Employee Rights Legislation

THE INDUSTRIAL RELATIONS ORDINANCE, 2002     COMPARISON OF PROVISIONS OF 1969 ORDINANCE AND ORDINANCE OF 2002   Provisions Under IRO, 1969 Provisions Under IRO, 2002 CHANGE & IMPLICATIONS 1(1) 1(1) CHANGE: Name has been changed from IRO, 1969 to IRO, 2002 (2) (2) No Change (3) (4) CHANGE: The entire clause has been reworded. It now provides as under: It shall apply to all persons employed in any establishment or group of establishments or industry except those employed (a) in the Police or any of the Defence Services of Pakistan; (b) (c) in any installations or services exclusively connected with the Armed Forces of Pakistan including Ministry of Defence lines of the Railways; (d) by the Pakistan Security Printing Corporation or the Security Papers Limited or Pakistan Mint; (e) (f) in the administration of the State other than those employed as workmen by the Railways, Post Telegraph and Telephone Departments; (g) (h) by an establishment or institution maintained for the treatment or care of sick, infirm, destitute and mentally unfit persons excluding those run on commercial basis; (i) by an institution established for payment of employees’ old age pensions or for workers’ welfare; (j) (k) as member of the Watch and Ward, Security or fire Service Staff of an oil refinery or of an establishment engaged in the production, transmission or distribution of natural gas or liquefied petroleum gas or petroleum products or of a seaport or an airport. Provided that the Federal Government may suspend, in the public interest, by an order published in the official Gazette; the application of this Ordinance to any establishment or industry for a period specified in the order not exceeding six months at a time. (i)There is no change as far as applicability to police and Defence Services of Pakistan are concerned. (ii)Now only installations or services exclusively connected with the armed forces of Pakistan are excluded, whereas previously services or installation connected with or incidental to armed forces of Pakistan were excluded. (iii)Ministry of Defence Lines of Pakistan Railways have been excluded. Previously this was done through a Notification in the official gazette which notification had been upheld both by the High Courts as well as by the Supreme Court of Pakistan. (iv) Previously, an Ordinance Factory maintained by the Federal Government was excluded. Now it is not so excluded. (3)(b) (d) No Change. (c)   Change: This related to certain categories of PIA employees. It has been deleted. Thus, Ordinance is now applicable to all workmen employed by PIA subject however to what has been provided in section 1(4)g. (d) Nill This clause has been deleted. It related to Pakistan Television Corporation and Pakistan Broadcasting Corporation. No corresponding provisions exist in Ordinance of 2002. Therefore, this Ordinance is now applicable to all workmen employed by Pakistan Television Corporation and Pakistan Broadcasting Corporation. (e) (c) Pakistan Mint has been excluded in addition to Pakistan Security Printing Corporation and Security Papers. (f) (e) CHANGE: (i)In addition to establishments, Institutions have also been excluded. (ii)By using words “excluding those run on commercial basis” now hospitals etc. run on commercial basis fall within the purview of the IRO, 2002. (g) (h) (g) CHANGE : Words “or petroleum products or of a sea port or an air port” have been added. Now therefore watch and ward staff, security and fire services staff of these organizations are excluded from the purview of the IRO, 2002.   (f) CHANGE: Words “by an Institution established for payment of employees Old Age Pensions or for workers’ welfare. The Supreme Court has in a number of cases held that IRO is applicable to the Employees Old Age Benefits Institution and even to the Social Security Institutions. Now the provisions as included indicates that the Ordinance shall not be applicable to any institution established for payment of employees Old Age Pensions or workers welfare.   provisio The following proviso has been added: Provided that the Federal Government may suspend, in the public interest, by an order published in the official Gazette; the application of this Ordinance to any establishment or industry for a period specified in the order not exceeding six months at a time. IMPLICATIONS: Previously the Federal Government had no power to suspend the IRO, 1969. Now the Federal Government has been granted power to suspend the operation of the IRO, 2002 by order published in the official gazette. Such order may be in respect of an establishment or even an entire industry. However, the period of suspension of the Ordinance cannot be more than six months at a time. It is pointed out that there is no restriction on extension or number of extensions that may be made by the Federal Government 2(i) (i) No Change (ii) (ii) CHANGE: For “Appellate Tribunal” words “an Appellate Court of competent jurisdiction” have been substituted. IMPLICATION: Since Labour Appellate Tribunals have been abolished, it is merely a consequential change. NIL (iii) CHANGE: A new definition of association has been included, which is as follows: “Association” means any organization of employers formed primarily for furthering and defending the interests and rights of employers. IMPLICATIONS: Previously a trade union could be of employers or of workmen. Now association has been defined for employers and trade union has been restricted to workers. NIL (iv) CHANGE: A Board of Conciliation has been defined as follows: Board of Conciliation means a Tri-Partite Board of conciliation constituted under subsection (3) of section 26. IMPLICATIONS: Provision has been made for constitution of a Tri-Partite Board of Conciliation for conciliating certain categories of industrial disputes. (v) (v) This section defines CBA. CHANGE: Previously CBA could be only in respect of an “establishment or industry.” Now “group of establishments” has also been included in definition of CBA. (v-a) (vi) NO CHANGE (v-aa) (vii) NO CHANGE (vi) (viii) CHANGE: Since provision has been made for “Board of Conciliators”, definition of conciliation proceedings has been enlarged to include proceedings before “Board of Conciliators”. (vii) (ix) There is no material change. (viii)