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Basic Employment Contract for Pakistan

Basic Employment Contract Template for Pakistan

A comprehensive employment agreement template designed to comply with Pakistani labor laws, particularly the Industrial and Commercial Employment (Standing Orders) Ordinance 1968. This contract establishes the fundamental terms and conditions of employment, including position, compensation, working hours, leave entitlements, and termination provisions. It incorporates mandatory requirements under Pakistani employment legislation while maintaining flexibility to accommodate various industry sectors and role types. The document serves as a legally binding agreement that protects both employer and employee interests while ensuring compliance with local labor regulations.

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What is a Basic Employment Contract?

The Basic Employment Contract serves as a foundational document for establishing employer-employee relationships in Pakistan. It is designed for use when hiring new employees or formalizing existing employment arrangements, ensuring compliance with Pakistani labor laws, particularly the Industrial and Commercial Employment (Standing Orders) Ordinance 1968 and related legislation. This contract template includes essential provisions required by law while maintaining adaptability for various industries and position levels. It covers fundamental aspects such as job responsibilities, compensation, benefits, working hours, leave entitlements, and termination procedures, while allowing for customization based on specific employment circumstances. The document is structured to protect both employer and employee interests while meeting all statutory requirements under Pakistani employment law.

What sections should be included in a Basic Employment Contract?

1. Parties: Identification of the employer and employee with complete details

2. Background: Brief context of the employment relationship and purpose of the agreement

3. Definitions: Key terms used throughout the contract

4. Position and Duties: Job title, role description, and primary responsibilities

5. Term of Employment: Employment start date and whether fixed-term or permanent

6. Probation Period: Duration and terms of the probationary period

7. Working Hours and Location: Standard working hours, days, and primary work location

8. Compensation: Base salary, payment frequency, and method of payment

9. Leave Entitlements: Annual, sick, and other statutory leave provisions

10. Confidentiality: Protection of company confidential information

11. Termination: Grounds for termination and notice periods

12. Governing Law: Specification of Pakistani law as governing law

13. Dispute Resolution: Process for resolving employment-related disputes

What sections are optional to include in a Basic Employment Contract?

1. Bonus and Commission: Details of performance-based compensation, used when role includes variable pay

2. Remote Work: Terms for working from home or remote locations, if applicable

3. Non-Competition: Restrictions on working with competitors, used for senior positions

4. Intellectual Property: IP rights and assignments, important for creative or technical roles

5. Training and Development: Professional development provisions, used when specific training is provided

6. Benefits: Additional benefits beyond statutory requirements

7. Overtime: Overtime calculation and compensation, for roles eligible for overtime

8. Transfer: Terms regarding potential location or role transfers

What schedules should be included in a Basic Employment Contract?

1. Schedule 1 - Job Description: Detailed description of role, responsibilities, and reporting relationships

2. Schedule 2 - Compensation Structure: Breakdown of salary components and benefits

3. Schedule 3 - Company Policies: Reference to key company policies applicable to the employment

4. Schedule 4 - Code of Conduct: Expected standards of professional behavior

5. Appendix A - Confidential Information: Specific details of what constitutes confidential information

6. Appendix B - Performance Metrics: Key performance indicators and evaluation criteria

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Pakistan

Publisher

Ƶ

Document Type

Employment Contract

Cost

Free to use
Relevant legal definitions

























Clauses
































Relevant Industries

Manufacturing

Information Technology

Financial Services

Retail

Healthcare

Education

Construction

Professional Services

Telecommunications

Hospitality

Logistics

Real Estate

Relevant Teams

Human Resources

Legal

Finance

Operations

Sales

Marketing

Information Technology

Customer Service

Administration

Research and Development

Production

Quality Assurance

Supply Chain

Business Development

Relevant Roles

Manager

Executive

Officer

Administrator

Coordinator

Analyst

Assistant

Supervisor

Specialist

Associate

Representative

Developer

Engineer

Accountant

Sales Executive

Customer Service Representative

Technical Support Specialist

Human Resources Officer

Marketing Executive

Operations Manager

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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