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Fundamentals of Employment law in Pakistan

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Many people have been curious about the nature of employment within the Islamic Republic of Pakistan. Thus, learning a thing or two about the basic law on employment will shed some light into this issue. Since the amendment of its Constitution, the country has been given a federal democratic state on the basis of the Islamic principles regarding to social justice.

Constitutional Rights of Employees

Pakistan’s Constitution has a lot of provisions in relation to the labor rights as stipulated in its Fundamental Rights and Principles of Policy. Here are some of the notable rights given to its employees on the basis of the Constitution.

  • Article 11 – does not allow any forms of child labor, forced labor, and slavery as stated in this article.
  • Article 17 – provision for fundamental right to form unions and to exercise freedom of association is also describe in this part.
  • Article 18 – focuses on the right of citizens to engage in lawful professions or occupations, as well as conduct any lawful business and trade.
  • Article 25 – reserves the right to equality and prohibits discrimination particularly on the basis of sex only.
  • Article 37(e) – provides the security for the just and humane working conditions. It is also focused on ensuring women and children.labor law, isolated red stamp on a solid white background

Legislation for Employment

The labor laws of Pakistan have been inherited during the Indo-Pak subcontinent partition from India. Since its implementation, the laws evolved by way of continuous process in its aim to meet socioeconomic conditions, industrial development, labor force and population explosion, trade union growth, and literacy levels. This has been done through the commitment of the government to social welfare and development.

Additionally, the Provincial and federal Governments claim responsibility for labor which is referred to as “concurrent subject.” Nevertheless, the Federal Government enacts the laws for uniformity’s sake. It stipulates though that Provincial Governments can make rules and/or regulations in accordance with the prevailing conditions for provincial requirements.

Employment Contract Signing

An ordinance was enacted in 1968 regarding the relationship between employee and employer as well as employment contract. This ordinance was named Industrial and Commercial Employment which applies to all commercial and industrial establishments around the country. This stipulates the employment of twenty or more employees including the provision of employment security.

Those workers that are hired through labor contracts or through contractors will be generally regarded with unwritten contracts. They can also be enforced through courts based on the past practice or oral evidence.

More so, the moment a worker is hired, an appointment letter is required from the employer be it from commercial or industrial establishment. Obligatory content of labor contracts are stipulated in the employment’s terms and conditions. Such will include the tenure and nature of appointment, admissible fringe benefits and pay allowances, and the appointment’s terms and conditions.

Employee Contract Termination

Unless given one month notice or due to misconduct, the permanent worker can’t be terminated just for any reason. Otherwise, if the worker chooses to leave his or her post, the employer must furnish the wages equivalent to one month.

Legal advice

If you require legal advice on any aspect of Pakistani Employment Law, you need to hire a law firm which can advise you on a comprehensive range of services including:

  • Corporate consultancy
  • Legal advice and opinions
  • Drafting and negotiating various business agreements
  • Drafting service and employment contracts
  • Advice on corporate governance and its legal aspects
  • Advice on Legislative drafting
  • Legal and financial document vetting
  • And preparing due diligence reports.

Josh and Mak International can provide you with a successful partnership to guide your company through employment law and wider business regulation. Contact our office now: +92-51-844 2922 or +92-51-844 1622, you can also email

The Josh and Mak Team
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