Employee Rights Protection:

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Employment Law in Pakistan: Overview and Key Provisions

Employment law in Pakistan governs the relationship between employers and employees, ensuring smooth business operations while addressing issues such as productivity, fair wages, and discrimination. These laws mandate employers to meet various obligations, including paying the minimum wage, providing a safe working environment, and managing payroll taxes, while ensuring employees are treated fairly and equitably.

Challenges in Employment Law in Pakistan

Working conditions in Pakistan often fall short of international standards. Employees face issues such as a lack of overtime pay, absence of social security, limited union rights, and no guaranteed weekly leave. The Pakistan Workers Federation (PWF) advocates for workers’ rights, while provincial social security institutions provide essential benefits like healthcare and financial assistance.

Constitutional Rights for Employees

The Constitution of Pakistan protects employees’ rights through several articles:

• Article 11: Bans child labor, forced labor, and slavery.
• Article 17: Grants the right to form unions and exercise freedom of association.
• Article 18: Guarantees the right to pursue lawful professions and occupations.
• Article 25: Ensures equality and prohibits discrimination based on sex.
• Article 37(e): Promotes humane working conditions and maternity benefits for women.

Key Employment Laws

• Provincial Employees Social Security Ordinance, 1965: Provides benefits like healthcare, maternity, and work injury benefits through provincial institutions such as PESSI, SESSI, and KPK’s Social Security Institutions.
• Industrial and Commercial Employment (Standing Orders) Ordinance, 1968: Requires employers to provide written employment contracts and certificates upon dismissal or retirement.

Employment Contracts

Pakistani law limits fixed-term contracts to a maximum of nine months. Specific laws in Khyber Pakhtunkhwa and Sindh also require a No Objection Certificate (NOC) from the Employment Department for non-core jobs.

Employees’ Old Age Benefits Act, 1976

• Pension Rights: Workers can receive full pensions at age 60 (55 for women) after 15 years of contributions, with reduced pensions for those between 50-59 (men) or 50-54 (women).
• Survivor Benefits: Dependents of deceased pensioners are entitled to survivor benefits.
• Invalidity Benefits: Workers suffering permanent disability due to non-occupational injuries are eligible for invalidity benefits.

How LawAdvise Can Help

Navigating Pakistan’s complex employment laws can be challenging due to the numerous ordinances and regulations. Our law firm offers expert legal services to both employers and employees, helping them understand their rights and obligations. We aim to ensure smooth business operations, enhance productivity, and create fair working environments.