistan and also internal policies
set forth by organizations pertaining to LAW of Pakistan.
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What is meant by Labor law?

Labor laws mediates the


relationships between workers
(employees), employers and
government.
There are two types of labor laws:
Collective labor law that
relates to the tripartite
relationship between employee,
employer and the union,
association or the government.
Individual labor law that
covers employee`s workplace
rights enforced by the agency

History of Labor law?

Labor laws arose parallel with the industrial revolution as


the relationship between
workers and employers
changed from small scale production studios to large
scale factories.
Workers sought better
rights to join unions and
associations, while employers sought more predictable,
flexible and less costly workforce.
England was the first country to industrialize, it was also
the first to face the alarming consequences of the
capitalist in a totality and laissez-faire economic
framework.
Over the course of time from the late 18th and mid 19th

Laissez-faire is
an economic
system in which
transactions
between private
parties are free
from
government
interference
such as
regulations,
privileges,
tariffs, and4
subsidies.

Laws of Pakistan
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Labor laws in constitution of Pakistan

Article 11 prohibits all forms slavery , forced labor and child labor.
Slavery is non existent and forbidden and no law shall permit or
facilitate its introduction into constitution in any form.
All forms of forced labor and traffic of humans are prohibited.
No child below the age of 14 shall be engaged in any factory or
mine or any hazardous employment.
Article 17 provides for a fundamental right to exercise the freedom
of association and the right to form unions.
Every citizen shall have the right to form association or unions,
subject to any reasonable restriction imposed by the law in the
interest
of
public
order.
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Labor laws in constitution of Pakistan

Article 18 prescribe the right of its citizens to enter upon any lawful
profession or occupation and to conduct any lawful trade and business.
Article 25 lays down the right to equality before and prohibition of
discrimination on grounds of sex alone.
All citizens are equal before the law and are entitled to equal protection of law.
There shall be no discrimination on the basis of sex.

Article 26 says no person otherwise qualified can be discriminated


against in the matter of employment on the basis of race, religion, caste,
gender, residence or place of birth (Exceptions: specific services can be
reserved for members of either sex if such posts/services require duties
which cannot be adequately performed by the members of other sex,7

Labor laws in constitution of Pakistan

Article 27 puts complete ban on discrimination on the basis of gender in


appointment in "the service in Pakistan", provided that the performance
and functions of the job can be carried out by, and is deemed suitable
for, both sexes.
Article 37(e) makes provisions for securing just and humane conditions
for work and, ensuring that children and women are not employed in
vocation(particular occupation) unsuited to their age and sex and for
maternity benefits of women in employment.
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Complete List of Labor Laws in Pakistan

19. Mines Act 1923


1. Apprenticeship Ordinance 1962
2. Boilers & Pressure Vessels Ordinance 2002 20. Newspaper Employees (Condition of Service) Act 197
3. Bonded Labour System (Abolition) Act 1992 21. Employees Old Age Benefits Act 1976
22. Provident Funds Act 1925
4. Employment of Children Act 1991
Railway Act 1890
5. Companies Profits (Worker Participation) Act 23.
1968
24. Road Transport Workers Ordinance 1961
6. Control of Employment Ordinance 1965
7. Employees Cost of Living (Relief) Act 1973 25. Employment (Record of Service) Act 1951
26. West Pakistan Shops and Establishments Ordinance
8. Dock Labourers Act 1934
1969
9. Disabled Person (Employment and Rehabilitation)
27. Provincial Employees Social Security Ordinance 1965
Ordinance 1981
28.1952
Industrial and Commercial Employment (Standing
11. Pakistan Essential Services (Maintenance) Act
12. Export Processing Zone Authority OrdinanceOrders)
1980
Ordinance 1968
13. Factories Act 1934
29. Industrial Statistics Act 1942
14. West Pakistan Factories Canteens Rules 1959
30. at
Minimum Wages Ordinance 1961
15. Protection against Harassment of Women
31. Payment of Wages Act 1936
Workplace Act 2010
32. Workers Children (Education) Ordinance
1972
16. Industrial Relations Act 2012
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Workers Welfare Fund Ordinance 1971
17. West Pakistan Maternity Benefits Ordinance 33.
1958

Notable Laws
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Sexual Harassment Law

The objective of this Act is to create a safe working environment for


women, which is free of harassment, abuse and intimidation with a
view toward fulfillment of their right to work with dignity. It will also
enable higher productivity and a better quality of life at work.
Harassment is one of the biggest hurdles faced by working women
preventing many who want to work to get themselves and their families
out of poverty. This Act will open the path for women to participate
more fully in the development of this country at all levels.
This Act requires all public and private organizations to adopt an
internal Code of Conduct and a complain/appeals mechanism aimed at
establishing a safe working environment, free of intimidation and
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abuse, for all working women. It shall also establish an Ombudsman at

Child Labor

Minimum Age and Protection of Young Workers Article 11(3) of


Pakistans Constitution expressly prohibits the employment of children
below the age of fourteen years in any factory, mine or other hazardous
employment. Also ensuring that children and women are not employed
in vocations unsuited to their age or sex.
The Factories Act, 1934 allows for the employment of children between
the ages of 14 and 18 years provided that each adolescent obtains a
certificate of fitness from a certifying surgeon.
The Act further restricts the employment of a child in a factory to five
hours in a day. The hours of work of a child should thus be arranged in
such a way that they are not spread over more than seven-and-a-half 12
hours in any day.

Overtime

Factories Act, 1934 (applicable in ICT, Sindh, and Balochistan)


The Industrial and Commercial Employment (Standing Order)
Ordinance, 1968 (applicable in ICT, Sindh, and Balochistan)
Every employee in a factory, except those employed in clerical or
executive capacity, is eligible for the overtime pay. If you work for more
than 8 hours in a day or more than 48 hours in a week (while working in
a non-seasonal factory), you are eligible for this extra/overtime pay.
You cant be compelled to work more than 2 hours overtime a day. Your
total yearly overtime work hours should also not exceed 624 hours.
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Sickness & Leaves

Every secured worker certified by a medical practitioner is entitled to


paid sick leave for a period of 121 days in case of ordinary ailments and
365 days in case of Cancer or Tuberculosis.
Ordinary ailments requires the employer to pay 75% of wages last
drawn while for Cancer and Tuberculosis a worker has to be paid 100%
of last wages drawn.
If there is an employment related injury, a worker has the right to draw
100% wages for a period of 180 days.
As per section 72 of The Provincial Employees Social Security
Ordinance, 1965, an employer can't dismiss, discharge, reduce or
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otherwise punish a worker during his/her period of sickness, maternity,

Employee Safety

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


powered
machinery, electrical systems, lasers and other such
equipment, or enter confined
spaces, operate forklifts, work in
elevated locations or perform similar hazardous work, they must
receive specialized training.
Inform employees of the procedures to follow in the event of an
emergency
Inform employees of any unique hazards in the workplace and how to
identify them
Inform employees of how to report unsafe or unhealthful conditions
Inform employees of actions to take in the event of a work-related injury
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Maintain records of safety training provided, such as lesson plans,

ternational Law
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International Laws

Employees are also protected by the Equal Employment Opportunity


Commission (EEOC), which was established through the 1964 Civil
Rights Act, Title VII. The scope of authority of the EEOC has been
expanded so that today it carries the major enforcement authority for the
following laws:
Civil Rights Act of 1964. Prohibits discrimination on the basis of race,
color, religion, national origin, or sex.
Civil Rights Act of 1991. Reaffirms and tightens prohibition of
discrimination. Permits individuals to sue for punitive damages in cases
of intentional discrimination and shifts the burden of proof to the
employer.
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International Laws

Pregnancy Discrimination Act of 1978. Prohibits discrimination


or dismissal of women because of pregnancy alone, and protects
job security during maternity leaves.

American with Disabilities Act. Prohibits discrimination against


individuals with physical or mental disabilities or the chronically ill,
and requires that reasonable accommodations be provided for
the disabled. E.g Philedelphia

Vocational Rehabilitation Act. Prohibits discrimination on the


basis of physical or mental disabilities and requires that employees
be informed about affirmative action plans.
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International Laws

ADA (Americans with Disabilities Act): Prohibits employers from


discriminating against people with disabilities. Requires employers to
provide reasonable accommodation for individuals with disabilities.
The law applies to all private employers with 15 or more employees,
state and local governments, and labor unions.
ADEA (Age Discrimination in Employment Act): Prohibits
discrimination against employees 40 years of age or older on the basis
of age. The law applies to all private-sector employers with 20 or more
employees who work 20 or more weeks per year, labor unions (with 25
or more members), employment agencies, state and local governments.
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International Laws

FLSA (Fair Labor Standards Act): Establishes minimum wage rates,


requires overtime pay for certain employees, restricts the employment of
minors, and imposes certain recordkeeping obligations. The law applies to
most private and public employers, with some exceptions in certain retail
and agricultural industries.
FMLA (Family and Medical Leave Act): Grants qualified employees a
total of 12 work weeks of unpaid leave during a 12-month period for
health-related reasons, including childbirth, family illness, or personal
health reasons that preclude handling the jobs duties. The law applies to
any individual or entity engaged in commerce or in any industry or
activity affecting commerce that employs 50 or more employees for each
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working day during each of 20 or more calendar workweeks in the current

International Laws

Title VII of the Civil Rights Act: Prohibits employers from


discriminating against employees and applicants for employment, in
the terms and conditions of employment, on the basis of race, color,
religion, sex, or national origin. The law applies to private employers
with 15 or more employees, as well as virtually all government
institutions, employment agencies, and labor unions, but not the
federal government.
WARN (Worker Adjustment and Retraining Notification Act):
Requires 60 days advance written notice to affected employees (or
their bargaining unit), as well as state and local rapid
response/dislocated worker agencies, of mass layoffs or plant closings
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that will result in at least 50 employment losses within a 30-day period.

International Laws

COBRA (Consolidated Omnibus Budget Reconciliation Act):


Provides certain former employees, retirees, spouses, former spouses,
and children the right to temporary continuation of health coverage at
group rates. Employers with 20 or more employees usually are required
to offer COBRA coverage and to notify their employees of the availability
of such coverage. COBRA applies to plans maintained by private-sector
employers and sponsored by most state and local governments. (Some
states also have their own versions of COBRA.)
IRCA (Immigrant Reform and Control Act): Requires that employers
attest to the immigration status of their employees, bans employers
from hiring illegal aliens, and establishes penalties for such behavior.
The law applies to all employers.
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International Laws

Davis-Bacon Act of 1931This law requires the payment of minimum


wages to nonfederal employees.
The Norris-Laguardia Act of 1932This law protects the rights of
unions to organize, and prohibits employers from forcing job applicants to
promise not to join a union in exchange for employment.
The Wagner Act of 1935This law, also known as the National Labor
Relations Act, is the main piece of legislation governing
union/management relations, and is a chief source of regulation for HRM
departments.
Social Security Act of 1935This law was enacted in order to protect
the general welfare by establishing a variety of systems to assist the
aging, the disabled, and children.
The Walsh-Healy Public Contracts Act of 1936This law was 23

International Laws

Fair Labor Standards Act of 1938this important law mandated


employer compliance with restrictions related to minimum wages,
overtime provisions, child labor, and workplace safety.
Taft-Hartley Act of 1947This law created provisions that severely
restrict the activities and power of labor unions in the United States.
Landrum-Griffin Act of 1959Also known as the Labor-Management
Reporting and Disclosure Act (LMRDA), the Landrum-Griffin Act deals
primarily with the relationship between a union and its members. This
law grants certain rights to union members and protects their interests
by promoting democratic procedures within labor organizations.
Age Discrimination in Employment Act of 1967This legislation, which
was strengthened by amendments in the early 1990s, essentially
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protects workers 40 years of age and older from discrimination.

International Laws

Occupational Safety and Health Act of 1970This act, which


established the Occupational Safety and Health Administration, was
designed to force employers to provide safe and healthy work
environments and to make organizations liable for workers' safety.
Today, thousands of regulations, backed by civil and criminal penalties,
have been implemented in various industries to help ensure that
employees are not subjected to unnecessarily hazardous working
conditions.
Family and Medical Leave Act of 1993This law was passed to
provide employees who qualify with up to 12 work weeks of unpaid, jobprotected leave in a 12-month period for specified family and medical
reasons. It also requires group health benefits to be maintained during
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Effects of Laws on
HRM by Organization
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Laws and its effects on HRM

Contract Every employer in an industrial or commercial establishment is


required to issue a formal appointment letter at the time of employment
of each worker. The obligatory contents of each labor contract, if written,
are confined to the main terms and conditions of employment, namely
nature and tenure of appointment, pay allowances and other fringe
benefits admissible, terms and conditions of appointment.
The services of a permanent worker cannot be terminated for any reason
other than misconduct unless one months notice or wages in lieu
thereof has been furnished by the employer or by the worker if he or she
so chooses to leave his or her service. One months wages is calculated
based on the average wage earned during the last three months of
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service.

Laws and its effects on HRM

Working hours Under the Factories Act, 1934 no adult employee,


defined as a worker who has completed his or her 18th year of age, can
be required or permitted to work in any establishment in excess of nine
hours a day and 48 hours a week. Similarly, no young person, under the
age of 18, can be required or permitted to work in excess of seven hours
a day and 42 hours a week. Section 8 of the West Pakistan Shops and
Establishments Ordinance, 1969 likewise, restricts weekly work hours at
48 hours. The Shops and Establishments Ordinance regulates persons
employed in shops and commercial establishments
Paid Leave As provided in the Factories Act, 1934, every worker who
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has completed a period of twelve months continuous service in a factory

Laws and its effects on HRM

Orientation programs help employees gain an understanding of what


is expected of them. Each organization has its own set of rules and
policies regarding areas such as dress, attendance and conduct, and the
orientation should make it clear what is and is not acceptable.
Employees should also get a sense of the organizational culture during
this time so they have a better understanding of what they need to do to
fit in more quickly.
NDA (Non-Disclosure Agreements) It is a legal contract between at
least two parties that outlines confidential material, knowledge, or
information that the parties wish to share with one another for certain
purposes, but wish to restrict access to or by third parties. It is a contract
through which the parties agree not to disclose information covered by29

Laws and its effects on HRM

Grievances are concerns, problems or complaints raised by an


employee about workplace issues such as their work, workload, where
they work or who they work with. These Grievances are best dealt with
at an early stage, informally, but businesses and HR Directors must be
prepared to handle employee grievances that cannot be resolved
informally using a formal Employee Grievance Procedure.
CBA - Collective bargaining Agent, CB is a process of negotiation
between employees and a group of employers aimed at agreements to
regulate working salaries. The interests of the employees are commonly
presented by representatives of a trade union to which the employees
belong. The collective agreements reached by these negotiations usually
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set out wage scales, working hours, training, health and safety,

Internal Rules/Policies

Bribery policies and disciplinary actions


Criminal offense disciplinary actions
Rules violation - PPRA rules, DLP Policy
Non-Competition and Non-Solicitation Provisions
Fraud or forgery with documentation
Advertent or inadvertent sharing of confidential
information
Non-compliance to chain of command
Misbehaving or physical exchange
Regulatory guideline non-compliance

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MNCs Adopting international


Standards

Equal Opportunity Employment


(Gender/Minorities/Disability/Harassment) Unilever, P&G
Pregnancy Discrimination (NBP) 4 months leaves regardless
of time
Equal Pay women are equally paid in FIS (Pakistan)
WARN (Worker Adjustment and Retraining Notification Act)
Barclays gave 3 years salary to all the employees
Some MNCs are paying time and half for normal holidays
and twice for national holidays (like eid etc..)
(telecom/Banks)
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Organizations related
to HR LAW
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HR LAW Organizations

EEO Compliance and Operations Divisions (EEOCO)


The goal of the EEO Compliance and Operations Division (EEOCO) is to
ensure every HHS employee/applicant for employment has equal access
to EEO services, timely resolution of their complaint and equitable
remedy.
HR Policy Association
HR Policy Association is the lead public policy organization of chief
human resource officers from large employers. The Association consists
of over 300 of the largest corporations doing business in the United
States and globally.
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HR LAW Organizations

Industrial Workers of the World


Workers and their employers do not have the same interests. Workers
want shorter hours, higher pay, and better benefits. The easiest way to
stand up for each other in our workplaces and communities and the
easiest way to improve our working conditions is to join a union.
Society for Human Resource Management (SHRM)
The Society for Human Resource Management (SHRM) is the worlds
largest association devoted to human resource management.
Representing more than 250,000 members in over 140 countries, the
Society serves the needs of HR professionals and advances the
interests of the HR profession. Founded in 1948, SHRM has more than
575 affiliated chapters within the United States and subsidiary offices35
in China and India.

Thank You
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