AMENDMENTS / NOTIFICATIONS
NEW LABOUR LAWS

Text of Five
Labour Law Amendments
in the Finance Act, 2008

[Source: Gazette of Pakistan, Extraordinary, Part I, June 27, 2008, p. 43-116.]
See also EASTERN WORKER, May-June 2008, Vol. 48, No. 3, p. 5-9.

The text of five labour laws amended is taken from the May-June 2008 issue of the bi-monthly EASTERN WORKER -- Journal of Labour Law, Industrial Relations, HR & Social Compliance in Pakistan. For detail commentary by Dr. Perwez Shafi on these amendments, subscribe EASTERN WORKER.

Note: The Finance Act, 2008 was presented on June 11, passed by parliament on June 22, received President's assent on June 26 and published in the Gazette of Pakistan on June 27, 2008. The text of the five labour law amendments are extracted with section numbers from the Finance Act, 2008, not the whole Act, and is given below:

  1. Section 3 Provincial Employees' Social Security Ordinance, 1965
  2. Section 4 Industrial and Commercial Employment (Standing Orders) Ordinance, 1968
  3. Section 7 Minimum Wages for Unskilled Workers Ordinance, 1969
  4. Section 8 Workers Welfare Fund Ordinance, 1971
  5. Section 9 Employees' Old-Age Benefits Act, 1976.

Extracts

Finance Act, 2008

NATIONAL ASSEMBLY SECRETARIAT
Islamabad, the 27th June, 2008

No. F. 22(12)/2008-Legis.— The following Act of Majlis-e-Shoora (Parliament) received the assent of the President on the 26th June, 2008, and is hereby published for general information:—

ACT No. 1 of 2008

An Act
to give effect to the financial proposals of the Federal Government for the year
beginning on the first day of July, 2008, and to amend certain laws

WHEREAS it is expedient to make provisions to give effect to the financial proposals of the Federal Government for the year beginning on the first day of July, 2008, and to amend certain laws for the purposes hereinafter appearing;
It is hereby enacted as follows:-

1. Short title, extent and commencement.–

            (1) This Act may be called the Finance Act, 2008.
         (2) It extends to the whole of Pakistan.
         (3) It shall, unless otherwise provided, come into force on the first day of July, 2008.

3. Amendment of Ordinance X of 1965.–

         In the Provincial Employees' Social Security Ordinance, 1965 (W.P. Ordinance No. X of 1965), the following further amendments shall be made, namely. –

(1) In section 2, –

            (a) in clause (8), in sub-clause (f), for the word "five", occurring twice, the word "ten" shall be
             substituted; and

         (b) in clause (25a), for the words "two hundred ten", the words "three hundred and sixty" shall be
             substituted;

(2) in section 20, –

            (a) in sub-section (1), after the word "rate" the words "not more than six per cent" shall be inserted;
             and

         (b) in the proviso, for the word "two", the word "four" and for the word "five", the word "ten" shall
             respectively be substituted; and

(3) in section 20A, in sub-section (1), for the words "two hundred ten", the words "three hundred and sixty"
      shall be substituted.

4. Amendment of Ordinance VI of 1968.–

         In the West Pakistan Industrial and Commercial Employment (Standing Orders) Ordinance, 1968 (W.P. Ordinance No. VI of 1968), the following further amendments shall be made, namely: –

(1) in section 1, in sub-section (1), the words "West Pakistan" shall be omitted; and

(2) in the Schedule, in standing order 15, in paragraph (5), the words, full stop and comma "subsistence
      allowance of not less than fifty percentum of wages. If the workman is found not guilty, he shall be
      deemed to have been on duty during the period of suspension and shall be entitled" shall be omitted.

7. Amendment of Ordinance, XX of 1969.–

         In the Minimum Wages for Unskilled Workers Ordinance, 1969 (W.P. Ordinance No. XX of 1969), in the Schedule, in column (2), for the figure "4600", occurring thrice, the figure "6000" shall be substituted.


8. Amendments of Ordinance No. XXXVI of 1971.–

         In the Workers Welfare Fund Ordinance, 1971 (XXXVI of 1971), the following further amendments shall be made, namely: –

(1) in section 2, in clause (f) after sub-clause (iv), the following new sub-clause shall be added, namely.--
         "(iva) any establishment, to which the West Pakistan Shops and Establishment Ordinance, 1969
         (W.P. Ordinance No.VIII of 1969), for the time being applies;";

(2) in section 4,
         (a) in sub-section (1), the words "of so much" and "as is assessable under the Ordinance" shall be omitted;

         (b) in sub-section (4) the words and comma "At the time of making an assessment under the Ordinance,
             or as soon thereafter as may be the" and "on the basis of the income so assessed" shall be omitted; and
         (c) in sub-section (5) for the word "assessed" the word "total" shall be substituted and the words
             "subsequent to the assessment made under the Ordinance" shall be omitted; and

(3) in section 11-B, in sub-section (3) after the word "sanction" at the end the words "with the previous
     approval of the Governing Body" shall be added.



9. Amendments of Act XIV of 1976.–

In the Employees' Old-age Benefits Act, 1976 (XIV of 1976), the following further amendments shall be made, namely: –

(1) in section 1, in sub-section (4), –
         (a) in clause (i), –

             (i) for the word "ten", occurring twice, the word "five" shall be substituted; and

         (ii) for the colon at the end, a full stop shall be substituted and thereafter the proviso shall be omitted; and

       (b) in clause (ia) for the word "twenty", the word "five" shall be substituted;

(2) in section 9, in sub-section (1), for the word "six" the word "five" shall be substituted;

(3) in section 22, in sub-section (2), in clause (ii), for the full stop at the end, a colon shall be substituted and
     thereafter the following proviso shall be added, namely: –

                       "Provided that nothing in this section shall apply to an employee insured under this Act on or
                   after 1st day of July, 2008.";

(4) in section 47, clause (e) shall be omitted; and

(5) In the Schedule, –
          (a) for paragraph (2), the following shall be substituted, namely:--

          "(2) The monthly wages of an insured person, referred to in paragraph (1), shall be calculated on the
               basis of wages on which contributions were paid in respect of the twelve calendar months immediately
               preceding the date on which insured person fulfils the conditions for entitlement to any benefits under
               this Act:
                       Provided that the old-age pension or invalidity pension payable to an insured person and
               survivor's pension payable to the survivors of the deceased insured person shall not be less than two
               thousand rupees per month for pension commencing on or after 1st day of July, 2008."; and

          (b) in paragraph (3) for the figure "2007" the figure "2008" shall be substituted.

[Source: Gaz. of Pak., Extr., Pt. I, June 27, 2008, p. 43-116.]