Learning Point

  🧾 Employees’ Old-Age Benefits Act, 1976 – Part I For Business & HRM Students Purpose : To provide financial security to employees in old age, retirement, disability, or upon death through pensions and benefits. 8.1 Employees’ Old-Age Benefits Contribution Rules, 1978 Definition: These rules govern the payment, collection, and management of contributions made by employers and employees to the EOBI fund. Key Features: Employer contributes 5% of minimum wage Employee contributes 1% of minimum wage Payments are made monthly to EOBI fund Example: If minimum wage is Rs. 32,000/month, employer contributes Rs. 1,600, and employee contributes Rs. 320. Business Advantage: Enhances employee retention Demonstrates corporate social responsibility 8.2 Employees’ Old-Age Benefits Types of Benefits: Old-Age Pension (on retirement at 60 years for men, 55 for women) Invalidity Pension (due to permanent disability) Survivor’s ...

  🏢 Laws Governing Industrial Employment and Industrial Relations (Based on Industrial Relations Act, Trade Unions Act, and Wage Commission Regulations – Pakistan) 7.1 Trade Unions and Freedom of Associations Definition: A trade union is an organized association of workers formed to protect and promote their rights through collective bargaining. Freedom of Association: Every worker has the right to: Form or join a trade union Participate in its lawful activities Not be discriminated against for union involvement Example: Workers at a textile factory form a union to demand fair wages. Business Advantage: Encourages structured negotiation Reduces risk of spontaneous strikes 7.2 Application for Registration and Requirements Requirements: At least 10% or 100 workers (whichever is less) Constitution with clear rules Name, address, and list of members Registration fee Example: A factory union submits applicatio...

  🏭 Laws Governing Establishment of Factories (Factories Act, 1934 – Pakistan) Lecture Notes for Business Students 6.1 Definitions Pertained to the Factories Act, 1934 Factory : A premises where 10 or more workers are working with power or 20 or more without power, involved in manufacturing. Worker : A person employed in a factory, directly or through an agency, for wages. Occupier : A person who has ultimate control over the affairs of the factory. Manufacturing Process : Includes making, altering, repairing, finishing, etc. Example : A textile unit employing 30 workers is a "factory". 6.2 Exemption from Certain Provisions of the Act The government may exempt: Seasonal factories (e.g., sugar mills) Small-scale or emergency-run factories Purpose : Flexibility in rules for special scenarios 6.3 Inspectors and their Powers Inspectors are appointed to: Enter, inspect and examine any factory Inquire i...

  📘 Law Governing Companies – II (Companies Act, 2017) 5.1 General Meetings Definition : Formal gatherings of company members (shareholders) to discuss and decide on business matters. Types: Annual General Meeting (AGM) : Held once a year. Extraordinary General Meeting (EGM) : Held for urgent matters. Example : XYZ Ltd holds an AGM to approve financial statements and declare dividends. Business Relevance: Ensures transparency Provides shareholder oversight 5.2 Meetings of Directors Meetings of the Board of Directors to make managerial decisions. Key Points: Must meet quarterly Decisions are made through resolutions Example : Board meeting to approve budget or appoint CEO. Advantage: Facilitates strategic planning Enhances governance 5.3 Secretary An officer responsible for administrative and compliance duties . Responsibilities: Prepare minutes of meetings File returns with SECP Ensure le...

  📘 Law Governing Companies – I (Companies Act, 2017) 4.1 Introduction to Companies Act, 2017 Definition : The Companies Act, 2017 is a legal framework that governs the formation, management, regulation, and dissolution of companies in Pakistan. Purpose: Modernize corporate law Promote ease of doing business Ensure corporate governance and investor protection Business Advantage : Provides a legal structure for starting and growing businesses with transparency and accountability. 4.2 Company Courts These are special courts or judicial benches designated to deal with company law disputes such as: Mismanagement Fraud Winding up Example : If a company is involved in shareholder dispute, it goes to a company bench of a High Court. 4.3 Corporate Law Authority (Now SECP) Securities and Exchange Commission of Pakistan (SECP) is the regulatory body under the Companies Act. Functions: Company registration Regulation of stock ...

  Partnership Law: 3.1 Definitions in Partnership Law Partnership is defined under Section 4 of the Partnership Act, 1932 : “A relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all.” Key Terms: Partners : Persons who enter into the partnership. Firm : Collective name of the partners. Firm Name : Name under which the business is conducted. Example : Ali, Ahmed, and Ayesha start a bakery business together, agree to share profits and contribute capital. They form a partnership. Business Relevance: Enables sharing of capital, skills, and risk. Promotes entrepreneurship without needing large capital. 3.2 Types of Partnership General Partnership : Equal rights, unlimited liability. Particular Partnership : For a specific venture or period. Partnership at Will : No fixed term; can be dissolved at any time. Limited Partnership : S...