Labour Laws in Pakistan – A Simple Guide for Employers and Employees

Labour laws in Pakistan regulate the working relationship between employers and employees. These laws protect workers while also helping businesses operate smoothly. Therefore, understanding labour laws is essential for both sides.

At Mughal Barristers, we help employers, HR teams, and employees understand their rights and duties under Pakistan’s labour laws. As a result, our clients avoid disputes and remain legally compliant.

What Do Labour Laws Cover in Pakistan?

Labour laws in Pakistan apply to most workplaces, including offices, factories, shops, NGOs, and multinational companies. Moreover, these laws cover both public and private sector employment.

In general, labour laws deal with:

• Employment and appointment terms

• Working hours and overtime

• Minimum wages and benefits

• Leave and holidays

• Discipline and misconduct

• Termination and resignation

• Trade unions and labour disputes

Since the 18th Constitutional Amendment, provinces now enforce their own labour laws. Therefore, local compliance is critical.

Employment Contracts and Service Rules

Usually, employment begins with a written contract or service rules. These documents explain salary, duties, probation, benefits, and termination rules.

However, poorly written contracts often cause disputes. For this reason, employers should ensure contracts follow labour laws. Likewise, employees should read all terms carefully before signing.

Clear contracts reduce confusion. As a result, workplaces function more smoothly.

Working Hours, Overtime, and Leave

Labour laws set limits on working hours. Generally, employees work up to 48 hours per week. If they work extra hours, employers must pay overtime.

In addition, employees are entitled to:

• Casual leave

• Sick leave

• Annual leave

• Public holidays

If employers deny lawful leave or overtime, employees may file legal claims. Therefore, compliance is essential.

Minimum Wages and Employee Benefits

Every year, provincial governments announce minimum wage rates. Employers must pay wages at or above these rates. Otherwise, penalties may apply.

Moreover, employees may qualify for benefits such as:

• Social security coverage

• Old-age pension (EOBI)

• Compensation for workplace injuries

Because these benefits are mandatory, employers must ensure timely registration and payments.

Discipline, Misconduct, and Termination

Employers cannot punish or terminate employees without following due process. First, the employer must issue a show-cause notice. Then, a fair inquiry must take place.

If an employer skips this process, the termination may become illegal. Consequently, labour courts may order reinstatement or compensation.

Therefore, employers must act carefully, while employees should know their legal protections.

Trade Unions and Industrial Relations

Workers in Pakistan have the right to form trade unions. These unions represent employees in collective bargaining with employers.

Furthermore, labour laws regulate strikes, lockouts, and negotiations. Employers must deal with unions lawfully. Otherwise, disputes may escalate quickly.

As a result, proper legal guidance is often necessary in union matters.

Labour Disputes and Legal Remedies

Labour disputes may arise due to termination, unpaid wages, harassment, or benefits. Depending on the issue, cases may go before:

• Labour Courts

• Labour Appellate Tribunals

• Internal grievance committees

However, early legal advice often resolves disputes before litigation. Therefore, timely action saves time and cost.

How Mughal Barristers Can Help

We assist both employers and employees in labour law matters. In particular, our services include:

• Employment contracts and HR policies

• Compliance reviews and audits

• Disciplinary proceedings support

• Termination and restructuring advice

• Labour court litigation

As a result, our clients stay compliant and protected.

Speak to a Labour Law Expert in Pakistan

Labour law issues can grow quickly if ignored. Therefore, professional advice is crucial.

📞 Contact Mughal Barristers today for clear, practical labour law guidance in Pakistan.