Notice and Severance

Notice Requirement

Labour law requires termination notice before terminating services of an employee. A permanent employee may be terminated after serving one month's notice or paying in lieu of notice. (S.O. 12 of Standing Orders Ordinance, 1968)

Similar provisions are found in the Khyber Pakhtunkhwa Industrial and Commercial Employment (Standing Order) Act 2013 (Standing Order 17) and the the Sindh Terms of Employment (Standing Orders) Act 2015 (Standing Order 16).

For more information on employment contract termination, please follow the link: 

Employment Termination in Pakistan

Severance Pay

There is a provision in the law regarding severance/redundancy pay however it is not provided when a worker is terminated on the ground of misconduct. A worker is entitled to severance payment amounting to 30 days' wages for each completed year of service.(S.O. 12 of Standing Orders Ordinance, 1968)

Similar provisions are found in the Khyber Pakhtunkhwa Industrial and Commercial Employment (Standing Order) Act 2013 (Standing Order 17) and the the Sindh Terms of Employment (Standing Orders) Act 2015 (Standing Order 16).

For more information on severance payment or gratuity, please follow the link: 

Gratuity Law in Pakistan

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