565 factories face action for flouting wage rules

To enforce the Punjab Minimum Wages Act 2019, the Labour Welfare Department has taken action against widespread violations by industrial and commercial establishments in Faisalabad.

As per the official data, the two directorates of labour welfare (East and West) have challaned 565 factories and businesses for failing to comply with the minimum wage law. These cases were forwarded to Magistrate First Class courts, where more than half of the offenders have been sentenced to six months' imprisonment and fines amounting to Rs700,000. Muhammad Shabbir Kalyar, Director Labour Welfare (West), said that special teams have been constituted to ensure compliance with minimum wage regulations.

Factory managements have been instructed to display banners at their entry gates specifying the Rs40,000 minimum monthly wage.

"All occupiers and managers of establishments in Faisalabad division have been directed to implement the notified wage rates, or strict legal action will follow under the provisions of the Punjab Minimum Wages Act 2019," he said. The Punjab government had notified Rs40,000 per month as the minimum wage for employees. However, exporters and labour representatives have voiced strong criticism of the department's methods.

An exporter from the hosiery sector, who requested anonymity, said that while his business had been complying with international labour standards under the EU's GSP Plus scheme for over a decade, the Labour Department was now using the Minimum Wages Act as a "weapon" to conduct surprise inspections and raids.

"This has created harassment for both employers and employees. It is not a business-friendly move, but rather a tactic to mint money by the department," he alleged, demanding that the government abolish the act to prevent misuse.