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Employment Separation Form Template for Pakistan

A comprehensive legal document used in Pakistan to formalize and document the termination of employment relationship between an employer and employee. The document complies with Pakistani labor laws, particularly the Industrial and Commercial Employment (Standing Orders) Ordinance 1968, and includes detailed information about final settlements, clearances, and mutual obligations. It serves as an official record of employment separation, covering aspects such as financial settlements, company property return, and continuing obligations, while ensuring compliance with local employment regulations and protecting both parties' interests.

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What is a Employment Separation Form?

The Employment Separation Form is a critical document used in Pakistan to formally document and process the termination of employment relationships. It is designed to comply with Pakistani labor laws, including the Industrial and Commercial Employment (Standing Orders) Ordinance 1968 and various provincial labor regulations. This document is essential when an employee leaves an organization through resignation, termination, retirement, or mutual separation. It includes comprehensive details about final settlements, outstanding dues, company property returns, and continuing obligations. The form serves multiple purposes: it provides legal protection to both parties, ensures proper documentation for audit and compliance purposes, and helps prevent future disputes regarding the terms of separation. It should be completed and signed by all relevant parties before the final settlement is processed.

What sections should be included in a Employment Separation Form?

1. Employee Information: Basic details including employee name, ID, designation, department, and duration of employment

2. Separation Details: Type of separation (resignation/termination/retirement), effective date, and notice period details

3. Final Settlement Information: Overview of all financial dues including salary, gratuity, leave encashment, and other benefits

4. Company Property Return: Declaration of company assets to be returned (ID card, equipment, documents)

5. Confidentiality Reminder: Reminder of ongoing confidentiality obligations post-employment

6. No Dues Declaration: Confirmation from various departments that the employee has no outstanding dues or obligations

7. Acknowledgment: Employee acknowledgment of the separation terms and final settlement

What sections are optional to include in a Employment Separation Form?

1. Exit Interview Summary: To be included when an exit interview has been conducted and needs to be documented

2. Non-Compete Reminder: Include if the employee was subject to non-compete restrictions in their employment contract

3. Pending Projects Handover: Required for employees leaving with ongoing project responsibilities

4. Benefits Continuation: Include for cases where certain benefits continue post-employment

5. Dispute Resolution: Include when there are specific terms agreed for resolving any future disputes

6. Reference Agreement: Include when specific terms about future references have been agreed

What schedules should be included in a Employment Separation Form?

1. Schedule A - Final Settlement Calculation: Detailed breakdown of all financial settlements including salary, benefits, deductions, and net payable amount

2. Schedule B - Company Property Checklist: Itemized list of company property to be returned with condition assessment

3. Schedule C - Department Clearance Form: Clearance signatures from various departments (IT, Finance, HR, etc.)

4. Appendix 1 - Supporting Documents: List of attached documents such as resignation letter, termination notice, or retirement application

5. Appendix 2 - Benefits Summary: Summary of post-employment benefits, if applicable

Authors

Alex Denne

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

Jurisdiction

Pakistan

Publisher

Genie AI

Document Type

Employment Form

Cost

Free to use

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