February 1, 20060

Room # 3, Falaknuma Bldg.
39 Abdullah Haroon Rd.
Karachi, 74700
Phone: (021)32727266
Email: Info@smyaqoob.com
Website: www.smyaqoob.com

Date: 01-02-2006

Circular Number: C-108


Our Comments on the proposed Bill No. 20/2005 namely the Labour Laws (Amendment) Act, 2005 amending four labour laws are given below: –

1. The Workmen’s Compensation Act, 1923: –
In the Schedule IV of the Act the figure “3000” has been replaced by the figure “6000”. This would create confusion as the wage limit u/s 2(n)(ii) of the Act of the workman to be covered by the Act has not been amended and it still remains Rs. 3000/- per month.

2. The Factories Act, 1934: –
(a.) In Section 38, for the words and comma, “ ten and a half hours, or where the factory is seasonal one, eleven and a half” the word “twelve” has been substituted which means that the speared over i.e. period of work and intervals of work together could be upto 12 hours in all factories.

(b.) In the first Proviso under Section 45(1)(b) before the word “provided” the word “further” shall be inserted, and it shall become the second Proviso and before this proviso the following new Proviso shall be inserted: –

“Provided that if the employer arranges for the transport facilities, the women may work upto 10 p.m. in two shifts.”

This may increase employment of women but transport provided to the workers drop them at fixed points and not at their doorsteps. A women worker dropped at such point would walk to her house during the night which would create problems of safety / security to the women workers in night shift.

3. W.P. Industrial & Commercial Employment (Standing Orders) Ordinance, 1968: –
i- It would have much better and convenient to delete the words “West Pakistan” from the long title of this law.
ii- (a.) In the Standing Order 1(a), after sub-clause (5) a new sub-clause “(6) contract worker” has been added.
(b.) After its sub-clause (f) a new clause has been added as under: –
“(g) A “contract worker” is a workman who works on contract basis for a specified period on remuneration to be calculated on piece rate basis.”
By these a new class/category of contract worker on piece rate wages for specified period has been introduced which is separate from the workers of the contractor u/s 2(f)(iv) of the Ordinance who independently employs his workers to do the contracted work taken on contract by the Contractor. This may not include piece rate workers not employed for specified period but on regular basis. A Contract worker shall not be eligible to all the benefits of the Ordinance if he does not quality for the same as provided by the Ordinance and when the specified period is short, say less then 6 months.

4. W.P. Shops and Establishment Ordinance, 1969: –
i.) As mentioned above this opportunity could have been availed to the delete the words “West Pakistan” from the Ordinance.
ii.) (a.) In Section 6, its sub-section (1) has been substituted by as under: –
“(1) Except as otherwise provided in this Ordinance every person employed in any establishment shall, in addition to the leave and holidays as may be admissible to him under sections 14, 15 and 16 be allowed as holiday, one day in each week.”
(b.) Its sub-section (4) has been omitted.

By necessary implication of the above, now it is not necessary to close the shop/ establishment on one day in a week but the employee is required to be given one day off in each week.

iii.) In Section 8 in the Proviso for the words “one hundred and fifty” the words “six hundred and twenty four” and for the words “one hundred” the words “four hundred and sixty eight” have been substituted.

By the above, the maximum limit of overtime work permissible for adult and young person have been increased.

iv.) In Section 9 the following Proviso has been added:-
“(II) Provided that no such overtime shall be payable to contract workers in receipt of wages being calculated on piece rate basis.”

The new category of the contract workers shall not be payable over time but shall be paid normal piece rate wages for extra work.

v.) Section 10 (spread over) has been substituted by a new Section 10 as under: –
“(10) Spread-over – The period of work of an adult and young person shall be so arranged that inclusive of the interval for rest or meals under section 7, it shall not spread-over more than twelve hours in the case of adult and nine hours in the case of young person.
Provided that the total period of work so worked on, in case of an adult worker, shall not exceed sixty hours and by a young person fifty-hours in a week.”

The period of work does not include rest interval. The above amendments as mentioned in the objects of the Act are to meet conditions of WTA & SA 8000 and to increase value added exports.


For M/s S. M. Yaqoob


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