The notice period law in Pakistan is a key factor that impacts both employees and employers in terms of Pakistan’s labor law. It’s wise to consider a legal advisor or a professional to know the employment rights and notice period laws in Pakistan.
We share the relevant information regarding the notice period law in Pakistan in this article below.
What is the notice period in Pakistan?
If a permanent employee resigns from their current job to switch to another, he or she must provide a written notice period before leaving the job with the resignation. If the employer fires a permanent employee due to any valid reason, he or she must provide a notice period in writing so that the employee can search for another job and have a smooth transition.
Permanent employees must provide or receive a one-month notice period for resignation or termination from the employer. This notice period may be extended according to the terms and conditions of the employment contract or the employee’s designated position in the company.
The Fixed employment contracts stated a specific employment notice period in the agreement. The employee can consider a legal advisor to know all the rights and obligations for the employment notice period according to the notice period law in Pakistan.
Understanding notice period laws in Pakistan
The notice period is essential for employees and employers to ensure a smooth transition. Permanent employees can provide a one-month notice period to leave, or the employer provides a one-month notice period to terminate. The terms of the notice period can be changed or extended according to the employee’s job profile and employment contract.
General Notice Period Requirement
The general notice period requirements for employers and employees according to the Industrial and Commercial Employment Ordinance Pakistan’s pre-define parameters and standards are;
For employers;
The employer must provide a minimum one-month notice period in writing to a permanent employee in case of termination. However, the notice period can be extended in employment contracts or terms of employment from the employer depending on the employee’s job profile, salary range and activities such as .
The employer can terminate the employee within a probation period without a notice period.
The employer can pre-define a notice period in the fixed-term employment contracts.
For employees;
Permanent employees must provide a one-month notice period in writing with their resignation and receive a one-month salary when leaving.
The employees can seek legal advice for notice period issues to understand their employment rights according to Pakistan’s labor law.
Factors Affecting Pakistan’s Notice Period
These are a few factors affecting Pakistan’s Notice Period according to the labor laws;
Employee’s Length of Service
The employee’s service duration is the most essential factor affecting the notice period. If the employees are on probation, they may not receive any notice period from the employer. Typically, the probation period in Pakistan is three months. After the probation period, the employee is declared permanent staff and must not be terminated or resign without a one-month notice period.
Employees working for a long time in a company might receive a two to three-month notice period or need to provide a two to three-month period in writing to the employer when they resign from the designated position.
Employee’s Age
Age discrimination for employment is illegal in Pakistan. The court of law may consider sincerity and seniority to evaluate a long notice period for older employees for a smooth transition and flexibility to job search, especially the aged employees near retirement.
Employee’s Position
The highly professional seniors and specialized employees usually receive a long notice period or are liable to provide a long notice period with resignation. The employer may require additional time to find a suitable replacement with the necessary skills and experience. Conversely, entry-level positions might have a shorter notice period due to a larger pool of potential candidates.
Availability of Similar Jobs
The job market can impact the notice period. If there aren’t many similar jobs in the employee’s field, they may think a shorter notice period is reasonable for a faster transition to new employment.
An older employee with a specialized position and limited similar job opportunities might be given a longer notice period due to their seniority and the challenges they face in finding new employment.
Always refer to your employment contract for the specific notice period. If unsure or the contract lacks clarity, consulting a legal professional is recommended to ensure you understand your rights and obligations under Pakistani employment law.
Difference Between Severance Pay and Notice Period
The Severance Pay and Notice periods are different, but both are essential for employment in various aspects.
Notice Period: It is a time span for both employer and employee to notify each other of the resignation or termination process. If any employer fails to provide a valid notice, it can result in penalties equivalent to one month’s wages. It’s a bridge for a smooth handover and job search for both parties.
Severance Pay: The employer provides financial compensation to the employee on termination, excluded in exceptional conditions. It’s usually a one-month salary for all previous years of service for financial support during the transition.
Tips for a Smooth Transition During Notice Period
These are a few tips for a smooth transition during the notice period;
Documentation and Knowledge Transfer
- Gather and Organize Documents: Compile key documents like project files, training materials, and handover notes. This ensures a smooth knowledge transfer to your replacement.
- Create Detailed Handover Documents: Document your responsibilities, ongoing projects, and crucial information for your successor. Clear instructions ease the transition for both parties.
Professional Relationships
- Maintain Professionalism: Despite leaving, continue to conduct yourself professionally to maintain positive relationships with co-workers and secure your professional reputation.
- Offer to Train Your Replacement: If possible, offer to train your replacement during your notice period to show your commitment to a smooth handover and build a strong professional network.
- Organize a Farewell: Consider a farewell lunch or gathering to maintain a positive connection with colleagues and potentially build bridges for future opportunities.
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