Document background
The Redundancy Agreement is a crucial legal document used in Pakistan when terminating employment due to organizational restructuring, economic conditions, or operational changes. It serves as a formal record of the mutually agreed terms of separation between employer and employee, ensuring compliance with Pakistani labor laws, including the Industrial and Commercial Employment (Standing Orders) Ordinance, 1968, and the Industrial Relations Act, 2012. This document typically becomes necessary during company reorganizations, downsizing initiatives, or when positions become redundant due to technological changes or economic circumstances. The agreement protects both parties by clearly stating all financial entitlements, ongoing obligations, and terms of separation, while providing a framework for amicable termination that minimizes the risk of future disputes.
