The Termination Letter To Employee Due To Business Closure is a crucial document used when a company in Pakistan must cease operations and terminate employee contracts. This document must comply with Pakistani labor laws, particularly the Industrial and Commercial Employment (Standing Orders) Ordinance 1968, the Factories Act 1934, and relevant provincial regulations. It serves as official communication to employees about the business closure, containing essential information about notice periods, final settlements, and statutory entitlements. The letter should be drafted carefully to ensure all legal requirements are met, including proper notice periods, calculation of dues, and explanation of termination benefits. This document is particularly important in the Pakistani context where specific legal requirements govern business closures and employee terminations, and proper documentation is essential for both legal compliance and potential future reference.
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1. Letter Header and Date: Company letterhead, date, and reference number if applicable
2. Employee Information: Full name, employee ID, designation, and department of the employee
3. Subject Line: Clear indication that this is a termination notice due to business closure
4. Notice of Termination: Formal statement of termination and effective date
5. Reason for Termination: Clear explanation of business closure and circumstances necessitating the termination
6. Notice Period: Specification of notice period as per employment contract and legal requirements
7. Final Settlement Details: Information about salary, benefits, and other entitlements up to the last working day
8. Return of Company Property: List of company assets to be returned before final settlement
9. Certificate of Service: Confirmation that a service certificate will be provided
10. Closure and Signature: Professional closing, signature block for authorized signatory
1. Severance Package: Details of any additional compensation beyond legal requirements, used when company offers extra benefits
2. Gratuity Calculation: Included for employees who have completed the qualifying period for gratuity
3. Outstanding Leave Balance: Details of unused leave encashment, if applicable
4. Non-Disclosure Reminder: Reminder of continuing obligations regarding confidentiality, used for senior positions or sensitive roles
5. Outplacement Support: Information about any job search assistance or career transition support, if offered
6. Medical Insurance Extension: Details about post-employment medical coverage, if applicable
1. Final Settlement Calculation: Detailed breakdown of all payments including salary, benefits, and deductions
2. Company Property Checklist: Itemized list of company assets to be returned
3. Benefit Entitlements Summary: Detailed list of all benefits and their status post-termination
4. Legal Compliance Checklist: Documentation ensuring compliance with Pakistani labor laws regarding termination
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