Comparative analysis of US and Pakistani legislation

American and Pakistani legal environment is same with few exceptions. In case of Pakistan implementation is not as much as it is in the case of United States. Here is the comparative analysis of both countries’ legal environment.

U.S legislation Vs Pakistan legislation

Occupational safety and health act of 1970


  • Requires employer to provide a working environment free from hazards to health

The Factories Act, 1934

The purpose of the Act is to regulate and standardize the condition in factories falling under the Act.
The categories regulated are,

  •  Basic standards for health and safety
  • Disposal of waste
  • Ventilation and temperature
  • Dust and fume
  • Overcrowding
  • Lighting
  • Availability of drinking water
  • Toilet facilities
  • Compulsory vaccination
  • Provision of canteens
  • Precaution in case of fire
  • Fencing of machinery
  • Working hours.

This law is very comprehensive and covers almost all the aspect of a healthy working environment.

Consumer product safety act of 1972

  • Set standard on selected products requires warning label and products recalls

Islamabad Consumer protection act 1995, NWFP Consumer Protection act 1995

  • Standards governing body (Pakistan Quality Standard) has been introduced to govern the consumer rights.

Equal employment opportunity act of 1972

  • Forbid discrimination in all areas of employer-employee relation

Industrial Relations Ordinance (IRO), 2002

The law operates in following three areas:


  • Regulation of formation of trade unions
  • Regulation and improvement of relations between employer and workmen
  • Avoidance and settlement of any differences or disputes arising between the employer and workmen

Worker adjustment and retraining notification act of 1988

  • Require employers with 100 or more employees to provide 60 days notice before a facility closing or mass layoff

The Shops and Establishments Ordinance, 1965

  • The purpose of this Ordinance is to provide basic standards relating to payment of wages, working hours, overtime, weekly holidays, sick leave, festival holidays, termination of employment and other ancillary matters
  • The Ordinance provides two kinds of penalties, one for violation of the provisions pertaining to weekly holidays, number of working hours, termination without notice,

American with disability act of 1990

  • Prohibit employers from discriminating against individual with physical or mental disabilities or the chronically ill; also require organization to reasonably accommodate the individual

Workmen's Compensation Act, 1923


  • There is no such equal employment opportunity act has been introduced in Pakistan but workmen compensation act define this phenomenon in a different way.
  • Under this Act, the employer is liable to pay compensation to workers for accidents arising out of and during the course of employment. The rates for compensation for death, permanent total disablement, permanent partial disablement and temporary disablement have been given in the Act.

CIVIL Right act of 1991

Reaffirms and tightens prohibit discrimination of; permit individuals to sue intentional discrimination.
There is no such act exist which permit the employees to file sue against the company.

Family and Medical Leave Act of 1994

  • Grants 12 weeks of unpaid leave each year to employees for the birth or adoption of a child or the care of a spouse, child, or parent with a serious health conditions; covers organizations with 50 or more employees.


West Pakistan Maternity Benefits Ordinance, 1972


  • The law is applicable to female workers across the board within all establishments.
  • Every employer is liable for payment of maternity benefits at the rate of her wages last paid during the period of six weeks immediately preceding and including the day on which the female worker delivers a child, and for each day of six weeks succeeding the day.
  • Furthermore, the employee is entitled to additional six week paid leave either before or after delivery.

Child Safety Protection Act of 1994

  • Provides for labeling requirements on certain toys that contain parts or packaging that could harm children and requires manufactures of such toys to report any serious accidents or deaths of children to the consumers’ product safety.
Islamabad Consumer protection act 1995, NWFP Consumer Protection act 1995

  • This Law briefly describes that manufacturer may not made such products which may harm for the health of the consumers.
US Economic Espionage Act of 1996

  • Makes theft or misappropriation of trade secrets a federal threat.

Industrial Relationship Ordinance 2002


  • This ordinance provide regulation of formation of trade unions;
  • Regulation and improvement of relations between employer and workmen;
  • Avoidance and settlement of any differences or disputes arising between the employer and workmen

Electronic Signature in Global and National Commerce act of 2000

  • Gives online contracts (those signed by computers) the same legal force as equivalent Paper contracts.

Pakistan Cyber Crime Bill 2007

This is relative new law in Pakistan which is not yet active. It deals with

  •  Committing fraud
  •  Stealing identities
  • Violating privacy

Sarbanes-Oxley Act of 2002 & Fair and accurate credit transactions act of 1932


  • Holds business to higher standards of disclosure and corporate governance.
  • There is no such compatible laws exist in Pakistan

References

SAMEDA Legal Services, Labor Laws Compliance, 2005
Muhammad Sarwar Khan, Abrar Hafeez, Consumer Laws in Pakistan, 1999
Taseer Hadi Khalid & Co, the Pakistan member firm of KPMG International, 2004

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