Document background
The Clearance Letter for Employee is a standard document used in Pakistani business practice when an employee leaves an organization, whether through resignation, retirement, or termination. It forms part of the formal exit process required under Pakistani labor laws and corporate governance frameworks. The document confirms that the departing employee has returned all company property, settled any outstanding dues, and received clearance from relevant departments. This letter is crucial for both parties as it prevents future disputes regarding settlements and serves as proof of proper employment conclusion. It's typically issued after all exit formalities are completed and before the final settlement is processed, protecting both employer and employee interests under Pakistani jurisdiction.
