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In a significant move to modernize labor laws, Pakistan’s Sindh and Punjab provinces have drafted new labor codes with assistance from the International Labour Organisation (ILO). These codes aim to extend worker protections to a broader range of individuals, including those in the gig economy, self-employed workers, agricultural laborers, and domestic workers.
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The new codes replace the fragmented labor laws that originated during British colonial rule. These outdated laws left most of Pakistan’s working population without adequate protection. The revised codes align with ILO’s fundamental labor rights conventions, which cover areas such as forced labor abolition, child labor elimination, anti-discrimination, workplace health and safety, and freedom of association.
A key feature of the draft codes is the comprehensive definition of ‘worker,’ which includes all employees and other working individuals. This broad interpretation ensures that fundamental labor rights apply to everyone from domestic workers to ride-share drivers and professionals, regardless of their formal or informal status.
The codes distinguish between ‘workers’ and ’employees,’ with certain employment standards like pay, leave, and termination processes applying specifically to those in traditional employment relationships. This approach follows international practices while updating Pakistan’s labor laws.
One contentious issue addressed in the codes is labor contracting. The drafts incorporate principles to determine employer status, prohibit sham contracting arrangements, and limit the use of third-party and fixed-term contracts. These measures aim to balance job security for workers with businesses’ need for flexibility.
The codes also make provisions for emerging work arrangements, such as those in the gig economy. While the exact details are subject to stakeholder deliberation, the drafts ensure that all workers, including those under service contracts, are guaranteed the rights outlined in ILO’s fundamental conventions.
As Pakistan moves forward with these labor law reforms, the new codes represent a significant step towards protecting a wider range of workers and aligning the country’s labor practices with international standards.
