ACT NO. X of 2012
INDUSTRIAL RELATIONS ACT, 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 trans-provincial establishments and industry
[Gazette of Pakistan, Extraordinary, 14th March, 2012]
No. F. 23(22)/2012-Legis.—The following Act of Majlis-e-Shoora (Parliament) received the assent of the President on the 14th March, 2012 and is hereby published for general information:—
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 trans-provincial 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:—
1. Short title, extent, application and commencement.—(1) This Act may be called the Industrial Relations Act, 2012.
(2) Subject to sub-section (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;
(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;
(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;
(xii) "Government" means the Federal Government;
(xiii) "Group of establishments" means establishments belonging to the same employer and the same industry;
(xiv) "illegal lock-out" means a lock-out 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 non-employment 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) "industry-wise 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) "lock-out" 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;
(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) "trans-provincial" 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 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, lay-off, or removal has led to that dispute but does not include any person who is employed mainly in managerial or administrative capacity.
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.
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;
(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 member-unions;
(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;
(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 sub-section (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 one-fifth of the total number of workmen employed in such 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 sub-section (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 sub-section (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 sub-section (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;
(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 sub-section (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.
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 sub-section (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 sub-section (1).
(4) No trade union federation or confederation shall be formed and registered having same, similar on identical name.
(5) Subject to sub-Sections (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.
(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.
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 one-third 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:
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 sub-section 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 sub-section (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.
(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 sub-section (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 sub-section (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 one-third of the total number of votes of workmen mentioned in the voters" list employed in such establishment or group of establishments:
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 sub-section (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 sub-section (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 sub-section (9) and sub-section (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 sub-section (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, non-employment, 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;
(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 sub-section (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" credit-rating 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 sub-section (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 sub-section (1).
23. Shop steward.—(1) In every factory/establishment in which twenty-five 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 sub-section (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 sub-section (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.
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.
(3) The workers representative shall hold office for a period of two years from the date of their election 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) in-service 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 sub-section (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 sub-section (5) or sub-section (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 sub-section (1) of the section.
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 piece-rates;
(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.
(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).
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;
(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 11-A of the industrial and Commercial Employment (Standing Orders) Act, 1968 (W.P. Ord. VI of 1968); or
(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 sub-section (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 go-slow; or
Explanation.—In clause (e) the expression 'go-slow’ 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.
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 sub-section (2) or, as the case may be sub-section (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 sub-section (2), or sub-section (3), as the case may be.