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Redundancy Letter Template for Pakistan

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Key Requirements PROMPT example:

Redundancy Letter

"I need a Redundancy Letter for our IT department in Karachi, as we're closing our development center and making 15 software engineers redundant effective March 1, 2025; the letter should include details about the enhanced severance package we're offering."

Document background
The Redundancy Letter is a crucial document used in Pakistan when terminating employment due to position redundancy, restructuring, or downsizing. It must comply with Pakistan's comprehensive labor law framework, including federal statutes like the Industrial Relations Act 2012 and provincial variations. The letter serves multiple purposes: it formally communicates the termination decision, explains the business rationale, outlines the notice period and final settlement details, and confirms compliance with legal requirements. This document is essential for maintaining clear documentation of the redundancy process, protecting both employer and employee interests, and ensuring all statutory obligations are fulfilled. The content typically includes specific references to relevant laws, detailed financial calculations, and information about employee rights and benefits.
Suggested Sections

1. Company Letterhead and Date: Official company letterhead with full contact details and date of the letter

2. Employee Details: Full name, employee ID, designation, and department of the employee

3. Subject Line: Clear indication that this is a redundancy notice

4. Redundancy Explanation: Clear explanation of the business circumstances leading to redundancy

5. Notice Period: Specification of the notice period as per employment contract and law

6. Last Working Day: Clear statement of the employee's last working day

7. Financial Entitlements: Detailed breakdown of final settlement including salary, severance pay, and other benefits

8. Company Property: Instructions regarding return of company property

9. Reference and Certificates: Information about providing service certificates and references

10. Signature Block: Space for authorized signatory's name, title, and signature

Optional Sections

1. Alternative Position Offer: Include if there are alternative positions available within the organization

2. Outplacement Support: Details of any career transition support being offered

3. Non-Compete Reminder: Include if the employee is bound by non-compete agreements

4. Medical Benefits Extension: Include if continuing medical benefits for a specified period

5. Grievance Procedure: Information about how to appeal the redundancy decision

Suggested Schedules

1. Calculation of Final Settlement: Detailed breakdown of all financial elements including basic pay, notice pay, gratuity, and other benefits

2. Handover Checklist: List of company items to be returned and handover procedures

3. Benefits Summary: Summary of benefits continuation or termination

4. Legal Rights Statement: Statement of employee's legal rights under Pakistani labor laws

Authors

Alex Denne

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

Relevant legal definitions




















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Relevant Industries

Manufacturing

Information Technology

Financial Services

Retail

Healthcare

Education

Telecommunications

Construction

Energy

Mining

Textile

Automotive

Professional Services

Agriculture

Logistics

Relevant Teams

Human Resources

Legal

Compliance

Industrial Relations

Finance

Operations

Administration

Relevant Roles

HR Manager

Legal Counsel

HR Director

Head of Human Resources

Employment Law Specialist

HR Business Partner

HR Administrator

Compliance Officer

Industrial Relations Manager

Personnel Manager

HR Operations Manager

Labor Relations Specialist

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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