Muzaffar Asad, Syed Hussain Haider
The exports of Pakistani SMEs have decline significantly in the last few years. The main reason behind this decline is lack of implementation of labour laws and inhumane practices. This study is an attempt to understand the differences between the laws and the practices by the SMEs in Sialkot, Punjab Pakistan. The study identified that the major consequences of lack of implementation of labour laws are extreme long working hours, insufficient compensation for overtime, occupational safety and health issues, punishments, hurdles in resigning or leaves, and weak union representation. The findings of the study are helpful for the policy makers especially because all these illegal or unethical practices are being followed due to ignorance of the labour force and the owners. The study suggested legislation and creation of awareness among the labour force.