Introduction of Risk-based Inspections, through Amending the Shops and Establishments Ordinance, 1969
Reform IDS198
Reform Description
Introduction of Risk-based Inspections, through Amending the Shops and Establishments Ordinance, 1969

Before: Labour departments used to inspect all businesses on frequent basis, even inspecting businesses where no risk of safety and security was involved.

After: Now, for compliant and low-risk businesses, the number of inspections has been reduced, and unnecessary inspections have been eliminated.

SectorAll Sectors
BeneficiariesAll Businesses
Jurisdiction/ LocationSindh
DepartmentLabour and Human Resources Department-Sindh
Date of Implementation
DetailsDifficulty Inspections of businesses by the labour department were conducted on uniform criteria without consideration to risk and compliance record.
 This meant that businesses with low and medium risk had the same number of inspections as high-risk businesses.
AnalysisThere was a need to introduce the risk-based inspection system to reduce burden on less risky and compliant businesses.
SolutionFor the purpose of inspections based on the risk management system, the establishments have been categorized into following three classes:
1) Establishments with a low risk level and a strong compliance record will not be subject to frequent inspections and will only be inspected once a year.
2) Establishment with medium risk level and moderate past compliance record would be inspected by the inspector not more than once in the six months’ time.
3) Provided that in case of compliant, above-mentioned frequency of inspection shall not be applicable and inspectors can carry out inspections as and when required to ensure compliance with the law.
Evidence