Lahore University of Management Sciences

LAW 322 – Labor Law

Spring 2015

Instructor Dr. Muhammad Azeem

Room No.
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Course Basics
Credit Hours 3
Lecture(s) Nbr of Lec(s) Per Week 2 Duration 75 mins
Recitation/Lab (per week) Nbr of Lec(s) Per Week Duration
Tutorial (per week) Nbr of Lec(s) Per Week Duration

Course Distribution
Core core
Elective
Open for Student Category
Close for Student Category

COURSE DESCRIPTION

COURSE PREREQUISITE(S)

• None
•
•

COURSE OBJECTIVES

•
•
•

Learning Outcomes

•
•
•
 Lahore University of Management Sciences
Grading Breakup and Policy

Attendance and participation: 15%

Group project: 35% (current labour laws and labour rights issues)
Final exam: 50%

Examination Detail

Yes/No: No
Combine Separate:
Midterm
Duration:
Exam
Preferred Date:
Exam Specifications:

Yes/No: Yes
Combine Separate:
Final Exam
Duration:
Exam Specifications:

Week/
Objectives/
Lecture/ Topics
Application
Module
Introduction to the concept of labour and working ‘class’ After this lecture, students will understand
-Claudio J. Katz, Karl Marx on the Transition from Feudalism to how the working class emerged in
Capitalism industrial countries and how labour laws
-E. P. Thompson, The Making of the English Working Class (some and rights came into being.
1.
excerpts)
- Labour Law and Marxist position-TBA

History of trade unionism in Pakistan Students will know about different

Articles 11, 12, 17/A, 37 & 38 of 1973 Constitution; S 27-B of Banking constitutional rights and statutory
Companies Ordinance; S 2/A of Civil Services Tribunals Act provisions which are relevant to labour
-Khurshid Ahmed, “Impact of 18th Constitutional Amendment on issues
Labour Issues” in Khurshid Ahmed, Labour Movement in Pakistan:
Past and Present, 2nd edition, (Lahore: Institute of Workers Education
2. and Labour Studies, 2009, 2011), pp. 136-149
- Khurshid Ahmed, History of Trade unionism in Pakistan, chapters 2-3,
10-11, pp. 3-27 and 73-80
-Sabur Ghayur, Evolution of the industrial relations system in Pakistan,
Cornell University, ILR School (excerpts)

Current labour conditions and laws Students will learn current diversity in
-Christopher Candland, The Cost of Incorporation: Labour Institutions, labour force and labour conditions
Industrial Restructuring and New Trade Union Strategies in India and
Pakistan
-Asad Sayeed & Karamat Ali, “Labour Market Structure, Contractual
3.
Arrangements and the Direction of Change,” chapter 1 of Asad Sayeed
& Karamat Ali, Labour Market Policies and Institutions: A Framework
for Social Dialogue (PILER, Research Report No.3), pp.1-22
-Zinat Hisam, edited, “Status of Labour Rights and Worker’s Struggles
in Selected Sectors” and also “Labour in Labour Rights in Pakistan:
 Lahore University of Management Sciences
Declining Decent Work & Emerging Struggles (PILER, 2010), PP. 15-
45
Introduction to recent industrial relations legislation in Pakistan- Students will know how the 18th
basic background and concepts amendment has accommodated local
Ss 1 & 2 of Industrial Relations Act, 2012; S91, Schedule I and II of devolution demands and international
IRA 2012; Ss. 1 and 2(i) of Industrial and Commercial Employment obligations. They will also know about
(Standing Orders) Ordinance, 1968; few basic concepts and definitions.
-18th Amendment and labour, chapter 16, pages 141-142 of Justice
Shafi’s book Labour Code of Pakistan
Case Law:
-Air League of PIAC Employees vs Federation of Pakistan, Ministry of
labour and manpower, Islamabad
-Army Welfare Sugar Mills Workers’ Union vs Army Welfare Sugar
Mills, 2009 PLC 132 [claiming exemptions from IRA, 2012 under S
1(4)
4.
-General Manager, Hotel International, Lahore and another vs Bashir A.
Malik and another, PLD 1986 SC 103 [definition of workman]
-Mahmood Hussain Larik and 2 others vs Muslim Commercial Bank
Ltd., 2011 PLC 307 [definition of workman]
-Coca Cola Beverages Pakistan Ltd. Through Authorized
Officer/Industries Relations Manager vs Registrar of Trade Unions,
Sindh and 3 others, 2010 PLC 48 [definition of workman]
-Karachi Chamber of Commerce and Industry, Karachi vs Sindh Labour
Court No. V, Karachi and others, 2011 SCMR 1709 [definition of
industry]

Freedom of Association, trade union and its registration Through this lecture students will how to
A17 (10 of 1973 Constitution; Ss. 3 and 8(1) of IRA 2012; ILO register a trade union and related hurdles
conventions No. 87, 98
Case law:
-Civil Aviation Authority, Islamabad and others Vs Union of Civil
Aviation Employees and another, PLD 1997 SC 78 [discusses certain
5.
rights inherent in a trade union]
-International Textile Ltd. Through Factory Manager Vs Registrar of
Trade Unions, Government of Sindh and 3 others, 2010 PLC 125
[principles regarding registration of a trade union]

-Sui Northern Gas Co. Ltd. Through Authorized Officer and 3 others Vs Student will know a full procedure to
Registrar of Trade Unions & 3 others, 2009, PLC 120 [contract workers register a trade union
from different contractors cannot form a trade union- application of S6
& 7]
-Habib Sugar Mills Ltd., trough Manager vs Registrar of Trade Unions,
Government of Sindh and 4 others, 2001 PLC 441 [composition of trade
union under S8(1) and how outsider can be a member of trade union]
6. -Mazdoor Union, Coca Cola Beverages Pakistan Ltd., through General
Secretary Vs Presiding Officer, Punjab Labour Court No. 9 Multan and
2 others, 2010 PLC 210 [if there is already a trade union, new union
should show 20% (1/5th) members-application of S8(2)(b)]
-Dandot Cement Factory Ltd., Vs Registrar of Trade Unions Jehlum and
2 others , 2009 PLC 166 [employer has no role in registration of trade
union]
 Lahore University of Management Sciences
Process and Challenges after registration of trade union Certain issues after registration may
Ss. 9-18 of IRA, 2012 appear. This lecture will discuss few of
Case law: them.
-Mushtaq Husain Shah Vs Riaz Muhammad Hazarvi and another, 1980
PLD 1978 Kar 612 [duty of registrar to give certificate]
-KMC Peoples Workers’ Union Vs Registrar of Trade Union, central
division, Karachi and another 1997 PLC 315 [only labour court not
7.
registrar can cancel a trade union-application of S11]
-R. B. Avari & Co. Ltd. Vs All Karachi Liquor Wine Workers Union,
1975 PLC 37 [A union can represent a group of establishments]
-Factory Manager, Rustam Sohrab Cycle Factory, Lahore Vs Registrar
of Trade Unions and another, 2010 PLC 447 [disqualification to be an
office bearer or member of a trade union]

Collective Bargaining Agent (CBA) and its functions Students will learn how a trade union can
Ss. 19-21 of IRA, 2012 become a CBA where there are more trade
Case law: unions in an establishment. Added to this
Optimus Ltd. through its Manager Human Resources Vs Registrar of is the familiarity about the functions of a
Trade Unions, Sindh through Joint Director Labour South and 2 others, CBA.
2010 PLC 166 [how a CBA is elected when there are more trade
unions]
-Head Officer Staff Union Vs Registrar of Trade Unions, Lahore
8.
Region, Lahore and another, 1980 PLD 1979 Lah 820
-Baluchistan Engineering Works Ltd. Through Notified Factory
Manager Vs Muhammad Salman and others, 2003 PLC 330 [functions
of CBA]
-Airleague of PIA Employees Union and another Vs Federation of
Pakistan/the President/ Chief Executive and another, 2003 PLC (C. S.)
145 [Musharraf’s order 6 of 2001 suspending trade union activities]

Unfair labour practices on the part of employees and workmen After this lecture, students will know
Ss. 31-32 of IRA 2012; S11-A of Industrial and Commercial about unfair labour practices by employers
Employment (Standing Orders) Ordinance, 1968 as well as by a workmen in the course of
Case Law: disputes among them.
-Aziz Muhammad Vs General Tyre & Rubber Company of Pakistan
Ltd. Through Occupier and 3 others, 2007 PLC 224 [disciplinary
proceedings are not unfair practice]
-M. C. P. Employees’ Union, Shalimar Workshop, Lahore Vs Afzal
Butt, Area General Manager, M. C. P. and 2 others, 1979 PLC 13
9. [transfer order to victimize union activities was set aside]
-Optimus Ltd. Employees’ Union and 2 others Vs Optimus Ltd. And 3
others, 2009 PLC 354 [letter of warning not to misbehave was not an
unfair labour practice]
-Ahmad Food Industries (Pvt.) Ltd. Through General Manager Vs
Ahmad Food Industries Mazdoor Itehad Union and 2 others, PLJ 1998
Tr. C. (NIRC) 24
-Idrees Fatima Vs Asrar & another, 1974 PLC 46 [female labour was
forced to join union]

Raising of industrial disputes, strikes and lockouts
Ss. 34-40 of IRA, 2012 (raising of disputes); Ss. 41-48 of IRA 2012
(strikes and lockouts)
10.
Case laws:
-Pakistan Tobbaco Vs Chairman, Second Labour Court and others, 1972
PLC 190 [each clause of settlement is part of agreement and cannot be
Objectives: This is true that strike is the
right of workers. But an exercise of this
right needs certain procedure and
considerations. Through this lecture,
students will know about the complexity
of strikes and lockouts.
 Lahore University of Management Sciences
severed]
-Messers Hayat Industries Ltd. Vs The Fourth Sindh Labour Court and
two others, 1974 PLC 584 [
-Adamjee Cotton Mills Karachi Vs Sindh Employees Social Security
Institutions, 1974 PLC 213
-Messers Crescent Garment Industries Ltd. Vs Workers Union and
another 1989 PLC 519
-Star Textile Mills Ltd. Vs Third Sindh Labour Court, 1973 PLC 376
-Muhammad Yousaf Vs Messers Pak Industries ltd. 1973 PLC 45
-Messers Café Millat Vs Karachi Hotel Workers Union, 1973 PLC 104
-Workers’ Union Vs Indus Chemicals and Alkalies Ltd. 1972 PLC 220
-Modern Tentage & Textile Industries Ltd. Vs Punjab Labour Court No.
1 ETC. PLD 1978 Lah. 965 [notice on employer and CBA is
mandatory]

National Industrial Relations Commission (NIRC), its composition, Objectives: student will know about
functions, powers, and appeals NIRC, its composition, functions, powers,
Ss. 53-66 of IRA, 2012 and appeals
Case law:
-M Atiqullah and 2 others Vs Khuda Bakhsh and another, 1980 LLC
752 [NIRC remedy is independent of other issues]
-Karachi Port Trust (KPT) Labour Union, Union Bank KPT, Head
Office through its General Secretary Vs Board of Trustees of KPT, PLJ
1998 Tr. C. (NIRC) 344 [KPT employees are workers or civil servants?]
-Habib Bank Ltd., Zonal Office, Bahawalpur Vs NIRC and others, 1999
11.
PLC 22 [NIRC orders should not be slipshod and perfunctory]
-Swat Silk Mills Employees’ Association VS Shah Jehan Khan, 1976
PLC 272 [refusal to accept summons and appearance in court]
-Simplex Rubber Manufacturer (Pvt.) Ltd. Vs Simplex Rubber
Manufacturers Employees’ Union and others, 2002 PLC 238 [full bench
of NIRC can set aside the decision of single bench]
-Karachi Union of Employees and others Vs The Industrial Court
Karachi and others, 1961 PLD SC 57 [legal practitioners cannot appear
in the guise of office bearers of the union]

Industrial and Commercial Employment (Standing Orders)

Ordinance, 1968
Readings: Ss.1, 2, Schedule Standing Orders’ S 2(g)
Case law:
-Abdul Razzaq Vs Ihsan Sons Ltd. and 2 others (1992 SCMR 505)
whether an employee was a worker?]
-Pir Muhammad Vs Suleman Glass Works, Karachi, 1992 PLC 940
[burden of proof is on worker regarding the number of workers to bring
proceedings under S1(4)(a)
-Asghar Ali Vs Al-Asif Sugar Mills Ltd. Karachi, PLJ 1998 Tr. C.
12 & 13
(Labour) 177 [worker failed to fulfill above requirement]
-Faqir Muhammad Vs The Director of National Savings, Multan
Region, Multan, 1992 PLC 163 [standing orders do not apply on
servants]
-Granulars (Pvt.) Ltd. Vs Muhammad Afzal and others, 2002 PLC 1
[application letter should specifically state about application of labour
laws]
-Attaullah Vs Chief Executive & General Manager, Liberty Power Ltd.
Mirpur Mathelo, 2001 PLC 473 [contract worker and standing orders]
-Hino Pak Motors Limited Vs Chairman, Sindh Labour Appellate
 Lahore University of Management Sciences
Tribunal and others, 2002 PLC 89 [how to prove employment with the
contractor or employer]
-Pakistan International Airlines Vs Sind Labour Court No. 5 and others,
PLD 1980 SC 323 [woker after 9 months is not a temporary worker]

Law of minimum wages and the law of payment of wages

Ss. 3, 5, 6, 19B; Schedule of minimum wage of Minimum Wages
Ordinance, 1961; West Pakistan Minimum Wages for Unskilled
Workers Ordinance, 1969; Ss. 2, 7, 15, 17 of Payment of Wages Act,
1936; Payment of Wages (Procedure) Rules, 1937; West Pakistan
Payment of Wages Rules, 1960
Case law:
-National Steel Rolling Mills and others Vs Province of West Pakistan,
1976 LLC 444=1968 SCMR 317 (2) [changing minimum wages and
powers of Board in this regard]
-North Western Railways Vs Sher Muhammad, 1967 PLC 101 [wages
and earned wages-difference]
-Adamjee Paper and Board Mills, Nowshera Vs Sher Muhammad Khas
and 2 others, 1980 PLC 568 [claim of wages and work done]
-Shaukat Ali and others Vs Pakistan, 1959-60 LLC Kar. 73 [wages and
contract ascertained by authority]
(below are the cases about S15 of the Payment of Wages Act, 1936)
-Vice Chairman, P. W. Railways Vs Qutbuddin, 1975 PLC 310 [how
much should be deducted on penalty]
-Muhammad Aslam and another Vs ? 2000 PLC 268 [cost of living
allowance and overtime is not part of wages]
-The Divisional Superintendent, N. W. R. Lahore Vs Muhammad
Sharif, 1960 PLC 214 [employee can calim wages for the time he was
14 & 15 not allowed to work (suspended]
-Lawrencepur Woolen and Textile Mills Ltd. Vs Government of Punjab
and others, PLD 2004 SC 416 [for authority under S 15 –normal courts
procedure is not applicable to party]
-Express Newspaper (Pvt.) Ltd. Vs Michael Mark and others, 1962 LLC
898 [termination without notice]
-National Tyre & Rubber Company Vs Sind Labour Court No. III,
Karachi and 2 others, 1979 PLC 440 [no right of appeal when labour
authority act correctly]
-Iqbal Ahmed Vs Second Labour Court and another, 1980 PLC 316
[order of the authority is not final and one can go for S34 of IRO 1969
-Crescent Ghee Mills, Presently S. J. Industries, Chichawatni through
General Manager Vs Rehmat Ali and another, 1998 PLC 289 [golden
handshake scheme and payment of wages]
(case law about S17 of the Payment of Wages Act, 1936)
- Pakistan through Chairman Railway Board, Lahore Vs Maqsood Ali &
82 others, 1981 PLC 307 [appeal and revision against the order of the
authority]
-S. M. Rahman & Co. Vs Motbar and ithers, PLD 1981 SC [revisional
jurisdiction of HC- no more valid]
-Abdur Rashid and others Vs Abdul Rahim, 1960 PLC 219 [different
HCs have different opnion about the revisional jurisdiction of HC
against the orders of the authority]

Misconduct, Punishments and fine

16. Readings: Section 15 of Standing Order
Case law:
 Lahore University of Management Sciences
-Pakistan International Airline Corporation, Karachi Vs Junior Labour
Court No. IV, Karachi and another, PLD 1978 SC 239 [what is
misconduct?]
-Saifee Development Corporation Ltd. Vs Workers’ Union, 1965 PLC
304 [negligence should be habitual]
-Anwar Ali Shah Vs Punjab Labour Appellate Tribunal, Lahore and
another, 1979 PLC 201 [unsatisfactory performance is not misconduct]
-Haroon-ur- Rashid Vs Rafhan Maze Products Co. Ltd. through
Personnel/ Factory Manager, Faisalabad and 2 others, 2000 PLC 99
[criminal proceedings and departmental action of misconduct –both can
go side by ide]
-Noor Silk Mills Ltd. Karachi Vs Yar Ali and 4 others, 1969 PLC 216
[participation in illegal strike]
-Hafeez Shah and 3 others Vs United Bank Limited and 2 others, 2001
SCMR 931 [charge sheet/show cause notice of inquiry is necessary]

Workmen’s compensation
Readings: Ss. 2, 3, 4, 19, 30, Schedule I, II, III of Workmen’s
Compensation Act, 1923
Case law:
-Mst. Nasreen Akhtar Vs Khair Din, 2001 PLC 53 [liability of employer
for compensation for death of employee on duty]
-Divisional Superintendent P. W. R. Quetta Vs Mian Muhammad 1973
PLC 337 [summary procedure in the Act is not for tort proceedings]
-Mst. Lal Jan Vs Silver Paper Tube Co., 1974PLD Kar. 140
17.
[compensation Act and social security ordiance-relation]
-G. D. Gianchand etc. Vs Abdul Hameed 1938 A. I. R. Lah. 855 [a
commissioner court under the Act is subordinate to HC-revision]
-Muhammad Ali Vs Govt of West Pakistan etc. PLJ 1974 Lah. 596
[same as above]
-Johnson and Philips (Pakistan) Ltd. Vs Jaleel Ahmad, 1973 PLC 244
[commissioner under the Act is not subordinate to HC within the
meaning of S115 CPC –no revision]

Employees’ Social Security Legislation, old age benefits and

provident fund
Readings: Ss. 1, 20, 20A, 35-46 of Provincial Employees Social
Security Ordinance, 1965
Case law:
-Sindh Employees’ Social Security Institutions Vs Fuji Color Pakistan
Laboratories (Pvt.) Ltd., 2003 PLC 189 [purpose of the ordinance]
-Nestle Milk Pack (Pvt.) Ltd. through Secretary Vs Vice-Commissioner,
18 PESSI, Head office, Lahore and 3 others, 2003 PLC 80 [construction
contractors are different than other contractors]
-Punjab Employees’ Social Security Institutions and others Vs Lyallpur
Cotton Mills Ltd. and others, 2002 SCMR 729 [link between various
allowances, wages, and social security]
-Sindh Employees’ Social Security Institutions Vs Consolidated Sugar
Mills Ltd., 1988 SCMR 888 [ultimate employer is liable for its
employees even through contractor]]

Gender and labour conditions/Harassment of women at work place

Readings: Protection against Harassment of Women at the Workplace
19
Act, 2010; Protection against Harassment of Women at the Workplace
Rules, 2010; Criminal Law (Amendment) Act, 2010
 Lahore University of Management Sciences
-Maliha Zia Lari, “Gender Review of Labour Laws: Overview of the
legal system and women’s access, chapter 2, pp. 1-4 (PILER, 2010)
-Ibid, pp11-33
Case law: TBA
Objectives: students will learn about an area of labour law which needs
urgent attention. Women are entering in industrial labour force in ever
greater number but facing a hostile environment.

Laws of Bonded labour system abolition

Readings:
-Bonded Labour System (Abolition) Act, 1992
- Bonded Labour System (Abolition) Rules, 1995
20 -Report of Dr Ali Qazilbash on boded labour in Pakistan
Case law:
-Darshan Masih case
-a guest speaker will be invited

Child Labour and Children Employment

Readings:
-Employment of Children Act, 1991
21
-Employment of Children Rules, 1995
-Reports and analyses of HRCP on child labour in Pakistan. TBA

Labour in agricultural sector, TBA

22

Textbook(s)/Supplementary Readings