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  "title": "Industrial and Commercial Employment (Standing Orders) Ordinance, 1968",
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  "text": "Page 1 of 18 \r\n \r\n \r\n \r\nTHE INDUSTRIAL AND COMMERCIAL EMPLOYMENT \r\n(STANDING ORDERS) ORDINANCE, 1968 \r\n \r\n \r\n \r\n \r\nCONTENTS \r\n             Preamble  \r\n1. Short title, extent and commencement \r\n2. Definitions \r\n3. Enforcement of Standing Orders \r\n4. Modification of Standing Orders \r\n5. Posting of Standing Orders \r\n6. Inspectors \r\n7. Penalties and procedure \r\n7A. Omitted  \r\n8. Power to exempt \r\n9. Protection to existing conditions of employment \r\n10. Repeal \r\nSCHEDULE \r\nSTANDING ORDERS \r\n1. Classification of workmen \r\n2. Tickets \r\n2A. Terms and conditions of service to be given in writing \r\n \r\n\r\n \r\nPage 2 of 18 \r\n \r\n3. Publication of working time \r\n4. Publication of holidays and pay days \r\n5. Publication of wage rates \r\n6. Shift working \r\n7. Attendance and late coming \r\n8. Leave \r\n9. Omitted \r\n10. Payment of wages \r\n10A. Groups incentive scheme \r\n10B. Compulsory Group Insurance \r\n10C. Payment of bonus \r\n11. Stoppage of work \r\n11A. Closure of establishment \r\n12. Termination of employment \r\n13. Procedure for retrenchment \r\n14. Re-employment of retrenched workmen \r\n14A. Special provision for construction workers \r\n15. Punishments \r\n16. Eviction from residential accommodation \r\n17. Omitted \r\n18. Omitted \r\n19. Certificate of termination of service \r\n20. Liability of employer \r\n \r\n  \r\n \r\nPage 3 of 18 \r\n \r\nTHE INDUSTRIAL AND COMMERCIAL EMPLOYMENT (STANDING \r\nORDERS) ORDINANCE, 1968 \r\nWEST PAKISTAN ORDINANCE NO. VI OF 1968 \r\n[18th May, 1968] \r\nAN \r\nORDINANCE \r\nto amend and consolidate the law relating to industrial employment in the Province of West \r\nPakistan. \r\nPreamble.__ WHEREAS it is expedient to amend and consolidate the law relating to industrial \r\nemployment in the Province of West Pakistan; \r\nAND WHEREAS the Provincial Assembly of West Pakistan is not in session and the Governor \r\nof West Pakistan is satisfied that circumstances exist which render immediate legislation necessary; \r\nNOW, THEREFORE, in exercise of the powers conferred on him by clause (1) of Article 79 \r\nof the Constitution, the Governor of West Pakistan is pleased to make and promulgate the following \r\nOrdinance:__ \r\n1. Short title, extent and commencement. __ (1) This Ordin ance may be called the 1[*  *]  \r\nIndustrial and Commercial Employment (Standing Orders) Ordinance, 1968. \r\n(2) It extends to the whole of the 2[Pakistan] 3[* * *]. \r\n(3) It shall come into force at once. \r\n(4) It applies to__ \r\n            4[(a) every industrial establishment or commercial establishment wherein twenty or \r\nmore workmen are employed, directly or through any other person whether on \r\nbehalf of himself or any other person, or where so employed on any day during \r\nthe preceding twelve months;] \r\n (c)  such class or classes of other industrial and commercial establishments as \r\nGovernment may, from time to time, by notification in the official Gazette, \r\nspecify in this behalf: \r\nProvided that nothing in this Ordinance shall apply to industrial and commercial establishments \r\ncarried on by or under the authority of the 5[Federal] or any Provincial Government, where statutory \r\nrules of service, conduct or discipline are applicable to the workmen employed therein 4[:] \r\n \r\n1Omitted by the Finance Act, 2008 (Act No. I of 2008),s.4, (w.e.f. 01-07-2008). \r\n2Substituted by the Federal Adaptation of Laws Order, 1975 (P. O. No. 4 of 1975), Article 2 read with Schedule.  \r\n3Omitted by the Labour Laws (Amendment) Ordinance, 1972 (Ordinance No. IX of 1972), Article 2 read with First Schedule.  \r\n4Substituted by Act No. XXIII of 1973, s. 2. \r\n5Substituted by Act No. XLVIII of 1974, s.2. \r\n \r\nPage 4 of 18 \r\n \r\n1[Provided further that the provisions of Standing Orders 10B and 11, clauses (6) and (8) of \r\nStanding Order 12 and S tanding Order 15 shall not apply, in the first instance, to any industrial \r\nestablishment wherein not more than forty -nine persons were employed on any day during the \r\npreceding twelve months but Government may, by notification in the official Gazette, exten d all or \r\nany of the said provisions to any such industrial establishment or any class of such establishment]. \r\n2. Definitions.__ In this Ordinance, unless there is anything repugnant in the subject or context__ \r\n(a)  “collective agreement” means an agreement in writing, intended to specify the \r\nconditions of employment, and entered into between one or more employers on \r\nthe one hand, and one or more trade unions or, where there is no trade union, \r\nthe duly authorized representatives of workmen, on the other; \r\n(b)  “commercial establishment” means an establishment in which the business of \r\nadvertising, commission or forwarding is conducted, or which is a commercial \r\nagency, and includes a clerical department of a factory or of any industrial or \r\ncommercial undertaking, the office establishment of a perso n who for the \r\npurpose of fulfilling a contract with the owner of any commercial establishment \r\nor industrial establishment, employs workmen, a unit of a joint stock company, \r\nan insurance company, a banking company or a bank, a broker’s office or stock-\r\nexchange, a club, a hotel, a restaurant or an eating house , a cinema or theatre, \r\nand such other establishment or class thereof, as Government may, by \r\nnotification in the official Gazette, declare to be a commercial establishment for \r\nthe purposes of this Ordinance; \r\n2[(bb) “construction industry ” means an industry engaged in the construction, \r\nreconstruction, maintenance, repair, alteration or demolition of any building, \r\nrailway, tramway, harbour, dock pier, canal, inland waterway, road, tunnel, \r\nbridge, dam, viaduct, sewer, drain, water work, well,  telegraphic or telephonic \r\ninstallation, electrical undertaking, gas work, or other work of construction as \r\nwell as the preparation for, or laying the foundations of, any such work or \r\nstructure;] \r\n(c) “employer” means the owner of an industrial or commercia l establishment to \r\nwhich this Ordinance for the time being applies, and includes__ \r\n(i) in a factory, any person named under clause ( e) of sub -section (1) of \r\nsection 9 of the Factories Act, 1934 (XXV of 1934), as manager of the \r\nfactory; \r\n(ii)  in any industrial establishment under the control of any department of \r\nthe 3[Federal] or any Provincial Government, the authority appointed by \r\nsuch Government in this be half, or where no such authority is so \r\nappointed, the head of the department; \r\n \r\n1Added by Act No. XXIII of 1973, s. 2. \r\n2Added by Act No. XXIII of 1973, s. 3. \r\n3Substituted by Act No.XLVIII of 1974, s.2. \r\n \r\n \r\nPage 5 of 18 \r\n \r\n(iii) in any other industrial or commercial establishment , any person \r\nresponsible to the owner for the supervision and contr ol of such \r\nestablishment; \r\n(d) “go-slow” means an organ ised, de librate and purposeful slowing down of \r\nnormal output or work by a body of workers in concerted manner and which is \r\nnot due to any mechanical defect, break-down of machinery, failure or defect in \r\npower supply, or in the supply of normal materials and spare parts of machinery; \r\n(e)  “Government” means the 1[Provincial Government]; \r\n(f) “industrial establishment” means__ \r\n(i)  an industrial establishment as defined in clause ( ii) of section 2 of the \r\nPayment of Wages Act, 1936 (IV of 1936); or \r\n(ii)  a factory as defined in clause (j) of section 2 of the Factories Act, 1934 \r\n(XXV of 1934); or \r\n(iii)  a railway as defined in clause (4) of section 3 of the Railways Act, 1890 \r\n(IX of 1890); or \r\n2[(iv) the establishment of a contractor who, directly or indirectly, employ es \r\nworkmen in connection with the execution of a contract to which he is a \r\nparty, and includes the premises in which, or the site at which, any \r\nprocess connected with such execution is carried on; 3[or] \r\nExplanation.__ “Contractor” includes a sub -contractor, headman or \r\nagent.] \r\n4[(v)  the establishment of a person who, directly or indirectly, employs \r\nworkmen in connection with any construction industry;] \r\n (g)  “Standing Orders” means the orders contained in the Schedule, read with such \r\nmodifications, if any, as may be made in pursuance of the provisions of section \r\n4; \r\n5[(h)  “trade union ” means a trade union for the time being registered under the \r\nIndustrial Relations Ordinance, 1969 (XXIII of 1969);] \r\n(i)  “workman” means any person employed in any industrial or commercial \r\nestablishment to do any skilled or unskilled, manual or clerical 6[work] for hire \r\nor reward. \r\n \r\n1Substituted by the Federal Adaptation of Laws Order, 1975 (P. O. No. 4 of 1975), Article 2 read with Schedule \r\n2Substituted by the Labour Laws (Amendment) Act, 1972 (Act No. V of 1972), s. 2 read with Schedule. \r\n3Added by Act No. XXIII of 1973, s. 3. \r\n4Added by Act No. XXIII of 1973, s. 3. \r\n5Substituted by Act No. XXIII of 1973, s. 3. \r\n6Substituted by Act No. XXIII of 1973, s. 3. \r\n \r\nPage 6 of 18 \r\n \r\n3. Enforcement of Standing Orders. __ In every industrial or commercial establishment, \r\nconditions of the employment of workmen and other incidental matters shall subject to the other \r\nprovisions of this Ordinance, be regulated in accordance with the Standing Orders. \r\n4. Modification of Standing Orders.__ The Standing Orders may be modified by means of a \r\ncollective agreement and not otherwise:__  \r\nProvided that no such agreement shall have the effect of taking away or diminishing any right \r\nor benefit available to the workmen under the provisions of the Schedule. \r\n5. Posting of Standing Orders.__ The text of the Standing Orders shall be prominently posted \r\nand kept in a legible condition by the employer in English and Urdu, in the language understood by \r\nthe majority of his workmen on special boards to be maintained for the purpose at or near the entrance \r\nthrough which the majority of the workmen enter the industrial or commercial establishment and in all \r\ndepartments thereof where the workmen are employed. \r\n6. Inspectors.__ (1) The Inspectors of Mines appointed under section 4 of the Mines Act, 1923 \r\n(IV of 1923) , the Inspectors appointed under section 10 of the Factories Act, 1934 (XXV of 1934), \r\nand such other persons, not being 1[conciliators appointed under the Industrial Relations Ordinance, \r\n1969 (XXIII of 1969)], as Government may, by notifi cation in the official Gazette, appoint, shall be \r\nthe Inspectors for the purposes of this Ordinance within the local limits assigned to each. \r\n(2) An Inspector may at all reasonable hours enter on any premises and make such examination \r\nof any regist er or document relating to the maintenance or  enforcement of the Standin g Orders and \r\ntake on the spot or  otherwise such evidence of any person, and ex ercise such other powers of \r\ninspection, as he may deem necessary for carrying out the purposes of this Ordinance. \r\n(3) Every Inspector shall be deemed to be a public servant within the meaning of the Pakistan \r\nPenal Code (XLV of 1860).  \r\n7. Penalties and procedure .__ (1) An employer  who modifies the Standing Orders as \r\napplicable to his industrial or commercial establishment, otherwise than in accordance with section 4, \r\nshall be punishable with fine which may extend to five thousand rupees, and in the case of a continuing \r\noffence, with a further fine which may extend to two hundred rupees for every day after the first day \r\nduring which the offence continues. \r\n(2) An employer who does any act in contravention of the Standing Orders as applicable to his \r\nindustrial or commercial establishment shall be punishable with fine which may extend to one hundred  \r\nrupees, and in the case of a continuing offence, with a further fine which may extend to twenty-five \r\nrupees for every day after the first day during which the offence continues. \r\n(3) Whoever contravenes any of the provisions of this Ordinance shall, if no other penalty is \r\nelsewhere provided by or under this Ordinance for such contravention, be punishable with fine which \r\nmay extend to one hundred rupees. \r\n \r\n1Substituted by Act No. XXIII of 1973, s. 4. \r\n \r\n \r\nPage 7 of 18 \r\n \r\n(4) Whoever, having been convicted of any offence punishable under sub -section (1), (2) or \r\n(3), again commits such offence shall, on conviction, be liable to double the punishment prescribed for \r\nsuch offence under the aforesaid sub-sections. \r\n(5) No prosecution for an offence punishable under this Ordinance shall be instituted except \r\nby, or with the previous permission in writing of, the Inspector. \r\n1[(6) No court other than a Labour Court established under the Industrial Relations Ordinance, \r\n1969 (XXIII of 1969), shall try any offence under this Ordinance]. \r\n7A.  2[Omitted]  \r\n8. Power to exempt.__ Government may, subject to such conditions as it thinks fit to impose , \r\nby notification in the official Gazette, exempt any industrial or commercial establishment or class of \r\nsuch establishments from all or any of the provisions of this Ordinance. \r\n9. Protection to existing conditions of employment.__ Nothing in this Ordinance shall affect \r\nany law, custom , usage, award or agreement inforce immediately before the promulgation of this \r\nOrdinance in so far as such law, custom, usage, award or agreement ensure conditions of employment \r\nmore favourable to workmen than those provided in the Standing Orders. \r\n10. Repeal.__  The Industrial and Commercial Employment (Standing Orders) Ordinance, 1960 \r\n(III of 1960), in its application to the Province of West Pakistan, is hereby repealed. \r\n  \r\n \r\n1Substituted by the Labour Laws (Amendment) Act, 1976 (Act No. XI of 1976), s. 2 read with Schedule. \r\n2Omitted by Act No. XXIII of 1973, s. 5. \r\n \r\n \r\nPage 8 of 18 \r\n \r\nSCHEDULE \r\nSTANDING ORDERS  \r\n[SECTION 2(g)] \r\n1. Classification of workmen.– (a) Workmen shall be classified as__ \r\n(1) permanent, \r\n(2) probationers, \r\n(3) badlis, \r\n(4) temporary, \r\n(5) apprentices. \r\n1[(6) contract worker]. \r\n(b) A “permanent workman” is a workman who has been engaged on work of permanent nature \r\nlikely to last more than nine months and has satisfactorily completed a probationary period of three \r\nmonths in the same or another occupation in the industrial or commercial e stablishment, including \r\nbreaks due to sickness, accident, leave, lock -out, strike (not being an illegal lock -out or strike) or \r\ninvoluntary closure of the establishment 2[and includes a badli who has been employed for a continues \r\nperiod of three month s or for one hundred and eighty -three days during any perio d of twelve \r\nconsecutive months]. \r\n(c) A “probationer” is a workman who is provisionally employed to fill a permanent vacancy \r\nin a post and has not completed three months service therein. If a permanent employee is employed as \r\na probationer in a higher post he may, at any time during the probationary period of three months, be \r\nreverted to his old permanent post. \r\n(d) A “ badli” is a workman who is appointed in the post of a permanent workman or \r\nprobationer, who is temporarily absent. \r\n(e) A “temporary workman” is a workman who has been engaged for work which is of an \r\nessentially temporary nature likely to be finished within a period not exceeding nine months. \r\n3[(f) An “apprentice” is a person who is an apprentice within the meaning of the Apprenticeship \r\nOrdinance, 1962 (LVI of 1962);] \r\n \r\n \r\n \r\n1Added by the Finance Act, 2006 (Act No. III of 2006), s. 6. (w. e. f. 1-7-2006).  \r\n2Added by Act No. XXIII of 1973, s. 6. \r\n3Substituted by Act No. XXIII of 1973, s. 6. \r\n \r\n \r\nPage 9 of 18 \r\n \r\n1[(g) a contract worker means a workman who works on contract basis for a specific period of \r\nremuneration to be calculated on piece rate basis;] \r\n2. Tickets.__ (1) Every workman employed in an industrial establishment shall be given a \r\npermanent ticket unless he is a probationer, a badli, a temporary workman or an apprentice. \r\n(2) Every permanent workman shall be provided with a departmental ticket, show ing his \r\nnumber, and shall on being required to do so, show it to any person authorised by the employer to \r\ninspect it. \r\n(3) Every badli shall be provided with a badli card, on which shall be entered the days on which \r\nhe has worked in the establishment, and w hich shall be surrendered if he obtains permanent \r\nemployment. \r\n(4) Every temporary workman shall be provided with a ‘temporary ticket ’ which he shall \r\nsurrender on his discharge. \r\n(5) Every apprentice shall be provided with an apprentice card , which shall be surrendered if \r\nhe obtains permanent employment. \r\n2[2A. Terms and conditions of service to be given in writing :__ Every workman at the time \r\nof his appointment, transfer or promotion shall be provided with an order in writing, showing the terms \r\nand conditions of his service.] \r\n3. Publication of working time.__ The periods and hours of work for all classes of workmen \r\nin each shift shall be exhibited in Urdu and in the principal language of workmen employed in the \r\nindustrial or commercial establishment on notice boards maintained at or near the main entrance of the \r\nestablishment and at the time- keeper’s office, if any. \r\n4. Publication of holidays and pay days .__ Notices specifying (a) the days observed by the \r\nindustrial or commercial establishment as holidays and (b) pay days shall be posted on the said notice \r\nboards. \r\n5. Publication of wage rates.– Notices specifying the rates of wages payable to all classes of \r\nworkmen and for all classes of work shall be displayed on the said notice boards. \r\n6. Shift working.__ More than one shift may be worked in a department or a ny section of a \r\ndepartment of the industrial or commercial establishment at the discretion of the employer. \r\nIf more than one shift is worked, the workmen shall be liable to be transferred from one shift \r\nto another. No shift working shall be discontinued wi thout one month ’s notice being given prior to \r\nsuch discontinuance, provided that no such notice shall be necessary if, as a result of the discontinuance \r\nof the shift, no permanent employee will be discharged.  If as a result of discontinuance of shift \r\nworking, any permanent workmen are to be discharged they shall be discharged having regard to the \r\nlength of their service in the establishment, those with the shortest term of service being discharged \r\nfirst. If shif t working is restricted, a week’ s notice there of shall be given by posting a notice at the \r\n \r\n1Added by the Finance Act, 2006 (Act No. III of 2006), s. 6. (w. e. f. 1-7-2006). \r\n2Inserted by Act No. XXIII of 1973, s. 6. \r\n \r\n \r\nPage 10 of 18 \r\n \r\nmain entrance of the establishment and the time-keeper’s office, if any, and the workmen, discharged \r\nas a result of the discontinuance of the shift, shall, if they present themselves at the time of the restarting \r\nof the shift, have preference in being re-employed, having regard to the length of their previous service \r\nunder the establishment, those with the longest term of service being re-employed first. \r\n7. Attendance and late coming .__ All workmen shall be at work at the establishment at the \r\ntime fixed and notified under Standing Order 3. Workmen attending late shall be liable to the \r\ndeductions provided for in the Payment of Wages Act, 1936 (IV of 1936). \r\n8. Leave.__ 1[(1) Holidays and leave with pay shall be allowed as hereinafter specified:__ \r\n(a) Annual holidays, festival holidays, casual leave and sick leave as provided for \r\nin Chapter IVA of the Factories Act, 1934 (XXV of 1934); and \r\n(b) other holidays in accordance with the law, contract, custom and usage)]. \r\n(2)  A workman who desires to obtain leave of absence shall apply to the employer, who shall \r\nissue orders on the application within a week of its submission or two days prior to the commencement \r\nof the leave applied for, whichever is earlier, provided that if the leave applied for is to commence on \r\nthe date of the application or within three days thereof, the order shall be given on the same day. If the \r\nleave asked for is granted, a le ave pass shall be issued to the workman. If the leave is refused or \r\npostponed, the fact of such postponement or r efusal and the reasons therefor  shall be recorded in \r\nwriting in a register to be maintained for the purpose, and if the workman so desires, a c opy of the \r\nentry in the register shall be supplied to him. If the workman after proceeding on leave desires an \r\nextension thereof he shall apply to the employer who shall send a written reply either granting or \r\nrefusing extension of leave to the workman if his address is available, and if such reply is likely to \r\nreach him before the expiry of the leave originally granted to him. \r\n2[(3)  * * * * * * *] \r\n2[(4) * * * * * * *] \r\n9. 3[Omitted] \r\n10. Payment of wages.__ (1) Any wages, due to the workman but not paid on the usual pay day \r\non account of their being unclaimed, shall be paid by the employer on an unclaimed wage pay day in \r\neach week, which shall be notified on the notice boards as aforesaid. \r\n(2) All workmen shall be paid wages on a working day before the expiry of the 7th or 10th day \r\nafter the last day of the wage period, in respect of which the wages are payable if the total number of \r\nworkmen employed in the establishment is 1,000 or less or exceeds 1,000 respectively. \r\n4[10A. Group incentive scheme.__ (1) In every industrial establishment which is a factory and \r\nin  which  fifty or  more  workmen are employed there shall be  introduced  from such date as may be \r\n \r\n1Substituted by Act No. XXIII of 1973, s. 6. \r\n2Omitted by Act No. XXIII of 1973, s. 6. \r\n3Omitted by Act No. XXIII of 1973, s. 6. \r\n4Inserted by the Labour Laws (Amendment) Ordinance, 1972 (Ordinance No. IX of 1972), Article 2 read with First Schedule. \r\n \r\nPage 11 of 18 \r\n \r\nspecified by the Provincial Government, by notification in the official Gazette, a group incentive \r\nscheme to provide incentive for greater production to groups of workmen employed in the factory. The \r\nscheme shall provide the manner in which the performance of different groups of wor kmen, whether \r\nin the same section, shop, department or shift or in different sections, shops, departments or shifts shall \r\nbe evaluated. \r\n(2)  The incentive shall be in the form of additional wages or additional leave with wages or in \r\nboth such forms to the members of the group of workmen whose production exceeds that of the other \r\ngroups or the average of all the groups. The incentive shall be according to such scales as may be \r\nprescribed and shall be related to the extent of the excess production achieved by  the group with the \r\nbest performance. \r\n1[10B. Compulsory Group Insurance .__ (1) The employer shall have all the permanent \r\nworkmen employed by him insured against 2[natural death and disability and] death and injury arising \r\nout of contingencies not covered by the Workman’s Compensation Act, 1923  (VIII of 1923 ), or the \r\n3[Provincial Employees’ Social Security Ordinance] 1965 (W. P. Ordinance No. X of 1965). \r\n(2) The employer shall in all cases be responsible for the payment of the amount of premia and \r\nfor all administrative arrangements whether carried out by himself or through an insurance company. \r\n(3) The amount for which each workman shall be insured shall not be less than the amount of \r\ncompensation specified in Schedule IV to the Workmen’s Compensation Act, 1923 (VIII of 1923)]. \r\n4[(4) Where the employer fails to have a permanent workman employed by him insured in the \r\nmanner laid down in clauses (1), (2) and (3) and such workman suffers death or injury arising out of \r\ncontingencies mentioned in clause (1), the employer shall pay, in the case of death, to the heirs of such \r\nworkman, or in the case of injury, to the workman, such sum of money as would have been payable \r\nby the insurance company had such workman been insured. \r\n(5)  All claims of a workman or his heirs for recovery of money under clause (4) shall be settled \r\nin the same manner as is provided for the determination and reco very of compensation under the \r\nWorkmen’s Compensation Act, 1923 (VIII of 1923).] \r\n5[10C. Payment of bonus.__ (1) Every employer making profit in any year shall pay 6[for that \r\nyear within three months of the closing of] that year to the workman who have been in his employment \r\nin that year for a continuous period of not less than ninety days a bonus in addition to the wages payable \r\nto such workmen. \r\n(2) The amount of the bonus payable shall__ \r\n(a) if the amount of the profit is not less than the aggregate of one month ’s wages \r\nof the workmen employed, be not less than the amount of such aggregate, \r\nsubject to the maximum of thirty percent of such profit; \r\n \r\n1Inserted by the Labour Laws (Amendment) Ordinance, 1972 (Ordinance No. IX of 1972), Article 2 read with First Schedule. \r\n2Inserted by the Labour Laws (Amendment) Act, 1976 (Act No. XI of 1976), s. 2 read with Schedule. \r\n3Substituted by the Federal Adaptation of Laws Order, 1975 (P. O. No. 4 of 1975), Article 2 read with Schedule. \r\n4Added by Act No. XLVIII of 1974, s. 3. \r\n5Inserted by the Labour Laws (Amendment) Ordinance, 1972 (Ordinance No. IX of 1972), Article 2 read with First Schedule. \r\n6Substituted Act No. XXIII of 1973, s. 6. \r\n \r\nPage 12 of 18 \r\n \r\n1[Illustration 1 .__ If the profit is Rs. 1,20,000.0 0 and the aggregate of one \r\nmonth’s wages of the workmen is Rs. 30,000.00, the amount of bonus payable shall be \r\nnot less than the aggregate of one month’s wages, that is to say Rs. 30,000.00. \r\nIllustration 2.__ If the profit is Rs.30,000.00 and the aggregate of one month ’s \r\nwages of the workmen is also Rs.30,000.00, the amount of bonus payable shall be not \r\nless than thirty per cent of the profit, that is to say Rs. 9,000.00.] \r\n(b) if the amount of the profit is less than the aggregate referred to in paragraph (a), \r\nbe not less than fifteen per cent of such profit. \r\n(3) The bonus payable to a workman entitled thereto under clause (1) shall bear to his monthly \r\nwages the same proportion as the total bonus payable by the employer bears to the aggregate of the \r\nwages referred to in paragraph (a) of clause (2) and shall be paid either in cash or in N. I. T. Units of \r\nequivalent value at the option of such workman. \r\n(4) Nothing in this section shall be deemed to affect the right of any workman to receive any \r\nbonus other than that payable under clause (1) to which he may be entitled in accordance with the \r\nterms of his employment or any usage or any settlement or an award of a Labour Court established \r\nunder the Industrial Relations Ordinance, 1969 (XXIII of 1969). \r\nExplanation.__ For the purpose of this section,__ \r\n(a) “N. I. T. Units” means the Units referred to in the National Investment (Unit) \r\nTrust Ordinance, 1965 (VII of 1965); \r\n(b) “Profit” means the “net profits” as defined in section 87C of the Companies Act, \r\n1913 (VII of 1913); and \r\n(c)   “Wages” does not, for the purpose of calculating the bonus payable to a person \r\nunder clause (1), include the bonus referred to in clause (vi) of section 2 of the \r\npayment of Wages Act, 1936 (IV of 1936).] \r\n11. Stoppage of work.__ (1) The employer may, at any time, in the event of fire, catastrophe, \r\nbreak-down of machinery or stoppage of power supply, epidemics, civil commotion or other cause \r\nbeyond his control, stop any section or sections of the establishment, wholly or partially, for any period \r\nor periods without notice. \r\n(2) In the event of such stoppage during working hours, the workmen affected shall be notified \r\nby notices put upon the notice board in the departments concerned or of the office of the employer, as \r\nsoon as practicable, when work will be resumed and whether they are to remain or leave their place of \r\nwork. The workmen shall not ordinarily be required to remain for more than two hours after the \r\ncommencement of the stoppage. If the period of detention does not exceed one hour, the workmen so \r\ndetained shall not be paid for the period of detention. If the period of detention exceeds one hour, the \r\nworkmen so detained shall be entitled to receive wages for the whole of the time,  during which they \r\nare detained as a result of the stoppage. In the case of piece-rate workers, the average daily earning for \r\n \r\n1Inserted by Act No. XXIII of 1973, s. 6. \r\n \r\n \r\nPage 13 of 18 \r\n \r\nthe previous month shall be taken to be the daily wage. Wherever practicable reasonable notice shall \r\nbe given of resumption of normal work. \r\n1[(3) In cases where workmen are laid -off on account of failure of plant, a temporary \r\ncurtailment of production or any stoppage of work for reasons mentioned in clause (1), th ey shall be \r\npaid by the employed an amount equal to one-half of their daily wages during the first fourteen days \r\nof lay-off as compensation. When, however, the workmen have to be laid -off for an indefinite period \r\nbeyond the above mentioned fourteen days, their services may be terminated after giving them due \r\nnotice or pay in lieu thereof]. \r\n(4)  The employer may in the event of a strike affecting either wholly or partially any section \r\nor department of the establishment close down, either wholly or partially, such section or department \r\nand any other section or department affect ed by such closing down. The fact of such closure shall be \r\nnotified by notices put on the notice board in the section or department concerned and in the time -\r\nkeeper’s office, if any, as soon as practicable. The workmen concerned shall also be notified by a  \r\ngeneral notice, prior to resumption of work, as to when work will be resumed. \r\n2[11A. Closure of establishment.__ Notwithstanding anything contained in Standing Order 11, \r\non employer shall 3[terminate the employment of more than fifty percent of the work men or] close \r\ndown the whole of the establishment without prior permission of the Lahore Court in this behalf, except \r\nin the event of fire, catastrophe, stoppage of power supply, epidemics or civil commotion. \r\nExplanation.__ ‘Close down ’ in this Standing Order includes lay -off of workmen beyond \r\nfourteen days where such lay -off results in closure of an establishment but  does not include lock-out \r\ndeclared, commenced or continued in accordance with the provisions of the Industrial Relations \r\nOrdinance, 1969 (XXIII of 1969).] \r\n4[12. Termination of employment .__ (1) For terminating employment of a permanent \r\nworkman, for any reason other than misconduct, one month ’s notice shall be given either by the \r\nemployer or the workman. One month’s wages calculated on the basis of average wages earned by the \r\nworkman during the last three months shall be paid in lieu of notice. \r\n(2) No temporary workman, whether mon thly-rated, weekly-rated, daily-rated or piece-rated, \r\nand no probationer or badli, shall be entitled to any notice if his services are terminated by the \r\nemployer, nor shall any such workman be required to give any notice or pay any wages in lieu thereof \r\nto the employer if he leaves employments of his own accord. \r\n(3) The services of a workman shall not be terminated, nor shall a workman be removed, \r\nretrenched, discharged or dismissed from service, except by an order in writing which shall explicitly \r\nstate the reason for the action taken. In case a workman is aggrieved by the termination of his services \r\nor removal, retrenchment, discharge or dismissal, he may 5[take act ion in accordance with the \r\nprovisions of] section 25A of the Industrial Relations Ordinance, 1969 (XXIII of 1969), and thereupon \r\nthe provisions of said section shall apply as they apply to the redress of an individual grievance. \r\n \r\n1Substituted by Act No. XXIII of 1973, s. 6. \r\n2Inserted by Act No. XXIII of 1973, s. 6. \r\n3Inserted by the Labour Laws (Amendment) Act, 1976 (Act No. XI of 1976), s. 2 read with Schedule. \r\n4Substituted by the Labour Laws (Amendment) Act, 1972 (Act No. V of 1972), s. 2 read with Schedule. \r\n5Substituted by Act No. XXIII of 1973, s. 6. \r\n \r\nPage 14 of 18 \r\n \r\n(4) Where the services of any workman are terminated, the wages earned by him and other \r\ndues, including payment for unavailed leave as defined in clause (1) of Standing Order 8, shall be paid \r\nbefore the expiry of the second working day from the day on which his services are terminated. \r\n(5) The services of permanent or temporary workman shall not be terminated on the ground of \r\nmisconduct otherwise than in the manner prescribed in Standing Order 15. \r\n(6) Where a workman resigns from service or his services are terminated by the employer, for \r\nany reason other than misconduct, he shall, in addition to any other benefit to which he may be entitled \r\nunder this Ordinance or in accordance with the terms of his employment or any custom, usage or any \r\nsettlement or an award of a Labour Court under the Industrial Relations Ordinance, 1969 (XXIII of \r\n1969), be  paid gratuity equivalent to  1[thirty days] , wages, calculated on the basis of the 2[wages \r\nadmissible to him in the last month of service if he is a fixed-rated workman or the highest pay drawn \r\nby him during the last twelve  months if he is a piece -rated workman] , for every completed year of \r\nservice or any part thereof in excess of six months: \r\nProvided that, where the employer has established a Provident Fund to which the workman is \r\na contributor and the contribution of the employer to which is not less than the contribution made by \r\nthe workman, no such gratuity shall be payable for the period during which such Provident Fund has \r\nbeen in existence 3[***] 4[:] \r\n4[Provided further that if through collective bargaining the employer  offers and contributes to \r\nan “Approved Pension F und” as defined in the  Income Tax ordinance, 2001 (XLIX of 2001), and \r\nwhere the contribution of the employer is not less than fifteen per cent of the limit prescribed in the \r\naforesaid Ordinance, and to which the workman is also a contributor for the remaining fifty  per cent \r\nor less, no gratuity shall be payable for the period during which such contributions has been made.] \r\n(7) A workman shall be  entitled to receive the amount standing to his credit in the Provident \r\nFund, including the contributions of the employer to such Fund, even if he resigns or is dismissed from \r\nservice.]  \r\n5[(g) Where workman dies while in service of the employer, his dependant shall be paid gratuity \r\nin accordance with the provisions of clause (6): \r\nProvided that no payment of gratuity in such cases shall be made otherwise than by a deposit \r\nwith the Commission er who shall proceed with the allocation of the deposit to the depe ndant of the \r\ndeceased in accordance with the provisions of section 8 of the Workmen ’s Compensation Act, 1923 \r\n(VIII of 1923). \r\n(9)  If the employer fails to deposit the amount of the gratuity under clause (8), the dependant \r\nof the deceased may make an application to the Commissioner for the recovery of the amount thereof. \r\n \r\n1Substituted by the Labour Laws (Amendment) Act, 1994 (Act No. XI of 1994), s. 2 read with Schedule. \r\n2Substituted by Act No. XXIII of 1973, s. 6. \r\n3Omitted by Act No. XXIII of 1973, s. 6. \r\n4Substituted by the Finance Act, 2007 (Act No. IV of 2007) (w.e.f. 1.7.2007), s. 6. \r\n5Added by Act No. XXIII of 1973, s. 6. \r\n \r\nPage 15 of 18 \r\n \r\nExplanation.__ “Commissioner” and “dependant” in this Standing Order shall have the same \r\nmeanings as are respectively assigne d to them in the Workme n’s Compensation Act, 1923 ( VIII of \r\n1923).] \r\n13.  Procedure for retrenchment .__ Where any workman is to be retrenched and he belongs \r\nto a particular category of workmen, the employer shall retrench the workman who is the last person \r\nemployed in that category. \r\n14.  Re-employment of retrenched workmen .__ Where any number of workmen are  \r\nretrenched and the employer proposes to take into his employ any person within a period of one year \r\nfrom the date of such retrenchment, he shall give an opportunity to the retrenched workmen belonging \r\nto the category concerned, by sending a notice by registered post to their last known addresses to offer \r\nthemselves for re-employment, and they shall have preference over other persons, each having priority \r\naccording to the length of his service, under the employer 1[:] \r\n2[Provided that, in the case of a seasonal factory within the meaning of section 4 of the Factories \r\nAct, 1934 (XXV of 1934), a workman who was retrenched in one season and reports for duty within \r\nten days of the resumption of work in the factory in the immediately following season 3[shall be given \r\npreference for employment] by the employer 4[:]] \r\n5[Provided further that , in the case of such a seasonal factory, the employer may by sending \r\nnotice by registered post to the last known address of a workman who was retrenched in one season \r\nrequire him to report on a day specified in the notice, not being earlier than ten days before resumption \r\nof work in such factory, and if such workman so reports he shall be given preference for employment \r\nand paid full wages from the day he reports.] \r\n6[14A. Special provision for construction workers .__ Where any workman is retrenched or \r\ndischarged by a contractor or any employer engaged in the construction industry due to completion, \r\ncessation or discontinuance of work, he shall be given preference for employment in any other similar \r\nwork undertaken by the contractor or employer within a period of one year from the date of such \r\nretrenchment or discharge: \r\nProvided that where a workman is re -employed within the one month of his retrenchment or \r\ndischarge, he shall be deemed to have been in continuous servic e of the contractor or employer \r\nnotwithstanding the interruption caused by his retrenchment or discharged but no wages shall be paid \r\nto him for the period of interruption.] \r\n15. Punishments.__ (1) A workman may be reprimanded or fined in the manner prescribed \r\nunder the Payment of Wages Act, 1936 (IV of 1936), up to three paisa in the rupee of the wages payable \r\nto him in a month, for any of the following acts or omissions, namely:__ \r\n \r\n1Substituted by the Labour Laws (Amendment) Ordinance, 1972 (Ordinance No. IX of 1972), s. 2 read with First Schedule. \r\n2Added by the Labour Laws (Amendment) Ordinance, 1972 (Ordinance No. IX of 1972), s. 2 read with First Schedule. \r\n3Substituted by the Labour Laws (Amendment) Act, 1972 (Act No. V of 1972), s. 2 read with Schedule. \r\n4Substituted by Act No. XLVIII of 1974, s. 3. \r\n5Added by the Act No. XLVIII of 1974, s. 3. \r\n6Inserted by Act No. XXIII of 1973, s. 6. \r\n \r\n \r\nPage 16 of 18 \r\n \r\n(i) in cases where the Payment of Wages Act, 1936 (IV of 1936), is applicable, the \r\nlist of acts and omissions for which fine may be levied shall be same as approved \r\nby the Chief Inspector of Factories or any other officer concerned; \r\n(ii) in other cases, the following shall be the list of acts and omissions:__ \r\n(a) disregard or disobedience of rules or orders; \r\n(b) improper behaviour, such as drunkenness; \r\n(c) making false or misleading statements; \r\n(d) inefficient, dialatory, careless or wasteful working; \r\n(e) malingering. \r\n(2) A workman found guilty of misconduct shall be liable to any of the following \r\npunishments:__ \r\n(i) fine in the manner prescribed under the Payment of Wages Act, 1936 (IV of \r\n1936), upto three paisa in the rupee of the wages payable to him in a month; \r\n(ii) withholding of increment or promotion for a specified period not exceeding one \r\nyear; \r\n(iii) reduction to a lower post; or \r\n(iv) dismissal without payment of any compensation in lieu of notice. \r\n(3) The following acts and omissions shall be treated as misconduct:__ \r\n(a) wilful insubordination or disobedience, whether alone or in combination with \r\nothers, to any lawful and reasonable order of a superior; \r\n(b) theft, fraud, or dishonesty in connection with  the employer ’s business or \r\nproperty; \r\n(c) wilful damage to or loss of employer’s goods or property; \r\n(d) taking or giving bribes or any illegal gratification; \r\n(e) habitual absence without leave or absence without leave for more than ten days; \r\n(f) habitual late attendance; \r\n(g) habitual breach of any law applicable to the establishment; \r\n(h) riotous or disorderly behaviour during working hours at the establishment or \r\nany act subversive of discipline; \r\n(i) habitual negligence or neglect of work; \r\n \r\nPage 17 of 18 \r\n \r\n(j) frequent repetition of any act or omission referred to in clause (1); \r\n(k) striking work or inciting others to strike in contravention of the provisions of \r\nany law, or rule having the force of law; \r\n(l) go-slow. \r\n(4) No order of dismissal shall be made unless the workman concerned is informed in writing \r\nof the alleged misconduct 1[within one month of the date of such misconduct or of the date on which \r\nthe alleged misconduct comes to the notice of the employer] and is given an opportunity to explain the \r\ncircumstances alleged against him. The approval of the employer shall be required in every case of \r\ndismissal and 2[the employer shall] institute independent inquiries before dealing with charges against \r\na workman 3[:] \r\n4[Provided that the workman proceeded against may, if he so desires for his assistance in the \r\nenquiry, nominate any workman employed in that establishment and the employer shall allow the \r\nworkman so nominated to be present in the enquiry to assist the workman proceeded against and shall \r\nnot deduct his wages if the enquiry is held during his duty hours.] \r\n(5) Where, for the purposes of conducting an inquiry into the alleged misconduct of a workman, \r\nthe employer considers it necessary, he may suspend the workman concerned for a period not \r\nexceeding four days at a time 5[so, however, that the total period of such suspension shall not exceed \r\nfour we eks except where the matter is pending before an Arbitrator, a Labour Court, Tribunal or \r\nConciliator for the grant of permission under section 47 of the Industrial Relations Ordinance, 1969 \r\n(XXIII of 1969),]. The order of suspension shall be in writing and may take effect immediately on \r\ndelivery to the workman. During the period of suspension, the workman concerned shall be paid by \r\nthe employer 6[* * * * *] to the same wages as he would have received if he had not been suspended. \r\n16. Eviction from residential accommodation .__ (1) Notwithstanding the provisions of any \r\nlaw for the time being in force, including those of the West Pakistan Urban Rent Restriction Ordinance, \r\n1959 (W.P. Ordinance No. VI of 1959), a  workman occupying residential accommodation provided \r\nby his employer, who has resigned or retired, or has been retrenched, discharged or dismissed, or \r\nwhose services have been terminated, shall vacate such accommodation within a period of two months \r\nfrom the date of his retrenchment, discharge, dismissal or termination of services, as the case may be, \r\nprovided that in case of reinstatement of the workman, the employer shall be bound to provide him \r\nwith similar-residential accommodation from the date of such reinstatement or pay him per mensem, \r\nan allowance in lieu thereof at the rate of three times the wages of the last full working day. \r\n(2) If a workman, who has been retrenched, discharged or dismissed, or whose services have \r\nbeen terminated, fails to vacate any residential premises provided by the employer, within the period \r\nspecified in clause (1), the employer may lodge a complaint with a Magistrate of the first class having \r\njurisdiction in the area where such residential accommodation is located. \r\n \r\n1Inserted by the Labour Laws (Amendment) Act, 1976 (Act No. XI of 1976), s. 2 read with Schedule. \r\n2Substituted by Act No. XXIII of 1973, s. 6. \r\n3Substituted by Act No. XXIII of 1973, s. 6. \r\n4Added by Act No. XXIII of 1973, s. 6. \r\n5Inserted by the Labour Laws (Amendment) Act, 1976 (Act No. XI of 1976), s. 2 read with Schedule. \r\n6Omitted by the Finance Act, 2008 (Act No. I of 2008) (w.e.f. 1.7.2008), s. 4. \r\n \r\n \r\nPage 18 of 18 \r\n \r\n(3) The Magistrate on hearing the parties, may, notwithstanding anything contained in any \r\nother law for the time being in force, summarily decide the case and may pass an order of eviction, \r\ngiving the workman a reasonable time to vacate the premises. \r\n(4) Where a Magistrate passes an order for the eviction of a workman, he may also pass an \r\norder directing a police officer to evict such workman and any other person occupying through such \r\nworkman the residential accommodation in respect of which the order of eviction is made , if the \r\nworkman or such other person fails to vacate the accommodation within the time allowed under clause \r\n(3). \r\n(5) A police officer acting under an order of the Magistrate under clause (4), shall notify the \r\noccupants of the premises in question, the contents of the Magistrate’s order and his intention to enter \r\non such premises, and shall allow at least two hours’ time to the occupants to vacate the premises and \r\nshall give all reasonable facilities to the children and female occupants, if any, to withdraw therefrom \r\nbefore applying any force for taking over possession of such premises. \r\n(6) Where a workman occupying residential accommodation provided to him by the employer \r\ndies, the procedure prescribed in this Standing Order shall mutatis mutandis and so far as applicable, \r\napply, for evicting any person, who was occupying the premises through such workman, and after his \r\ndeath continues to remain in occupation thereof. \r\n17.  1[Omitted] \r\n18.  2[Omitted] \r\n19. Certificate of termination of service .__ Every permanent workman shall be entitled to a \r\nservice certificate at the time of his dismissal, discharge, retrenchment or retirement from service. \r\n20. Liability of employer .__ The employer of the industrial and commercial establishment \r\nshall personally be held responsible for the proper and faithful observance of the Standing Orders, \r\nwhether or not the workmen of such establishment are employed through contractors. \r\n \r\n_______ \r\n \r\n \r\n \r\n \r\n                                   RGN- Dated. 13-08-2025 \r\n \r\n1Omitted by the Labour Laws (Amendment) Act, 1972 (Act No. V of 1972), s. 2 read with Schedule. \r\n2Omitted by the Labour Laws (Amendment) Ordinance, 1972 (Ordinance No. IX of 1972), s. 2 read with First Schedule.",
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