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Employment Statement Letter Template for Pakistan

An Employment Statement Letter is a formal document issued under Pakistani employment law that outlines the fundamental terms and conditions of employment between an employer and employee. This document complies with the Industrial and Commercial Employment (Standing Orders) Ordinance 1968 and other relevant Pakistani labor laws. It serves as an official record of the employment relationship, detailing key aspects such as job responsibilities, compensation, benefits, working hours, leave entitlements, and other terms of employment. The letter forms a legally binding document that protects both employer and employee interests while ensuring compliance with local employment regulations.

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What is a Employment Statement Letter?

The Employment Statement Letter is a mandatory document under Pakistani employment law, particularly as required by the Industrial and Commercial Employment (Standing Orders) Ordinance 1968. It is typically issued at the commencement of employment or when there are significant changes to employment terms. The document serves multiple purposes: it formalizes the employment relationship, provides clear documentation of terms and conditions, ensures legal compliance, and helps prevent future disputes by clearly stating expectations and obligations of both parties. The letter must include specific information required by law, such as compensation details, working hours, leave entitlements, and notice periods. In Pakistan's legal framework, this document is crucial for both protecting employee rights and establishing employer expectations.

What sections should be included in a Employment Statement Letter?

1. Company Letterhead and Date: Official company letterhead with full registered address and contact details, and date of issuance

2. Employee Details: Full name and address of the employee

3. Job Title and Department: Specific designation and department/team assignment

4. Employment Start Date: Confirmed date of commencement of employment

5. Salary and Benefits: Detailed breakdown of basic salary, allowances, and benefits

6. Working Hours: Standard working hours, days of work, and overtime policies

7. Leave Entitlement: Annual, sick, and other leave entitlements

8. Notice Period: Required notice period for termination by either party

9. Probation Period: Duration and terms of probationary period

10. Job Duties: Brief overview of key responsibilities and reporting relationship

11. Closing and Signatures: Acceptance section, signature blocks for employer and employee

What sections are optional to include in a Employment Statement Letter?

1. Confidentiality Clause: Include when employee will have access to sensitive information

2. Non-Competition Clause: Include for senior positions or roles with access to trade secrets

3. Remote Work Arrangements: Include if flexible or remote working is permitted

4. Performance Review Process: Include if there's a formal review system with specific timing

5. Bonus Structure: Include if position is eligible for performance or other bonuses

6. Training Requirements: Include if specific training or certifications are required

7. Travel Requirements: Include if position requires regular travel

What schedules should be included in a Employment Statement Letter?

1. Schedule A - Detailed Job Description: Comprehensive list of duties and responsibilities

2. Schedule B - Benefits Package Details: Detailed breakdown of all benefits, insurance coverage, and allowances

3. Schedule C - Company Policies: Reference to or summary of key company policies applicable to the role

4. Schedule D - Performance Metrics: Specific KPIs or performance expectations for the role

5. Appendix 1 - Code of Conduct: Summary of company's code of conduct and ethical guidelines

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Pakistan

Publisher

Ƶ

Document Type

Statement of Work

Cost

Free to use

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