The Severance Notice is a crucial document used in Pakistan when terminating employment relationships, whether through redundancy, performance issues, or mutual agreement. It must comply with the Industrial and Commercial Employment (Standing Orders) Ordinance, 1968, and relevant provincial labor laws. The document serves multiple purposes: it officially communicates the termination decision, specifies the notice period and last working day, outlines the final settlement components, and details the transition process. This notice is legally required in Pakistan and must include specific elements such as termination date, notice period, final settlement calculations, and company property return procedures. It protects both employer and employee interests by clearly documenting the termination terms and ensuring compliance with local employment laws.
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1. Letter Header: Company letterhead, date, reference number, and employee's contact details
2. Subject Line: Clear indication that this is a Notice of Termination/Severance Notice
3. Employment Details: Employee's position, department, and duration of employment
4. Notice of Termination: Clear statement of employment termination and effective date
5. Notice Period: Specification of notice period as per employment contract and local laws
6. Final Settlement: Overview of final payment including salary, benefits, and other entitlements
7. Company Property: Instructions regarding return of company property and handover process
8. Acknowledgment: Space for employee signature acknowledging receipt of notice
1. Garden Leave: Include when employee is being placed on garden leave during notice period
2. Post-Employment Obligations: Reminder of continuing obligations like confidentiality and non-compete if applicable
3. Performance-Related Information: Include if termination is performance-based, with reference to previous warnings
4. Outplacement Support: Details of any career transition support being offered
5. Medical Insurance Extension: Information about continuation of medical benefits if applicable
1. Schedule A - Final Settlement Calculation: Detailed breakdown of final payment including basic salary, allowances, gratuity, and other benefits
2. Schedule B - Outstanding Leaves Calculation: Calculation of payment for unused annual leaves and other leave entitlements
3. Schedule C - Company Property Checklist: List of company assets to be returned with current status
4. Appendix 1 - Handover Document: Template for documenting handover of responsibilities and ongoing projects
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