Employment Contracts in Pakistan
A very important step while engaging with Employer of the Record in Pakistan is to review and draft Employment Contracts in Pakistan. When reviewing your appointment letter, it’s essential to take into account the following aspects.
Job Description/ Responsibilities
Ensure that the job responsibilities align with what was advertised and discussed during the interviews. Check if there are any additional responsibilities not initially mentioned.
Salary
Examine your basic and gross salary. Confirm that your consolidated or gross salary meets or exceeds the stipulated amount, such as Rs.150,000 per month (in Punjab, KPK, and Balochistan) or Rs.140,000 (in Sindh province). Consider allowances like house rent and conveyance/utility.
Probationary Period
Understand the required probation period before your service is confirmed. In the private sector, this period is typically three to six months, while in the public sector, it may extend to one to two years. Check if the probationary period is extendable.
Termination of Service
After the confirmation of your service, your employer can terminate your services at any time with a 30-day notice or by providing 30-day pay in lieu of notice. You also have the right to resign by giving a 30-day notice or surrendering 30-day pay.
Transferability of Services
Determine whether your services can be transferred to other sections/departments of the organization. This can provide diversified experience but may limit specialization in your desired field.
Confidentiality Agreement
Check if there is a confidentiality agreement, preventing you from associating with a similar business during your employment and prohibiting the disclosure of organization-related information to competitors, even after termination.
In addition to the mentioned factors, your employment contract/appointment letter should explicitly state whether it will be governed by general labor laws or specific ones like the mining labor code, newspaper employees act, or road transport employees act. If the contract terms differ from labor laws, the contract takes precedence, so it’s crucial to assess the alignment with labor law provisions.
Probation Period
In the private sector, this period typically spans three to six months, while in the public sector, it extends to one to two years. Another aspect to consider is whether the probationary period is subject to extension. It’s important to note that services can be terminated during this period without prior notice or providing a reason. The probationary period, as per the mentioned laws, is limited to three months.
Notice Period
Both employees and employers are obliged to provide a one-month notice period when terminating an employment contract. Notably, temporary workers are exempt from this notice requirement. In cases where advanced notice is not given, the employer is required to offer compensation equal to one month’s salary.
Working Hours and Overtime Compensation
As per legal regulations, standard daily working hours amount to 9 hours, inclusive of a one-hour break for lunch and prayer. However, with overtime, daily working hours can be extended up to 12 hours. The weekly limit for regular working hours is set at 48 hours, and with overtime, it extends to 56 hours per week.
