Chapter No.1 Labour Legislation in Pakistan

2003

Bill No. 120 of 2020 AS INTRODUCED IN LOK SABHA (ii) CHAPTER IV STANDING ORDERS CLAUSES 28. Application of this Chapter. 29. Making of model standing orders by Central Government and temporary application. 30. Preparation of draft standing orders by employer and procedure for certification. 31. Certifying officers and appellate authority to have powers of civil court. 32. Appeals. 33. Date of operation of standing orders and its availability. 34. Register of standing orders. 35. Duration and modification of standing orders. 36. Oral evidence in contradiction of standing orders not admissible. 37. Interpretation, etc., of standing orders. 38. Time limit for completing disciplinary proceedings and liability to pay subsistence allowance. 39. Power to exempt. CHAPTER V NOTICE OF CHANGE 40. Notice of change. 41. Power of appropriate Government to exempt. CHAPTER VI VOLUNTARY REFERENCE OF DISPUTES TO ARBITRATION 42. Voluntary reference of disputes to arbitration. CHAPTER VII MECHANISM FOR RESOLUTION OF INDUSTRIAL DISPUTES 43. Conciliation officers.

In today's era, various employment laws at workplace have become vital not only from the workers' point of view but from the whole organizational point of view. Laws modulate the workplace by introducing justice, fairness and equality, help to put an end to unfair labour practices and provides for the rights, privileges, obligations and responsibilities of the workforce. Industrial legislation helps both workers and management to know exactly about their rights, duties and obligations and the liabilities. The industrial work in India has acquired special features with the introduction of large scale and modern industrialization. Keeping this in view, both central and state governments have enacted laws on labour and employment issues. in order to ensure sound working practices at industries across India. This research paper highlights one of the prominent laws, which have been introduced for defining the principal conditions of employment in order to ensure sound working practices in industries across India.

Art. XIII, §3.The State shall afford full protection to labor, local and overseas, organized and unorganized, and promote full employment and equality of employment opportunities for all. It shall guarantee the rights of all workers to selforganizations, and peaceful concerted activities, including the right to strike in accordance with law. They shall be entitled to security of tenure, humane conditions of work, and a living wage. They shall also participate in policy and decision-making processes affecting their rights and benefits as may be provided by law. The State shall promote the principle of shared responsibility between workers and employers and the preferential use of voluntary modes in settling disputes, including conciliation, and shall enforce their mutual compliance therewith to foster industrial peace. The State shall regulate the relations between workers and employers, recognizing the right of labor to its just share in the fruits of production and the right of enterprises to reasonable returns on investments, and to expansion and growth. Art. II, § 18.The State affirms labor as a primary social economic force. It shall protect the rights of workers and promote their welfare. Art. III, § 8. The right of the people, including those employed in the public and private sectors, to form unions, associations, or societies for purposes not contrary to law shall not be abridged. LABOR CODE Art. 1. Name of Decree.-This Decree shall be known as the "Labor Code of the Philippines." In calling such conference, the Secretary of Labor and Employment may consult with accredited representatives of workers and employers. CIVIL CODE Art. 1700. The relation between capital and labor are not merely contractual. They are co impressed with public interest that labor contracts must yield to the common good. Therefore, such contracts are subject to the special laws on labor unions, collective bargaining, strikes and lockouts, closed shop, wages, working conditions, hours of labor and similar subjects. Art. 1701. Neither capital nor labor shall act oppressively against the other, or impair the interest or convenience of the public. Art. 1702. In case of doubt, all labor legislation and all labor contracts shall be construed in favor of the safety and decent living for the laborer. Art. 1703. No contract which practically amounts to involuntary servitude, under any guise whatsoever, shall be valid. CASES Phil. Blooming Mills Employees Assoc. vs. PBM, 51 SCRA 189 * Art. 97. Definitions.-(b) "Employer" includes any person acting directly or indirectly in the interest of an employer in relation to an employee and shall include the Government and all its branches, subdivision and instrumentalities, all government-owned or-controlled corporations and institutions, or organizations. (c) "Employee" includes any individual employed by an employer. (e) "Employ" includes to suffer or permit to work. Art. 167. Definition of terms.-(f) "Employer" means any person, natural or juridical, employing the services of the employee. (g) "Employee" means any person compulsorily covered by the GSIS under Commonwealth Act numbered one hundred eighty-six, as amended, including members of the Armed Forces of the Philippines, and any person employed as casual, emergency, temporary, substitute or contractual; or any person compulsorily covered by SSS under Republic Act numbered eleven hundred sixty-one as amended. Art. 212. Definitions.-(e) "Employer" includes any person acting in the interest of an employer, directly or indirectly. The term shall not include any labor organization or any of its officers or agents except when acting as employer. (f) "Employee" includes any person in the employ of an employer. The term shall not be limited to the employees of a particular employer, unless this Code so explicitly states. It shall include any individual whose work has ceased as a result of or in connection with any current labor dispute or because of any unfair labor practice if he has not obtained any other substantially equivalent and regular employment. Art. 107. Indirect employer.-The provisions of the immediately preceding Article shall likewise apply to any person, partnership, association or corporation which, not being an employer, contracts with an independent contractor for the performance of any work, task, job or project. Art. 108. Posting of bond.-An employer or indirect employer may require the contractor or subcontractor to furnish a bond equal to the cost of labor under contract, on condition that the bond will answer for the wages due the employees should the contractor or subcontractor , as the case may be, fail to pay the same. Art. 109. Solidary liability.-The provisions of existing laws to the contrary notwithstanding, every employer or indirect employer shall be held responsible with his contractor or subcontractor for any violation of any provision of this Code. For purposes of determining the extent of their civil liability under this Chapter, they shall be considered as direct employers. DEPARTMENT ORDER NO. 3, SERIES OF 2001 Revoked D.O. No. 10 Series of 1997 which liberalizes labor-only contracting in certain situations. CASES Aurora Land Projects Corp. v. NLRC, 266 SCRA 48 Jurisprudence is firmly settled that whenever the existence of an employer-employee relationship is in dispute, four elements constitute the reliable yard stick: (a) selection and engagement of the employee; (b) the payment of wages; (c) power of dismissal; (d) the employer's power of control over the employee's conduct. It is the so-called "control test", that is whether the employer controls or has reserved the right to control the employee, not only as to the result of the work to be done, but the means and methods by which the same is to be accomplished, that is the most important index of the existence of the employer-employee relationship. Algon Engineering v. NLRC, 280 SCRA 188 Employer-Employee relationship question of fact. Liability for loss of materials in employees custody and subsequent transfer is indicative of employer's power of control. Filipinas Broadcasting v. NLRC, 287 SCRA 348 Power of control-regulate or control employee's activities or input, subject to employer's supervision. Insular Life v. NLRC, 287 SCRA 476 It is axiomatic that the existence of an employer-employee relationship cannot be negated by expressly repudiating it in the management contract and providing therein that the "employee" is an independent contractor when the terms of the agreement clearly shows otherwise. 5 Caurdanetaan Piece Workers Union v. Laguesma, 286 SCRA 401 (case where the SC uses Art. 280 to prove 'er-'ee relationship) Paid wages directly to employee, wielded power of dismissal, and members of union did not possess substantial capital which belies claim that they were independent contractors. Maraguinot v. NLRC, 284 SCRA 539 It is settled that contracting out of labor is allowed only in case of job-contracting. For a contactor to be job-contactor, must have tools, equipment, machinery, work premises, and other materials necessary to his business, or substantial capital or investment. As labor-only contracting is prohibited, the law considers the person or entity engaged in the same, a mere agent or intermediary of the direct employer. Coca-Cola v. NLRC, May 17, 1999 Although janitorial services may be deemed directly related to the principal business of employer, as with every business, it is deemed unnecessary in the conduct of the employer's principal business. But this rests on the presumption that the contractor is a legitimate jobcontractor such that the employer-employee relationship between him and the employee cannot be doubted. Corporal v. NLRC, Oct. 2, 2000; GR 129315 (again SC uses Art. 280 of Labor Code in determining 'er-'ee relationship) Control-required to report daily and observe definite hours of work, not free to accept employment elsewhere. No longer true that membership in SSS is predicated on the existence of employer-employee relationship as the policy now is to encourage even the self-employed to become members. AFP Mutual Benefit v. NLRC, 267 SCRA 47 "Not all that glitters is control". In insurance, exclusivity is not indicative of control as the Insurance Commission prohibits serving in more than one insurance company. An employee who is allowed to work after a probationary period shall be considered a regular employee. CASES De Leon V. NLRC, 176 SCRA 615 De Leon was employed by La Tondena as a painter and on the agreement that he is considered a casual employee. He was made to clean and oil machines and other odd jobs when he had no painting job. After more than a year of service, he requested to be included in the payroll of regular workers. La Tondena responded by dismissing him.