Industrial Relations Ordinance [IRO-2002]

AN ORDINANCE to amend, consolidate and rationalize the law relating to formation of trade unions, regulation and improvement of relations between employers and workmen and avoidance and settlement of any differences or disputes arising between them

WHEREAS it is expedient to amend, consolidate and rationalize the law relating to formation of trade unions, regulation and improvement of relations between employers and workmen and avoidance and settlement of any differences or disputes arising between them;

AND WHEREAS the President is satisfied that circumstances exist which render it necessary to take immediate action;

Now, therefore, in pursuance of the Proclamation of Emergency of the fourteenth day of October, 1999, and the Provisional Constitutional Order No.1 of 1999, read with the Provisional Constitution (Amendment) Order No.9 of 1999, and in exercise of all powers enabling him in that behalf, the President of the Islamic Republic of Pakistan is pleased to make and promulgate the following Ordinance:-

Chapter I – Preliminary

1. Short title, extent, commencement and application.-

(1) This Ordinance may be called the Industrial Relations Ordinance, 2002.

(2) It extends to the whole of Pakistan.

(3) It shall come into force at once.

(4) 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) in any installations or services exclusively connected with the Armed Forces of Pakistan including Ministry of Defence lines of the Railways; (c) by the Pakistan Security Printing Corporation or the Security Papers Limited or Pakistan Mint; (d) in the administration of the State other than those employed as workmen by the Railways, Post, Telegraph and Telephone Departments; (e) 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; (f) by an institution established for payment of employees’ old-age pensions or for workers’ welfare; (g) as a 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.

Definitions.- In this Ordinance, unless there is anything repugnant in the subject or context,-

(i) “arbitrator” means a person appointed as such under this Ordinance;

(ii) “award” means the determination by a Labour Court, Arbitrator or an Appellate Court of competent jurisdiction of any industrial dispute or any matter relating thereto and includes an interim award;

(iii) “association” means any organization of employers formed primarily for furthering and defending the interests and rights of employers;

(iv) “Board of Conciliators” means a tripartite Board of Conciliators constituted under sub-section (3) of section 26;

(v) “collective bargaining agent” means the trade union of workmen which, under section 20, is the agent of the workmen in the establishment, group of establishments or, as the case may be, industry in the matter of collective bargaining;

(vi) “collective bargaining unit” means those workers or class of workers of an employer in one or more establishments coming within the same class of industry whose terms and conditions of employment are, or could appropriately be, the subject of collective bargaining together;

(vii) “Commission” means the National Industrial Relations Commission constituted under section 49;

(viii) “conciliation proceedings” mean any proceedings before a Conciliator or Board of Conciliators;

(ix) “Conciliator” means-

(a) a person appointed as such by the Federal Government under sub-section (2) of section 26, in respect of disputes which the Commission is competent to adjudicate and determine; and

(b) in respect of other disputes, a person appointed as such by the Provincial Government under sub-section (1) of section 26.

(x) “employer” in relation to an establishment means any person or body of persons, whether incorporated or not, who or which employs workmen in an establishment under a contract of employment and includes-

(a) an heir, successor or assign, as the case may be, of such person or, body as aforesaid;

(b) any person responsible for the direction, administration, management and control of the establishment;

(c) the authority, in relation to an establishment or group of establishments run by or under the authority of any department of the Federal Government or a Provincial Government, appointed in this behalf or, where no authority is appointed, the Head of the department;

(d) the office bearer, in relation to an establishment run by or on behalf of a local authority, appointed in this behalf, or where no officer is so appointed, the chief executive office bearer of that authority;

(e) the proprietor, in relation to any other establishment, of such establishment and every director, manager, secretary, agent or office bearer or person concerned with the management of the affairs thereof;

(f) a contractor or an establishment of a contractor who or which undertakes to procure the labour or services of workmen for use by another person or in another establishment for any purpose whatsoever and for payment in any form and on any basis whatsoever; and

(g) office bearers of a department or Division of the Federal or a Provincial or local authority who belong to the managerial, secretarial or directional cadre or categories of supervisors or agents and those who have been notified for this purpose in the official Gazette;

(xi) “establishment” means any office, firm, factory, society, undertaking, company, shop, premises or enterprise which employs workmen directly or through a contractor for the purposes of carrying on any business or industry and includes all its departments and branches, whether situated in the same place or in different places having a common balance sheet and profit and loss account and, except in section 54, includes a collective bargaining unit, if any, constituted under that section in any establishment;

(xii) “executive” means a person or body of persons, by whatever name called, to whom or which the management of the affairs of a trade union is entrusted under its constitution;

(xiii) “group of establishments” means establishments belonging to the same employer and the same industry;

(xiv) “illegal lock-out” means a lock-out declared, commenced or continued otherwise than in accordance with the provisions of this Ordinance;

(xv) “illegal strike” means a strike declared, commenced or continued otherwise than in accordance with the provisions of this Ordinance;

(xvi) “industrial dispute” means any dispute or difference between employers and workmen or between workmen and workmen which is concerned with the employment or non-employment or the terms of employment or the conditions of work; and is not in respect of the enforcement of any right guaranteed or accrued to workers by or under any law, other than this Ordinance, or any award or settlement for the time being in force;

(xvii) “industry” means any business, trade, manufacture, calling, service, occupation or employment engaged in an organized economic activity of producing goods or services for sale, excluding those set up exclusively for charitable purposes, operating through public or private donations where “charitable purpose” includes provision of education, medical care, emergency relief and other needs of the poor and indigent;

(xviii) “Inspector” means an Inspector appointed under this Ordinance;

(xix) “Labour Court” means a Labour Court established under section 44;

(xx) “lock-out” means the closing of a place of employment or part of such place or the suspension of work, wholly or partly, by an employer, or refusal, absolute or conditional, by an employer to continue to employ any number of workmen employed by him where such closing, suspension or refusal occurs in connection with an industrial dispute or is intended for the purpose of compelling workmen employed to accept certain terms and conditions of, or affecting, employment;

(xxi) “office bearer” means any member of the executive of a trade union in an establishment, industry or trade, but does not include an auditor or legal advisor thereof;

(xxii) “prescribed” means prescribed by rules made under section 79;

(xxiii) “public utility service” means any of the services specified in Schedule I;

(xxiv) “registered trade union” means a trade union registered under this Ordinance;

(xxv) “Registrar” means Registrar of trade unions appointed under section 57;

(xxvi) “settlement” means a settlement arrived at in the course of conciliation proceedings, and includes an agreement between an employer, the collective bargaining agent or workmen, as the case may be, arrived at otherwise than in the course of such proceedings, where the agreement is in writing and has been signed by the parties thereto in such manner as may be prescribed and a copy thereof has been sent to the Provincial Government, the Conciliator and such other persons as may be prescribed;

(xxvii) “Schedule” means the Schedule to this Ordinance;

(xxviii) “strike” means cessation of work by a body of persons employed in any establishment acting in combination or a concerted refusal or refusal under a common understanding of any number of persons who have been so employed to continue to work or to accept employment;

(xxix) “trade union” means any combination of workers formed primarily for the purpose of furthering and defending the interests and rights of workers in any industry or establishment and includes an industry-wise federation of two or more collective bargaining agent unions and a federation at the national level of ten or more collective bargaining agent unions; and

(xxx) “worker” and “workman” means any and all persons not falling within the definition of employer who is employed in an establishment or industry for remuneration or reward either directly or through a contractor, whether the terms of employment be express or implied, and for the purpose of any proceeding under this Ordinance in relation to an industrial dispute includes a person who has been dismissed, discharged, retrenched, laid-off or otherwise removed from employment in connection with or as a consequence of that dispute or whose dismissal, discharge, retrenchment, lay-off or removal has led to that dispute but does not include any person who is employed mainly in a managerial or administrative capacity.