National University of Modern

Languages

PROJECT OF LABOUR LAW

IMPLEMENTED IN FESCO

Submitted To:

Sir Shahbaz
By:

Bilal Khaliq

M.COM-IV

 Dedication:We dedicate this project to our Parents whose prayers remain always with us and by whom we
are able to do this.

Acknowledgement:I would like to express my special thanks of gratitude to my teacher (Sir Shahbaz) who gave me
the golden opportunity to do this wonderful project on the topic (Labour Lawas in Companies),
which also helped me in doing a lot of Research and I came to know about so many new things I
am really thankful to them.
Secondly I would also like to thank my parents and friends who helped me a lot in finalizing this
project within the limited time frame.

EXECUTIVE SUMMARY
2

In our project we have seen that all the laws which is mandatory and compulsory for the
commencement and steady running of an organization is adopted by the FESCO.
We have seen three laws which is being adopted by this factory are
In our first section we have discussed about the factories act 1934 which is successfully
adopted and operated by FESCO all the health and safety related measures are adopted by this
factory.
Labour legislation and collective labour agreements in FESCO present measures that facilitate
the equilibrium between works such as the days of maternity leave, job security for the
employees. Nevertheless, the labour legislation applies only to employees with regular work
contracts, which excludes the majority of workers from their rights. Moreover, the labour
legislation concentrates its benefits during the course of their employment.
In our second section we have discussed its social security act 1965 which is also
successfully running in this organization because security leads to better commitment of the
employees towards their work
In view of the changes in the labour market, the increase in the effectiveness of protection of
workers and their families implies transformation of workers rights into universal rights. The
increase in the deregulation of labour relations indicates that the capacity to reconcile work
involves the disassociation of access to family benefits from the type of work contract
established, and also from the gender of the worker. The focus and limited life experience of
most people within this organization also limits the ability of most people to consider the
potential opportunities and value of building networks and relationships with people and
organizations outside of their community.
In our last section we have discussed the industrial relation act IRA 2008 which is for
the whole of the industry to be followed by them actively and strictly by all .So as this factory is
producing good material products and thats because they have followed all the rules and
regulations which is in constitution to be adopted by the factory.

TABLE OF CONTENTS

Pg NO.

Dedication & Acknowledgement

Executive summary

History of FESCO

Labour act in factory (factory act 1934)

Health of workers

Safety of workers

10

Working hours and holidays

12

Social security act 1965 and its benefits

12

Industrial Relation Act 2008 (IRA)

15

Trade union

15

Registration of trade union

18

Collective bargaining

19

Conclusion and Recommendation

21

Introduction
4

FESCO distributes and supplies electricity to about 3.46 million customers within its
service territory with a population of over 22 million under a Distribution License granted
by National Electric Power Regulatory Authority (NEPRA) pursuant to the Regulation of
Generation, Transmission and Distribution of Electric Power Act, 1997 (NEPRA Act).
Geographical service area of FESCO comprises Faisalabad, Sargodha, Mianwali,
Khushab, Jhang, Bhakker, T.T Singh and Chiniot districts.
FESCO is one of the best electricity distribution company in Pakistan in terms of
operational performance, as it has low degree of distribution losses and a high rate of bill
collection. It's main service area is Faisalabad, known as Manchester of Pakistan for its
extensive textile industries.

Mission
To transform and develop the company into a viable entity and provide quality services to the
customers.

Vision:
To provide reliable, affordable and safe electricity to make industry/agriculture sectors
competitive for world market, thereby alleviating poverty in the area of responsibility.

Hierarchy

Jurisdiction Map

WAPDA
The electricity supply service in Pakistan, initially, was undertaken by different agencies,
both in public and private sectors, in different areas. In order to provide for the unified and
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coordinated development of the water and power resources, Water and Power Development
Authority (WAPDA) was created in 1958 through WAPDA Act, 1958.

BUSINESS LAWS
Business law encompasses the law governing contracts, sales, commercial paper, agency and
employment law, business organizations, property, and bailment. Other popular areas include
insurance, wills and estate planning, and consumer and creditor protection. Business law may
include issues such as starting, selling, or buying a small business, managing a business,
dealing with employees, or dealing with contracts, among others.
The Uniform Commercial Code (UCC), which governs sales and commercial paper, has been
adopted in some form by almost all states. There are agencies at the state and federal level
which administer the law in such issues such as employment affairs and consumer and credit
protection. The laws aim to protect fair business practices and due process rights for aggrieved
workers and others.

LABOUR LAWS IN FACTORIES

Labour law (or employment law) is the body of laws, administrative rulings, and precedents
which address the legal rights of, and restrictions on, working people and their organizations. As
such, it mediates many aspects of the relationship between trade unions, employers and
employees. In different countries employment laws related to unionized workplaces are
differentiated from those relating to particular individuals. In most countries however, no such
distinction is made.
However, there are two broad categories of labour law. First, collective labour law relates to
the tripartite relationship between employee, employer and union. Second, individual labour
law concerns employees' rights at work and through the contract for work. The labour
movement has been instrumental in the enacting of laws protecting labour rights in the 19th
and 20th centuries. Labour rights have been integral to the social and economic development
since the industrial revolution.
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CHILD LABOUR
The term "child labour" is often defined as work that deprives children of their childhood, their
potential and their dignity, and that is harmful to physical and mental development.
It refers to work that:

is mentally, physically, socially or morally dangerous and harmful to children; and

interferes with their schooling by:

depriving them of the opportunity to attend school;

obliging them to leave school prematurely; or

requiring them to attempt to combine school attendance with excessively long and heavy work.

In its most extreme forms, child labour involves children being enslaved, separated from their
families, exposed to serious hazards and illnesses and/or left to fend for themselves on the streets
of large cities often at a very early age. Whether or not particular forms of "work" can be called
"child labour" depends on the child's age, the type and hours of work performed, the conditions
under which it is performed and the objectives pursued by individual countries. The answer
varies from country to country, as well as among sectors within countries. Not all work done by
children should be classified as child labour that is to be targeted for elimination. Childrens or
adolescents participation in work that does not affect their health and personal development or
interfere with their schooling, is generally regarded as being something positive. This includes
activities such as helping their parents around the home, assisting in a family business or earning
pocket money outside school hours and during school holidays. These kinds of activities
contribute to childrens development and to the welfare of their families; they provide them with
skills and experience, and help to prepare them to be productive members of society during their
adult life.
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LABOUR LAWS IMPLEMENTED IN FESCO

Health of workers
1 Hospital:FESCO has its own hospital for their employees. In this hospital free medical facility provided
by the FESCO to all employees. Health is the first priority of this organization on the basis of
hospital.

2 Cleanliness:FESCO hire employees for cleaning purpose; their duty is to clean each department daily, as
clean atmosphere keep away workers from diseases. Dirt and refuse are removed daily by
effective methods.

3 Ventilation and temperature:FESCO have many departments and every departmental building has proper ventilation and to
maintain the temperature especially in summers FESCO provides air conditioner and air cooling
facilities to its employees.

4 Dust and fumes

To keep away their workers from dust and fumes. We provide them dust mask which keep them
safe from dust and fumes.

5 Lighting:The proper arrangement of lighting is available at every machine, so that workers do not feel
stress on their eyes while working.

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6 Drinking water:FESCO installed its own water plant to provide clean drinking water to its employees and their
families.

7 Vaccination & other health care programmer:They get the help of expert doctor for various type of vacation more over they test the blood
group of all the employees so that they faces no problem if in emergency.

8 Provision of canteen:As FESCO has many divisions and subdivisions in every city so it provide the facility of canteen
in every division and subdivisions.

9 Welfare officer:FESCO is a big organization so they have their welfare officers in every division whose
responsibility is to look after the various problems of labour and other employees.

10 Employee son quota:FESCO provides the jobs to the labours children for the compensation of their hard work.

10 Other facilities:They provide free energy saver and free electricity to their employees for the reward of their
workers and labours.

Safety of workers
FESCO has the SOPs of protection against the danger work for their employees many of them
are as under. Other various precautionary measures for the safety of workers are as under .

SAFETY POLICY OF WAPDA AND SAFETY OBJECTIVES

SAFETY POLICY STATEMENT
To sum up WAPDA Safety Policy is that:

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"No operating condition or urgency of service can ever justify endangering the life of anyone."
REQUIREMENTS OF EMPLOYEES
As a WAPDA employee you will be expected to know the WAPDA Safety Policy statement and
to practice it faithfully.
SAFETY OBJECTIVES
The Safety Policy of WAPDA is designed to achieve the following objectives:
a. To completely integrate safety with production, construction, maintenance and operation.
b. To provide safe working conditions, proper and adequate tools, equipment and protective
devices.
c. To train employees in practices for the safe conduct of their work.
d. To enforce safety measures.
Other Safeties of Workers

1 Precautions against fire:In every office of the FESCO the fire points are installed for the precautions against fire and also
give training to their employees of fire fighters.

2 Precautions regarding Shock:They advice their workers to wear pent shirt and all safety tools before doing work on a
electricity line.

3 Use of Tools:When work on a line of electricity use the specific tools for the safety of their workers.

4 Use of long shoes and gloves:As we all know that work of electricity is very dangerous so therefore every labour person like
line man has the order to use long shoes and gloves before working on a line.

5 Specific operational trainings:Operational activities of FESCO are very dangerous as many accidents occur during the work so
therefore after recruitment of employees specific training give to their labours.

6 Operational activities:12

Operational activities of FESCO are very dangerous like provide the electric line to an
unelectrify area. Before working on that line specific knowledge is provided by our qualified
engineers.

7 Safe mean of access:This is very important that all floors, steps and stairs are of sound quality and clean so people
walking on it remain safe from dangers.

8 Provide heavy trucks and vehicles:All the workers are advised not to lift weight more than their ability so FESCO has provided the
heavy trucks and vehicles to their employees for smooth and easy workflow.

9 Implementation of rules:We make assure that all the safety measures are working properly or not. if line mans are not
following precautionary measures before starting work then the officer can take an action
according to FESCO E&D Rules.

10 Hire qualified Engineers:FESCO hire qualified engineers for the safety of their workers which are working on the
dangerous lines.

Working hours
FESCO also have regulated exact working hours for each employee which is 8 hours a shift for
men labour and max 9 hours for a day.
FESCO gives two holidays in a week for the relaxation of their employees and for the domestic
work. The same way 40 hours a week labour work but there are shifts where it is closely watched
that each employee is working for 8 hours a day or 52 maximum hours a week. If any worker
giving extra time more than 40 hours in a week then FESCO give off day wages to their
employees who work more than 40 hours.
Women also has specific working hours according to which they can go home by 4 pm for their
home activities and their working hours are 8 in a day or 40 hours a week like a man.

Holidays with pay

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FESCO provide 25 casual leaves to their employees in one year. Employees can take leave every
time for the sickness or for the domestic work without any deduction in salary. And also provide
40 earned leaves in a year which are summarizing every year. And any employee can take one
year leave without deduction in salary, if the employee has the balance of leave more than one
year.
Festival holidays like 1 may and quad day etc are given with full pay to the labours.

SOCIAL SECURITY Act 1965:The purpose of this law is to develop social security institution and to collect funds for the
employee to help them in their bad days.
This fund is accumulated by both employer and employee and also provide the facility of
insurance to their employees. If any employee died during the service FESCO gives insured
money to its family for the compensation of loss. FESCO give interest on Welfare Fund
deductions that is made by the WAPDA House Lahore.

SOCIAL SECURITY BENEFITS IN FESCO:

1. Sickness benefit (Weekly Cash Benefit):
He must have certain conditions to be fulfilled.

Be an insured contributor
Free medical facility if he is a member of WAPDA hospital
Otherwise cash medical facility paid to all employees on monthly basis

2. Maternity benefit :
Maternity facility is not available in FESCO (WAPDA) Hospital but A registered employee can
get Rs. 1500 in case of ordinary delivery, 3,000 in case of non sezeryan and 7,000 in case of
sezeryan with all medicine bills claims. This benefit is paid to her for all those days in which she
cant work.

3. Medical benefit :
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Employee has suffered an employment injury / work-related prescribed disease

Meet all other requirements as per the Procedures for Medical Care

Time for claim has certain rules

Claim when injury occurs or when prescribed disease develops

Expenses to be submitted no later than6 months from the date they were incurred
If claim is not submitted within the 6 months period, a good reason must be given by
claimant.

4. Death benefit:
There is a provision for that in a FESCO that the dependents should get benefit when they would
be a survivor (widow/widower, child or parent) of a deceased insured contributor, who died as a
result of employment injury caused by an accident.
WIDOWER
Must be an invalid without any source of income, who was fully dependent on deceased spouse
CHILDREN
Includes biological and step children or adopted children of the deceased insured contributor.
Must be unmarried and under 16 years or 21 years if receiving full-time education
PARENTS
Must be 55 years or over. If the deceased has no widow/ widower or children, parents can claim.
Claim should be made after date of death of insured contributor.

5. Employment injury:
If the employee working in FESCO registered with WAPDA Hospital should Submit claim on
prescribed form which is a medical certificate showing cause of illness (from employment injury
/ work-related prescribed disease) and number of days the insured contributor will be unable to
work.
Submit claim within 6 months from first day of illness shown on medical certificate.

6. Disablement Pension :
This benefit is provided to the employee who have suffered an employment
injury/work-related prescribed disease, which results in permanent disability. And for checking is
done by Medical Board set up by WAPDA Hospital Doctors panel.

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For Disability of 25% or more, a Pension is paid and welfare fund also paid which was deducted
every month.

7. Constant Attendance allowance:

To avail the benefit of constant care the employee working at FESCO must been register with
wapda welfare fund with 100% disability, due to employment injury / work-related prescribed
disease and requires assistance for your daily care. And it is recommended by a registered doctor
And thats why there is an increase in its pension of 25% of the Disablement Pension.

8. Survivors' Pension :
For this benefit the dependents of deceased must be a survivor (widow/widower, child or parent)
of a deceased register with WAPDA welfare fund, who was receiving or was entitled to receive
Retirement or Invalidity Benefit. After death of widow the pension will given to boy till getting
the age of 18 years and daughter till remarriage.
WIDOWER
FESCO provide pension facility medical facility marriage grant facility to the widower of
employee till his remarriage. Widow can also take the benefit of WAPDA welfare fund in which
widow receive an amount exclusive pension amount.
CHILDREN
Children of an employee or widow can also receive pension and other benefits till their
marriage and till the attain the age of majority eighteen years(18years).

9. Leave Encashment
The employee who do not go on leave and has the balance of 365 days in leave then FESCO
provide one year basic salary to his employee for the honorarium of his hard work.

10. Retirement Pension:

FESCO provide the Pension facilities to their worker who retired on the age of 60 years on
superannuation. If an employee has completed his 25years service then he or she can also apply
for retirement and can take the pension every month from his office

INDUSTRIAL REATION ACT 2008 (IRA)

16

Industrial relations is the field of study that concentrates on workers, their unions and
associations, and employers and their organizations, and the environment in which these parties
interact.
PURPOSE
The purpose is to better understand the nature of the relationship between management, labour
and government.
OBJECTIVES

To safeguard the interest of labour and management by securing the highest level of
mutual understanding and good-will among all those sections in the industry which
participate in the process of production.

To avoid industrial conflict or strife and develop harmonious relations, which are an
essential factor in the productivity of workers and the industrial progress of a country.

To raise productivity to a higher level in an era of full employment by lessening the

tendency to high turnover and frequency absenteeism.

To establish and promote the growth of an industrial democracy based on labour

partnership in the sharing of profits and of managerial decisions, so that ban individuals
personality may grow its full stature for the benefit of the industry and of the country as
well.

To eliminate or minimize the number of strikes, lockouts by providing reasonable wages,

improved living and working conditions, said fringe benefits.

To improve the economic conditions of workers in the existing state of industrial

managements.

Socialization of industries by making the state itself a major employer.

TRADE UNION
Trade union is an organization of employees formed on a continuous basis for the purpose of
securing diverse range of benefits. It is a continuous association of wage earners for the purpose
of maintaining and improving the conditions of their working lives.
The Trade union act1926 defines a trade union as a combination, whether temporary or
permanent, formed primarily for the purpose of regulating the relations between workmen and
employers or between workmen and workmen, or between employers and employers, or for
17

imposing restrictive condition on the conduct of any trade or business, and includes any
federation of two or more trade unions.
This definition, primarily, talks about three relationships. They are the relationships between the:

workmen and workmen,

workmen and employers,

employers and employers

Every trade union and employers association shall frame its own constitution and rules to elect
its representatives in full freedom to organize its administration and activities and to formulate its
programs and workers and employers organizations shall have the right to establish and join
federations and confederations and any such organization, federation or confederation shall have
the right to affiliate with international organizations and confederations of workers and
employers organizations.

Application for registration.Any trade union may, under the signature of its President and the Secretary, apply to the Registrar for
registration of the trade union under this Act.

Requirements for application:Every application for registration of Trade Union shall be made to the Registrar and shall be
accompanied by(a) A statement showing
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)

The name of the trade union and the address of its Head Office.
Date of formation of the union.
The titles, names, ages, addresses and occupations of the officers of the trade union.
Statement of total paid membership.
The name of the establishment or group of establishments, or the industry, as the case
may be, to which the trade union relates along with a statement of the total number of
workers employed therein.
The names and addresses of the registered trade unions in the establishment group of
establishments or industry, case may be, to which the union relates.
In case of a federation of trade unions, the names, addresses and registration number
of member-unions.

(b) Three copies of the constitution of the trade union together with a copy of the resolution by
the members of the trade union adopting such constitution bearing the signature of the Chairman
of the meeting.
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(c) A copy of the resolution by the members of the trade union authorizing its President and the
Secretary to apply for its registration.
(d) In case of a federation of trade unions, a copy of their solution from each of the constituent
unions agreeing to become a member of the federation.

Requirements For Registration.A trade union shall not be entitled to registration under this Act unless the constitution thereof
provide for the following matters.
(a) The name and address of the trade union.
(b) The objects for which the trade union has been formed.
(c) The purposes for which the general funds of the union shall be utilized.
(d) The number of persons forming the executive which shall not exceed the prescribed limit
and shall include not less than 75% from amongst the workmen actually engaged or
employed in the establishment or establishments or the industry for which the trade
union has been formed.
(e) The conditions under which a member shall be entitle to any benefit assured by the
constitution of the trade union and under which any fine or forfeiture may be imposed on
him.
(f) The maintenance of a list of the members of the trade union and of adequate facilities
for the inspection thereof by the officers and members of the trade union.
(g) The manner in which the constitution shall be amended, varied or canceled.
(h) The safe custody of the funds of the trade union, its annual audit, the manner of audit and
adequate facilities for inspection of the account books by the officers and members of the
trade union.
(i) The manner in which the trade union may be dissolved.
(j) The manner of election of officers by the general body of the trade union and the term,
not exceeding two years, for which an officer may hold office upon his election or reelection.
(k) The procedure for expressing no confidence in any officer of the trade union.

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(l) The meeting of the executive and of the general body of the trade union so that the
executive shall meet at least once in every three months and the general body at least
once a year.

Registration Of Trade Union :(1) The Registrar, on being satisfied that the trade union has complied with all the requirements
of this Act, shall register the trade union in a prescribed register and issue a registration
certificate in the prescribed form within a period of 15 days from the date of receipt of the
application
(2) When the objections raised by the Registrar have been satisfactorily met, the Registrar shall
register the trade union as provided and issue a certificate of registration in the prescribed form
within3 days of the date of the objections having been so met.
(3) In case the application has been rejected or the Registrar has delayed disposal of the
application beyond the period of fifteen days provided or has not issued a certificate of
registration within a period of 3 days as provided and as the case may be, the trade union may
appeal to the Labour Court who for reasons to be stated in its judgment may pass
an order directing the Registrar to register the trade union and to issue a certificate of registration
or may dismiss the appeal.
(4) Every alteration made in the constitution of a registered trade union and every change of its
officers shall be notified by registered post by the trade union to the Registrar within 15 days of
such change.
(5) The Registrar may refuse to register such change or alteration if itis in contravention of any
of the provisions of this Act, or if it is in violation of the constitution of the trade union.
(6) Subject to the provision every addition or elimination of any constituent unit of a federation
of trade unions shall be notified by registered post by the federation to the Registrar within
fifteen days.
(7) In case there is a dispute in relation to the change of officers of a trade union, or any trade
union is upset by the refusal of the Registrar any officer or member of the trade union may apply
or appeal to the Labour Court, who shall within 7 days of receipt of the application or appeal, as
the case may be, pass an order either directing the Registrar to register the change or alteration in
the
constitution
or
in
the
officers
of
the
trade
union
or
may, for reasons to be recorded in writing, direct the registrar to hold fresh elections of the union
under his supervision.

Certificate of registration:The Registrar, on registering a trade union, shall issue a certificate of registration in the
prescribed form which shall be conclusive evidence that trade union has been duly registered
under this Act.
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COLLECTIVE BARGAINING AGENT

It is a group process, wherein one group, representing the employers, and the other, representing
the employees, sit together to negotiate terms of employment
Negotiations form an important aspect of the process of collective bargaining. Collective
bargaining is a formalized process by which employers and independent trade unions negotiate
terms and conditions of employment and the ways in which certain employment-related issues
are to be regulated at national, organizational and workplace levels.
(1)

ning agent for such establishment or group.

(2) Where there are more registered trade unions than one in an establishment or a group of
establishments, the Registrar shall upon an application made in this behalf by one-fifth of the
total number of workmen employed in such establishment or group of establishments or by the
employer or the Government, hold within 15 days from the making of the application, a secret
ballot to determine as to which one of such trade unions shall be the collective bargaining
agent for the establishment or group
(3) Upon receipt of an application under section the Registrar shall, by notice in writing call
upon every registered trade union in the establishment or group of establishments to which the
application relates.
(4) Every employer shall on being so required by the Registrar, submit a list of all workmen
employed in the establishment excluding those whose period of employment in the establishment
is less than 3 months and showing, in respect of each workman, his parentage, age, the section or
department and the place in which he is employed, his ticket number and the date of his
employment in the establishment.

(5) The Registrar shall, after verification of the lists submitted by the trade unions, prepare a list
of voters in which shall be included the name of every workman whose period of employment as
computed in accordance with section is not less than 3 months and who is a member of any of
the contesting trade unions and shall, at least four days prior to the date fixed for the poll, send to
each of the contesting trade unions a certified copy of the list of voters so prepared.

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(6) Every workman who is a member of any of the contesting trade unions and whose name
appears in the list of voters prepared under section shall be entitled to vote at the poll to
determine the collective bargaining agent.
(13) The collective bargaining agent in relation to an establishment or group of establishments
shall be entitled to undertake collective bargaining with the employer or employers on matters
connected with employment, non-employment the term of employment or the conditions of work
other than matters which relate to the enforcement of any right guaranteed or secured to it or any
workman by or under any law, other than this Act, or any award or settlement.

Trade union is FESCO

FESCO has two registered trade union. One is Pakistan Hydro Worker Union and second is
Pakistan WAPDA Pegham Union. Election between two parties conduct after every five years.
This election is conducted by the approval of Ministry of Water and Power. These are two major
parties which one is winning the elections they will protect the employees rights. Protection from
privatization is also the main agenda of these two parties.

CONCLUSION
We have concluded that FESCO has a minor low focus on factories act and so that there is a little
problem here and as well as the safety are not upto the mark.

22

It is also known to all of us that full adoptive measures are very difficult to adopt but we are not
saying it to be 100 %.
We also concluded that by providing all the health and safety related activities will increases the
confidence level and also the productivity of the organization. And the security act which is
operating in whole Pakistan is strictly monitored by the national industrial relation commission
so that there will be less chances of error. Although all These three acts are not fully adopted but
to be applied into every factory will be enough satisfactory for the employees and workers of the
factories.

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