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Severance Offer Letter Template for Pakistan

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Key Requirements PROMPT example:

Severance Offer Letter

"I need a Severance Offer Letter for a senior IT manager in Karachi who is being laid off due to department restructuring in March 2025, including non-compete clauses and stock option considerations."

Document background
The Severance Offer Letter is a crucial document used in Pakistani business practice when terminating employment relationships, whether through redundancy, restructuring, or mutual agreement. It serves as a formal written communication detailing the complete separation package offered to an employee, ensuring compliance with Pakistani labor laws and regulations. The document typically becomes necessary during company restructuring, downsizing operations, or individual terminations where a formal separation package is being offered. A well-drafted Severance Offer Letter helps protect both employer and employee interests by clearly documenting all aspects of the separation, including financial compensation, benefits, legal obligations, and conditions for acceptance. The document must align with both federal and provincial labor laws in Pakistan, including the Industrial Relations Act 2012 and relevant tax regulations.
Suggested Sections

1. Letter Header and Date: Company letterhead, date, and reference number if applicable

2. Employee Information: Full name, employee ID, position, and department of the employee

3. Separation Context: Brief, professional explanation of the reason for separation and last working day

4. Severance Payment Details: Clear breakdown of the severance amount and calculation method

5. Statutory Entitlements: List of all statutory payments including gratuity, earned leave, and notice period pay

6. Payment Timeline: When and how the severance and other payments will be made

7. Company Property: Instructions regarding return of company property and timeline

8. Continuation of Benefits: Information about any benefits that continue post-employment

9. Tax Implications: Brief explanation of tax treatment of the severance package

10. Full and Final Settlement: Statement confirming this as full and final settlement of all claims

11. Acceptance Instructions: How and when to accept the offer, including deadline

12. Contact Information: HR contact details for questions or concerns

Optional Sections

1. Non-Compete Clause: Include for senior positions or when dealing with sensitive information

2. Outplacement Services: Optional career transition support services if offered

3. Reference Provision: Terms of providing employment references if offered

4. Stock Options/Share Treatment: Include if employee has company shares or stock options

5. Confidentiality Reminder: Include for positions with access to sensitive information

6. Release of Claims: Include when seeking a legal waiver from the employee

7. Extended Medical Coverage: Include if offering continued medical benefits beyond separation

Suggested Schedules

1. Schedule A - Severance Calculation: Detailed breakdown of severance payment calculation

2. Schedule B - Benefits Summary: Detailed list of all benefits and their treatment post-separation

3. Schedule C - Settlement Statement: Complete breakdown of all payments and deductions

4. Schedule D - Company Property Checklist: List of company items to be returned

5. Appendix 1 - Acceptance Form: Form for employee to sign accepting the severance terms

6. Appendix 2 - Tax Summary: Detailed explanation of tax implications and calculations

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

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Relevant Industries

Banking and Financial Services

Information Technology

Manufacturing

Telecommunications

Healthcare

Education

Retail

Energy and Utilities

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Relevant Teams

Human Resources

Legal

Finance

Operations

Information Technology

Sales

Marketing

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Production

Quality Assurance

Customer Service

Administration

Business Development

Supply Chain

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Department Manager

Project Manager

Software Engineer

Sales Representative

Administrative Assistant

Human Resources Manager

Operations Manager

Marketing Director

Financial Analyst

Production Supervisor

Research Scientist

Customer Service Representative

Business Development Manager

Account Executive

Technical Support Specialist

Quality Assurance Engineer

Office Manager

Factory Worker

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

Find the exact document you need

Severance Offer Letter

A formal document used in Pakistan that outlines the terms, conditions, and compensation details of an employee's separation from employment, in compliance with Pakistani labor laws.

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Job Separation Agreement

A legally binding agreement under Pakistani law that documents the terms and conditions of employment termination between an employer and employee.

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