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• We will discuss how Laws affect Human Resource Management and how
these laws shape and affect; how companies deal with employees
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What is meant by Labor law?
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History of Labor law?
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Laws of Pakistan
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Labor laws in constitution of Pakistan
Article 11 prohibits all forms slavery , forced labor and child labor.
• Slavery is non existent and forbidden and no law shall permit or facilitate its
introduction into constitution in any form.
• All forms of forced labor and traffic of humans are prohibited.
• No child below the age of 14 shall be engaged in any factory or mine or any
hazardous employment.
Article 17 provides for a fundamental right to exercise the freedom of association and
the right to form unions.
• Every citizen shall have the right to form association or unions, subject to any
reasonable restriction imposed by the law in the interest of public order.
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Labor laws in constitution of Pakistan
• Article 18 prescribe the right of its citizens to enter upon any lawful profession or
occupation and to conduct any lawful trade and business.
• Article 25 lays down the right to equality before and prohibition of discrimination on
grounds of sex alone.
• All citizens are equal before the law and are entitled to equal protection of law.
• There shall be no discrimination on the basis of sex.
• Article 26 says no person otherwise qualified can be discriminated against in the matter of
employment on the basis of race, religion, caste, gender, residence or place of birth
(Exceptions: specific services can be reserved for members of either sex if such
posts/services require duties which cannot be adequately performed by the members of
other sex, e.g. Lady Health Visitor)
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Labor laws in constitution of Pakistan
• Article 37(e) makes provisions for securing just and humane conditions for work and,
ensuring that children and women are not employed in vocation(particular occupation)
unsuited to their age and sex and for maternity benefits of women in employment.
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Complete List of Labor Laws in Pakistan
The objective of this Act is to create a safe working environment for women, which is
free of harassment, abuse and intimidation with a view toward fulfillment of their right
to work with dignity. It will also enable higher productivity and a better quality of life at
work. Harassment is one of the biggest hurdles faced by working women preventing
many who want to work to get themselves and their families out of poverty. This Act will
open the path for women to participate more fully in the development of this country at
all levels.
This Act requires all public and private organizations to adopt an internal Code of
Conduct and a complain/appeals mechanism aimed at establishing a safe working
environment, free of intimidation and abuse, for all working women. It shall also
establish an Ombudsman at Federal and provincial levels.
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Child Labor
Minimum Age and Protection of Young Workers Article 11(3) of Pakistan’s Constitution
expressly prohibits the employment of children below the age of fourteen years in any
factory, mine or other hazardous employment. Also ensuring that children and women
are not employed in vocations unsuited to their age or sex.
The Factories Act, 1934 allows for the employment of children between the ages of 14
and 18 years provided that each adolescent obtains a certificate of fitness from a
certifying surgeon.
The Act further restricts the employment of a child in a factory to five hours in a day. The
hours of work of a child should thus be arranged in such a way that they are not spread
over more than seven-and-a-half hours in any day.
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Overtime
You can’t be compelled to work more than 2 hours overtime a day. Your total yearly
overtime work hours should also not exceed 624 hours.
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Sickness & Leaves
Every secured worker certified by a medical practitioner is entitled to paid sick leave for a
period of 121 days in case of ordinary ailments and 365 days in case of Cancer or
Tuberculosis.
Ordinary ailments requires the employer to pay 75% of wages last drawn while for
Cancer and Tuberculosis a worker has to be paid 100% of last wages drawn.
If there is an employment related injury, a worker has the right to draw 100% wages for a
period of 180 days.
Employees are also protected by the Equal Employment Opportunity Commission (EEOC),
which was established through the 1964 Civil Rights Act, Title VII. The scope of authority of
the EEOC has been expanded so that today it carries the major enforcement authority for
the following laws:
Civil Rights Act of 1964. Prohibits discrimination on the basis of race, color, religion,
national origin, or sex.
Civil Rights Act of 1991. Reaffirms and tightens prohibition of discrimination. Permits
individuals to sue for punitive damages in cases of intentional discrimination and shifts the
burden of proof to the employer.
Equal Pay Act of 1963. Prohibits pay differences based on sex for equal work.
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International Laws
ADA (Americans with Disabilities Act): Prohibits employers from discriminating against
people with disabilities. Requires employers to provide “reasonable accommodation” for
individuals with disabilities. The law applies to all private employers with 15 or more
employees, state and local governments, and labor unions.
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International Laws
FLSA (Fair Labor Standards Act): Establishes minimum wage rates, requires overtime pay for
certain employees, restricts the employment of minors, and imposes certain recordkeeping
obligations. The law applies to most private and public employers, with some exceptions in
certain retail and agricultural industries.
FMLA (Family and Medical Leave Act): Grants qualified employees a total of 12 work weeks
of unpaid leave during a 12-month period for health-related reasons, including childbirth,
family illness, or personal health reasons that preclude handling the job’s duties. The law
applies to any individual or entity engaged in commerce or in any industry or activity
affecting commerce that employs 50 or more employees for each working day during each
of 20 or more calendar workweeks in the current or preceding calendar year, and public
agencies regardless of the number of people they employ.
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International Laws
• Title VII of the Civil Rights Act: Prohibits employers from discriminating against
employees and applicants for employment, in the terms and conditions of employment,
on the basis of race, color, religion, sex, or national origin. The law applies to private
employers with 15 or more employees, as well as virtually all government institutions,
employment agencies, and labor unions, but not the federal government.
• WARN (Worker Adjustment and Retraining Notification Act): Requires 60 days’ advance
written notice to affected employees (or their bargaining unit), as well as state and local
rapid response/dislocated worker agencies, of mass layoffs or plant closings that will
result in at least 50 employment losses within a 30-day period. The law generally covers
employers with 100 or more employees.
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International Laws
IRCA (Immigrant Reform and Control Act): Requires that employers attest to the
immigration status of their employees, bans employers from hiring illegal aliens, and
establishes penalties for such behavior. The law applies to all employers.
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International Laws
Davis-Bacon Act of 1931—This law requires the payment of minimum wages to nonfederal
employees.
The Norris-Laguardia Act of 1932—This law protects the rights of unions to organize, and
prohibits employers from forcing job applicants to promise not to join a union in exchange
for employment.
The Wagner Act of 1935—This law, also known as the National Labor Relations Act, is the
main piece of legislation governing union/management relations, and is a chief source of
regulation for HRM departments.
Social Security Act of 1935—This law was enacted in order to protect the general welfare by
establishing a variety of systems to assist the aging, the disabled, and children.
The Walsh-Healy Public Contracts Act of 1936—This law was designed to ensure that
employees working as contractors for the federal government would be compensated fairly.
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International Laws
Fair Labor Standards Act of 1938—this important law mandated employer compliance
with restrictions related to minimum wages, overtime provisions, child labor, and
workplace safety.
Taft-Hartley Act of 1947—This law created provisions that severely restrict the activities
and power of labor unions in the United States.
Landrum-Griffin Act of 1959—Also known as the Labor-Management Reporting and
Disclosure Act (LMRDA), the Landrum-Griffin Act deals primarily with the relationship
between a union and its members. This law grants certain rights to union members and
protects their interests by promoting democratic procedures within labor organizations.
Age Discrimination in Employment Act of 1967—This legislation, which was strengthened
by amendments in the early 1990s, essentially protects workers 40 years of age and older
from discrimination.
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International Laws
Occupational Safety and Health Act of 1970—This act, which established the
Occupational Safety and Health Administration, was designed to force employers to
provide safe and healthy work environments and to make organizations liable for workers'
safety. Today, thousands of regulations, backed by civil and criminal penalties, have been
implemented in various industries to help ensure that employees are not subjected to
unnecessarily hazardous working conditions.
Family and Medical Leave Act of 1993—This law was passed to provide employees who
qualify with up to 12 work weeks of unpaid, job-protected leave in a 12-month period for
specified family and medical reasons. It also requires group health benefits to be
maintained during the leave as if employees continued to work instead of taking leave. The
Act became effective on August 5, 1993 and applies to companies who employ 50 or more
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Effects of Laws on
HRM by Organizations
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Laws and its effects on HRM
The services of a permanent worker cannot be terminated for any reason other than
misconduct unless one month’s notice or wages in lieu thereof has been furnished by the
employer or by the worker if he or she so chooses to leave his or her service. One month’s
wages is calculated based on the average wage earned during the last three months of
service.
Working hours Under the Factories Act, 1934 no adult employee, defined as a worker who
has completed his or her 18th year of age, can be required or permitted to work in any
establishment in excess of nine hours a day and 48 hours a week. Similarly, no young
person, under the age of 18, can be required or permitted to work in excess of seven hours
a day and 42 hours a week. Section 8 of the West Pakistan Shops and Establishments
Ordinance, 1969 likewise, restricts weekly work hours at 48 hours. The Shops and
Establishments Ordinance regulates persons employed in shops and commercial
establishments
Paid Leave As provided in the Factories Act, 1934, every worker who has completed a
period of twelve months continuous service in a factory shall be allowed, during the
subsequent period of twelve months, holidays for a period of fourteen consecutive days.
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Laws and its effects on HRM
NDA (Non-Disclosure Agreements) It is a legal contract between at least two parties that
outlines confidential material, knowledge, or information that the parties wish to share
with one another for certain purposes, but wish to restrict access to or by third parties. It is
a contract through which the parties agree not to disclose information covered by the
agreement.
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Laws and its effects on HRM
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Organizations related
to HR LAW
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HR LAW Organizations
HR Policy Association
HR Policy Association is the lead public policy organization of chief human resource
officers from large employers. The Association consists of over 300 of the largest
corporations doing business in the United States and globally.
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HR LAW Organizations
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