Course: Mercantile Law (460)

Semester: Autumn 2020

ASSIGNMENT No. 2
Q. 1 What is partnership deed? Highlight with examples the key components of a partnership
agreement.
A partnership is a unique form of business in which partners work together to achieve common goals. Due to this
feature of partnerships, partners are allowed to decide the terms of their relationship with each other. The
documents which they do so are called partnership deeds.
The Indian Partnership Act, 1932 governs partnership forms of businesses in India. This law contains
several provisions defining rights, duties, liabilities, and powers of partners. These provisions, however, are not
always binding on them. Partners are free to bind themselves with contrary provisions.
Most provisions of the Partnership Act are subject to a contract to the contrary. This means that if partners have
agreed to contrary understandings, they will prevail over the Act. For example, although payment of salary to
partners is prohibited by the Act, partners can still draw a salary if they mutually agree.
Partnership Deed
As explained above, partners are free to define the terms of their relationships, even if they go contrary to the Act in
certain cases. They can either decide on such terms with an oral agreement or a written one.
Partnership deeds, in very simple words, are an agreement between partners of a firm. This agreement defines
details like the nature of the firm, duties, and rights of partners, their liabilities and the ratio in which they will
divide profits or losses of the firm.
Although the drafting of partnership deeds is not compulsory, it is always advised to do so. This helps in ensuring
that all terms agreed by partners exist in written form on paper. Doing so can reduce disputes between partners and
govern their functioning better.
Unlike similar documents like articles of association of companies, partnership deeds need not be registered
mandatorily. However, registration can ensure the prevention of legal challenges to its validity when disputes arise.
An ideal partnership deed is comprehensive and clear about all details pertaining to the functioning of a firm. It
should not contain any ambiguities.
Contents of Partnership Deeds
Although there is no specific format prescribed for drafting a partnership deed, a typical deed contains the below
mentioned clauses.
1. The name of the firm
2. Name and details of all partners
3. Date of commencement of business
4. Duration of the firm’s existence
5. Capital contributed by each partner
6. Profit/loss sharing ratio
7. Interest on capital payable to partners
 Course: Mercantile Law (460)
Semester: Autumn 2020
8. The extent of borrowings each partner can draw
9. Salary payable to partners, if any
10. The procedure of admission or retirement of a partner
11. The method used for calculating goodwill
12. Preparation of accounts of the firm
13. Mode of settlement of dues with a deceased partner’s executors
14. The procedure followed in case disputes arise between partners
Absence of a Partnership Deed
In case partners do not adopt a partnership deed, the following rules will apply:
a. The partners will share profits and losses equally.
b. Partners will not get a salary.
c. Interest on capital will not be payable.
d. Drawings will not be chargeable with interest.
e. Partners will get 6% p.a. interest on loans to the firm if they mutually agree.
Q. 2 Discuss in detail the rights and duties of partners.
The Indian Partnership Act defines partnership as “the relation between persons who have agreed to share the
profits of a business carried on by all or any of them acting for all.”
The Essential Features of Partnership :
1. An association of two or more persons;
2. An agreement entered into by all persons concerned;
3. Business;
4. The business being carried on by all or any of them acting for all; and
5. Sharing of profits (including losses) of the business.
From the accounts point of view, the chief point to remember is that the relations among the partners will be
governed by mutual agreement called Partnership Deed.
It is usual, therefore, to find out, in the Partnership Deed, clauses covering the following:
1. The name of the firm and the nature and location of the partnership business.
2. The commencement and duration of the partnership.
3. The amount of capital to be contributed by each partner.
4. The rate of interest to be allowed to each partner on his capital and on his loan to the firm, and that to be
charged on his drawings.
5. The disposal of profits, particularly the ratio in which the profits are to be shared by the partners.
6. The amount to be allowed to each partner as drawings and the timing of such drawings.
7. Whether a partner will be allowed a salary.
8. Any variations in the usual rights and duties of partners.
 Course: Mercantile Law (460)
Semester: Autumn 2020
9. The method by which goodwill is to be calculated on the retirement or death of a partner.
10. The procedure by which a partner may retire and the method of payment of his dues to him.
11. The basis of determination of the sums due to the executors of a deceased partner and the method of
payment.
12. The treatment of losses arising out of the insolvency of a partner.
13. The procedure to be followed for settlement of disputes among partners.
14. Preparation of accounts and their audit.
The Deed has to be properly stamped.
Often there is no Partnership Deed or, even if there is one, it may be silent on a particular point. If on any point,
the Partnership Deed contains a clause, it will hold good; otherwise the provisions of the Partnership Act
relating to the question will apply.
Rights of Partners:
Broadly, the provisions of the Act regarding rights, duties and powers of partners are as under:
(a) Every partner has a right to take part in the conduct and management of business.
(b) Every partner has a right to be consulted and heard in all matters affecting the business of the partnership.
(c) Every partner has a right of free access to all records, books and accounts of the business, and also to
examine and copy them.
(d) Every partner is entitled to share the profits equally.
(e) A partner who has contributed more than the agreed share of capital is entitled to interest at the rate of 6 per
cent per annum. But no interest can be claimed on capital.
(f) A partner is entitled to be indemnified by the firm for all acts done by him in the course of the partnership
business, for all payments made by him in respect of partnership debts or liabilities and for expenses and
disbursements made in an emergency for protecting the firm from loss provided he acted as a person of ordinary
prudence would have acted in similar circumstances for his own personal business.
(g) Every partner is, as a rule, joint owner of the partnership property. He is entitled to have the partnership
property used exclusively for the purposes of the partnership.
(h) A partner has power to act in an emergency for protecting the firm from loss, but he must act reasonably.
(i) Every partner is entitled to prevent the introduction of a new partner into the firm without his consent.
(J) Every partner has a right to retire according to the Deed or with the consent of the other partners. If the
partnership is at will, he can retire by giving notice to other partners.
(k) Every partner has a right to continue in the partnership.
(l) A retiring partner or the heirs of a deceased partner are entitled to have a share in the profits earned with the
aid of the proportion of assets belonging to such outgoing partner or interest at six per cent per annum at the
option of the outgoing partner (or his representative) until the accounts are finally settled.
 Course: Mercantile Law (460)
Semester: Autumn 2020
Duties of Partners:
(a) Every partner is bound to diligently carry on the business of the firm to the greatest common advantage.
Unless the agreement provides, there is no salary.
(b) Every partner must be just and faithful to the other partners.
(c) A partner is bound to keep and render true, proper, and correct accounts of the partnership and must permit
other partners to inspect and copy such accounts.
(d) Every partner is bound to indemnify the firm for any loss caused by his willful neglect or fraud in the
conduct of the business.
(e) A partner must not carry on competing business, nor use the property of the firm for his private purposes. In
both cases, he must hand over to the firm any profit or gain made by him but he must himself suffer any loss
that might have occurred.
(f) Every partner is bound to share the losses equally with the others.
(g) A partner is bound to act within the scope of his authority
Q. 3 What is a negotiable instrument? Explain its types.
Negotiable instruments are a type of document that guarantees the payment of a particular amount of
money at a set time or on-demand and the payer’s name is generally mentioned on the document and its
most common types are checks, promissory notes, bills of exchange, customer receipts, delivery orders,
etc.
A Negotiable Instrument is generally a signed document that is freely transferable in nature, and once it is
transferred, a transferee or the holder of an instrument will get legal right to use it in whatsoever manner as he
deems appropriate.
 Negotiable Instruments are a written order which guarantees the payment of money on a pre-determined
date or on demand of the party name on it or to any other person in order or the bearer of an instrument.
 It has characteristics of a valid contract, like consideration should be transferred from one party to
another.
 Negotiable Instruments is nothing but an evidence of indebtedness, as the holder of the instrument has
an unconditional right to recover the amount of money stated in the instrument from its maker. These
Instruments are used as a substitute for money to safely transfer the payments between the merchants
and have a risk free business transactions.
 There are so many types of negotiable instruments that are primarily in use, such as Promissory Notes,
Cheques, Bills of Exchanges, Currencies, etc.
 In India, The Negotiable Instruments Act, 1881, was originally enforced to govern the practices of using
the above instruments in an effective way, including rights, duties, and obligations of parties involved in
the transactions.
 Course: Mercantile Law (460)
Semester: Autumn 2020
 People face ease in doing business due to the availability of various types of negotiable instruments,
which are very reliable and having different unique features.

We will discuss the above main types of Negotiable Instruments in detail.

#1 – Currencies
Currencies, i.e., Bank Notes and Coins, are a very common type of Negotiable Instruments which we all use in
our daily life as a medium of exchange to settle our trades. The government guarantees and promises to pay a
sum of rupees mentioned on the currency note to the bearer thereof. This is a safe medium of exchange against
the value of something. We can freely transfer the currencies from one person to another in consideration of
something. The bearer of the banknote is a legal owner of the amount mentioned on it, and he obtains a promise
to receive goods, services, or any other things in consideration of the amount of note he possessed. This is a
very safe and most liquid type of asset or property and generally has no expiry date, hence stored for the
emergency. However, the currencies have the greatest risk of stolen by the thefts or damage in use, so these
have to be handled with proper care.
 Popular Course in this category
#2 – Cheques
The Cheques are the substitute of the currencies and a very safe mode of transfer of payments among the
merchants. It can either be a bearer cheque and one who possesses that will get the amount mentioned on it or
an account payee cheque endorsed in the name of the particular entity. Unlike currencies, it generally has a
specific expiry date and hence can’t be stored for a longer time period. It has no risk of stolen unless it is a
bearer cheque. A Cheque generally takes time to transfer funds in the accounts of the beneficiary, and hence it
is considered as the less liquid form of transfer.
#3 – Promissory Notes
A Promissory Note means one party (the maker) promises to pay a sum of rupees to a person whose name is
mentioned on the note on a fixed future date. Generally, it is used as short-term trade credit, and the maker will
pay the due amount on or before the expiry of the note. It is also a very safe mode of transferring money, and
business people frequently use it to have smooth business transactions. One can claim his fund in the court of
law on mere non-delivery of promised money to him after the expiry of the term. It is also considered and used
as a debt instrument, and corporations who need to finance their short-term projects will issue the promissory
notes.
#4 – Bills of Exchanges
Bills of Exchanges are similar to promissory notes where one party promises to pay the sum of money to
another party or to any other person in his order on a fixed future date. Just like a promissory note, business
people use it to provide short-term trade credits to their business partners. The person on whose name it is
endorsed (the Drawee) will have a valid claim on the bill writer (the Drawer) for the amount mentioned on the
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Semester: Autumn 2020
bill. In case of the urgency of a fund, the Drawee can discount his bill before the due date from any bank and
get the bill amount from the bank after deducting some discount on it, and thereafter bank will collect the full
billing amount from the Drawer on the due date, and this entire transaction is called as Bill Discounting.
#5 – Bearer Bonds
These are the unregistered bonds issued by the Government or Corporate, and as the name suggests, the holder
of the bond is entitled to get a coupon and principal payment thereon. The issuer doesn’t keep the record of the
original owner of the bond. Whoever has the physical possession of the bond will be treated as the legal owner
of it. Therefore, there is a huge risk of loss, theft, or otherwise, the destruction of these bonds.
Conclusion
The Negotiable Instruments are very effective business channels in the financial market of any country.
Negotiable Instruments helps in smoothing secured commercial and other transactions for money or monies
worth. The unique features like transferability, the legality of documents, safety, liquidity, etc., make them more
popular in having businesses domestically and globally as well.
However, in today’s modern world, technology brings businesses to a very high level, and the use of the above
Negotiable Instruments is reducing day-by-day. There are so many effective banking channels are established
now that will reduce the time and cost of execution of commercial transactions worldwide. Now a day people
are more comfortable doing transactions through Internet Banking, NEFT, RTGS, Debit & Credit Cards, Virtual
Cards, and the availability of so many modern instruments that may cause the end of traditional Negotiable
Instruments.
Q. 4 What is meant by collective bargaining agent? Explain the procedure for determination of a collective
bargaining agent under the Industrial Relations Act 2012.
Labor law in Pakistan defines ‘trade union’ as a combination of workmen whose primary purpose is to
promote and defend workers’ rights and interests in an industry or establishment.
The right to join association is guaranteed under article 17 of the Constitution of Islamic Republic of
Pakistan, which says, “Every citizen shall have the right to form associations or unions, subject to any
reasonable restrictions imposed by law in the interest of sovereignty or integrity of Pakistan, public
order or morality”. Article 17 of the Constitution not only guarantees freedom of association but also
collective bargaining as a fundamental right.
Keeping in view this provision, labour law in Pakistan allows formation and joining of trade
unions/associations to both the employers and the employees. There is a special law in Pakistan for
trade union registration and settlement of industrial disputes i.e., Industrial Relations Act. After
passage of 18th Constitutional amendment, labor is no longer a subject on concurrent list i.e. central
government can no longer legislate in labor related matters.  The Industrial Relations Act 2012
consolidates the law relating to formation of trade unions and federations of trade unions, determining
the collective bargaining agents, regulations of relations between employers and workers. It clearly
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states that workers have the right to form trade unions and join organizations of their own
choosing without previous authorization. The Act further provides how to avoid and settle any
disputes or differences. Both the National and Provincial Industrial Relations Acts do not restrict the
workers from forming and joining the associations/unions of their own choosing.  
After the devolution of the subject of Labour, each Province has enacted its own Industrial Relations
Act. The Acts fundamentally provide for consolidating and rationalizing the Provincial laws to
facilitate the formation of trade unions and improve the relations between employers and workers. The
respective Provincial Acts are as follows:
1. Balochistan Industrial Relations Act, 2010 (BIRA)
2. Khyber Pakhtunkhwa Industrial Relations Act, 2010 (KPIRA)
3. Punjab Industrial Relations Act, 2010 (PIRA)
4. Sindh Industrial Relations Act, 2013 (SIRA)
Workers are entitled to join a union without previous authorization; however, they can become
members of only one union at a time. If a worker joins more than one union at a time, his earlier
membership will get cancelled. Moreover, both workers and employers have the right to join
federations and confederations, which have the right to affiliate with international
organizations. Banking Companies (Amendment) Act, 1997 restricts the involvement of outsiders in the
executive body of a trade union and allows only those workers to be part of trade union executive who
are actually employed in the bank. Normally, industrial relations legislation allows for 25% of trade
union executive as outsiders. 
Informal sector workers can form associations as guaranteed under the Constitution. The employers and
employees, not covered by the industrial relation legislation, can form and register their organizations
and associations as follows: 
1. Societies Registration Act, 1860
2. The Co-Operative Societies Act, 1925
3. Trade Organizations Act, 2013
Every Worker can join a union except those working in;
1. Police or defense services of Pakistan
2. Administration of state other than Pakistan Railways and Pakistan Post
3. Pakistan Security Printing Corporation or the Security Papers Limited
4. Hospital or institution for the treatment or care of sick, infirm, destitute or mentally unfit
persons excluding those run on commercial basis (only trusts are exempted);
5. Watch and ward, security or fire service staff of an oil refinery or an airport;
6. Security or fire service staff of an establishment engaged in the production, transmission or
distribution of natural gas or liquefied petroleum gas
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7. Any services or installations exclusively connected with or incidental to the Armed Forces of
Pakistan
8. Export Processing Zone Workers (Notification S.R.O.1004 (1)/82 which exempted EPZs from
labour laws)
Other than these, Industrial Relations laws are also not applicable to agriculture sector where around
42.27% of the labor force is employed (Labor Force Survey 2014-15). Agriculture workers are free to
join and form associations, however, they can’t collectively bargain under the Industrial Relations Act
as this law is not applicable to the agriculture sector. Interestingly, the industrial relations legislation in
Balochistan (2015 amendment) and Sindh (2013) has allowed agriculture workers to form and join
trade unions. 
A trade union can apply for registration to the office of Registrar of trade union in a province. While
submitting the application for registration, you need to attach a statement showing name and address of
trade union, its date of formation, relevant information of its office bearers (like titles, names, ages,
addresses and occupations), name of establishment and industry to which this union relates, total
number of workers employed in establishment and the total paid membership, etc. Above-mentioned
are called the requirements of application.
There are also registration requirements, which require that:
 All members of a trade union should be workmen, engaged in same establishment (you can’t
take members outside your establishment)
 If there are two or more unions in your establishment, your membership must not be less 20%
(some laws stipulate 25%) of total employed workforce (it means only 4-5 unions can exist in
your establishment)
 Only up to 25% of the executive body members can be outsiders (those who are not actually
employed as workmen in your establishment)
 The Constitution of your trade union should also provide information on
1. Name and address of trade union
2. Objectives of your trade union
3. Usage of funds (purpose)
There are other requirements as well. Please go through the Industrial Relations Act of your province
or capital territory, depending upon your location, for further information. After registration, the
Registrar of trade unions will issue you a certificate of registration as a conclusive evidence of your
trade union’s registration.
Registration of your union can be cancelled either by Registrar of trade unions or Labor Court. The
Registrar can cancel your union’s registration if it:
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 Did not apply for determination of CBA within 2 months of registration (in case no CBA already
exists)
 Did not contest in a referendum for determining CBA
 Secured less than 15% of polled votes in a referendum for determining CBA
Please keep in mind that these are not the only reasons for cancellation of registration.
Collective Bargaining Agent is a trade union, which is the elected agent of workers in an establishment.
A collective bargaining agent is elected after holding a secret ballot election if there is more than one
union in an establishment. However if there exists only one union and its members are at least one-third
of total workers in an establishment and it makes an application for certification, then it can be certified
as CBA by Registrar. In case of more than one union, Registrar is to hold a secret ballot election within
15 or 30 days (depending on establishment size) after having received application for determining
status of CBA. Those who are eligible to vote are i) with at least 3 months of service, ii) members of a
trade union contesting the elections and iii) registered as voters in the voters list. A trade union can’t be
certified as CBA unless the votes received by it are at least 33% of total employed workers in an
establishment. If no union receives at least 33 of total votes (of employed workers), a second election
will be held between two unions, who have secured highest number of votes. Thus, the union that wins
this run-off election will be certified as CBA. The CBA engages in collective bargaining with employer
on any matter of employment, non-employment, terms of employment and working conditions. CBA
also represents workers in any proceedings, gives notice of strike and nominates workers on boards of
Provident Fund and Workers’ Participation Fund in an establishment.
Strike is the cessation of work by a worker in establishment acting in combination or a concerted
refusal of employed workers to continue to work to accept employment while lockout is closure.
Similarly, suspension (of work) or refusal on employer’s part to continue employment of workers
where this action is related to an industrial dispute or where aim of this action is to compel workers to
accept certain conditions of employment also falls in the ambit of strike/lockout. It must be emphasized
here that strike and lockout are not fundamental rights, in contrast to right to association and collective
bargaining (under a 1997 Supreme Court decision).
Strike or lockouts can be declared only for industrial disputes and not for individual grievances. Only
an employer or CBA can raise industrial disputes, while following certain steps. They first need to
negotiate on any arising industrial dispute. If disputant parties are unable to resolve matter through
negotiation, they can go for conciliation. On the request of employer or CBA, Federal or Provincial
Governments can appoint a tripartite Board of Conciliators. If conciliation fails, both the parties can
either go for arbitration (by an agreed upon arbitrator). The award of arbitrator is final and can’t be
appealed against. However, if they don’t refer the matter to an arbitrator, CBA can go on a strike or
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employer can declare a lockout (both after serving necessary notices). While during the strike/lockout,
any party can apply to Labor Court for adjudication.
Government can prohibit an ongoing strike or lockout (before completion of 30 days), if it is satisfied
that it is causing serious hardship to community or harmful for the national interest. Strikes and
Lockouts are also prohibited in public utility services and disputes are referred by government for
compulsory arbitration.
These Industrial Relations Acts provide for adequate protection against acts of anti-union
discrimination by the management against members of the Union in respect of their employment.   The
law requires that an office bearer of a trade union must not be transferred, discharged, dismissed or
otherwise punished during the pendency of an application for registration of the trade union with the
Registrar except with the permission of Registrar. Legislation clearly defines the unfair labour practices
on the employer as well as on the part of worker. The unfair labour practices on the part of employer
include:
      (a) Imposition of any condition in a contract of employment seeking to restrain the right of a person
who is a party to such contract to join a trade union or continue his membership of a trade union;
      (b) Refusal to employ or refusal to continue to employ any person on the ground that such person
is, or is not a member or office-bearer of a trade union;
        (c) Discrimination against any person in regard to any employment, promotion, condition of
employment or working condition on the ground that such person is, or is not, a member or office-
bearer of a trade union;
      (d) Dismissal, discharge, removal from employment or transfer or threaten to dismiss, discharge or
remove from employment or transfer a workman or injure or threaten to injure him in respect of his
employment by reason that the workman:
             (i)  is or proposes to become, or seeks to persuade any other person to become, a member or
office-bearer of a trade union; or
            (ii)  participates in the promotion, formation or activities of a trade union;
      (e) Inducing any person to refrain from becoming, or to cease to be a member or office-bearer of a
trade union, by conferring or offering to confer any advantage on, or by procuring or offering to
procure any advantage for such person or any other person;
      (f) Compelling or attempt to compel any office-bearer of the collective bargaining agent to arrive at
a settlement by using intimidation, coercion, pressure, threat, confinement to a place, physical injury,
disconnection of water, power and telephone facilities and such other methods;
      (g) Interfering with or in any way influence the secret balloting for determination of CBA;
      (h) Recruiting any new workman during the period of a notice of strike or during the currency of a
strike which is not illegal except where the conciliator having been satisfied that complete cessation of
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work is likely to cause serious damage to the machinery or installation, has permitted temporary
employment of a limited number of workmen in the section where the damage is likely to occur;
      (i) Closing down the whole of the establishment in contravention of Standing Order 11-A of the
Industrial and Commercial Employment (Standing Orders) Ordinance, 1968; or
      (j) Commencing, continue, instigate or incite others to take part in, or expend or supply money or
otherwise act in furtherance or support of, an illegal lock-out.
            Workers can also move a petition of “Unfair Labour Practice” to the Labour Courts under
Section 17, 31 and 67 of the Industrial Relations Act 2012. The Industrial Relations legislation
provides that whoever transfers, discharges, dismisses or otherwise punishes a trade union officer
during the pendency of an application for registration is liable to imprisonment which may extend to
fifteen days or a fine which may extend to thirty thousand rupees or both. Similarly, an employer who
performs any of the above-referred unfair labour practices is liable to imprisonment, which may extend
to 30 days or fine, which may extend to fifty thousand rupees or both. Similar provisions are found in
Provincial Industrial Relations Acts. 
Q. 5 Explain the rights of workers and employers as per Industrial Relations Act 2012.
1.  Short title, extent, application and commencement.—(1) This Act may be called the Industrial
Relations Act, 2012.
(2)     Subject to sub-section (3), it extends to the whole of Pakistan.
(3)     It shall apply to all persons employed in any establishment or industry, in the Islamabad Capital
Territory or carrying on business in more than one province, but shall not apply to any person employed,---
(a)     in the Police or any of the Defence Services of Pakistan or any services or installations
exclusively connected with the Armed Forces of Pakistan including an Ordnance Factory
maintained by the Federal Government;
(b)     in the administration of the State other than those employed as workmen;
(c)      as a member of the Security Staff of the Pakistan International Airlines Corporation or
drawing wages in pay group not lower than Group V in the establishment of that Corporation as
the Federal Government may, in the public interest or in the interest of security of the Airlines, by
notification in the official Gazette, specify in this behalf;
(d)     by the Pakistan Security Printing Corporation or the Security Papers Limited; and (e) by an
establishment or institution for the treatment or care of sick, infirm, destitute or mentally unfit
persons excluding those run on commercial basis.
(4)     It shall come into force at once.
2.  Definitions.—In this Act, unless there is anything repugnant in the subject or context,---
(i)      “arbitrator” means a person appointed as such under Section 40;
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(ii)     “award” means the determination by the Commission or Arbitrator of any industrial dispute
or any matter relating thereto and includes an interim award;
(iii)    “Bench” and “Full Bench” mean a Bench and Full Bench of the Commission;
(iv)    “collective bargaining agent” in relation to an establishment, group of establishments or
industry, means the trade union of the workmen which under Section 19, is the agent of workmen
in the establishment or, as the case may be, industry, in the matter of collective bargaining;
(v)     “collective bargaining unit” means those workers or class of workers of an employer in one
or more establishment falling within the same class of industry whose terms and conditions of
employment are, or could appropriately be, the subject of collective bargaining together;
(vi)    “Commission” means the Industrial Relations Commission constituted under Section 53;
(vii)   “conciliation proceedings” means any proceedings before a conciliator;
(viii) “Conciliator” means a person appointed as such under Section 36;
(ix)    “employer” in relation to an establishment, means any person or body of persons, whether
incorporated or not, who or which employs workmen in the establishment under a contract of
employment and includes,---
            (a)   an heir, successor or assign, as the case may be, of such person or body as aforesaid;
            (b)   any person responsible for the management and control of the establishment;
            (c)   in relation to an establishment run by or under the authority of any department of the Federal
Government, the authority appointed in this behalf or, where no authority is so appointed, the Head
of the department;
            (d)  in relation to an establishment run by or on behalf of a local authority, the officer appointed in this
behalf, or where no officer is so appointed, the chief executive officer of that authority;
                   Explanation.—For the purpose of distinction from the category of “workers” or “workmen”,
officers and employees of a department of the Federal Government who belong to the superior,
managerial, secretarial, directorial, supervisory or agency staff and who have been notified for this
purpose in the official Gazette shall be deemed to fall within the category of “employers”; and
          (e)   in relation to any other establishment, the proprietor of such establishment and every director,
manager, secretary, agent or officer or person concerned with the management of the affairs thereof;
(x)     “establishment” means any office, firm, factory, society, undertaking, company, shop or
enterprise, which employs workmen directly or through a contractor for the purpose of carrying on
any business or industry and includes all its departments and branches in the Islamabad Capital
Territory or falling in more than one province, whether situated in the same place or in different
places and except in Section 62 includes a collective bargaining unit, if any, constituted by any
establishment or group of establishments;
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(xi)    “executive” means the body, by whatever name called, to which the management of the
affairs of a trade union is entrusted by its constitution;
(xii)   “Government” means the Federal Government;
(xiii)  “Group of establishments” means establishments belonging to the same employer and the
same industry;
(xiv)  “illegal lock-out” means a lock-out declared, commenced or continues otherwise than in the
provisions of this Act;
(xv)   “illegal strike” means a strike declared, commenced or continues otherwise than in
accordance with the provisions of this Act;
(xvi)  “industrial dispute” means any dispute or difference between employers and employers or
between employers and workmen or between workmen and workmen which is connected with the
employment or non-employment or the terms of employment or the conditions of work of any
person;
(xvii) “industry” includes any business, trade, calling, employment or occupation for production of
goods or provisions of services in the Islamabad Capital Territory and falling in more than
province, and excluding those set up exclusively for charitable purposes;
(xviii)    “industry-wise trade union” means a trade union having its membership in more than one
province in a group of establishments owned by one employer;
          (xix)  “inspector” means an inspector appointed under this Act;
(xx)   “Labour Court” means a Labour Court established in a province;
(xxi)  “lock-out” means the closing of place of employment or part of such place, or the
suspension, wholly or partly, of work by an employer, or refusal, absolute or conditional, by an
employer to continue to employ any number of workmen employed by him, where such closing,
suspension or refusal occurs in connection with an industrial dispute or is intended for the purpose
of compelling workmen to accept certain terms and conditions of or affecting employment;
(xxii) “officer” in relation to a trade union, means any member of the executive thereof but does
not include an auditor or legal adviser;
(xxiii)    “organization” means any organization of workers or of employers for furthering and
defending the interests of workers or of employers;
          (xxiv)     “prescribed” means prescribed by rules;
(xxv) “public utility service” means any of the services specified in Schedule I;
(xxvi)     “registered trade union” means a trade union registered under this Act;
(xxvii) “Registrar” means a Registrar of trade unions appointed under Section 4;
(xxviii) “rules” and ‘‘regulations” mean rules and regulations made under this Act;
 Course: Mercantile Law (460)
Semester: Autumn 2020
(xxix)     “settlement” means a settlement arrived at in the course of a conciliation proceeding, and
includes an agreement between an employer and his workmen where there is no Collective
Bargaining Agent, or Collective Bargaining Agent, as the case may be, arrived at or in the course
of any conciliation proceedings, where such agreement is in writing, has been signed by the parties
thereto in such manner as may be prescribed and a copy thereof has been sent to the Government,
the Conciliator and such other person as may be prescribed;
(xxx) “strike” means a cessation of work by a body of persons employed in any establishment
acting in combination or a concerted refusal, or refusal under a common understanding of any
number of persons who have been so employed to continue to work or to accept employment;
(xxxi)     “trade union” means any combination of workmen or employers formed primarily for the
purpose of regulating the relations between workmen and employers, or workmen and workmen or
employers and employers, or for imposing restrictive conditions on the conduct of any trade or
business, and includes a federation of two or more trade unions;
(xxxii) “trans-provincial” means any establishment, group of establishments, industry, having its
branches in more than one province;
(xxxiii) “worker” and “workman” mean person not falling within the definition of employer who
is employed (including employment as a supervisor or as an apprentice) in an establishment or
industry for hire or reward either directly or through a contractor whether the terms of
employment are express or implied, and, for the purpose of any proceedings under this Act in
relation to an industrial dispute includes a person who has been dismissed, discharged, retrenched,
laid off or otherwise removed from employment in connection with or as a consequence of that
dispute or whose dismissal, discharge, retrenchment, lay-off, or removal has led to that dispute but
does not include any person who is employed mainly in managerial or administrative capacity.