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Outsourced Employee Contract Template for Pakistan

This document establishes the terms and conditions of employment for outsourced staff in Pakistan, creating a three-way relationship between the outsourcing company (employer), the employee, and the client company. It complies with Pakistani labor laws, including the Industrial Relations Act 2012 and relevant employment legislation, while addressing specific requirements for outsourced employment arrangements. The agreement covers essential aspects such as duties, compensation, benefits, confidentiality, and termination terms, ensuring clear delineation of responsibilities and rights of all parties involved.

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What is a Outsourced Employee Contract?

The Outsourced Employee Contract is essential for businesses operating in Pakistan that utilize external workforce arrangements through outsourcing companies. This document is specifically designed to comply with Pakistani employment legislation while managing the complex relationships between outsourcing companies, their employees, and client organizations. It should be used when engaging staff through an outsourcing arrangement, whether for temporary, project-based, or long-term positions. The contract addresses crucial elements including employment terms, workplace responsibilities, compensation structures, and compliance requirements under Pakistani law, while protecting the interests of all parties involved. It is particularly important in sectors such as IT, BPO, and professional services where outsourced employment arrangements are common.

What sections should be included in a Outsourced Employee Contract?

1. Parties: Identifies the three parties involved: the Employee, the Outsourcing Company (Employer), and the Client Company

2. Background: Context of the agreement and the outsourcing arrangement

3. Definitions: Key terms used throughout the agreement including 'Services', 'Client Location', 'Confidential Information', etc.

4. Appointment and Term: Details of the employment position, duration, and probationary period if applicable

5. Nature of Relationship: Clarification of employment relationship between all three parties

6. Duties and Responsibilities: Employee's specific roles, reporting structures, and performance expectations

7. Place of Work: Specification of work location(s) and any mobility requirements

8. Working Hours: Standard working hours, overtime provisions, and flexibility arrangements

9. Compensation and Benefits: Salary, allowances, bonuses, and statutory benefits as per Pakistani law

10. Leave Entitlements: Annual, sick, casual, and other leave entitlements

11. Confidentiality: Protection of sensitive information of both the outsourcing company and client

12. Intellectual Property: Ownership and rights regarding work created during employment

13. Non-Competition: Restrictions on working with competitors during and after employment

14. Termination: Conditions and procedures for contract termination

15. Governing Law: Specification of Pakistani law as governing law and jurisdiction

16. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

What sections are optional to include in a Outsourced Employee Contract?

1. Mobility Clause: Required if employee may need to work at multiple client locations

2. International Travel: Include if role requires international travel

3. Remote Working Provisions: Include if remote work is permitted

4. Performance Bonus Structure: Include if performance-based incentives are offered

5. Training Obligations: Include if specific training requirements exist

6. Client-Specific Policies: Include if client has specific policies that must be followed

7. Data Protection: Include if role involves handling personal or sensitive data

8. Post-Termination Restrictions: Include if additional post-employment restrictions are required

9. Equipment and Resources: Include if specific provisions about company equipment are needed

What schedules should be included in a Outsourced Employee Contract?

1. Schedule 1 - Job Description: Detailed description of role, responsibilities, and expectations

2. Schedule 2 - Compensation Structure: Detailed breakdown of salary components and benefits

3. Schedule 3 - Client Specific Requirements: Special requirements or policies of the client company

4. Schedule 4 - Code of Conduct: Combined code of conduct incorporating both outsourcing company and client policies

5. Schedule 5 - Confidentiality Agreement: Detailed confidentiality terms and requirements

6. Appendix A - Leave Policy: Detailed leave rules and procedures

7. Appendix B - Performance Evaluation Criteria: Performance assessment framework and KPIs

8. Appendix C - Employee Benefits: Detailed description of all employee benefits and eligibility criteria

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

Cost

Free to use

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