HR Regulations & Rules

Here’s an overview of key HR regulations and rules applicable in Islamabad:

Key Regulations and Legislation:

1. The Industrial Relations Act, 2012

• • Governs the relationship between employers and employees in industrial establishments.
  • Provides for the formation of trade unions, collective bargaining, and the resolution of industrial disputes.
  • Sets out the rights and responsibilities of employers and employees.

2. The Employment of Children Act, 1991

• • Prohibits the employment of children under the age of 14 in any occupation.
  • Regulates the working conditions for children and adolescents to ensure their safety and welfare.

3. The Minimum Wages Ordinance, 1961

• • Establishes minimum wage rates for different categories of workers.
  • Ensures that workers receive fair compensation for their labor.

4. The Factories Act, 1934

• • Regulates working hours, health, safety, and welfare of workers in factories.
  • Includes provisions on working hours, rest breaks, annual leave, and workplace safety measures.

5. The Shops and Establishments Ordinance, 1969

• • Governs the working conditions in commercial establishments such as shops, offices, and other service-related businesses.
  • Covers aspects like working hours, rest periods, overtime, and holidays.

6. The Workers’ Welfare Fund Ordinance, 1971

• • Provides for the establishment of a welfare fund for workers to finance housing, health, education, and other welfare measures.

7. The Employees’ Old-Age Benefits Institution (EOBI) Act, 1976

• • Establishes a system of old-age benefits for employees, including pensions, invalidity benefits, and survivor benefits.

Key HR Policies and Rules:

1. Employment Contracts

• • Must clearly outline the terms and conditions of employment, including job responsibilities, salary, benefits, working hours, and termination conditions.
  • Contracts should comply with the labor laws and regulations applicable in Islamabad.

2. Working Hours and Overtime

• • Standard working hours are typically 8 hours per day and 48 hours per week.
  • Overtime work must be compensated at a higher rate, usually 1.5 times the regular wage, as per the Factories Act, 1934, and the Shops and Establishments Ordinance, 1969.

3. Wages and Benefits

• • Employees must be paid at least the minimum wage as specified by the Minimum Wages Ordinance, 1961.
  • Benefits such as medical insurance, paid leave, maternity leave, and retirement benefits should be provided as per relevant laws and company policies.

4. Health and Safety

• • Employers are required to ensure a safe and healthy working environment as per the Factories Act, 1934, and other relevant regulations.
  • This includes providing necessary safety equipment, conducting regular safety training, and adhering to occupational health and safety standards.

5. Dispute Resolution

• • Mechanisms for resolving workplace disputes should be in place, including internal grievance procedures and access to labor courts or industrial tribunals.
  • The Industrial Relations Act, 2012, provides for the formation of works councils and trade unions to address disputes collectively.

6. Termination and Dismissal

• • Termination of employment must be carried out in accordance with the terms specified in the employment contract and relevant labor laws.
  • Employees are generally entitled to notice periods or payment in lieu of notice, and severance pay depending on the length of service and reason for termination.

Compliance and Enforcement:

1. Labor Inspections

• • Labor inspectors conduct regular inspections to ensure compliance with labor laws and regulations.
  • Non-compliance can result in penalties, fines, and legal action against the employer.

2. Regulatory Authorities

• • Various governmental bodies, such as the Ministry of Overseas Pakistanis and Human Resource Development, oversee the implementation and enforcement of labor laws.
  • The Employees’ Old-Age Benefits Institution (EOBI) manages old-age benefits and ensures compliance with related regulations.